Obama and his loony tune financial advisers seem to think that doing all things Keynesian will get the economy back on track.


We'd love to see a Rick Perry vs. Jerry Brown death match on the next UFC card

It seems that Dallas Fed chief Richard Fisher has a different take on things and uses Texas as a shining example:

On Wednesday, Richard Fisher, President and CEO of the Federal Reserve Bank of Dallas, gave a speech in which he separated “fact from fiction” about the record of job creation in Texas.

We can help but wonder whose fiction he was talking about?

Texas job gains are a result of pro-growth policies on taxes, spending and regulations: “…people and businesses have been picking up stakes and moving to Texas in significant numbers over a prolonged period… And yet Texas, like all states, is subject to the same monetary policy as all the rest… From this, I draw the conclusion that private sector capital and jobs will go to where taxes and spending and regulatory policy are most conducive to growth.”

Want further proof this guy is right? Look at the financial mess the U.S. is in and look at what’s going on in California, a state losing businesses daily to Texas and other states with better business climates.

Don’t believe us? Let’s send Rick Perry to California and send Jerry Brown to Texas and see what happens. We’d wager millions of unemployed workers in California would soon be working again and Texas would be bankrupt.

– Written by CO2Insanity

Source: The Cypress Times

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It’s just a guess on our part, but we suspect that someone is slipping hallucinogens into the waters of the Potomac River. That’s the only reasonable explanation for this story.


Just close your eyes and cover your ears and repeat after Barack Obama: "Things are getting better! Things are getting better! Things are getting better!"

CNS News has the details:

Only in Washington, D.C.— home of a federal government that has dramatically increased its spending as a share of the U.S. economy over the last three years—did a majority of the people say they believe the economy was getting better not worse in the first half of this year, according to a survey released today by Gallup.

In not one state did more than 41 percent of those surveyed tell Gallup they believed the economy was getting better.

From January through June, Gallup asked 87,634 American adults in all 50 states and the District of Columbia this question: “Right now, do you think the economic conditions in the country are getting better or getting worse?”

In D.C., 60 percent said the economy was getting better and 31 percent said it was getting worse.

Nowhere else in the nation did the majority think the economy was getting better. Nowhere.

Even in neighboring Maryland, where lots of excess federal government dollars lap up along the shores of Chesapeake, only 41% think things are getting better while 52% think they’re getting worse.

And in Virginia, the other neighbor that benefits from the flood of federal employment gushing out of Washington DC, 40% said things are improving while 55% laughed their asses off when they heard the question.

Wait. We’ve come up with another reasonable explanation. The regime has banned all radio, television and internet access in the nation’s capital and its residents are now getting all their news from the Washington Post.

Source: CNS News

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This is the Presidential equivalent of a kid blocking out bad news by putting his hands over his ears and saying, “Blah-blah-blah-blah-blah.”

President Obama’s been simultaneously abandoned by his crack team of economic advisors (otherwise known as the clowns who got us into this mess) and by his courage.


Ahhh, the good ol' days when President Obama had a full team of so-called economic advisors

The Los Angeles Times has the details:

“When you ask about the economic team, it’s kind of like, ‘What economic team?’” said Edward Mills, a financial policy analyst with FBR Capital Markets. “They are very thin at a very critical time.”

The administration needs all the firepower it can muster, experts said. Yet the team is missing a key messenger in selling Obama’s policies. The post of chairman of the Council of Economic Advisors — an influential position — is vacant and is likely to remain so at least into the fall.

Perhaps more telling, there no longer is a formal economic briefing in the Oval Office every morning, a gathering in which Summers, Romer, Geithner and other key advisors assessed the data and batted around ideas with Obama.

We believe there was an error in the transcript. Instead of “batted around ideas” it should have read “discussed batty ideas.”

Source: Los Angeles Times

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You don’t have to go to the highlands of New Guinea to find contemporary cases of cannibalism. No, you simply have to go the pages of the Huffington Post, where liberals are now consuming other liberals.

For example, here’s a Huffington Post-produced video that attacks President Obama’s so-called laser-like focus on jobs.

And a tasty little morsel it is.

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The Ballerina-in-Chief is at it again. Now that his debt ceiling melodrama is going on hiatus, Barry and fellow dancers are planning to “pivot to jobs.”

