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Those expecting the national economy to spurt ahead were disappointed by today's (Dec. 3) employment news from Washington DC. Employment in November grew by only 39,000; economists had expected a gain of 155,000. The unemployment rate jumped to 9.8% from 9.6% in October. Economists had expected the rate to be steady. Retail jobs dropped 28,100 in the month; economists had seen signs of a retail revival. Manufacturing jobs declined 13,000 and construction jobs dropped 5,000. There are now 15.1 million unemployed persons, and almost 42% have been jobless for 27 weeks or more. Underemployment, which includes discouraged workers and those forced to work part-time because of the weak economy, held steady at 17%. The average workweek was steady at 34.3 hours. Unemployment and underemployment are likely to remain painfully high for years.

Early in the trading day, stocks are only moderately down. However, stock performance is not particularly related to the health of the economy. Since early in 2009, the stock market has been sensitive to the massive amount of liquidity pumped into economy by central banks, particularly the U.S. Federal Reserve. Today's bad news suggests the Federal Reserve will continue to pump money into the economy by buying bonds, and possibly even step up that program, which is criticized strongly by overseas allies who correctly say the U.S. is trying to drive its currency down while simultaneously slamming other countries for doing so.

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Comments

Visduh Dec. 3, 2010 @ 9:09 a.m.

A day or two ago, Bernanke was quoted as being concerned about the fact that the "recovery" is not bringing employment growth. He expressed some angst about the long-term effect this phenomenon is having on the lives of the affected folks. How's that for hypocrisy? The architect of this bogus, stimulus- and liquidity-driven economic environment now worries about its lack of effect in making a real turnaround happen.

Don, you called it right when you described this program as a boon to Wall Street with nothing at all for Main Street. Even he now admits that it isn't working. But as you point out, if it did result in jobs growth, would also be inflationary and that's a no-no right now.

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Don Bauder Dec. 3, 2010 @ 9:51 a.m.

Bernanke claims he cares about Main Street when it is clear that he only cares about Wall Street. QEII is nothing but a triple-martini for Wall Street. Ditto for QEl. And remember, the Fed loaned big banks, including foreign banks, $3.3 trillion beginning in 2008. The low interest rates Bernanke has engineered hurt Main Street; people make almost nothing on their savings. This is a plutonomy -- an economy run for the superrrich and the financial institutions. High unemployment is becoming normal. And our leaders don't give a damn. Best, Don Bauder

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SurfPuppy619 Dec. 4, 2010 @ 8:38 a.m.

A day or two ago, Bernanke was quoted as being concerned about the fact that the "recovery" is not bringing employment growth.

Bernanke should have been canned 5 years ago.

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a2zresource Dec. 3, 2010 @ 9:42 a.m.

It appears that early December DJIA gains are very much leading indicators as to employment and thus the economy improving sometime in the distant future, but not supported by current job numbers. If overly inflated, this may contribute to a possible double dip scenario in Spring 2011 as mentioned in one of your previous blog posts?

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Don Bauder Dec. 3, 2010 @ 9:53 a.m.

A housing double-dip is almost a certainty. Whether the overall economy will go into a double-dip is still an open question. Best, Don Bauder

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SurfPuppy619 Dec. 3, 2010 @ 9:51 a.m.

CA has had a 9%+ UE for over 19 straight months. That is the U-3 UE rate, which means the true UE rate-the U-6 rate- is double that.

The U-6 UE rate is 21.8% where it has been for the last straight 18 months.

We are in uncharted waters.

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Don Bauder Dec. 3, 2010 @ 9:54 a.m.

California is worse off than the nation. San Diego is better off than California, but worse off than the nation. Best, Don Bauder

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Visduh Dec. 3, 2010 @ 10:07 a.m.

Having lost our way, we have redoubled our efforts. If it didn't work, it must have been that we didn't do enough of it. So, let's do more of what has not worked. Uncharted waters, indeed!

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Don Bauder Dec. 3, 2010 @ 3:02 p.m.

Excessive debt at all levels got the nation into the trouble. So excessive debt will get us out. I don't understand it, either. Best, Don Bauder

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Founder Dec. 3, 2010 @ 1:30 p.m.

Our Leaders are trying hard to tell US want we want to hear; without getting caught lying!

Here is my "Take" on the US Economy vs The World: US Dollar.............1.0 Mexican Peso.... 12.4 Euro.....................0.7 Canadian Dollar..1.0 British Pound.......0.6

If I had money, I'd put it in Canadian Dollars...

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Don Bauder Dec. 3, 2010 @ 3:05 p.m.

A lot of people are putting money in the Canadian dollar. I can remember when it was worth about 65 or 70 cents to the U.S. dollar. Then it climbed back to parity. Best, Don Bauder

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SurfPuppy619 Dec. 3, 2010 @ 3:37 p.m.

Well gold was stuck at or around the $300 mark for 20 years+, all thru the 90's and early 2000's, just saw the NY spot price today and it was $1,300.

