Posts Tagged ‘2013 U.S. Economy’

America’s Financial Armageddon Re-visited

November 21, 2012

After about seven months, it is time to re-visit the nation’s financial condition.  For comparison you can visit my post of April 19, 2012 here.

According to www.usdebtclock.org, as of today the U.S. national debt has risen 3.86% since April 19 to $16.278 trillion or 105.18% of GDP (Gross Domestic Product) of $15.476 trillion. To look at it more personally, you as a U.S. citizen now “own” $51,707 of that debt or if you are a dutiful taxpayer, your share is $141,859.  Let’s hope Uncle Sam does not decide to call in his “chips” to settle his accounts.  With the fiscally irresponsible (no budget in the previous four years in office) Obama re-elected we can expect yearly trillion-dollar budget deficits as federal spending skyrockets out of control, which will greatly exacerbate the national debt problem.

How does the United States debt to GDP ratio compare with other countries?  Let’s take a look.

  • China = 11.13%
  • Brazil = 21.17%
  • Russia = 58.53%
  • Canada = 93.99%
  • U.S. = 105.18%
  • Greece = 235.15%
  • Spain = 246.93%
  • France = 292.58%
  • Britain = 504.72%
  • Ireland = 1278.8%

While the U.S. is indeed in big financial trouble, I suppose one could console oneself that we have a long way to go before becoming a Greece or (yikes!) Ireland.  But with the U.S. debt at only 105% of GDP that would be like you spending/borrowing $105 for every $100 you earned.  That does not sound like much, but if uncontrolled and not reversed it eventually adds up to bankruptcy.  Since Obama’s first inauguration, the national debt has soared 54%.  The interest alone on the national debt is currently $270 billion and if nothing significantly changes to stop this rising mushroom, the annual interest will top one trillion dollars by 2020 (just 8 years away).

In addition to the debt increase at all levels since April 19, the food stamp rolls have increased by 1.8% or by an estimated 848,845 participants to 47.7 million or 15.1% or the total U.S. population.  This is a further indication that the U.S. economy is still in deep trouble.  Interestingly, when you divide the government reported “official” unemployed of 12,169,641 + or – by the number of people in the U.S. workforce (143,565,709), you get an unemployment rate of 8.5%; not the reported 8.1% of October.  “Actual unemployment” (not reported by the government) is 15.75%.  If you take the “official” and “actual” numbers of unemployed and divide them by the number of U.S. taxpayers, the number of unemployed rises to 10.6% and 19.7%, respectively.

Another interesting observation is that the amount of savings per U.S. family dropped a dramatic 23.5% in these seven months, from $6056 to $4626.  However, this reduction in savings apparently was not used to substantially pay off personal debt, since personal debt only declined by 0.07%.  U.S. families were likely using their meager savings to help stay afloat.

Obama’s proposed tax increases on the wealthiest 1-2% is a pure smoke-screen to pacify his mindless minions who do not have a clue on how economics or the economy works.  It has been said that if Obama were to confiscate ALL of the wealth of the top 1-2% it would only keep the government solvent for 6 days.  Keep in mind that all the discussion here and elsewhere usually does not factor in the estimated trillions of unfunded dollars that Obamacare will add to government spending; the annual deficit and the national debt.

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The Other Election Results Are In: Layoffs

November 10, 2012

The presidential election results are not even a week old and already the impact of the results are sending tremors across the field of business.  In the last four days at least 28 companies in the country have notified over 13,000 employees that their jobs will be terminated for various reasons, but all associated with President Obama’s incredibly poor economic policies or lack of policy.  Thousands of more layoffs are anticipated, particularly after January 1 when more Obamacare regulations take effect, taxes rise, energy prices rise and federal contractors face the impact of “sequestration” (mandatory federal program cuts).

As another election ploy and fraudulent move the Obama Whitehouse sent a memorandum on September 28 to federal contractors facing sequestration to ignore and not comply with the WARN Act (The Worker Adjustment and Retraining Notification) Act.  This Act requires that all employers with 100 employees or more that anticipate layoffs of their workforce MUST give those to be laid off a 60 calendar day notice in advance of their layoff.  Federal, state and local government entities that provide a public service are exempt from such a notice.  Obama’s Department of Labor administers the WARN Act (but apparently not lawfully).

Not surprisingly, Obama did not want thousands of layoff notices going out just before the election.  Yet another abuse of power and the exercise of the dictator to come.