Seems we’ve heard this song before. Yet the unemployment numbers continue to worsen despite the administration’s frequent announcements that it’s now pivoting to jobs.


It's times like this that the Obama administration really misses the ballet stylings of Rahm Emanuel

Politico’s “exclusive” reveals new revolutions:

Senate Democrats hope they now have “checked the box” on debt reduction and can move to an agenda focused on job creation and economic growth, through a combination of spending and tax cuts.

Sure, worked so well the last two years. Doing the same thing over again and expecting a different result is the definiton of insanity and liberalism.

Many Democrats fear the budget fights of this year have distracted from the issue that will be central to voters in the fall of 2012 – and officials want to get Paul Krugman off their backs.

Running backwards full speed into a wall will also work, both for distracting voters and getting rid of Krugman.

POTUS has closed meeting with AFL-CIO Executive Committee in East Room at 9:15 a.m.

Sounds like Boeing wants to move another plant.

Vice President Biden told reporters… “…[we] should be talking – right now about job creation initiatives. We should be talking about infrastructure. We should be talking about investment in education. We should be talking … about investing in innovation.

No Joe, you should be talking about taking a bullet train out of town. The only thing you people know about jobs is it’s a 4-letter word. The music employers want to hear is Obama’s swan song.

– Written by Bonfire of the Absurdities


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Practitioners of the dismal science (some call it “economics”) have poorer prognostication records than the average storefront fortune teller. Still, even they have enough sense to realize a plethora of dark acrid smoke is a strong clue that somethin’ may be a’ burnin’.

Not White House head double-talker Jay Carney, who is either an incurable optimist or simply incurable.


Perhaps Carney thinks it's not a recession because it's a depression

AP presents White House Minister of Propaganda Jay Carney starring in Pollyanna:

President Barack Obama’s spokesman is discounting talk that the economy may be headed back into recession, despite recent concerns of economists.

Spokesman Jay Carney says there is no question that economic growth and job creation have slowed over the past half year.

But, Carney told a White House briefing, “We do not believe that there is a threat of a double-dip recession.”

We’d point out that when one’s caught in a downpour, the “threat” of rain is a foregone conclusion.

The recession that began in December 2007 officially ended in summer 2009 and the economy has seen growth since then. However, that growth has slowed to a trickle in recent months.

Sounds like the “trickle down economics” Keynsians are always denigrating until their policies are the stones in the ureter.

He blamed the earthquake and tsunami in Japan, higher energy prices, default worries in Europe and recently resolved uncertainty over raising America’s borrowing limit. Carney said, “We believe the economy will continue to grow.”

Wow, so Japanese natural disasters and European deadbeats are the ones who passed Obamacare and the un-stimulative Stimulus and are harrassing U.S. businesses with stupid regulations? Damn them! Damn them to hell!

– Written by Bonfire of the Absurdities

Source: Associated Press

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Have you ever seen a photo of DNC Chair Debbie Wasserman-Schultz that doesn’t look like a mugshot from

No, seriously. Think about it. Maybe do a Google image search and then come back and tell us we’re wrong. We swear every photo of the woman looks like she was just arrested for some heinous crime.

With that in mind, feel free to consider what the Democrats have done to the economy as a crime and consider Wasserman Schultz to be an accomplice.

Here is, perhaps, her dumbest comment ever, which is quite a difficult competition to judge.

“Well, we’re going to focus on what we know is the number one priorities on Americans ease minds right now, that is creating jobs and continuing to get this economy turned around. If we have to drag the Republicans with us, then we’ll do that, but, you know, it’s been a whole lot of months, eight months they have controlled the house with no jobs bills coming to the Floor. Hopefully now with this compromise on the debt ceiling behind us, with the opportunity, with the economic to sit down and focus on longer-term deficit reduction that will have some balance and ask some sacrifice for our most fortunate,” Rep. Debbie Wasserman Schultz (D-FL) told MSNBC. Schultz is also the Chairwoman of the DNC.

“We’re creating jobs each month in the private sector.” 

Are the American people dumb enough to buy this line of crap?

