December 2012

New Residential Construction Housing Starts Decline by -3.0% for November 2012

The November 2012 Residential construction report showed housing starts decreased, -3.0%, from October. Both October and September was revised downward. October was revised from 894,000 housing starts to 888,000. September was revised down by 20,000, from 863,000 to 843,000.

World-Market State vs. Democracy: Why We Should Go Over the Fiscal Cliff

International corporations use “free market” capitalism ideology to justify globalization and create a “world-market-state.” Supposedly, “free market” capitalism makes America’s economy efficient and, therefore, far more prosperous. In practice, however, international corporations promote laws based on “free market” capitalism—for their own benefit.

The Corporations versus the American People Battleground is the Fiscal Cliff

corporate politiciansWe have lobbyists controlling the fiscal cliff debate and the messaging:

By posing as populists hostile to “government social engineering,” the Right succeeded in duping large numbers of middle-class Americans into seeing their own interests – and their “freedom” – as in line with corporate titans.

Corporations are literally posing as grassroots activists with media appearances, twitter accounts, social media, major articles and dedicated websites, all in an effort to hoodwink the American people into signing onto having their social security cut along with their health benefits.

Pundits and Lobbyists all make huge riches ranting and prattling on how someone is stealing food stamps or how Grandma should have her social security benefits cut and denied health care. Corporate controlled financial press puts biased choices for their 1% audience. Those still ethical and objective cannot type fast enough to confront all of the lies on the fiscal cliff. We are being barraged with corporate money funded digital bitstream lies on an minute by minute basis.

Industrial Production Does a Post Superstorm Sandy Bounce, Increases 1.1% for November 2012

Hurricane Sandy has really wreaked havoc with industrial production's monthly percentage changes. Sandy wiped out almost a full percentage point of October's manufacturing production even though the storm hit New Jersey on October 29th. Manufacturing resumed in November, causing a 1.1% increase in manufacturing production.

The Fiscal Cliff Hoax - Our Collapsing Economy and Currency

fiscal cliffOriginally published by Institute for Political Economy

Is the “fiscal cliff” real or just another hoax? The answer is that the fiscal cliff is real, but it is a result, not a cause. The hoax is the way the fiscal cliff is being used.

The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues. The fiscal cliff cannot be closed because of the unfunded liabilities of eleven years of US-initiated wars against a half dozen Muslim countries–wars that have benefited only the profits of the military/security complex and the territorial ambitions of Israel. The budget deficit cannot be closed, because economic policy is focused only on saving banks that wrongful financial deregulation allowed to speculate, to merge, and to become too big to fail, thus requiring public subsidies that vastly dwarf the totality of US welfare spending.

Friday Movie Night - Bowling for Columbine

grieving angelWith the latest mass shooting tragedy dominating the news, we thought it might be time to re-watch Michael Moore's award winning documentary, Bowling for Columbine.

There have been 63 mass shootings in the United States since 1982 and it seems in 2012 there is an epidemic of horror and violence. We know extreme poverty increases violence as does general economic stress. The loss of a job, a threat to career can tip the scales towards tragedy. Workplace abuses have increased as jobs became scarce.

Some will blame guns, some will think the answer is even more guns to shoot the other people with guns.

Could it be the real problem is our me first, f*@k you society? Think about it. If one is mentally ill, they will probably be fighting just to survive, never mind be in any sort of environment where that person would be accepted, with all of their limitations. We have more people in prison than any other industrialized nation. We have homeless kids and homeless people, an entire invisible world of American poverty out there, served platitudes with nothing to stop the downward spiral and slide.

Consumer Price Index Declines 0.3% on Falling Gas Prices for November 2012

The November Consumer Price Index decreased -0.3% from October. CPI measures inflation, or price increases. The culprit is gas prices. The gasoline index declined by -7.4%, the largest decline in gas prices since December 2008. The dramatic drop in gas prices offset inflation in other areas for the month which resulted in a decline not seen since May 2012 Below are CPI's monthly percentage changes.

Retail Sales Only Increase 0.3% Due to Lower Gas Prices for November 2012

November 2012 Retail Sales increased, by 0.3%. Gasoline sales tanked -4.0% from October on lower prices. If one removes gasoline sales from retail sales, overall the increase from October would have been 0.8%. Auto sales increased 1.6% and minus all autos & parts but including gas sales, retail sales had no change from last month. Retail sales are reported by dollars, not by volume with price changes removed.

The Fed Focuses on the Unemployed

federal reserve buildingThe FOMC just did a great thing. The Federal Reserve tied interest rates and quantitative easing to U.S. labor. The messaging alone is powerful. The Federal Reserve is saying, very clearly, U.S. workers matter. Businesses need to start hiring and increasing wages if they want to actually improve the overall economy.

About 5 million people—more than 40 percent of the unemployed—have been without a job for six months or more, and millions more who say they would like full-time work have been able to find only part-time employment or have stopped looking entirely. The conditions now prevailing in the job market represent an enormous waste of human and economic potential.

The FOMC set out specific parameters to the ongoing QE3.

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