Last Friday Laksman Achuthan, co-founder of Economic Cycle Research Institute (ECRI), announced that not only has the economy entered a new recession, but that “it’s going to get a lot worse. The vicious cycle is starting where lower sales, lower production, lower employment and lower income [leads] back to lower sales … you haven’t seen anything yet.” Despite some evidence that the economy is growing in places, it’s not enough to overcome the significant array of indicators that Achuthan has used successfully for years to predict the economy. According to The Economist, ECRI has never issued a “false alarm,” and this time should be no different.
On his website, Achuthan stated:
Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off.
ECRI’s recession call isn’t based on just one or two leading indexes, but on dozens of specialized leading indexes, including the U.S. Long Leading Index, which was the first to turn down — before the Arab Spring and Japanese earthquake — to be followed by downturns in the Weekly Leading Index and other shorter-leading indexes…
The stock market in Europe took another hard hit when the Greek Finance Minister announced that his nation’s government will not meet its deficit reduction goals.
After the cabinet meeting, the Finance Minister said that the Greek national deficit would be $25.2 billion or 8.5 percent of the nation’s GDP, compared with the target goal of $22.8 billion or 7.6 percent of GDP. Even this projection was issued with caution. In an official statement the Finance Ministry said: "Three critical months remain to finish 2011, and the final estimate of 8.5 percent of GDP deficit can be achieved if the state mechanism and citizens respond accordingly."
In that cabinet meeting on Sunday, a draft budget for 2012 was approved. It was this meeting that produced the projected deficit of 8.5 percent. It issued more bad news: The Greek economy will shrink even faster than was previously stated. A 5.5 percent reduction in GDP is now projected for this year. The government tried to sound steady and sure. Minister George Papandreou told an extraordinary Cabinet meeting Sunday to approve a 2012 draft budget: "I want to repeat that we will be unswerving in our goal — to fulfill all that we have promised to ensure the credibility of our country.”We have a single and steady goal — to meet our commitments so that we guarantee our credibility." Papandreou’s budget called for reducing the pay, firing, or forcing into early retirement 30,000 government workers.
The name John Gorrie is little known today, though a sculpture commemorating his contributions to the lives of every American stands in National Statuary Hall in Washington, D.C. He is the father of refrigeration and air conditioning, and by virtue of that title can also be considered one of the founding fathers of our modern industrial economy.
Gorrie was born 208 years ago today on an island in the Caribbean and grew up in South Carolina. He went on to earn a medical degree in New York. But it was on the Gulf Coast of Florida where he settled in 1833 that his medical research evolved into a life-long quest to combat the effects of temperature and climate on disease. He saw his patients at the U.S. Marine hospital in Apalachicola suffering from malaria and yellow fever. Popular thought at the time attributed such tropical diseases to bad air. (The word malaria means "bad air disease.")
He set up a primitive cooling system in the sickroom with ice-filled basins suspended from the ceiling. When his supply of ice was interrupted by regional trade disputes, he concocted the first patented ice-making machine in history. Gorrie also had the foresight to drain area swamps and use mosquito netting in the hospital long before the protozoan source of malaria was discovered.
As the “Occupy Wall Street” protests in New York and global “solidarity” demonstrations continue gaining support — especially among labor unions and socialist groups — reports of alleged police brutality and mass arrests are helping to propel the purportedly “leaderless” movement into the media spotlight around the world.
Before the events officially got underway on September 17, organizations affiliated with the movement insisted the so-called “occupation” and “Day of Rage” would be non-violent. At the same time, however, organizers were disseminating instructions on how to engage in civil disobedience, resist arrest, and even disrupt court proceedings.
While the protests — far smaller than the 20,000 hoped for by activists — began relatively unnoticed in terms of media coverage, that is quickly changing. Recent police actions have helped garner unprecedented publicity and even some sympathy for the largely anti-capitalist agitators.
Over the weekend, for example, hundreds of protesters were arrested and released after repeatedly disobeying orders not to block traffic across the Brooklyn Bridge. Dozens more were handcuffed and taken away on buses. And the press dutifully descended upon the scene.
