The bad news keeps coming – from CNBC:
Unemployment has shifted from a lagging indicator to a leading one…
…More than half the labor force out of work for more than 26 weeks, the average length of unemployment at greater than 35 weeks, and the unemployment rate of 25.7 percent for 16- to 19-year olds.
“These are structural aspects which cannot be solved overnight, cannot be solved with a cyclical mindset,” El-Erian said. “And they are worrisome because they make the unemployment rate not only a lagging indicator but also a leading indicator.”…
El-Erian goes on to get it wrong about the “new normal”. He seems to expect just a wallowing around in slow growth – I fully expect Great Depression II. Too much debt, my friends – we just owe too much money and with Obama running the show, we won’t even start on those structural changes to the economy necessary to start digging out of it.
I’d like to say I hate to sound like a broken record, but I don’t hate it at all – I’ll keep yammering on about it until everyone agrees with me. We need to start making, mining and growing things here in the United States and to that end, we need to clear out all the taxes and regulations which make it difficult to do these things.
We need to return to the gold standard – or, at least, some thing of measurable value to back our currency. We need to abolish the Federal Reserve. Get rid of the FDIC. Figure out a way to reward handsomely those who hold a particular stock for a least a year. Restructure the housing market to make it less likely to get in to speculative bubbles. Forbid Congresscritters and their staffers from working in federally regulated industries for 10 years after they leave federal office/employment.
Lots of things to be done. I’ll be writing a book about it. Meanwhile, we’re pretty much in the soup. Get ready for a long, hard economic road.
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