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February 10, 2011

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Economic Update from your friendly headhunter:

We continue to see increased interviewing at about a level of up 25% from the bottom and we are beginning to see hiring pick up again. Still a lot of hesitancy but employers are cautiously moving forward with business developers. This is really the same place we were before the election quarter. So we have recovered from the effects of the election debates. It is crucial for the economy, I believe, for the 2012 election not to start too soon. If Congress and the Administration get into a heated debate over the budget and cost cutting then manager confidence will drop once again.
So, despite what I'm sure will be spirited debates over the divided approaches to lowering the deficit, I think it is crucial to the country that Congressional leaders and the President debate cordially to set an example for the press. And, make compromises to give the country a feeling that we are going to solve the problem eventually. Otherwise the recession could continue on for a long time. Nothing will cut the deficit more than economic recovery. During these downswings when American businesses make losses they have the right to go back 5 years and recover taxes from profitable years. This adds to the deficit because not only does the government lose the taxes from profits in the current year but they then have to refund the taxes they collected in prior years. So a double whammy hits the feds and states cashflow and books. This is the reason that the Feds and states recover so quickly in an upturn. They make revenue for the new taxes and no longer have to refund taxes they collected years ago. Keep the faith and hope the politicians keep the dial turned down.

I find it very interesting that we are fighting terrorist in the Middle East when our Southern borders are threatened by a very frightening group of terrorists and we are doing nothing. Is it because we want the drugs they sell so we won't man the borders and we need the oil in the Middle East so we will continue a useless war over there?

Re Egypt. Watch Israel. They will not sit back quietly.

Egypt begins the new transition to what? Scary isn't it? Likely this will inspire more transitions in the middle east region. This period in the next few years is going to be interesting. Will the military --subsidized by the US-- retain a stable friendly country or will we suddenly be faced with the emergence of another set of Muslim countries hostile to Isreal and the west?

Perhaps Republicans and conservative minorities should try the Egyptian strategy in California, Bill. Or is that a little of what you are describing? California is a great example of how unchecked Liberalism can damage a beautiful thing.

And, Arizona strikes back. Send your checks to Arizona striking back in court against an incompetant and uncaring Federal Government on border security. Will Texas follow?

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