The Dow Jones stock average closed early September Friday at 17,137, despite the fact that the payroll jobs report was a measly 125,000 new jobs for August, an insufficient amount to keep up with the growth in the working age population.
While America still suffers with repressed wages, increasing poverty and a vanishing middle class, Wall Street and big Multinational Corporations are having a party. Bonuses increased 15% and are back to their pre-financial crisis excesses Corporations hording cash offshore increased 11.8% in 2013 to a whopping $1.95 trillion.
Want to know how to create up to 5.8 million jobs in three years? End currency manipulation. So says a new study released from the Economic Policy Institute. If currency manipulation was stopped, the U.S. trade deficit would shrink by up to $500 billion in three years, annual GDP would increase up to $720 billion, the federal budget deficit would be reduced by $100 billion each year and 40% of the new jobs created would be in manufacturing.
The Obama 2015 Budget is finally here with the usual fanfare of a thud, dud, not gonna happen political reality. Earlier we received previews where the Obama administration finally dropped chained CPI from their proposals. The 2015 budget proposed is $3.9 trillion dollars.
Yet another Senate report, yet another bank is busted for tax evasion. The Senate permanent subcommittee on investigations has released a report on Credit-Suisse bank detailing their systemic offshore tax evasion of U.S. funds.
The Obama administration is finally abandoning their endorsement of chained CPI for next years budget. The reason is probably not good economics, but political. Election season is near and this is just one of many policies the Obama administration endorsed which raised the ire of the retired. A refresher, chained CPI is another method to adjust for cost of living increases at a reduced rate than what is currently used, CPI-W.
Economic theory teaches that free price and profit movements ensure that capitalism produces the greatest welfare for the greatest number. Losses indicate economic activities where costs exceed the value of production, thus investment in these activities is curtailed. Profits indicate economic activities where the value of output exceeds its cost, thus investment increases. Prices indicate the relative scarcity and value of inputs and outputs, thus serving to organize production most efficiently.
Warren Buffett (worth $58.5 billion) was not joking about winning the class war. Before the Great Recession (in 2006) Warren Buffett had said "they were winning". But in the aftermath of the Great Recession (in 2011) he said "they won".
Having the mightiest military, more powerful than the world has ever seen, doesn't make America exceptional. An ever expanding middle-class, equal opportunity for all, fairness in the political process and worker's rights was what had also made America exceptional since World War II—when the rising tide of capitalism had once lifted all boats. Now it just lifts the biggest yachts.
The anonymous Obamacare expert, who provided us a year ago with the most complete account of Obamacare available, has returned with an explanation of estate recovery. Obamacare herds the poor into Medicaid which requires some enrollees to forfeit homes and other assets they might have to the state to cover the cost of their medical care. The research article below is meticulous and demonstrates that Obamacare was not enacted to serve the people.
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