Nov
30
When a Recession is Not a Recession, But Merely The Beginnings of One
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I never believed the short, but sweet, activity in construction and the real estate market would eventually become a new boom, or that the housing part of the overall economic picture would ever be what it was during the previous housing boom that came crashing down a few years ago. In fact, I am sure there is nobody that truly believes that we will ever reach that level of growth in the real estate market again. I did, however, hope that the activity I saw at that time could possibly be an indication that the bottom had been reached, and a new steady rise of consumer spending in the housing industry may stop the hemorrhaging.
Earlier this year I also indicated in a couple articles that I believe we are not in a recession, nor would we go into a recession should the government stay out of the way and allow the free market to adjust itself naturally as designed by our founding fathers. That is how Capitalism works. Ups and downs historically have created a roller coaster ride of statistics that, through the natural adjustments of the market, partly due to the habits of the consumer, would never allow the system to plunge into a deep depression as long as outside entities such as the government decide to refrain from manipulating the market in order to save us from such an economic catastrophe.
A number of liberals have been sending me messages and comments calling me an idiot and a liar because, as you have probably noticed, the economic downturn has been steadily worsening, and based on my articles of optimism, and the liberal subjectivity and misunderstanding of the written pieces, I obviously (to them) did not know what I was talking about. They have erroneously assumed that optimism considering a possible turn-around on the horizon must mean that I was somehow predicting a one hundred percent increase in the economy, and a return to the glory days of a robust economic engine.
Of course their attacks are an example of a very typical liberal attitude – always looking for that “Gotch’ya” moment.
I, like any other normal human being, understand that nothing is ever “for sure,” first of all. Secondly, if these smear merchants of the fringe left were to read what I wrote carefully, rather than with subjective intentions, they would have noticed I repeatedly indicated that we would be fine economically without government intrusion. Capitalism is a self-correcting system, with mild highs and lows that are exaggerated whenever artificial manipulation by government bodies are applied. In short, any government intrusion through bailouts or over-regulation, regardless of the wonderful intention to save us from economic disaster, is literally turning us headlong into economic woes that even Jimmy Carter couldn’t create.
Contrary to what the biased media and liberal Democrats are telling you, this is not the worse downturn since the Great Depression, and the Republicans are definitely not at full fault for the current financial difficulties this nation is facing.
However, if the government doesn’t step aside right now and get out of the way of the American Free Market, if the weakest links of the economic system are not allowed to fail and fade away or be engulfed by larger and stronger institutions in their corner of the industry, and if the consumer (and government) doesn’t stop living beyond their means while gladly accepting government welfare checks, we will be in for an economic disaster beyond imagining.
On the horizon are worse things than a housing downturn, credit crunch, and rising oil prices, should the current move towards more government involvement in the economy continue.
But are we currently in the worse economic pickle since the Great Depression, as the Democrats and Barack Obama proclaim, and ran their campaign on as they crammed unwarranted change down the throats of the unassuming voter?
Let’s take a look at the numbers and decide from there.
When it comes to economic statistics, most will tell you the true indicator of a recession is the Gross Domestic Product, or GDP. This number is the output of goods and services produced by labor and property located in the United States. And the Gross Domestic Product did indeed decrease in the third quarter of 2008. . . but this hardly makes for a recession. Aside from a meager 0.2 drop in the fourth quarter of 2007, the last time we have experienced a negative percentage change of the GDP was -1.4 during the third quarter of 2001 – a number nearly triple the -0.5 we experienced last quarter. Negative numbers also appeared during the first quarter of 2001 and the third quarter of 2000. Some may say that those were a residual effect from the Clinton years.
If you compare the third quarter of 2008’s drop of -0.5 of the GDP to the -3.0 of the last quarter of 1990, or the -2.0 of the first quarter of 1991, the current strain seems to be a minor hiccup. The numbers after the end of Jimmy Carter’s mismanagement of our economy are even more alarming (-7.8 1980 2nd QTR, -0.7 1980 3rd QTR, -3.1 1981 2nd QTR, -4.9 1981 4th QTR, -6.4 1982 1st QTR, -1.5 1982 3rd QTR). Judging by the GDP, this is hardly a recession, and hardly the worst economic downturn since the Great Depression. However, in order to convince the people that the Republicans were bad guys, and “Change” was the only thing that could save us, the Democrats had to paint the economy as gloomily as they could.
Some folks quote the unemployment numbers as being an indication of a recession, and that unemployment is spiraling out of control worse than any year since the Great Depression. The current 6.5 unemployment rate seems high if you compare it to the numbers over the last 10 years, even though the percentages remain within a point or two of each other all the way through that period. During the Great Depression unemployment rates topped over 20%, and in some years nearly reached 25%, well above the current 6.5%. In 1975 the unemployment rate was 9.0, in 1982 it reached over 10%. Once again, though the unemployment rate is higher than it has been in the last five years (and among the highest over the last ten years), it is hardly as high as it has been before, and hardly at a point that it will take major government influence to save us from disaster.