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Don Bauder Dec. 3, 2010 @ 9:57 p.m.

I know some long-time gold bugs that gave up on it in the 1990s. Too early, as it turned out. Best, Don Bauder

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Ponzi Dec. 3, 2010 @ 10:50 p.m.

Maybe the lawmakers in Washington can explain just how job creation is suppose to happen when more jobs and industries are outsourced to India, China and other countries every day? Our teenagers and college students can’t secure part time jobs because those have been taken by immigrants (legal or otherwise). Automation, consolidation and integration of industries into near-monopolies have shed millions of positions.

Just where do the dreamers in Washington think the job creation is going to happen?

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Don Bauder Dec. 4, 2010 @ 7:02 a.m.

You raise an interesting point. Most economists are ardent free traders. But there is no doubt that beginning in the 1980s, when American companies began massively shifting manufacturing jobs to low- or slave-wage labor nations, the U.S. economy lost its manufacturing base and, consequently, its economic puissance. Manufacturing is now less than 10% of the economy. Manufacturing wages have traditionally been a good deal higher than service wages, but we have now become a nation of services. I used to be a strong free trader, but economic reality has forced me to reconsider. A number of ideas are floating around, such as giving tax breaks to companies that keep their manufacturing in the U.S. Best, Don Bauder

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SurfPuppy619 Dec. 4, 2010 @ 8:38 a.m.

Maybe the lawmakers in Washington can explain just how job creation is suppose to happen when more jobs and industries are outsourced to India, China and other countries every day? Our teenagers and college students can’t secure part time jobs because those have been taken by immigrants (legal or otherwise). Automation, consolidation and integration of industries into near-monopolies have shed millions of positions.

=================== Wow, Ponzi just gave the three strikes of jobs/employment destruction;

1) Outsourcing to 3rd world countries-with no regulations 2) Cheap immigrant labor driving down non/semi skilled US jobs 3) Monopoly/oligarchy industries (especially gas/oil/energy)

1 is the worst-but all 3 together essentially has wiped out the American middle class IMO.

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Don Bauder Dec. 4, 2010 @ 1:43 p.m.

U.S. tax policy, particularly the Bush tax cuts, have also helped to wipe out the middle class. Best, Don Bauder

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MondoGrapes Dec. 4, 2010 @ 9:32 a.m.

I know that the whole job flight thing got going with manufacturing and blue collar work, but what people need to understand now is that they are shipping white collar and office work overseas as well. In a big way. I've seen it personally in the company I work for. Anything that isn't nailed down is being shipped to India. And if it doesn't work the first time (my co had a bad experience with one department in the beginning), they'll regroup, get their ducks in a row, and try it again. And again. Americans simply cannot compete with the wages they pay people over there. If every worker in the US, white collar and blue, took a 50 percent pay cut, they would STILL not be competitive with the Indian and Chinese work forces. I do not believe that jobs will be created here until we see some sort of tariff applied.

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Don Bauder Dec. 4, 2010 @ 1:45 p.m.

Absolutely. Companies (and governments, too) are shipping service jobs overseas. It isn't just manufacturing jobs disappearing. Best, Don Bauder

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SurfPuppy619 Dec. 5, 2010 @ 5:22 p.m.

but what people need to understand now is that they are shipping white collar and office work overseas as we

LOL...the University of Michigan Law School-one of the top 10 LS's in the nation, had on campus interviews for people who wanted to supervise "document review" of INDIAN LAWYERS(temp, mundane legal work that pays $25/hour and allows new lawyers an income in the states) in INDIA!!!!!!!

When a top 10 LS is encouraging their grads to go to INDIA to find work/jobs you know we are in the toilet!

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MondoGrapes Dec. 4, 2010 @ 9:33 a.m.

And until jobs are created here--well-paying jobs--we will see NO RECOVERY for Main Street America.

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Don Bauder Dec. 4, 2010 @ 1:48 p.m.

Trouble is, our leaders don't give a damn about Main Street. The Federal Reserve is owned by and set up to serve the banks. There has been some fiscal relief for Main Street, but most of it has gone to the financial industry. Ten percent unemployment is now the new normal, and will be for at least five years. Storm the Bastille! Best, Don Bauder

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Founder Dec. 4, 2010 @ 12:29 p.m.

Our current fiscal "news" is being spun, (like many other things) and history will show that our Leaders did so because of the fear of widespread collapse of the dollar!

Here is what I see happening if not right now, in the near future:

  1. Our Govt. Leaders are for the most part thinking about 10 years behind the times and because of the infighting between both side of Congress, any kind of American recovery is being stall while the Ultra Rich happily grab as much as they can, while they can...

  2. GWB's packing of the SCOTUS that has now allowed Corp.'s to donate to political candidates, will make all of the Congressional Members rich, as they in turn, return favors worth many times more that the donations they receive.

  3. Our middle class will shrink to about the size of Mexico's middle class and then the hostility between the haves and the have-not's will begin here in the USA where gun ownership is still legal!