Source: Real Clear Politics

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The people at MSNBC are usually unable to write a story about Barack Obama until they put down their pompoms. Usually is the key word, because they just announced – uncharacteristically – that we have officially entered the second dip in a double dip recession.


Friday’s news on GDP shows the double dip has arrived — an expansion of only 1.3 percent and consumer spending up 0.1 percent in the second quarter. Astonishingly low by any account. The debt ceiling trouble and lack of a longer term resolution to the deficit will make it worse. 

The U.S. has entered a second recession. It may not be as bad as the first. Economists say that the Great Recession began in December 2007 and lasted until July 2009. That may be the way that the economy was seen through the eyes of experts, but many Americans do not believe that the 2008-2009 downturn ever ended. A Gallup poll released in April found that 29 percent of those queried thought the economy was in a “depression” and 26 percent said that the original recession had persisted into 2011.

MSNBC said this? Uh-oh. They are about to enter the dog house currently occupied by Fox News.

Source: MSNBC

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Smart folk in Washington are busily staring into their crystal balls (or perhaps Magic 8-Balls) trying to figure out why unemployment is so “unexpectedly” high. Perhaps if they stopped playing with their balls and listened to some real employers, they might get a clue.

David McElroy shares the story of one Ronnie Bryant who operates coal mines in Alabama. Bryant went to a public hearing in an innercity Birmingham neighborhood for various government officials to get public input on local environmental issues. After listening to two hours of business bashing by environmentalists and other activists, he finally had his say:

I got a permit to open up an underground coal mine that would employ probably 125 people. They’d be paid wages from $50,000 to $150,000 a year. We would consume probably $50 million to $60 million in consumables a year, putting more men to work. And my only idea today is to go home. What’s the use? I don’t know. I mean, I see these guys — I see them with tears in their eyes — looking for work. And if there’s so much opposition to these guys making a living, I feel like there’s no need in me putting out the effort to provide work for them. So as I stood against the wall here today, basically what I’ve decided is not to open the mine. I’m just quitting. Thank you.

Memo to President Obama: Words matter and your words matter more than most. Businesses aren’t stupid. Keep bashing them and they’ll take the hint and go away.

Think about that between holes.

– Written by Bonfire of the Absurdities

Source: David McElroy

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Just when you thought the zenith of moronic had been reached. Just when you believed the ultimate levels of idiocy had been established. Just when it seemed that the final frontiers of daftness had been forever claimed. That’s when Paul Krugman goes off and writes another op-ed and the zenith of stupidity once again gets redefined.


New York Times columnist Paul Krugman stifles a chortle caused by his latest inanity

The Times features the latest inanities of this economic nincompoop:

Ever since the current economic crisis began, it has seemed that five words sum up the central principle of United States financial policy: go easy on the bankers.

This principle was on display during the final months of the Bush administration, when a huge lifeline for the banks was made available with few strings attached. It was equally on display in the early months of the Obama administration, when President Obama reneged on his campaign pledge to “change our bankruptcy laws to make it easier for families to stay in their homes.” And the principle is still operating right now, as federal officials press state attorneys general to accept a very modest settlement from banks that engaged in abusive mortgage practices.

Not so fast, Krugman.

If we’d had our way – if conservatives had had their way – there would have been no bailouts, capitalism would have been free to work its wisdom and those bankers would be out of jobs, in line at soup kitchens or mowing our lawns right about now.

But we didn’t get our way. Krugman got his. And the taxpayer got stuck with the bill.

– Written by Kip Hooker at

Source: New York Times

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Economists are a notoriously disagreeable bunch, but even they agree small businesses produce most of the country’s new jobs, about 2/3 to be exact. Our engine of job growth is currently stuck in neutral.

Business Insider discusses government policies affecting small business that mean high unemployment may be a long-term problem:


The high costs of cartel healthcare, a.k.a. Sickcare in the U.S.

Obamacare’s mandates discourages both formation of new businesses and additional hiring by existing ones.

Politicos and employees don’t understand small business.

Businesses are owners’ livelihoods, not vehicles for “feel good” social policies of meddling politicians. Enterprises hire because demand justifies the extra help, not because some nitwit in DC offers them a tax credit.

