Saturday, August 7, 2010

Does a bear…? Do less jobs, more taxes and Treasury note yields signal the start of the “double dip”?

By John Sykes

In It Isn't Working:

Another month, another mediocre jobs report from the Department of Labor. This is consistent with the rest of the economic evidence that this is a lackluster recovery that so far is not turning into a durable expansion.

image The economy shed 131,000 jobs in July and the number of jobs created in May and June were revised downward to 221,000 lost jobs. The unemployment rate held steady at 9.5% but that does not reflect the fact that the number of discouraged workers is also up 389,000 from a year ago.

Private employment did inch up in July by 71,000 positions, with a nice 36,000 pick-up in manufacturing jobs, but even that number is deceptive. The vast majority of those jobs were in the auto industry. Alas, not every struggling manufacturing plant in America can have a lifeline to the federal Treasury.

Here’s one example of why from The World Drills On:

[ Norway, Brazil, Australia, New Zealand Canada] These are hardly rogue nations. What they share is an understanding that environmental concerns must be balanced with the reality that oil and gas remain crucial to economic growth, and that their reserves are increasingly in deep water. The leaders of these nations are also confident that the oil industry has the technology and know-how to do this right, with proper oversight.

America's oil and gas reserves are no less essential to the U.S. economy, notwithstanding President Obama's romance with "green jobs." Every day the Administration spends trying to justify its moratorium is one more day when the U.S. is losing jobs that may not return.

Even idiot savant Snooki in Democrats Against ObamaCare knows why, saying "I don't go tanning-tanning [indoor tanning] anymore because Obama put a 10% tax on tanning, and I feel like he did that intentionally for us." If you've lost Snooki, you've lost middle America.

And here’s what’s going on graphically from U.S. Job Market Loses Steam:

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Speaking again of “idiots savant”, when will the Obama administration realize that less jobs, more taxes, deflation and statism will only devastate the economy. Looks like the double dip has started….

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