For those of you who get laid off and voted for Obama, who ya gonna call?  Bush?  This downturn will be completely President Obama’s.  No more Bush excuses.  Get used to it.  It’s the new economy under Obamanomics.

Lay-off Update.  Since the posting of this column just 24 hours ago, I have discovered that I was too modest in my assessment of post-election lay-offs.  More lay-offs are coming in at breakneck speed with thousands more losing their jobs with household name companies such as: Abbott Labs, St. Jude Medical, Medtronic, Boston Scientific, Energizer, Westinghouse, Boeing, U.S. Cellular, Bristol-Myers, Darden Restaurants (owners of Olive Garden, Red Lobster and LongHorn Steakhouse restaurants) and many more.

Four main reasons are being cited for the lay-offs: Obamacare expenses, oppressive government regulations, increased taxes and a slowing economy, all of which make it harder for companies to compete and make a profit.  Many companies, like Darden Restaurants, are looking at cutting employees back to part-time hours (28 hours/week in Darden’s case) to avoid having to pay for Obamacare or the hefty $3,000/employee fine for non-compliance.

Too bad there cannot be a re-call vote on a presidential election.  This is only 5 days after the election.  Can you imagine what it will be like a month from now?  Six months?  A year?  Four years from now?  God help us!

Lay-off Update 2.0.  Are we headed to 10+% unemployment?  The list keeps getting longer of companies laying off or firing workers or cutting full-time employees back to less than 30 hours/week.  Keep in mind, this does not include the hundreds (perhaps thousands) of small businesses that are cutting back or not hiring in 2013.

List update as of November 23:

  • Abbott Labs – 700 employees
  • AMD – 400
  • Ameridose – undisclosed hundreds
  • ATI – 172
  • Boeing – undisclosed
  • Boston Scientific – 1200-1400
  • Britol-Myers – 480
  • Career Education – 900; closing 23 campuses
  • Caterpillar (Owatonna, MN) – 100
  • Center for Hospice and Palliative Care (NY) – 40
  • Cigna (insurance) – 1300
  • Covidien – 595PH Medical Center – unknown
  • Darden Restaurants (Longhorn Steakhouse, Red Lobster & Olive Garden) – cutting staff to part-time of 28 hours.
  • 40 Denny’s Restaurants in Florida, Georgia and Virginia reducing staff and cutting many full-time employes to less than 30 hours due to Obamacare.
  • Energizer – 1500
  • Exide Technologies – 150
  • First Energy – 400
  • Groupon – 600
  • Hawker Beechcraft – 410
  • Hil Rom – 200
  • Hostess Bakery, firing 18,500 workers and going out-of-business due to a prolonged union fight.
  • Husqvarna – 600
  • JANCOA Janitorial Services, cutting back many full-time employees to part-time.
  • Kinetic Concepts – 427
  • Kroger, cutting back FT employees to PT.
  • Las Vegas business (undisclosed) with 114 employees – 22
  • Lightyear Network Solutions – 17
  • Major Wind Co. – 3000
  • Medtronic – 500
  • Minnesota dairy plant – 130
  • Momentive, Inc. – 150
  • Murray Energy – 150
  • New Energy – 40
  • OCE North America – 135
  • Ohio air base – 115
  • Ohio’s largest insurance company – 50 underwriters
  • Pepsi – 4000
  • Providence Journal – 23
  • Research in Motion – 200
  • Rocketdyne – 100
  • Smith & Nephew – 770
  • St. Jude Medical – 300
  • Stanford (brake plant) – 75
  • Stryker (medical supply) cutting 1170 jobs due to Obamacare.
  • TE Connectivity – 620
  • Teco Coal – 90
  • Turbocare – 220
  • United Blood Services Gulf South – 10% of staff
  • Vestas Wind Systems – 3000
  • Welch Allyn (medical equipment mfger.) – 275
  • West Ridge Mine – 102
  • Westinghouse Aniston Weapons Incinerator – 50
  • Wilkes-Barre (PA government) – undisclosed

Please Note:  The lay-offs/firings above represent over 47,000 jobs lost.  This list does not include the thousands of workers that lost their jobs from Obama’s failed “green energy” start-ups that squandered billions of taxpayer dollars before going broke; nor does it include the thousands of full-time positions that will be cut back to under 30 hours/week.