Local government views small business as tax donkeys…. a captive source of extra revenue via higher licensing fees, junk fees, permits, surcharges, etc …local politicos and fiefdoms are forgetting every small business owner has an option: it’s called closing down, and opting out of the rat-race of higher taxes and costs.

States like California ostentatiously form “fact finding” panels to figure out why businesses are leaving. The pols should just go home and look in the mirror.

Litigation nation. Employees and others can take a turn at the lawsuit lottery wheel, and if they “win” then you lose.

Lawyers are a big Democrat special-interest group, but where do the parasites eat once the host dies?

We don’t expect any of this to change until Barack “Not My Fault” Obama joins the ranks of overpaid government retirees. Hopefully in January 2013.

– Written by Bonfire of the Absurdities

Source: Business Insider

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Recalling the forgotten depression of 1920

by editor on July 11, 2011

Remember the depression that started in 1920? Unlikely, as it didn’t last long. The downturn was brief because there weren’t a bunch of “smart” people like FDR and Obama “fixing” things, just some dope named Harding who cut spending and got out of the way.


Warren G. Harding may have been corrupt, but he knew how to end a depression and how to pose for a photo

The Ludwig Von Mises Institute retrieves the story from the memory hole:

The economic situation in 1920 was grim. By that year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent … Secretary of Commerce Herbert Hoover — falsely characterized as a supporter of laissez-faire economics — urged President Harding to consider an array of interventions to turn the economy around. Hoover was ignored.

Instead of “fiscal stimulus,” Harding cut the government’s budget nearly in half between 1920 and 1922. The rest of Harding’s approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third.

The Federal Reserve was reserved, cooking up none of the useless alphabet soups today’s Fed concocts with annoying regularity. The result of all this inaction?

By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and it was only 2.4 percent by 1923.

No stupid road signs, no Botox-addled crones screeching about “jobs”, no hi-speed trains to Whoville and no trillion dollars worth of toilet paper – just the “tired old way of doing things” Obama and his presstitutes despise.

But if Warren Harding were president, we’d all have jobs by now.

– Written by Bonfire of the Absurdities

Source: Ludwig Von Mises Institute

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Must be something about warm climates and beautiful scenery that alienates businessfolk. How else does one explain the way they seem to shun locales like Greece, Spain and California?


There's a reason no one's doing cover versions of "California Dreamin'" in 2011

Professor Mark Perry explores the phenomenon:

“Today, California is experiencing the fastest rate of disinvestment events based on public domain information, closure notices to the state, and information from affected employees in the three years since a specialized tracking system was put into place.

Our losses are occurring at an accelerated rate. Also, no one knows the real level of activity because smaller companies are not required to file layoff notices with the state. A conservative estimate is that only 1 out of 5 company departures becomes public knowledge, which means California may suffer more than 1,000 disinvestment events this year.

Layoff notices? The Golden State must have a lot of ATMs.

Based on the legislature’s recent rejection of business-friendly legislation and Sacramento’s implementation of additional regulations, signs are that California’s hostility towards business will only worsen. California is such fertile ground that representatives for economic development agencies are visiting companies to dissect our high taxes, extreme regulatory environment and other expenses to show annual savings of between 20 and 40 percent after an out-of-state move.”

California’s problem must be a lack of high-speed rail. Business dissatisfaction couldn’t be the fault of the state’s politicians, the same ones have been in office for eons.

We’re mystified, but luckily California has zillions of bright, highly compensated employees on the state payroll. They’ll surely figure this thing out sooner or later.

– Written by Bonfire of the Absurdities

Source: Professor Mark Perry

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Some startling news: The Pope is Catholic, bears excrete better things than the 2009 Stimulus bill in the woods and Fed Chairman Bernanke has no clue what’s wrong with the economy.

Forbes has the story:

[In his second post-FOMC press conference] Bernanke admitted that he had no clue what was actually causing the current fragility in the U.S. economic recovery. While the FOMC statement assigned blame outside of the U.S., pointing at Japan along with rising food and oil prices, Bernanke […admitted…] only some of the factors were temporary and that he didn’t know exactly what was causing the slowdown, but that it would persist. “Growth,” said Bernanke, “will return into 2012.”


