Tag Archives: recession

Poll: Americans Want National Debt Paid Down, Not Increased Through More Spending

According to this McClatchy-Marist Poll, nearly six in ten American adults — 59% — want the federal government to make the reduction of the debt its priority even if the economy is slow to recover.

Capitol Hill politicians should get the hint that Americans are against raising the debt ceiling. They want a balanced budget. They need to find a way to reduce the debt by half in order leave with their means.

Every empire, the Roman Empire included, defaulted on its debt. Why should America be any different? Imperialists always spend more than a working public can afford, which is the reason why so many Americans went backruptcy or default on their loans during the great recession. The American government reflects its people. Well, the current politicians reflect about a third.

About one-third — 33% — want the government to stimulate the weak economy even if it costs more money.

“For the public, it’s all about the debt,” says Dr. Lee M. Miringoff, Director of The Marist College Institute for Public Opinion. ”For Washington, the devil is in the details.”

Looking at party, 79% of Republicans want the debt to be paid down while 15% think stimulating the economy should be the priority. There is less of a consensus among Democrats. Half — 50% — believe the government should focus on stimulating the economy while 45% say the national debt should top the government’s “to do” list. More than six in ten independents — 61% — think the priority should be the reduction of the debt even if the economy rebounds slowly. This compares with 32% who say the stimulation of the economy should be the main issue even if it costs more money.

The McClatchy-Marist Poll reported Americans are still pessimistic about the economy and for good reason: Three in four believe the U.S. is still in recession.

A majority of Americans — 53% — say that, when thinking about the U.S. economy, the worst is yet to come. However, 42% believe the worst is behind us. Six percent are unsure. When McClatchy-Marist last reported this question in April, 57% thought there was more bad economic news to come, 39% said better economic days were ahead, and 4% were unsure.

And, 75% of residents nationally still think the country is in a recession. This compares with one in five — 20% — who say the nation has come out of the recession. Five percent are unsure. In April, similar proportions held these views. At that time, 71% reported the recession was not over, 25% said it was, and 4% were unsure.

To read more, go to the Marist Poll.

Threat of Another Recession, Look to Europe

The potential for another recession is high, according to financial adviser John Mauldin. The primary reason is not too much overspending by the federal government, quantum easings, or too many bad loans to people who couldn’t possibly repay. No, it is Greece and lesser debt-ridden European nations with their insolvent banks this time.

Mauldin’s concern is based on two weeks spent in Europe speaking with investors, bankers, economists, and other people. Many Europeans see continued decline in the value of both the Euro and the dollar. The same believe more quantum levels of money printing are inevitable in order to save their economies from default. One of Europe’s more astute financiers even see the Euro ceasing to exist in the near future.

Even Bernanke warned the possible negative impact on America’s economy if Greece defaults and European banks fail.

In Greece, the economy is so bad that drug companies are refusing to send hospitals needed medicine because hospitals cannot pay their bills.

Pharmaceutical companies are starting to refuse to deliver to Greek hospitals, as they are up to two years behind on their payments. It turns out that Greece owes some €6 billion to private businesses like hospitals and simply cannot pay. Those costs are rising, and much of it is to hospitals for medical care supported by the government. They are issuing bonds (shades of California) for the debt in some cases, which sell for a discount of 50%, if they can be sold. And we thought finding €12 billion was a hard thing.

That is one reason Americans should not allow socialist Democrats to socialize health care.

To read John Mauldin article, titled “The Contagion Risk of Europe,” go to his website http://www.johnmauldin.com/frontlinethoughts/the-contagion-risk-of-europe

Marriage and Unemployment : Some Advise on How to Cope

Even though financial expert claim the great recession is over, its effects on marriages and families still continues. One of those devastating outcomes is unemployment. Many marriages are strained to point of breaking as a result of job loss and as well as home foreclosures.

An article published by the online publication For Your Marriage addresses some of the problems many couples are experiencing as result of unemployment. Authored by Bill Dodds, the article titled “When Unemployment Hits Home: Seven Ways to Help Your Marriage” is written from the perspective of clinical health professional Sarah Griffin who provides counseling services at the Seattle Archdiocese’s Catholic Community Services in Everett, Washington.