  4. Our Country is going to become a much rougher place to live, thanks to the Greedy Generation that has put profit before what is good for our Country!

  5. I expect to see the US Dollar do the same thing the Peso did, not to long ago... 10 old Dollars for 1 NEW Dollar if not a higher ratio and you better be able to explain any large amount of cash, if you want it exchanged.

  6. A small National Flat tax at point of sale, to "Save America" by balancing the budget and guaranteeing Social Security, while provide for our Military! I only hope that this is not also a "War" tax...

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Don Bauder Dec. 4, 2010 @ 1:50 p.m.

I'm sure you've noticed that as the dollar falls, the U.S. stock market goes up. It's almost symmetrical. Best, Don Bauder

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Founder Dec. 4, 2010 @ 1:54 p.m.

The stock market has to go up before it can CRASH again :-)

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Don Bauder Dec. 4, 2010 @ 3:57 p.m.

U.S. stocks -- and most foreign stocks, too -- are going up on liquidity, not economic performance. In the weak economies, central banks worldwide are printing money frenetically. That is a ticket to a major correction later on, but it may not occur in 2011, here or elsewhere. Best, Don Bauder

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Founder Dec. 4, 2010 @ 4:13 p.m.

When "Correction Day" comes, its effect will probably be felt globally as nobody will want to be left out of the computerized sell off, think musical chairs, with all those with large amounts of cash suddenly subject to close scrutiny.

China and India will probably weather that storm better than most, since their economies are less dependent upon foreign money and they have large growing economies.

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SurfPuppy619 Dec. 4, 2010 @ 3:58 p.m.

Founder has a good plan-why can't the Congress use it??? Or one similar to it??

Oh, because then they would not be padding their own pockets at the expense of the middle class, my bad, I should have known that by now. Congress exists not to serve the average working American who has no voice today, but the special interest ($$$$$) that pad their pockets.

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nan shartel Dec. 4, 2010 @ 3:20 p.m.

Wall Street b damned!!!

they have become a blight in modern America

dissolving the bonds between Corporate America that produce Governmental shenanigans is gonna take one big laxative to unblock that pipeline

Don said:California is worse off than the nation. San Diego is better off than California, but worse off than the nation. Best, Don Bauder

no wonder u moved to Colorado...hahahaha :-D

love ur ideas Founder...and ur eagle eyed view of the particulars Don

hope ur well now Bauder

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Don Bauder Dec. 4, 2010 @ 4 p.m.

Agreed: Wall Street is a blight on America. So are the world's other major money centers, particularly the offshore laundry havens. Best, Don Bauder

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nan shartel Dec. 4, 2010 @ 4:19 p.m.

agreed back atcha Don...

or my more infamous DITTO :-D

OK infamous off shore laundry havens...can u tell those who don't know enough about them more??

that would of course be me...hahahahaha

or point me at blogs or stories u've already written about them

thx pooh

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Don Bauder Dec. 4, 2010 @ 10:44 p.m.

Put "offshore" + "bauder" in the search box and you will find a bunch of them. Best, Don Bauder

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Founder Dec. 4, 2010 @ 5:09 p.m.

  • Solidarity is not spelled $OLIDARITY -*

What is now happening here So many living in fear

During the 60's we all tried to help each other It wasn't just something you learned from your own mother

Now for folks there are almost no good jobs If you listen close you can hear the sobs

Looking for a good job is real tough on the feet But that's not as bad as having nothing to eat

There are so many that are in this situation That it is changing the image of our great nation

We all need to work together again And start treating each other like our kin

We The People control our own fate Our Country was not built upon hate

Even those Managers on Wall Street will see the light When they watch their investors money start to take flight

Each of US must tell our Leaders of our aim And remind them that this is no greedy game

If we all can call our Leaders each and every day Soon they will have to listen to what we have to say

Its time for each of US to take a stand And give our fellowman a helping hand

*from http://www.sandiegoreader.com/weblogs/np-star/2010/aug/26/rhyme-a-day/#c78656

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Don Bauder Dec. 4, 2010 @ 10:46 p.m.

You would like to give your fellow humans a hand, but too many leaders have sticky fingers. Best, Don Bauder

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Founder Dec. 5, 2010 @ 7:49 a.m.

Yes, of course you are right, Don.

Consider these examples that in the past one might have associated with the Godfather Series, yet are common place in our Gov't today:

  1. It very hard for our Greedy Leaders to give others a helping hand when both of theirs are filled with free gifts, donations and just old fashioned bribes, er sorry, wrong word, cash!

  2. Greasing Political palms has now become acceptable as the preferred way of cutting red tape, at least for Contractors, Developers and anyone else that depends upon our public money to make money!

  3. Donating to gain "face time" has never been a better deal for all those seeking public money and now it is even tax deductible thanks to the SCOTUS!

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Don Bauder Dec. 5, 2010 @ 1:39 p.m.

It's give and take. You give and they take. Best, Don Bauder

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