Ben Bernanke prays that no one will ask him a really hard question

Ben’s cluelessness is not news. His moves recently have been a central banker’s version of running in circles and screaming. What does surprise is the fact he still doesn’t get it, like someone having Anthony Weiner for a roommate and not understanding why he spends so much time with his smartphone. The problem is as plain as the nose on Barack Obama’s face.

Victor Davis Hanson explains:

…those in business, from the small entrepreneur to the captain of industry, have decided that it is wisest to sit out what is left of this administration, and wait to hire, buy, invest, and expand until someone at the top shows a basic knowledge of finance and economics, and some sympathy concerning what those in the private sector must contend with.

Simply put, growth will return in 2013 or 2017, when Barack Obama doesn’t.

– Written by Bonfire of the Absurdities

Source: Forbes, Victor David Hanson

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After the President gives a speech the White House puts out a transcript complete with audience reactions noted.

For example, he spoke to the Democrat National Committee on Monday and said that his administration had created 2.1 million jobs. The transcript duly noted that the audience laughed.

Who can blame them. Surely they thought it was intended as a punch line.

But when conservative bloggers publicized the fact that Democrat contributors laughed at the claim, the White House rushed out a new, improved transcript.

The new one replaced (Laughter) with (Applause).

We have a feeling that someone in the White House isn’t laughing right now.


H/T: Gateway Pundit

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We’ve learned our president is a Jekyl and Hyde character. Barack Jekyl is completely clueless about how to improve the economy and Obama Hyde is hell-bent to cause more destruction.

schizophrenic cap

Which Barack Obama will we get today?

US News profiles the destructive alter-ego in action:

Two new EPA pollution regulations will slam the coal industry so hard that hundreds of thousands of jobs will be lost, and electric rates will skyrocket 11 percent to over 23 percent, according to a new study based on government data.

“Many of these severe impacts would hit families living in states already facing serious economic challenges,” said Steve Miller, president of the American Coalition for Clean Coal Electricity.

Just a hunch, but we figure those are states he didn’t figure to win next year. To continue…

The industry says the costs and potential to lose four jobs for every new clean energy job created isn’t worth the rules, especially in a job-starved economy.

Raising the price of electricity for strapped families while putting more workers out of jobs. Obama’s focusing like a laser on the economy so he can vaporize it. But there is an upside, they claim:

…officials said that just one of the rules to cut sulfur dioxide and nitrogen oxide emissions will would yield up to $290 billion in annual health and welfare benefits in 2014.

And the stimulus will reduce unemployment below 8%. And Obamacare will reduce the deficit. The next time this bunch’s numbers prove correct will be the first.

Multiple personalities or not, we wish he’d imitate a job and vanish.

– Written by Bonfire of the Absurdities

Source: US News

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Don’t forget. It’s the Republicans who are anti-science. You know, troglodytes who believe in a flat earth and think that Adam and Eve lived with dinosaurs and that the universe was created sometime back in about 1954.

But those enlightened progressives, they understand and cherish science and the advances it brings us.

So how about if you just ignore what President Obama said on Monday.

FOX Nation reports:

President Obama explained to NBC News that the reason companies aren’t hiring is not because of his policies, it’s because the economy is so automated. … “There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don’t go to a bank teller, or you go to the airport and you’re using a kiosk instead of checking in at the gate.”

Got that? Unemployment is caused by ATMs and ticket kiosks at airports. If technology is the problem, won’t more technology only make things worse?

Why if we could just go back to the horse and buggy days, everyone would have a job. Unfortunately, most of those jobs would be street cleaners responsible for sweeping up the vast quantities of horse manure in the streets, but what the hell, a job is a job.

This does demonstrate, however, how far we’ve come. Back before the invention of the internal combustion engine, all the horse manure was in the streets. Now it’s in the Washington, DC.

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Don’t you hate it when your own words come back to bite you in the butt? Back in Febuary 2009 President Obama told Today Show host Matt Lauer that he’d be a one-term president if he didn’t fix the economy in three years.

“I will be held accountable,” Obama said. “I’ve got four years and … A year form now, I think people are going to see that we’re starting to make some progress, but there’s still going to be some pain out there … If I don’t have this done in three years, then there’s going to be a one-term proposition.”

The clock is running, Mr. President. Six months and counting.