“Unemployment can leave an individual—and a couple—feeling overwhelmed, powerless, frightened. In a word, crushed. Yes, the partner looking for work can follow all the recommended steps for landing that next job but in the meantime…the meantime can be a long time.”

The article continues by offering seven ways to for couples and individuals can cope as well as strengthen their marriage. Following is only one of the things a couple can do. The entire article can be read online at
For Your Marriage.

“6. They can notice and appreciate that, in the middle of all this turmoil, there may well be some positives. A formerly two-income family may not be able to afford day care anymore, but now the family doesn’t need day care. A dad may be surprised to discover he really enjoys being home with the kids. (Not that it’s easier than heading out every day to a job!) Now he gets to know them, and they get to know him, in ways that wouldn’t have happened without his unemployment. A couple that has talked about, and seriously considered, simplifying the family’s lifestyle can realize that now there’s both a perfect excuse to do just that–and little option to do otherwise.”

For Your Marriage is a publication of the United States Conference of Catholic Bishops.

Economic Trends, What Do They Mean?

By Daniel Downs

The latest economic trends report by the Federal Reserve Bank of St. Louis reveals why City of Xenia officials think they need more of taxpayer’s scarce financial resources. In 2009, the report shows a 3 percent increase in GDP, which means total revenue produces by all our work as a nation. That figure reminds me of pre-industrial era economic growth when governments and citizens lived within their means most of the time.

Coinciding with the low GDP was low industrial output reflected by a significant decline in payroll and sharp increase in unemployment. During 2009, industrial production increased by a meager 6 percent. At the same time, payroll declined by $5 million and unemployment rose from 7 percent to around 10 percent.

The loss of jobs and income resulted in the loss of homes, which in turn meant a loss of tax revenue for municipal governments including Xenia. The rise in the cost of gas that contributed to the rise of costs of food and other goods as well as services has made matters worse–not to mention Wall Street’s short, like Soros, gleefully stuffing their pockets with our GDP revenue.

Nevertheless, long term government bonds have maintained their value while short term bond rates dropped to near zero. If that is also true of municipal bonds, then local governments are still giving our tax dollars at the same or possible higher dividend rates. This means less tax revenue for actual operating costs like paying police, fire, and street maintenance personnel.

While officials also claim higher costs for goods and services require higher taxes, the report shows the total increase of good and services represented by the Consumer Price Index (CPI) to be around 2.4 percent for 2009. That is quit low. The last quarter of 2008, inflation dipped to minus 2.5 percent. This could be interpreted as rendering overall inflation as near zero. As such, local governments use of higher costs to justify raising taxes does not appear to be warranted.

The best course of action by both government and taxpayers is one of fiscal restraint. Governments should decrease spending and tighten their budgetary belts. Taxpayers should restrain themselves from giving government tax increases until the economic trends show declines in unemployment to less than 6 percent, consistent payroll increases, and increased production figures i.e., industrial production, GDP, GDI, and the like.

Manufacturer Consumption Down in 2009

By Daniel Downs

It appears no one is being a good consumer nowadays. Not only are retail and service consumers holding on to their nickels and dimes, but so are industrial consumers.

The latest report by the American Association of Manufacturing Technology (AAMT) revealed consumption of industrial technology goodies was down 60 percent in 2009.

The shining bright in the midst of the black lagoon of recessionary consumption was the Midwest region–Ohio included. During the month of December, the Midwest was the only region posting real dollar increase in spending. Good ole’ consumption of metal cutting technologies was up 19.4 percent while consumption of metal fabricating technologies was down 4.8 percent. Total real dollar manufacturing technology consumption was 14.1 percent, according to the number crunchers at AAMT.

I can just smell the hot cutting oil burning. Ahhhhh!

Unfortunately, the rich aroma of oily production was only smoking up the Midwest during December. This fortuitous event may have been the combined result of both the automaker bailout by Congress and Obama’s stimulus, an effort to make his own light shine upon the hill. According to the AAMT, however, the total year-to-year consumption was down by 65.4 percent, which was more than any other region in the USA.

