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April 26, 2012


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Thanks, Lisa.

AND THE BEAT GOES ON: a few quick notes.

JOBS: Payroll numbers revised for April indicated only 120,000 net new jobs were created. And TODAY the number projected to be 175,000 was 119,000 private sector new jobs. But, corporate earnings continued to rise. And, all the jobs were service jobs. Manufacturing and production of good were down.

Europe: Protests in FRANCE,Italy,Greece and Spain yesterday on austerity.

FERRARI/China: Interesting conversation with CEO of Ferrari today on CNBC. As I recall from Pol Sci 101 when Lennin created communism the idea was economic equality for all. Ferrari statistics show the folly of these socialist ideals. China is now their fastest rising market for the $240,000 cars. The average Chinese buyer is 32 years old (versus 48 in the US). He has made his fortune in the last 36 months versus his lifetime in the USA. They refer to them as the little Prince's. This is a country that forcibly aborts all but your first child. Builds dorms for workers on work sites to make them available 24/7 to employers with whom they have negotiated deals to build factories in return for locating to China. A country that produces 90% of the world's counterfeit goods that rob the US of $250 Billion and 750,000 jobs. LA county alone ways they lose $430M in tax revenue and 100,000 jobs to Chinese fakes. No one can really level the playing field except the individual who takes it upon themselves to get education, training and the work ethic to win in a competative society. Make no mistake all societies are competative.

AFGHANISTAN: Could anyone understand yesterday's message? We are done in 2014 but we are not done until 2024? The Taliban can be negotiated with but they must abide by Afghan law? They can do that now, so what is being negotiated? They immediately killed 7 civilians in Kabul after the speech. We need a public drawdown plan to? Let our enemies know the time table for their takeover? I remember those last few weeks,days and hours of leaving Vietnam with the US Embassy locking out our friends. People hanging from the skids on helicopters. The Viet Cong were right on schedule. Will that picture be the women of Afghanistan? The President reminded us we have soldiers in Japan,South Korea, Europe remaining after those wars 50+ years ago. We have bases there. Where will these soldiers hide if we have no bases? In Iraq they hide in the GREEN zone. Could we not have taught the Japs, the South Koreans, the Germans,the Serbs to defend themselves during these 60 years?

CHINA: And now the story of the blind dissident coming to the US embassy for help. Hillary rushes in and somehow he ends up in a Chinese hospital. This will be an interesting story to follow.

Great post both Bill's - This election will be ugly. Our hope (if I can use that word anymore) is that the independents and the regular, hardworking Americans will get it and come out in droves. If they don't, and Obama is reelected, then we are indeed going down.

And I do wish our President would be more Presidential. Appearing on all of the comedy shows cracking jokes about Hillary, Sarah, and others is just not appropriate. At least he is an equal opportunity joker but it just does not fit the office.

WATCH EUROPE and LEARN Once again Europe is a mess. Austerity measures in Spain and Italy needed to get their weekly bonds to sell and subsidize their deficits are creating massive unemployment especially among the young. With unemployment in Spain now at 20%+ and an unbelievable 40%+ for young adults the outlook for the consumers and economic growth is bleak. Look today for the EU powers at be to kick the can down the road one more time. This seems to be the strategy that they will use until the elections in France and Germany are over. And, this will lead to more debt and longer deficits and lower growth. US companies are beginning to withdraw from EU. Both Ford and GM have revamped operations there and lowered porduction. Ford is now turning to the Chinese market.

America looks on and continues in a similar fashion. With Republicans and Democrats locked in a freeze out strategy in Congress while the President campaigns for his political life and the Supreme Court weighs on the healthcare act and the border security issues American debt piles up at nearly $200B a month. The Administration while ignoring the Congressional leaders piles on prounion regulations; anti coal,Natural gas and oil drilling regulations; and environmental groups attack natural gas exports. American companies contimue to hold their cash for either acquisitions or to invest overseas creating few jobs or tax revenues here.

How did Europe get to this point? Basically, they did it with the famous Democratic policies of safety nets. They provide for government healthcare, governemnt welfare, massive government employment and plans that allow public workers to retire in their 50's with generous pensions. In the end they are all trying to feed off the successful people and now the southern EU countries (Italy,Portugal,Spain and Greece) are trying to live off the successful countries (Germany). Soon France will likely join the Southern EU countries. And, it is possible that the US will have to support the bailouts the the IMF. So, here in America we ignore the problem and head into the same trap printing money to build more safety net programs and creating massive debt relative to GDP. Once more than 50% of the people are living off the other 50% the trap door shuts and change becomes nearly impossible. You see this in Greece as 65% of the people either work for the government or are on welfare. A dysfunctional country with negative GDP is the result. In America the President has ordered a shut down of Congress through the Democratically controlled Senate where no bils are brought to the floor, no budget is even voted on and every epublican bill is tabled in committee. All this so that he can campaign against a "do nothing Congress" created as a political strategy. He has beeen a do nothing President since he walked away from Boehner's offer to raise taxes $800B. Instead insisting on a $1.4T increase. America has a big choice to make this November: more policies leading to our day of reckoning similar to EU or a new Senate and a new President? It is a clear choice with a clearly present model of the future our kids are headed for. Already we see unemplyment of about 16%, 53% among recent college graduates and 40%+ among inner city youth. Hundreds of illegal or legal immigrants on the streets of Las Vegas handing out porn books soliciting prostitution to every male,femal or kid walking by. A $1.4T deficit. banks that won't loan. Houses that won't sell. Time for a change in the right direction, America.

Romney is the closest thing to an independent party candidate we could ever get. He has passed a healthcare law. He has brought people together to balance budgets in a Democratic state. He has organized a failing Olympics and truned it around. He understands American business. He campaigned as a Conservative but for the benefit of all of us who are not thrilled with the far right anymore than we are thrilled with the far left this is the guy who see things in balance. As Jack Welch has said: America can not miss this chance to elect Romney.

ASK A HEADHUNTER----if you ever want to know what the economy is really doing forget the analysts and economists and politicians and ask a headhunter. For all of those skeptics who read my rants and think it is uninformed BS todays GDP news should give you room to pause and consider: GDP 2.2% DOWN from 3% in Q4. All this stuff Obama and Wall Street give you that we are creating jobs, recovering, making record profits are the real BS. If it were not for FED easing and the OIL and GAS sector we would be seeing deflation and recession. More and more restrictions, unionizing and higher energy and food prices and government spending are choking this recovery despite the FED mney printing. Inflation is heading our way as most chemicals and oil based materials increase in cost. Only natural gas, interest rates and housing prices are lower. Romney can't come about fast enough. I know there are still a lot of Republicans who blame BUSH but this is not the alternative to save this country.


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