H/T: Swamp Politics

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Debbie Wasserman-Schultz, esteemed Florida congressperson and Chair of the DNC, put in a true tour de force Sunday on NBC’s Meet the Press. Getting two stupid clips from one program is rare, indeed, but DW-S is no typical politician.

In the first clip, she informs America’s unwashed and unlearned that they are also uninformed if they think we’re anywhere near a double dip recession. Hell, no. Barack Obama has turned this economy around, damn it.

In the second clip Meet the Press Host David Gregory asks Wasserman-Schultz why she initially sprang to Anthony Weiner’s defense by saying his dork-a-thon was strictly a “personal matter” even after Weiner’s ludicrous “stolen identity” claims.

Damn, it’s fun watching her squirm. Her tenure at the DNC is going to provide us with damn near infinite fodder.

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With friends like this, who needs enemies?

Dick Durbin, the number two Democrat in the Senate, appeared on MSNBC and spoke that which has so far been unspeakable for Democrats. He admitted that this is now Barack Obama’s economy and the voters will rightfully hold him accountable for it.

Spoken like a man who doesn’t face reelection until 2014 and won’t have to worry about getting swept away in the coming 2012 landslide.

That gives him two years to make a comeback. And with the Republicans propensity to snatch defeat from the jaws of victory, Durbin’s probably pretty safe.

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President Obama: The dog ate my economy

by editor on June 9, 2011

Someone once said that success has a thousand fathers while failure is an orphan. But when the prodigy in question is today’s rotten economy, President Obama sees more sperm donors than there were unread pages in his health care bill.


President Obama should look this guilty every time he appears in public

President Obama is pointing to problems in Japan and Europe as challenges for the U.S. economy, placing some blame on events abroad for a domestic recovery that is showing signs of slowing down.

…U.S. unemployment rose to 9.1 percent, up from 9.0 percent in April.

That bump is a political challenge for the president, whose re-election in 2012 may depend on his ability to convince voters that his economic policies have been successful.

We concur. For some reason, convincing folks policies are successful is much harder when those policies are failures. Go figure. Since the “Bush’s fault” meme is getting old, Obama has turned to “Casablanca’s” Captain Renault: “Round up some NEW usual suspects”…

“Lately, it’s high gas prices, the earthquake in Japan, and unease about the European fiscal situation. That will happen from time to time. There will be bumps on the road to recovery.”

The bumps he alluded to are called “Obamacare”, “stimulus” and “excessive regulations” to name a few. And those high gas prices are partially because he feels about the domestic oil industry the way Khruschchev felt about capitalism: “We will bury you.”

If the Bump-In-Chief wishes to find the real culprit, he should consider Pogo’s line, “We have met the enemy and he is us!”

– Written by Bonfire of the Absurdities

Source: CNBC

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Some friends of ours (wink, wink) just started a new site called
Economic Collapse. They (wink, wink) would like to have you check it out and give your feedback.

They (wink, wink) are still working out the bugs and working on the design and just putting up a couple stories a day and it probably doesn’t look exactly like it will eventually look, but please do us a favor and check it out.

If you fear for the future, if you want to be prepared for the future, you might even become a regular reader.

They (wink, wink) would appreciate your thoughts.

And if you have a blog, they (wink, wink) would sure appreciate it if you would link to it.

Go to

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Remember the Misery Index? The news media rolls it out during every conservative administration then mothballs it while Democrats are in office.

The Misery Index is defined as the inflation rate plus unemployment, and there’s no better way to put the public off than to associate the term “elevated misery” with them. It’s a great propaganda tool.

Natch, the misery index has been ignored during the reign of Chicago Jesus, but we thought that we ought to help the media do its job by whacking Barry in the kneecaps with these numbers.


Jimmy Carter, the personification of the Misery Index

Here’s a summary by president:

President, Misery

Carter, 16.26
Ford, 16.00
Reagan, 12.19
Bush I, 10.68
Nixon, 10.57
Barack Obama, 10.21
Bush II, 8.11
Truman, 7.88
Clinton, 7.80
Kennedy, 7.14
Johnson, 6.77
Eisenhower, 6.26

But wait. There’s something missing from that chart. What is it? Here’s a hint: What is the actual current unemployment rate?