So where do place the blame for the depressing downturn of industrial consumption? Was it solely caused by bureaucrats on Capitol Hill? Greedy bankers? The lovers of money printing at the Federal Reserve? Or just a bad case of gas caused consuming to much manufacturing technology? Maybe it was a combination of the aforementioned causes?

A better way to balance State budget than cut services to the poor, elderly, and library patrons : HB 25/SB 52 Reorganizing Ohio’s Executive Branch

In April, Gov. Strickland issued an executive order to reduce and control spending. In May, the office of Budget and Management estimated an additional budget shortfall would exceed $900. In response to this assessment, Gov. Strickland made the following statement:

“The national recession continues to present historic economic challenges for every state and Ohio is no exception. Even though we have reduced state government spending by nearly $2 billion this biennium, we are now faced with even steeper revenue shortages. Addressing the challenges before us will require extraordinary collaboration and bipartisan consensus-building among the state’s elected leadership. I know that we can work together to make the tough choices necessary to maintain a balanced budget while continuing to invest in education and job-creation that will lead to Ohio’s economic revival.

Did the governor mean state jobs or private sector jobs? Earlier this month, Gov. Strickland said state government must be reduced by another $2 billion to balance the budget. To accomplish this, he has closed mental health facilities and other facilities, reduce staff to Reagan era numbers, and reduced budgets of most state agencies. State employees have voluntarily sacrificed further increases in pay for several years. After all of these fiscally responsible steps, a budget deficit of $3.2 billion still exists.

I suppose that is why Gov. Strickland proposes additional cuts to local library budgets. The deficit probably accounts for a number of proposed cut is services for the poor and elderly as well.

In his last press release, Gov. Strickland repeatedly said, “We must resize the government.” Of course, he means the cuts to agency budgets and some of their personnel. What he doesn’t mean is downsizing the executive branch itself. Yet, there are concurrent bill in both House and Senate committees that will do just that. In February, Representatives Jarrod Martin and Robert Hackett cosponsored HB 25 and Senator Timothy Grendell is the sponsor of SB 52. (Where is Senator Chris Widener?) If these bills would pass, at least $2 of the $3.2 billion would be realized.

Yes, it would be limited-government advocates dream come true. The 20 cabinet-level agencies would be consolidated into 10 cabinet-level departments.

Yes, it would actually reflect the downsizing occurring throughout the private sector as well.

According to analysis by the Ohio Legislative Service Commission, the bill would not “affect the provision of services by and operations of political subdivisions.” Because government is notorious for inefficiency anyway, the disruption of some services during the transition is bound to occur. Nevertheless, less bureaucracy means less waste and (god-forbid) less taxation.

Although Gov. Strickland still says he doesn’t want to raise new taxes, his comrades on Capitol Hill and elsewhere are creating a New Deal Era economic crisis requiring more taxes and more national debt to justify the enlargement of the federal powers and further the Left’s goal of a fully socialist-Marxist economy. Maybe that t is why loyal party member Strickland is in the key position in a key state.

This federally-driven economic crisis is even more reason for getting Ohio legislators to pass HB25/SB52 to consolidate the executive branch and meet the balance budget. If we can achieve it in Ohio, we can also achieve it at the federal level too. “Yes we can!”

Economic Recession : Connecting Candidates, Trends, Values and Voting

It’s a Bad Idea to Elect Candidates to Improve the Economy

Encouraging congregants to vote on Tuesday November 4, my pastor shared some very profound insights about how to view the issues. He said that we would be electing people who will be representing our views and our futures. Those we elect will make decision that will not only affect our own lives but our community and out nation He then followed with an insight applicable to all elections for all time.

The economy is constantly changing. The boom and bust cycles will continue no matter who is in office. We should not vote for candidates based on a troubled economy because it will eventually improve anyway.

Adding to his insight, I want to point out that our economy and its free markets are not some mysterious force operating outside the realm of human behavior. The economy is human behavior. The markets are the results of nothing other than human decisions. Intentionally or unintentionally, the problems and benefits of our economy are the results of human behaviors. The boom and bust cycles of our current economy are the results of policy decisions, trade and consumption practices, errors and neglect, as well as greed and irrational fears. Barak Obama and Congressional Democrats blame Bush for their own bad policy decisions and neglect of the mortgage markets that Congress created. And, Bush’s spending didn’t happen without their approval either.