My point, I believe, is clear. The media and the liberal left created hysteria about the economy being the worst it has been since the Depression, and they did so soley for political reasons. It turns out that not only is this liberal information not true, if anything, our economy is only experiencing a minor bump in the road and has been essentially healthy over the last eight years of President George W. Bush. However, the bailouts, increases in taxes (business taxes, capital gains taxes, estate taxes, etc.) that Obama has suggested, and other government manipulation can (and will if put into place) send us into an economic direction that could prove to be exactly what the Democrats were swearing we were in the midst of already.
By Douglas V. Gibbs of PoliticalPistachio.com
Nov
30
Swiss Approve Free Heroin For Addicts
Filed Under Global | Leave a Comment
Yes, seriously. Apparently the response to a dangerous addiction is keeping the addiction going on the taxpayer’s dime. Oh, but marijuana is still illegal. Make sense of that if you can.
Swiss voters overwhelmingly approved Sunday a move to make permanent the country’s pioneering program to give addicts government-authorized heroin. At the same time, voters rejected a proposal to decriminalize marijuana.
Sixty-eight percent of the 2,264,968 voters casting ballots approved making the heroin program permanent. It has been credited with reducing crime and improving the health and daily lives of addicts since it began in 1994.
Some 63.2 percent of voters voted against the marijuana initiative.
Via Outside the Beltway.
Nov
30
Now Dems Try to Claim Credit for Iraq Success
Filed Under Election, Media, War on Terrorism | Leave a Comment
In his column for the New York Times, Democrat Thomas Friedman attempts to give Obama and Democrats credit for any success in Iraq.
In the last year, though, the U.S. troop surge and the backlash from moderate Iraqi Sunnis against Al Qaeda and Iraqi Shiites against pro-Iranian extremists have brought a new measure of stability to Iraq. There is now, for the first time, a chance — still only a chance — that a reasonably stable democratizing government, though no doubt corrupt in places, can take root in the Iraqi political space.
That is the Iraq that Obama is inheriting. It is an Iraq where we have to begin drawing down our troops — because the occupation has gone on too long and because we have now committed to do so by treaty — but it is also an Iraq that has the potential to eventually tilt the Arab-Muslim world in a different direction.
I’m sure that Obama, whatever he said during the campaign, will play this smart. He has to avoid giving Iraqi leaders the feeling that Bush did — that he’ll wait forever for them to sort out their politics — while also not suggesting that he is leaving tomorrow, so they all start stockpiling weapons.
If he can pull this off, and help that decent Iraq take root, Obama and the Democrats could not only end the Iraq war but salvage something positive from it. Nothing would do more to enhance the Democratic Party’s national security credentials than that.
I said this is what would happen and now we’re seeing it in real time. The war in Iraq was a success and we’ve been drawing down troops for a while. Democrats won’t admit as much until Obama is in office, at which point he’ll be credited for the stability and progress. The media, ever willing to set a pro-Obama narrative, will go right along with it.
It won’t matter that Democrats, including Obama himself, fought the continuation of the war and the implementation of the surge at every step. It won’t matter that they voted to cut off funding to our troops. It won’t matter that their Senate Majority Leader declared the war “lost” long ago. It won’t matter that Democrats did everything possible to lose the war.
They’ll still claim that they deserve credit for the success.
Bob Owens writes:
How many times in the past two years have Nancy Pelosi and Harry Reid and their cohorts attempted to defund our troops and force them into defeat? Forty times? Fifty? Frankly, I lost count somewhere in the mid-forties.
Now Friedman and his fellow defeatists on the left who long derided those of us who wanted to secure victory as “28-percenters,” “warmongers” and “murderers” want to try to rewrite history. The Times and their fellow travelers long to rewrite their moral cowardice as a virtue, and give themselves a victory by declaration.
And who can forget the New York Times’ 61% discount for MoveOn.org’s full-page ad declaring General David Petraeus, the very leader of troops in Iraq at the time, a traitor?
Nov
29
Al Qaeda Claims Responsibility for Economic Woes
Filed Under Economy, War on Terrorism | Leave a Comment
Yeah, uh huh. Al Qaeda was responsible for the collapse of the housing market? You’ve got to give them credit for trying, though.
This crisis is one of … the series of American economic hemorrhages after the strikes of September 11… And these … will continue as long as the foolish American policy of wading in Muslim blood continues. The ones shouldering the burden are taxpayers, whose money was spent to rescue senior capitalists and to protect the fraudulent interest-based system from collapse.
