Category Archives: U.S.

Business/Economics, U.S.

Federal Reserve admits inflation is a problem, new jobs could make it worse

Despite years of denial, the Federal Reserve ( a privately run bank) is now saying inflation is a concern: “If we are going to have success in creating a long-run sustainable recovery with lots of job growth, we have to keep inflation under control.”-Ben Bernanke, Federal Reserve Chairman

The problem is so bad that the Federal Reserve is worried that job growth could actually make things worse: “It is not clear that we can get substantial improvements in payrolls without some additional inflation risk.”

Federal Reserve chairman Bernanke had been saying for months that inflation isn’t that much of a problem.  Now Bernanke is saying that the best way to create jobs is to keep prices down.  In other words, fighting inflation is now the main focus, jobs will come later.  As part of the fight on inflation, the Federal Reserve has decided to keep the interest rates it charges financial institutions low/unchanged.

Business/Economics, U.S.

Unemployment up, spending way down, blame it on the inflation the government denies is happening

Job analysts were shocked Thursday, April 28, when the weekly first time unemployment claims jumped by 25,000.

“This is a major disappointment because it’s another move in the wrong direction. This is more than just a misstep for the job market. It’s a signal that the robust job growth we’ve seen recently is poised to lose momentum.”-Tim Quinlan, Wells Fargo

Total number of initial jobless claims jumped to 429,000 in the week ended April 23, analysts were expecting it to drop to 390,000.

The government is reporting that overall unemployment numbers show a drop in unemployment, but, more and more analyst think that’s because unemployed people have simply exhausted the time limit for unemployment benefits, NOT because they found work.

“We can’t be certain it’s a positive trend yet. The Labor Department doesn’t specify whether these people are rolling off their benefits or if they’ve found jobs.”–Tim Quinlan, Wells Fargo

Another factor is that each state has its own limits on unemployment benefits, so the federal reporting is not accurate state by state. For healthy improvement in the job market  the economy needs to add between 150,000 and 200,000 jobs every month, which it has not been doing.

Add to the jobs loss shock, the GDP shock.  The U.S. Commerce Department reported Thursday, April 28, that Gross Domestic Product percentages fell to 1.8% (it’s funny, some media reports are calling it an increase, maybe compared to last April).  At the end of 2010 GDP was at 3.1%, so April’s numbers are definitely a drop.

The Department of Commerce is blaming the drop on decreased consumer spending, due to, guess what, inflation.  The drop shocked analyst who were expecting GDP to hit 4.3%.

“Undoubtedly, consumers are cutting discretionary spending to compensate for rising food and energy prices.”-Jim Baird, Plante Moran Financial Advisors

Retail prices were up 3.8% from a year earlier.  Add to that the slow housing market, decreasing government domestic spending (even though the government continues to spend money outside the country), and even bad weather are taking a toll on any “recovery”.

 

 

Business/Economics, U.S.

WalMart says; What Economic Recovery?

“Purchases are really dropping off by the end of the month even more than last year. This end-of-month [purchases] cycle is growing to be a concern.”-Mike Duke, CEO WalMart

WalMart executives are doubting claims of an economic recovery, because their sales are down.

Most WalMart shoppers are low income workers who live paycheck to paycheck.  CEO Mike Duke said because of inflation (which official government agencies deny is happening) their customers are running out of money, faster than ever.

Duke admitted that WalMart had to raise prices on produce, but tried to compensate by lowering prices on electronics, but you can’t eat electronics.

WalMart officials are now going to try to lower all their prices, in the hopes it might boost their falling sales.

 

U.S.

U.S. on its way to Tornado record

At least 300 people have been reported killed from Wednesday’s (April 27) tornado strikes that hit the south east.

The latest tornadic outburst hit six states, the unofficial number is 151 tornadoes.  TV news weathermen are saying it could be the most devastating one day tornado event in U.S. history.

