The sad news:
The number of mass layoffs by U.S. employers rose in April led by manufacturers who shed workers…
The Labor Department said the number of mass layoff events — defined as job cuts involving at least 50 people from a single employer — increased by 228 to 1,856 as employers shed 200,870 jobs on a seasonally adjusted basis.
The number of mass layoffs in the manufacturing sector totaled 448 resulting in 63,616 initial jobless benefit claims, the department said. That was more than 24,000 higher than the previous month…
Its an MSM report, so if you read it you’ll see they’re still spinning this as good news – its not as bad as it was in 2009! But its still worse than it was a few months ago – and that tells the tale.
Sharp economic observers were pointing out that the allegedly good numbers in the last part of 2009 and first part of 2010 were really just a matter of climbing out of the basement for a moment. Things had gotten so low by the end of the third quarter of 2009 that there was no way but up – for a while.
That while is now over and economic decline is resuming. If, of course, it ever stopped. Personally, I think that later, comprehensive studies of this time – not possible for some years until all the data are known – will show that in spite of some “up” GDP numbers, the economy never ceased to contract all through 2009 and in to 2010.
We still have too much debt chasing too little wealth – and, in fact, thanks to Obamunism, we have far more debt than we otherwise would have. At the end of the day, Obama has put us in a worse situation – in return for a few quarters of so-called growth, we’re mortgaged a great deal of the future. Now, before we can really rise, we’ll have to absorb this Obama debt, in addition to all the other debt we already had.
Stories are starting to abound about how the second half of 2010 will be brutal. We’ll have to see – mostly it depends right now on whether or not the Euro-zone can plug the gap and keep not Greece from defaulting, but keep Spain, Italy and other countries from following Greece down the economic abyss. I’m doubtful they’ll be able to – but when government threw over gold and gave itself a printing press, it gained massive ability to manipulate financial systems.
But, come what may, we are in for a bad time. It can’t be sustained – the debt cannot be repaid and default will have to happen to clear the economic decks. The longer we hold it off by means of increasing debt, the worse it will be when it finally does happen.