I had a phone call last night, you know, one of those “donation” calls. I gave the caller a flat-out “no.” “My paycheck decreased 5% on January 1,” I said, “and I have four mouths to feed here at home. I have to make cuts and your charity is one of them. Less money, fewer donations.”
It’s rather depressing. Unemployment is teetering below 8%, but the U-6 rate which counts the U-3 unemployed, plus the discouraged/stopped looking, working part-time, is above 14%.
U-6 unemployment through 2012.
Our GDP growth rate was 3.1% in Third Quarter, although I’m comparing our recovery with a Government that wants to control everything, to the Reagan years and previous Presidents.
And here we are, one day after the formal swearing in of the President for his second term, and we haven’t recovered yet from his first. I know, it’s Bush’s fault, at least that’s what 51.4% of the people obviously still believe.
While we watch the value of our homes continue to stagnate, our healthcare turned over to decisions of bureaucrats, while our taxes rise precipitously to pay for the largesse given to those uninsured, and what wealth we have redistributed to those who didn’t earn it for the cause of social justice, I give you this prescient comment from Out of the Box author, Mark Grant, via Zerohedge:
We make more than we’ve ever made, we owe more than we’ve ever owed, and we have less than we’ve had in decades which is distributed to those that did not earn the money. This is a working definition of Trouble. The stock market is at an all-time high while the financial condition of the country has seriously deteriorated. We are printing $90 billion a month of little green pieces of paper while the Democrats yell at the Republicans to up the debt ceiling as they want to spend even more money to promote social welfare programs. We cannot afford the bills that we have now and we are being asked to add more to them. This is a recipe for disaster and I am reminded of those months right before the financial crisis of 2008/2009 where no documentation loans for Real Estate flourished and easy money was the normal course of things.
Perhaps the landscape has shifted from “money for nothing” for property to “money for nothing” for our national debt. Fiscal responsibility has evaporated in a grand scheme to get voters and Obama has put the Chavez Plan in place which appeals to the poorest of citizens, hands them money and expects their support at the polls. Hard work and earning a living are the ethics of past generations that are slowly being ground to dust in the flurry to socialize America and re-distribute wealth and having succeeded and having money is now thought of as a crime not far behind rape and arson.
You cannot keep printing money without consequences and when absolute and intrinsic valuations replace relative valuations then the game is afoot. Lower and lower yields also eventually have a serious impact on the people of a nation, pension funds, insurance companies and backlashes are certainly possible as the lives of people and institutions are put at financial risk. When the survival of the State puts its people in dire straits then, eventually, the citizens will rebel as the nation has forgotten just who composes its constituents. The people and institutions that have the capital will only go along quietly for so long when nations try to take what they have earned and dispossess it for others. The rich will become poorer and the poor will become poorer and when those with the capital have been deprived of it so that everyone is worse off then the Lords of Chaos will be in control once again.
By the way, the worst states to live in if you’re unemployed:
Four more years, four more years ….
Cross-posted at www.political-woman.com