They also think when the official numbers come in, it will reveal record numbers of tornadoes for the month of April.  Officially the worst tornado outbreak in U.S. history occurred in April 1974.  148 twisters hit 13 states in one day, according to the National Weather Service.

So far, unofficially it looks like April 2011 might have a record of 300 tornadoes.

International, Opinion, U.S.

U.S. to violate sanctions against Libya, will sell Libyan oil

The U.S. Treasury Department’s Office of Foreign Assets Control is going to use a loophole in the sanctions against Libya, to oversee oil sales by the rebels.

That means the U.S. will be directly involved in all oil deals will the Libyan rebels.

This is on top of the $25 million in aid Obama is sending, and on top of another $45 million Obama already sent.  Just remember that Obama, and Congress, wants to cut your taxpayer funded domestic programs, while sending your money to Libya.

International, U.S.

Former Ronald Reagan official says this is all about World War 3

“Washington is all for invading Libya and is putting more and more pressure to intervene in Syria because we want to… clear China and Russia out of the Mediterranean.”

“Those two countries are just in the way of American hegemony in the Mediterranean and certainly the Americans do not want a powerful Russian fleet stationed there and they certainly don’t want China drawing energy resources.”

“Once Russia and China come to the conclusion that the Americans simply cannot be dealt with in any rational way and are determined to somehow subdue them and do them damage, all kinds of escalations can result. This is the real danger and we’re risking a major war.” Dr. Paul Craig Roberts, former Assistant Secretary of the Treasury under President Ronald Reagan, and former editor of the Wall Street Journal

International, U.S.

Afghan pilot kills U.S. troops, financial troubles might be the cause

“Suddenly, in the middle of the meeting, shooting started. After the shooting started, we saw a number of Afghan army officers and soldiers running out of the building. Some were even throwing themselves out of the windows to get away.”-Colonel Bahader, Afghan Air Corps spokesman

An Afghan pilot shot and killed eight U.S. troops and one U.S. contractor.   Witnesses say the shooting happened after an argument between the pilot and the troops.  The pilot was also killed. Five Afghan soldiers were wounded.

The pilot was a 20 year veteran of the Afghan government forces, and part of a unit that undergoes strict screening for loyalty.  So far no word on what the argument was about.  The brother of the pilot thinks the shooting was a result of stress aggravated by financial problems: “He was 48 years old. He served his country for years. He loved his people and his country. He had no link with Taliban or al-Qaeda. He was under economic pressures and recently he sold his house. He was going through a very difficult period of time in his life.”-Dr. Mohammad Hassan Sahibi, brother of the shooter

 

U.S.

Another fatal U.S. mine cave in

After a fatal silver mine collapse, in Mullen, Idaho, a Washingtonville, Ohio, man was killed April 25 in a coal mine accident.

Officials with the East Fairfield Coal Company says the cave in was a freak accident.  They claim it was the first fatal accident in the mine’s 80 years of operation.  State and Federal authorities are investigating.

 

International, Opinion, U.S.

Obama ready to change line up, the result will not change much

There are rumors that President Barack Obama is ready to change his military and national security staff.

Current Defense Secretary Robert Gates wants to leave.  He could be replaced by current CIA chief Leon Panetta.   The position of chief of the CIA could go to current Army General David Petraeus, who is about to finish his tour of duty in Afghanistan.  Petraeus’ old job, Commander of Coalition Forces in Afghanistan, could go to Marine Lieutenant General John R. Allen.

There seems to be a clear pattern of ladder climbing.  Obama is expected to name a new ambassador to Afghanistan, someone who is from the Bush Jr camp (as is Robert Gates); Ryan C. Crocker.

Crocker has lots of experience being an ambassador.  Obama even gave him the highest civilian award, the Presidential Medal of Freedom.  Crocker is currently the dean of the Bush School of Government and Public Service.  Guess who else was dean of that school?  Current Defense Secretary Robert Gates.

So even with all the staffing changes there might not be much change to U.S. foreign policy.