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Posts Tagged ‘The Obama Boom’

Bernanke says the Fed needs to prop up the Obama Boom

by Phantom Ace ( 146 Comments › )
Filed under Bailouts, Business, Economy, Misery Index, unemployment at July 11th, 2013 - 11:30 am

Reading any business website would lead one to conclude Americans are in an era of unprecedented prosperity. A term like economy is on all cylinders and expanding job opportunities are all the rage. Even 1.8% GDP growth is now celebrated as “explosive” and “gaining momentum.” These economic pronouncements are very reminiscent of The Soviets bragging about fictitious industrial and grain production numbers. The reality is the economy is stagnant and sucks.

Ben Bernanke is propping up the Stock Market and Real Estate buy printing $80 billion a month. This has inflated asset prices, but has not benefited the economy. If Bernanke were to stop the money printing, the Stock Market would collapse and the economy would be back in recession. The Fed Chairman was honest in his assessment and says his QE policies will continue because the Obama Boom needs assistance.

WASHINGTON (AP) — Chairman Ben Bernanke says the U.S. economy still needs help from the Federal Reserves’ low interest rate policies.

Bernanke is telling the National Bureau of Economic Research that because unemployment remains high and inflation is below the Fed’s target, the policies are still necessary. He also said the economy is also being held back by higher taxes and federal spending cuts.

Bernanke is answering questions after a speech in Cambridge, Mass. that focused on the Fed’s successes and failures in managing the economy over the past 100 years. Bernanke didn’t signal any changes in the Fed’s bond-buying program during his remarks.

As a result of this admission, The Stock Market is roaring today.

Stocks spiked sharply across the board Thursday, with the Dow and S&P 500 crossing above their record closing highs, after Fed Chairman Ben Bernanke emphasized the central bank intends to keep its stimulus measures for the foreseeable future.

 Wall Street is addicted to the Fed’s easy money policies like a junkie is top Heroin. This is another bubble brewing and one that is not benefitting most Americans. The media will cheer every new high the Stock Market achieves without explaining the printed money behind it. For most Americans, the paycheck to paycheck struggle will continue in the Obama Boom

The Obama Boom: Only the Rich are benefitting

by Phantom Ace ( 69 Comments › )
Filed under Business, Debt, Economy, unemployment at July 2nd, 2013 - 11:00 am

The media continues to crow about the Obama economy. Day after day there are articles online and “experts” on tv proclaiming America has entered an economic golden age of economic prosperity. Some of the economic analysts are even talking about a labor shortage and explosive GDP growth. The economy only grew at 1.8% which is anemic by any standards, but in the age of Obama it is considered red hot.

To the average America, they are baffled by the new media proclaiming an economic golden age. The Obama Loyalists choose to believe it, because Obama is a god like figure to them. The rest of us think this is just propaganda to prop up the faltering god-king. There is a 3rd reason why the media is proclaiming times are great, it is because they are rich and for that class of America things are good economically.

FORTUNE — One reason Ben Bernanke might be thinking it’s time for the Federal Reserve to pull back on its stimulus efforts could be American consumers.

During a speech at the Council on Foreign Relations last week, Fed governor Jeremy Stein was asked where he sees economic growth coming from, and he said consumers were one of the main reasons he was optimistic. “Consumers generally seem to be showing some signs of strength.”

They have seemed like a resilient lot. Despite a payroll tax increase, government furloughs, and the rest of the sequester cuts, consumers in general appear to be spending more this year. But that may be an illusion.

We got a glimpse of that last week. On Wednesday, the government said the economy grew 1.8% in the first quarter. That was down from an earlier estimate of 2.5%. The bulk of the reason for the revision was consumer spending. Americans didn’t open their wallets as wide or as often as originally thought.

To the people living in the media bubble, they really believe the Obama economy is booming because they are receiving the benefits. Ben Bernanke’s money printing scheme is inflating assets that are own by just the wealthy. This has created a disconnect between the perception and the reality of our economic situation. Hence whne these analysts make these proclamations of good times, many of them are actually not lying about their personal situation. For the rest of us, the economy still has not recovered.

Our political and economic elites are enjoying good times at the American public’s expense. This will can’t continue and will not end well for America.

The Obama Boom: 175,000 Jobs in May and Unemployment rises to 7.6%; Update: 122K of the Jobs created were low wage.

by Phantom Ace ( 68 Comments › )
Filed under Barack Obama, Cult of Obama, Economy, Media, Progressives, unemployment at June 7th, 2013 - 11:00 am

The media has popped out the champagne this morning and are cheering exuberantly at May’s jobs numbers. 175,000 jobs were created in the month of May beating expectations. Although this number is in the just treading water category, the Obama Propaganda media is proclaiming this as proof we are in an era of renewed Prosperity. Some CNBC talking head even said that this economy has a 90’s feel to it. They ignore the fact that Labor force participation rate is still at historic lows, hours worked and wages were flat, but it does not matter to the media. It’s all about convincing Americans that times are good and that Obama is awesome.