The Obama Connection?

Cliff Kincaid, Editor of the Accuracy in Media Report, wrote an article on who is behind the economic collapse. To appreciate his argument, you must read the entire article. Here, I will try to summarize some of his main evidence to illustrate my point. Kincaid research points to Democrats as the primary actors suspected of generating the current economic crisis of New Deal proportions. His research ties US Treasury Secretary Paulson, who worked for a Democratic firm, Goldman Sachs to leading Democratic Party fundraisers, and to Barak Obama. Those suspected of creating the current economic crisis for political reasons would not be complete without George Soros, who has a reputation for creating national economic crises. Other writers have produced lists of former employees of Goldman Sachs who have filled leading positions in both Fannie Mae and Freddie Mac. Many others are being investigated, according to Kincaid.

Recession and Election Cycle Trends

If I remember correctly, the past four or five presidents were elected during an economic correction sometimes called recession. According to financial expert John Mauldin, President George W. Bush inherited an economy already in recession from Democrat Bill Clinton. Oddly enough, Americans elected Clinton as President in part to solve the recession that occurred during George HW Bush’s term in office. We voted Ronald Reagan into office because of his plans to solve the deep recession inherited from Jimmy Carter. Many Republicans voted for Democrat and Baptist Jimmy Carter because of they believed his faith was real and because of his plan to solve the recession-sized energy crisis. Like my parents, many Republicans were sorely disappointed.

Learning From the Past?

It must be questioned whether the most educated people in the world are capable of learning from the past. It is claimed that many Republicans again favor a Democrat for president. That is certainly their right. Many religious leaders have championed the cause of the Democratic Party its candidates. Again, that is their right. Yet, the Democratic Party is more socialistic, more pro-abortion, more opposed to traditional marriage than ever. Their presidential candidate does have religious credentials. However, the religious aura surrounding Barak Obama is a cloud of illusion. I think it is more of a smoke screen for the sole purpose of winning an election. Whether McCain is sincerely Christian is debatable as well. However, his VP choice at least gives us hope for a strong pro-life and pro-family influence in the Whitehouse.

I return to my original point borrowed from my pastor. Whether economic crises are the result of evil intentions or simply bad decisions, they are the product of human behaviors. They have occurred throughout our nation’s history. As now, they have always been corrected by appropriate behavior and policy decision. This corrective process is already in motion. Therefore, whoever we elect as the next president is mostly irrelevant.

Voting Decisions and Issues of Unchanging Importance

My pastor continued his political exhortation with another and even more important insight. Instead of making our voting decisions based on a continuously changing economy, we would find better representation in government if we made our decisions based on unchanging criteria. Going back to the biblical book of Genesis, he reminded us of source of our moral values, the sanctity of human life, and of human dignity. These are the most important criterion. As history teaches, the decline of morality in societies always results in that society’s end. Therefore, in this pivotal election, we will choose whether morality and the sanctity of life will be upheld and strengthened or whether morality will continue to decline.

Having done my own research, it is clear to me which candidate will defend the life of the unborn, the sanctity of traditional marriage, and the general morality our form of democracy has always required. Like the traditions of their respective parties, Democrat Barak Obama favors abortion and opposes defining marriage as one man and one woman because he supports the politics of sexual immorality. John McCain claims to be pro-life and favors overturning Roe v Wade because it was an erroneous ruling. He supports traditional marriage but believes it’s outside the power of federal government to decide on issues of marriage.

Voting Means Judgments—Of Candidate and Maybe of God

As Americans used to believe regarding disasters whether affecting national, state, and local communities, I too believe America is already experiencing God’s justice for the long official support for every form of immorality, for the brutal slaughter of millions of unborn children, for legitimizing unnatural and harmful behaviors of gays, and for many other crimes against God’s moral laws. If this assessment is correct, then this election is the most important and most pivotal of all elections in American history comparable to the election of Abraham Lincoln.

—————————————————————

(Note: The title of John Mauldin’s financial commentary referenced above presents the insightful and witty perspective of it gifted author; the title is “Electing the Janitor-In-Chief”. Mauldin’s work is profitable reading and can be accessed at his website www.fronlinethoughts.com)