Forex Go!

According to the United States Labor Department’s Non-Farm Payroll Report, the country gained a mere 18,000 jobs in June.  The release was especially disappointing because one day earlier an ADP report indicated a net gain of 165,000 jobs with the private sector generating most of the jobs.

Wall Street initially balked at the news but rallied late in the day.  Immediate political posturing began the minute the jobs report was released.  House Speaker Boehner pointed fingers at government’s lack of job initiatives.  Minority Speaker of the House answered back blaming the Republican Party for the economic woes and job chaos.

A look at the numbers reveals the following facts: 

• The number of unemployed reached 14.1 Americans or 9.2%.  Up one percent. 
• Since March the number of unemployed persons has increased by 545,000 causing a rise of .04 percent. 
• The Labor Force is relatively unchanged at 153.4 million. 
• The number of workers unemployed for less than five weeks increased to 412,000. The number of workers unemployed for the long term (27 weeks or longer) remains at 6.6 percent and 44.5 percent of all unemployed workers. 
• Professional services and technical services added 24,000 jobs in June and have added 245,000 sine March of 2010. 
• Health care continues its solid record of job creation adding another 14,000 jobs in June.  Health care has average about +24,000 jobs per month for the past 12 months. 
• Mining added 8,000 jobs in June and has steadily shown gains of 128,000 jobs since a low point in October 2009. 
• Leisure and hospitality increase by 34,000 in June  and has added 279,000 jobs since January 2010. 
•  Manufacturing had a net gain of just 3,000 jobs.  Manufacturing has added 164,000 from November 2010 and June 2011. 
• Construction is unchanged and has been flat since 2010. 
• Changes in the April unemployment was trimmed fro 232,000 to 217,000.  Changes in May were revised down from 54,000 to 25,000. 
• The largest job losses were recorded by the public sector where 39,000 jobs were lost.  Federal employment was trimmed by 14,000 in June.  State, county and city employment continues the downsizing trend.

 To add to these woes, there will be thousands of NASA workers unemployed in July.

 What Does It Mean

Listening to John Boehner, the problem exists because of Barrack Obama.  Listening to Nancy Pelosi, the problem exists because when the people needed Congress the most, the “party of no” has administered the worst and least progressive Congress in history.

Republicans want the size of government trimmed.  It appears there is a natural attrition rate already in play.  Boehner wants all social services trimmed.  He also wants defense spending trimmed but by a number lesser number than Democrats approve.

Then, of course, there is a problem with soldiers who come home and cannot get jobs.  A jobs stimulus is the only answer. 

Republicans also want the low tax rates kept in place. These Bush tax cuts are supposed to generate jobs.  Oh, really?  That philosophy fell short under G W Bush.  How many jobs did the Bush administration really produce?  The first month Obama took office more than 600,000 Americans lost their jobs.  The real question is why do Democrats not speak up about the failure of the Bush tax cuts.

House Majority Leader Eric Cantor has drawn a line in the sand about tax changes.  The fact is Cantor and his fellow Tea Party members have rendered the House useless.  Now, they intend to hold the debt ceiling increase to the head of the American people.

Presidential candidate and another Tea Party member, Michelle Backman, said that Treasury can still choose to pay interest on the country’s debt.  Of course without a debt ceiling increase, there are millions of Americans who will lose their jobs or not receive pay.  That includes the soldiers in the field.  Backman would suggest that we either pay our own people or pay our debt but not both of these entities.

This strategy of holding a gun to the people’s collective head has been used by this Congress before.  In January, the Republicans would only permit payment extensions for unemployed workers if the Bush tax cuts were implemented.  At that point, 7 million unemployed workers would have had no income during the course of 2011. 

This block of extremely conservative Republicans control the House.  They have also put their Speaker in political jeopardy.  If Boehner makes a deal, he will need Democratic support, because the Tea Party will stick together and vote against any form of compromise.

This political group says they want smaller government, less regulation and big tax cuts for wealthy corporations and individuals.  During the Bush Administration the debt ceiling was increased seven times.  The Republican stance on less regulation is what permitted the failure of Bear Stearns and Lehman Brothers and nearly collapsed the global economy.

Tea Party Republicans say that Obama has failed.  How would they evaluate a Congress that has only passed 50 legislative actions of 259 submitted bills?  This group even offends other Republicans.  The purpose of the Tea Party is not to act responsibly or even in a manner that most taxpayers would support.  Their sole purpose is to assure Barrack Obama does not win another four years.

It is this party’s effort to make Obama appear the cause of employment problems, financial problems and rampant spending that is controlling the House.  In the history of the country, this is the most offensive abuse of their Congressional powers.

We the people may very well default on our debt. We may not be able to pay Medicare expenses.  We may not be able to pay social security or Medicaid.  Likewise, we may not be able to pay our troops. 

If any of these situations occur, the blame will rightfully be placed on the Republican Party.  Those who care about the direction of the debt ceiling talks, the budget talks and our basic rights should pick up their phones and contact Congressional members.

Republicans wonder why there are not more jobs.  The real reason there are not more jobs is that business is unsure what will happen with the debt ceiling.  Main Street believes the budget will be fixed but employers have no idea what will happen if the world’s biggest economy defaults.

The economic tsunami that will be caused by default on our debt will belong to the Tea Party and on those Americans who sit back and do nothing about the way this unscrupulous group is conducting business.  This is the time for action by taxpayers.  Next year, put a halt to this nonsense by voting Democrats back in the House and extending their majority in the Senate.

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