On Thursday, Bank of America announced that, starting the first of the year, they would be charging debit card users $5 a month for the privilege as a way to recoup lost income under new rules from the Federal Reserve. The rules, which took effect on Saturday, October 1, limit the amount banks may charge merchants accepting debit cards to 21 cents per transaction, down from 44 cents previously. Under the Dodd-Frank bill passed in 2010 — initially proposed by former Senator Chris Dodd (D-Conn.) and Representative Barney Frank (D-Mass.) — banks processing the transactions will see their income from those fees drop by about $10 billion a year, all in the name of fairness and equity, according to the Federal Reserve, which determined that the new fees are “reasonable and proportional.” According to industry sources, the real cost of handling each debit card transaction amounts to “a penny or two,” and so politicians decided this called for action.
One of those was liberal interventionist Senator Dick Durbin (D-Ill.), who sponsored the swipe fee amendment, saying,
Referring to his jobs bill in his weekly address to the nation, President Barack Obama stated, “I want it back.” No, the President is not having second thoughts about the $447 billion bill; he just wants Congress to pass the bill so he can sign it.
Obama submitted his American Jobs Act to Capitol Hill nearly three weeks ago, having preceded it with a speech to a joint session of Congress in which he repeatedly urged that body to “pass this bill right away.” Since that time the bill has been subjected to much scrutiny and criticism, but no action has been taken on it. Fed up with legislators’ stalling, Obama said, “It is time for Congress to get its act together and pass this jobs bill so I can sign it into law.”
Obama’s latest shot across Congress’s bow differed little from his previous remarks on the bill. He asserted that the “bill would boost the economy and spur hiring” and that it “is fully paid for.” “Why,” the President asked, “would you be against that?”
There are a number of good reasons to oppose it.
Claiming that the United States “can’t afford” to lose the race to develop the technologies necessary for a transition to a green economy, Acting Commerce Secretary Rebecca Blank defended the dispersal of millions of dollars in federal funds to the winners of the government’s i6 Green Challenge.
The i6 Green Challenge is undeniably a very small program; the challenge website acknowledges that approximately $12 million was available for “proof of concept” models. Under business-as-usual in Washington, D.C., the expenditure of $12 million would look like a departmental rounding error. In part, the i6 Green Challenge awards will receive a measure of public scrutiny because of the scandal surrounding President Obama’s favorite (at least until recently) example of a corporation of the new “green economy” — Solyndra — which recently found itself under investigation in connection with $535 million in loan guarantees that it had received from the federal government. The image of Solyndra being raided by FBI agents may continue to linger for a time — much to the chagrin of the President and his standard bearers in government and the media.
An article for CNSNews (“Acting Commerce Secretary: Despite Failures, ‘U.S. Can’t Afford’ Not to Subsidize Green Tech”) highlights the “good money after bad” strategy being employed by the White House: In short, pay no attention to the scandals and lack of success — the “green economy” must be pursued at any cost.
Who talked Rick Perry into grabbing the third rail of American politics? In case you don’t recognize the phrase, “the third rail” refers to any criticism of the Social Security system or any suggestions on ways to improve it by anyone running for public office anywhere in the United States.
It’s called the third rail because, just like a subway line, touching it usually proves fatal.
In the book Perry published last year, which he called Fed Up!, the Texas Governor referred to Social Security as “a Ponzi scheme.” Nobody made much of a fuss about it at the time. Outside of Texas, who cares what the Governor there says?
But now that Perry has taken the top spot in the Republican race for the White House, the poor guy is really getting pounded for it — and for a bunch of other “crazy, right-wing” sentiments he expressed there as well. Or at least so saith the New York Times and Washington Post.
A growing number of unions, prominent big-government advocates, and socialist groups are joining the “Occupy Wall Street” demonstrations in New York and “solidarity” protests nationwide.
The trend has some analysts very concerned — particularly after reports claimed union bosses tied to the Obama administration were plotting to bring about chaos. And while the protests which began on September 17 may be small now, supporters and critics alike say this may be only the beginning of something much bigger.
In just the last week several large labor groups have officially announced their support for the occupation. The NYC Transit Workers Union, with nearly 40,000 members, voted to back the protesters on September 28. And the SEIU’s massive 32BJ union, which claims to represent over 120,000 property service workers, recently decided to use an upcoming rally to show “solidarity” with the Wall Street occupiers.
"The call went out over a month ago, before actually the occupancy of Wall Street took place," 32BJ spokesman Kwame Patterson told the Huffington Post. But now "we're all coming under one cause, even though we have our different initiatives."
House Resolution 2681 would delay the EPA's onerous 2010 regulations for the cement industry.