Despite anticipation of a spring-into-summer swoon, the U.S. economy continued to create jobs at a relatively steady pace in May, adding 175,000 positions as the unemployment rate ticked higher to 7.6 percent.

Economists expected nonfarm payrolls to grow by 170,000 in the month after an initial reading of 165,000 in April, which was lowered to 149,000.

An alternative unemployment measure that includes the underemployed and those who have quit looking edged lower to 13.8 percent.

“The employment report does not look too bad after all, which should soothe recent concerns over a slowing for the US economy in response to domestic fiscal policy and external headwinds,” Andrew Wilkinson, chief economic strategist at Miller Tabak, said of the report.


The unemployment rate had been moving lower in large part because of a reduction in those looking for jobs. That metric, the labor force participation rate, ticked higher to 63.4 percent after hitting a 35-year low in March and April.

Services led job creation, while retail and the food service industries also contributed.

The numbers got a huge lift as well from a formula—called the “birth-death model”— that the Labor Department uses to estimate the number of jobs that new businesses created or lost. That estimate added 205,000 to the count.

It is very likely less than 175,000 jobs were created in May because the birth-death model might have inflated numbers. Regardless the facts do not matter to the Progressive Obama loving media. They will tout the jobs report all weekend to distract from Obama’s scandals. The media’s Obama Boom narrative is part of the reason no matter what revelations come out from the Obama scandals, his approval rating remains steady.

Back during the best days of the Bush economy which was not great either, the average during 2005-2006 was 150,000-175,000. The media claims it was stagnant growth and paled in comparison to the historical average. Now that its their beloved god-king Obama, they claim 175,000 is spectacular and gang busters. The media’s false Obama Boom narrative is no different than when the Soviets were claiming grain production was at all time highs, when they had food shortages. Sadly many Americans are looking for an excuse to like Obama, hence any news the media spins even if its not true, they will grasp on.

This is a cult of personality in regards to the love Americans have for Obama. I wish more on the Right would understand what they are dealing with and stop expecting some magical political silver bullet will do in Obama. We are stuck with this guy until 2017 and that is the reality.

Update: Zero Hedge digs into the jobs created and it turns out that 60% or 122,000 of the 175,000 jobs created were low wage positions.

The time has come to look at the quality component of the 175K jobs added in May, so without further ado, let’s drill down at where the growth was. Without much surprise, we find that as in months past, the bulk of the job growth continues to be concentrated in the lowest wage jobs:

  • Leisure and Hospitality added the most jobs in May, 43K
  • Retail Trade jobs rose by 28K
  • Education and health added another 26K
  • Temp jobs: the lowest of all paying jobs added another 26K

In summary – of the 175K jobs, 122K was to low wage occupations.

To be fair this has been occuring since 2000 when the 90’s Boom ended. Its obvious our economy has a structural problem and no amount of media cheering will change that.

The Obama Boom: A dismal recovery

by Phantom Ace ( 106 Comments › )
Filed under Barack Obama, Democratic Party, Economy, Misery Index, Progressives, unemployment at June 6th, 2013 - 8:00 am

The media has been pushing hard the last few weeks that the economy is booming. They cite the stock Market and Real Estate as proof that we are now in an economic golden age. They ignore wage stagnation, lackluster job growth and the fact most of the reduction in the unemployment rate was due to people unable to find jobs. None of these facts are getting out to the public instead its the economy is rating and we have prosperity. A UCLA professor debunks the Obama Boom theme.

The country’s tepid growth in its gross domestic product isn’t creating enough good jobs to build a strong middle class, according to a UCLA report released Wednesday.

“Growth in GDP has been positive, but not exceptional,” UCLA economists wrote in their quarterly Anderson Forecast. “Jobs are growing, but not rapidly enough to create good jobs for all.”

The report, which analyzed long-term trends of past recoveries, found that the long-anticipated “Great Recovery” has not yet materialized.

Real GDP growth — the value of goods and services produced after adjusting for inflation — is 15.4% below the 3% growth trend of past recoveries, wrote Edward Leamer, director of the UCLA Anderson Forecast. More robust growth will be necessary to bring this recovery in line with previous ones.

“It’s not a recovery,” he wrote. “It’s not even normal growth. It’s bad.”

Sadly facts do not matter in Obama’s America. With backing from the media and Hollywood, many Americans think Obama is doing a great job and the economy is booming. The logic is that they may personally may not be doing well, but their neighbors are. This thought process is created by media propaganda that would rival Soviet claims of increased grain production that never occur.

This is the new normal for the economy.