US Pol’s Squabble, US Economy Struggles

US Pol’s Squabble, US Economy Struggles

$DIA, $SPY, $QQQ, $VXX

As the Democrat and Republican politicians struggle for power, the US economy is on the edge of Recession.

At the same time all parties are counting down to the time The Obama’s exit the White House and fades to “Black.”

But, business as usual prevails Washington, DD, tax and spend, and in this atmosphere Americans are being told “not to worry” the economy is growing.

Americans are being told to accept all this because government bureaucrats produced, as instructed by the Obama administration, “official” numbers showing that things are not as bad as The People think they are.

The “news” entertainment media industry parrots the Obama/Dem party line of government produced statistics, their paychecks depend on it.

US governmental economic press releases are questionable beyond the pale. Such releases are made intending to prove with mathematical precision that the economy is not as bad as The People think it is.

The fact is that The People cannot be reduced to anything quantifiable, much less with any specificity. This is true if for no other reason that people are people, and they feel it in their pocketbooks.

An economy can be seen correctly in just 3 Key activities: working, savings, and investing.

These activities are affected, controlled, and manipulated by their elected politicians and the appointed bureaucrats.

The state of the US economy reflects decades of bad legislation, bad regulation, bad executive orders, and crony capitalism. This is the place where the worst people available get in positions of power to run things.

When the “talking heads” say that the United States is in the best shape of all the developed countries it is little comfort to those of us who independently study it and write about it regularly. The US is way of the best of the worst.

The Big Q: Why is the US best?

The Big A: The United States is the largest grower of food in the world, its largest energy producer, its largest manufacturer; and it has more annual immigration that all countries of the world combined.

The problem is that the Nation’s highly politicized government does not have the same beliefs, and produces nothing but more tax burdens, expense, and debt.

The federal government issues statistics that say the economy is growing. That then is picked up by the politicians and those in the Fed and others who parrot the “good news.”

If The People understood the facts instead of buying into the propaganda, none of the politicians would get re-elected, the bureaucrats fired, and Janet Yellen would be sacked forthwith.

Recently Jed Graham wrote,”The growth of federal income and employment tax with-holdings, the broadest and most timely read on the health of the job market, has been sinking at an alarming rate.”

The take-away:

1. When governmental regulations strangle business and taxes drain its capital, then it should be expected that employment will suffer.
2. When the number of people underemployed, unemployed, or have given up looking for employment increases, that decreases or reverses the cash flow into every element of the economy.
3. The United States has one of the lowest savings rates in its history.
4. US companies have stagnant earnings and are cutting costs to the bone.
5. Except for those employed by government, pay raises and bonuses are but a memory.
6. Lots of industries are not only reducing human resources overhead but are closing outlets.
7. Many who are fortunate to have a job and can put money away are not free and clear.

The congressional tax wisdom is that interest on savings accounts is a bad thing while going into debt is to be encouraged. Even if people had money to save, Fed policy makes sure they get paid nothing.

When experiencing no return on investment, tax, and inflation, it is not surprising that people choose to just spend their money while it still has purchasing power.

The media thrives on the volatility of the DJIA, S&P 500, and the NAS 100 as if they were meaningful reflections of the economy.

In fact they represent nothing significant except hyperbole to promote the financial markets.

All they show is result of the manipulation of a handful of stocks by Key market traders exploiting the desperation of investors seeking yield.

Today, The People are as frustrated and angry about the financial markets as they are about politics. Their outrage underscores the anti-political establishment movement in this election cycle.

All of that as the American economy is struggling, as the politicians squabble.

Government is not the solution to problems that Government created.

Seeing a Revolution…

Monday, the US major stock market indexes finished at: DJIA -123.88 at 16515.75, NAS Comp -32.52 at 4557.89, S&P 500 -15.85 at 1932.12

Volume: Trade was heavy with over 1.23-B/shares changed hands on the NYSE

• Russel 2000 -9.0% YTD
• NAS Comp -9.0% YTD
• S&P 500 -5.5% YTD
• DJIA -5.2% YTD

Stay tuned…

Paul Ebeling

HeffX-LTN

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