That’s the claim by AQ’s number two, Ayman al-Zawahiri. Do take note that he expressed concerns about the American taxpayers. You know, the same ones he and his organization have and continue to murder at every possible opportunity.
Nov
29
Creepiest American Commercial Evuh
Filed Under Election | Leave a Comment
Via Ace of Spades HQ, how pathetic is this? “The day the world changed forever”? “His confident smile and his kind eyes are an inspiration to us all”? Move on with your lives, people. He’s the President; Not the Messiah.
Obama commemorative plates. Good Lord.
Nov
29
It’s not only that. Iraq will cooperate, unlike Saudi Arabia, with any OPEC production cuts that are proposed. Hey, Iraq? You’re fucking welcome.
“A reasonable price for oil is 80 dollars a barrel,” said Shahristani on arrival in Cairo to attend a consultative meeting by the OPEC cartel to study slumping crude prices.
“We have to make sure that produced oil is used for consumption and not for storing.
“Iraq would support a decision by OPEC to cut output either here or in Algeria,” the Iraqi minister added.
Does this finally put to rest the ridiculous “war for oil” claims? The country we liberated and rebuilt with American dollars and blood now wants our economy to suffer even more during this difficult time.
I don’t regret the liberation considering how many Iraqis will no longer spend the rest of their lives under tyrannical rule, but come on.
Nov
28
Black Friday Claims A Life
Filed Under Global | Leave a Comment
Or, to be more specific, a bunch of psychopathic shoppers who quite literally took the doors off the hinges to buy cheap crap claim a life. Ah, the true meaning of Christmas.
A worker died after being trampled and a woman miscarried when hundreds of shoppers smashed through the doors of a Long Island Wal-Mart Friday morning, witnesses said.
The unidentified worker, employed as an overnight stock clerk, tried to hold back the unruly crowds just after the Valley Stream store opened at 5 a.m.
Witnesses said the surging throngs of shoppers knocked the man down. He fell and was stepped on. As he gasped for air, shoppers ran over and around him.
“He was bum-rushed by 200 people,” said Jimmy Overby, 43, a co-worker. “They took the doors off the hinges. He was trampled and killed in front of me. They took me down too…I literally had to fight people off my back.”
…Before police shut down the store, eager shoppers streamed past emergency crews as they worked furiously to save the store clerk’s life.
“They were working on him, but you could see he was dead, said Halcyon Alexander, 29. “People were still coming through.”
Only a few stopped.
“They’re savages,” said shopper Kimberly Cribbs, 27. “It’s sad. It’s terrible.”
I hope those cheap TVs were worth this gentleman’s life. Anyone remember Jesus at all? Because the point of Christmas, last time I checked, is to celebrate his birth. It seems too few people remember that nowadays.
Nov
27
U.S. Embassy in Kabul Attacked
Filed Under War on Terrorism | Leave a Comment
The U.S. embassy in Kabul, Afghanistan was hit by a suicide car bomber this evening, the Associated Press reports. The bombing was apparenty aimed at westerners entering the embassy to take part in a Thanksgiving Day footrace.
KABUL, Afghanistan – A suicide car bomb exploded outside the main entrance to the U.S. Embassy in Kabul on Thursday in an attack against an American convoy, police said.
Kabul police chief Mohammad Ayub Salangi said one person was killed and six wounded in the attack, about 200 yards from the entrance.
The report notes that one person has been confirmed dead, but the BBC has a police chief claiming that more had been killed. Early reports are usually sketchy and this is no exception.
Via Gabriel Malor. As he says, this is yet another reminder that the threat of terrorism hasn’t suddenly disappeared. The war on terror must still go on.
Nov
27
The Attacks Aren’t Over Yet
Filed Under War on Terrorism | 1 Comment
DrewM. has full coverage just as he’s had all day. CNN-IBN reports that the terrorists have been removed from Cama Hospital, though there’s no indication as to how many casualties were sustained in the process. The Indian Army has requested that networks stop providing live feeds near the hostage areas and they’ve supposedly agreed.
This clearly wasn’t thrown together at the last minute. The well-armed, well-coordinated terrorists apparently arrived via boat and attacked at least 10 locations. Even now, many hours after the attack began, there’s at least 3 locations where hostage situations are going on. It smells like a major terror group’s doing.
Nov
27
What a country when difficult economic times mean buying the Butterball turkey instead of free-range. Kids in Darfur feel your pain, ma’am.
“Maybe you cut back on the (holiday) gifts a little bit, or maybe you don’t have as extravagant a Thanksgiving as you used to,” she said. “Maybe you don’t have a free-range bird as you’ve had in the past; maybe you go to a Butterball.”
Via Professor Reynolds who, as I did, thought Butterball counted as a premium turkey.
