Global Economy Bursting?

[Terrel L. Shields]

Our elected political class has an insatiable appetite for even more money."

No kiddin'... here we have to pay sales tax on trash hauling services, dog grooming, etc. etc.

It used to be that only items sold were taxed...labor was exempt.

 

[Randolph Kinney]

Sequester? California school districts send out far fewer pink slips

http://latimesblogs.latimes.com/lanow/2013/03/school-districts-fewer-pink-slips.html

Thanks to a boost in money for public education, California school districts have issued just 3,000 pink slips to teachers this year, a dramatic drop from the 20,000 sent out last year, the California Teachers Assn. reported Monday.

The passage last fall of Proposition 30, which will temporarily increase taxes to raise about $6 billion mostly for education, will help schools avoid the massive layoffs that have crippled art, music, science and other programs statewide since 2008.

Los Angeles and San Diego Unified, two of the region’s largest school districts, issued no pink slips this year for the first time in several years.

 

[Randolph Kinney]

US Government Debt Monetization Watch, The Fed Leads the Charge

http://www.forbes.com/sites/michael...-monetization-watch-the-fed-leads-the-charge/

According to 4th quarter Federal Reserve Flow of Funds data, central banks; i.e., the Federal Reserve and foreign central banks, monetized US government debt (US Treasury debt and the guaranteed debt of Fannie Mae and Freddie Mac) at an annual rate of nearly $600 billion in the 4th quarter 2012. That’s up from a $275 billion annual rate in the 3rd quarter and a $235 billion rate in the 4th quarter 2011. The jump in 4th quarter monetization activity was due to a $424 billion showing by the Federal Reserve, that being the result of the September 13th implementation of its QE3 $40 billion per month Agency/MBS asset purchase program.

 

[William K]

US Government Debt Monetization Watch, The Fed Leads the Charge

[url]http://www.forbes.com/sites/michaelpollaro/2013/03/18/us-government-debt-monetization-watch-the-fed-leads-the-charge/[/URL]

According to 4th quarter Federal Reserve Flow of Funds data, central banks; i.e., the Federal Reserve and foreign central banks, monetized US government debt (US Treasury debt and the guaranteed debt of Fannie Mae and Freddie Mac) at an annual rate of nearly $600 billion in the 4th quarter 2012. That’s up from a $275 billion annual rate in the 3rd quarter and a $235 billion rate in the 4th quarter 2011. The jump in 4th quarter monetization activity was due to a $424 billion showing by the Federal Reserve, that being the result of the September 13th implementation of its QE3 $40 billion per month Agency/MBS asset purchase program.

and in simple terms???????:new_all_coholic:

 

[Randolph Kinney]

and in simple terms???????:new_all_coholic:

The government treasury must pay off government debt either with money it already holds or by financing it by issuing new bonds which are sold to either the public directly or the central bank, in order to raise the funds required to repay bonds that have come due. The central bank may purchase government bonds by conducting an open market purchase, i.e. by increasing the monetary base through the money creation process. If government bonds that have come due are held by the central bank, the central bank will return any funds paid to it back to the treasury. Thus, the treasury may 'borrow' money without needing to repay it. This process of financing government spending is called "monetizing the debt".

 

[Randolph Kinney]

While Detroit Firefighters Battle An Arson Epidemic In A City Of Ruins…

http://www.mfi-miami.com/2013/03/wh...-battle-an-arson-epidemic-in-a-city-of-ruins/

The City Spent $45 Million On Sidewalks Ramps To Nowhere

While Detroit firemen die fighting fires using broken equipment, the City of Detroit spent $45 million on sidewalk ramps where there were no sidewalks or installed them in neighborhoods long since abandoned.

 

[Terrel L. Shields]

Reminds me of the guy who was watching two fellows. One was digging a hole every 30' and the other was filling it up. They were working along the side of the road. Curiosity got the best of him so he asks, "Whatcha doing guys?"

"We're planting trees.".... "Oh. Where are the trees?" "Well, since the sequester, we've had to lay off Bill, one of our crew. He was the guy that carried the trees and set them in the hole. I dig the hole. Joe covers em up. Just because Bill's not here doesn't mean we shouldn't do our jobs....."

 

[Riick]

[FONT=&quot]On 3/8/13, the BLS establishment survey announced the creation of 236,000 non-farm jobs, the household survey said 170,000 new jobs created; the unemployment rate went down to 7.7%. [/FONT]

[FONT=&quot]But, the devil is in the details; and when we look closer, we find a curious thing: part-time jobs rose an amazing 446,000, which means that the economy actually LOST 276,000 full-time jobs. Am I wrong, is swapping full-time jobs for part-time jobs is not the traditional the way to a strong recovery?? [/FONT]

[FONT=&quot]This week, however, Unicredit laid out how this particular sausage was made; and — one of the key ingredients turned out to be the Labor Participation Rate. Sure, the unemployment rate is falling: as people exhaust their benefits and drop out. They are not officially unemployed anymore; they’ve gone missing. There’s little doubt about the real source of the 'strength' of the recovery in jobs ... but nobody seems to care:[/FONT]

[FONT=&quot](Reuters): The U.S. workforce has been shrinking rapidly in recent years, but a new report from UniCredit highlights just how massive the effect of this trend really is. Economist Harm Bandholz says it amounts to a gaping 3.6 percentage points of [/FONT][FONT=&quot]U.S.[/FONT][FONT=&quot] unemployment.[/FONT]

[FONT=&quot]That means the [/FONT][FONT=&quot]U.S.[/FONT][FONT=&quot] jobless rate, which dropped to 7.7 percent in February, would actually be around 11.3 percent without the decline in labor force participation. This would put American unemployment a lot closer to the euro zone’s recently reported record high rate of 11.9 percent.[/FONT]

PDF of BLS stats attached (since they disappear)
Link to Original – HERE
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​

 

[Randolph Kinney]

Don't forget the impact and the effect on jobs of Obamacare; 30 hours and over = full time employee where 29 hours and under = part time employee.

Goes right to the "... part-time jobs rose an amazing 446,000, which means that the economy actually LOST 276,000 full-time jobs."

 

[Terrel L. Shields]

And if you hold 2 part time jobs you are counted twice....