The unemployment rate during Obama’s tenure has been strangely flat, because instead of reporting the number of people who are actually out of work, they’ve conveniently trimmed off the ones who have given up looking for work. If you add in all the people who’ve given up looking for work and those who are working at crappy part time jobs until things improve, analysts say the true unemployment rate is more like 22%.

Is this an accident? A statistical anomaly? We think not. The White House knows all about it. Austan Goolsbee thought it was dishonest when this happened to a much lesser extent during George Bush’s presidency, but now that he has a job at the Obama White House he thinks it’s a dandy technique:

“In fact, Austan Goolsbee, who is now part of the White House Council of Economic Advisers, wrote in a 2003 New York Times piece titled “The Unemployment Myth,” that the government had “cooked the books” by not correctly counting all the people it should, thereby keeping the
unemployment rate artificially low. At the time, Goolsbee was a professor at the University of Chicago. When asked whether Goolsbee still believes the government undercounts unemployment, a White House spokeswoman said Goolsbee wasn’t available to comment.”

Yep, that’s right. Austan Goolsbee is “unavailable for comment” now that Barack Obama is his boss.

So let’s do the job the media refuses to do, recalculate the Misery Index using the “real” unemployment rate, and take another look at that chart:


2009, inauguration as President of the United States. 2011, coronation as King of Misery.

President, Misery
Barack Obama, 25.00
Carter, 16.26
Ford, 16.00
Reagan, 12.19
Bush I, 10.68
Nixon, 10.57
Bush II, 8.11
Truman, 7.88
Clinton, 7.80
Kennedy, 7.14
Johnson, 6.77
Eisenhower, 6.26

Well, look what happens if you add in that number. We have us a new winner in the misery creation department!

Yes, Barack is the one we have been waiting for — the one who can lead us to our new destinations as serfs of the state.

Where’s my forty acres? Where’s my mule?

Repeat it after me: Barack Hussein Obama, King of Misery.


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In the past the media has blamed the weather, the Japanese tsunami, Republican policies and everything else they can think of, so Reuters economic reporters are now forced to get really creative in an attempt to blame the on-going “unexpected” unemployment numbers on anything but Obamanomics.


We don't know if the economy's getting stimulated, but we are

But Reuters’ latest excuse is laughable:

New U.S. claims for unemployment aid unexpectedly rose last week to touch their highest level in eight months, pushed up by factors ranging from spring break layoffs to the introduction of an emergency benefits program, a government report showed on Thursday.

Damn those unpatriotic college kids. Why are they out partying in Fort Lauderdale when they should be back in school stimulating the economy?

Source: Reuters

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The Editor and the Administrator have an on-going debate about the best way to survive the looming financial Armageddon. The Administrator opts for gold while the Editor opts for Aussie dollars.

Looks like Bill Gross, the Warren Buffet of bonds, sides with the Editor on this one.


Bond guru Bill Gross tells you how to avoid financial Armagedon

NOTE: The Editor is a well-known financial moron and this may well be a case of a blind pig finding an acorn.

The Wall Street Journal has the details:

Famed bond-fund manager Bill Gross argued in favor of non-dollar-denominated emerging-market debt, saying low interest rates such as those in the U.S. coupled with inflation represent “an immediate threat” to investment portfolios.

Gross, in his monthly missive on Pacific Investment Management Co.’s website, continued his argument against a policy of keeping interest rates low, which he has said would end up losing money for investors. Tuesday, he warned developed economies are in a position to use so-called financial repression to reduce debt-to-GDP ratios at the expense of bond investors.

Investors could see increasing negative real yields due to accelerating inflation, he said.

Gross said Pimco advocates alternatives such as developing-market debt at higher yields denominated in non-dollar currencies. He noted that many such issuers offer “pristine” balance sheets and attractive real interest rates.

“If AAA quality is your requirement, then Canadian or Australian bonds may also fit your horizon,” he added.

Pimco has dumped all U.S. government-related holdings from the Total Return Fund, the world’s biggest bond fund.

In interest of full disclosure, it should also be noted that Mrs. Editor once worked at Pimco and had a very close relationship with Gross, as told in the comments of this earlier article.

H/T: Wall Street Journal

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