Good, Better, Best...

[exedir]

That is once the way Sears sold its merchandise, and now, a way to describe the most recent numbers on the economy.

2.5% annual rate is the adjust 2nd quarter GDP which was originally put out as 1.7%. The reason being the need to adjust for the increase in exports. Good, actually almost better but of course, not the best. As to the 3rd quarter things get complicated as we move into the third month of the current quarter. What happens depends on some serious problems starting with Syria and ending with where will be interest rates and Fed tapering and/or market dynamics and yes, of course, what and where Congress goes with the budget and debt ceiling.

The other good news is the dropping of the initial unemployment claims and the level of the moving average which shows stability in joblessness.

And yes, the however, that is the working statement in any economics data, however, there has been a decline in consumer spending. Cause being, well, take your pick; lack of confidence, sequestration, the rise in taxes.

The big crunch in this quarter is the skyrocketing of crude, which strangely,has not hit the pump, yet. The offset to this, there is the reserve currency value of the dollar, when the world goes to worms, money piles back into US bonds and other near cash investments.

For those interested, the price of gold is not glittering, which means, as bad as it seems to the international markets as to the speed bumps in the BRIC and the sounds of war, cash is better than nuggets, and that means money remains "hot" and ready to invest at the next opportunity.

[LoveLife&Laughter]

What rise in taxes?

[exedir]

The end of the payroll tax holiday and the Bush tax cuts at the beginning of the year.

[ProblemAgain]

those were temporary measures when they were enacted...thus the expiration dates...

you kind of have to choose between revenue to pay down the federal bills or embracing the dreaded deficit...and the payroll tax 'cut' was in the social security tax....which is needed to pay all us old farts who are entering the take side of the program instead of the pay side, verdad?

[exedir]

Indeed, verdad, and the importance of entitlements in the future economic mix.  

And no, we can't afford them without a growing economy in either the short or long-term,  And it isn't a matter of choice, it is a matter of necessity which is about the only time American politics works, at the brink of the abyss, unless, the parties throw each other over the brink.

[ProblemAgain]

i just read a couple newspieces during the last week about the growth in jobs by sector in the foreseeable future...nowhere in the growth stats does manufacturing enter the picture. until american business goes back to actually creating wealth in america by creating value by manufacturing (take 2 of these items, add two hours labor and you have 8 value points instead of 4) and does that IN america we have a service economy where all we do is trade time for money. there is NO enhancement of value. that's why when we buy foreign goods we are sending the enhanced value to other countries and eventually leaving our cupboards bare. even when we buy 'american' brands, unless they are domestically produced, we are shipping lots of those green yankee dollars to other people to be spent on their domestically produced products

and THAT'S a big reason why we can't afford some of our timehonored entitlements...our country is no longer creating wealth that finds it's way not just into the pockets of hedgefund managers but also into the pockets of assembly workers and machinists and the others who spent that wealth on new and better stuff for their lives or on a vacation in hawaii  or college for their kids so the kids could get an even start in life..

[LoveLife&Laughter]

THE big reason why we can't afford some of our time honored entitlements is the time honored trick of the GOP to borrow and spend on unbudgeted programs.  The National Heritage Foundation came up with this plan in the 60's and Reagan and Cheney/Bush implemented same.

[exedir]

Ok, the issue is the value economy;  growth and sustainable growth what and where will that happen.

We, here in the United States, created value for the whole world, saved it from itself and built the wealthiest country in the world, and still are.  That will not be the story in this century, given current trends.  The BRIC(Brazil, Russia, India & China) are where the value is growing the fastest, and has the farthest to go.  The developed economies; the United States and western Europe, will have the hardest situation in that incremental growth is limited and limited in scale.  

As to what general labor can expect; it can expect limits, on how much is needed and what skills are required as the volume of labor is replaced with technology and skills escalate as to necessary education and experience.

As we witness this coming Labor Day observances, what was will not be, and what is, is still changing as to what and who is going to be employed and what jobs they will do.

We have shortages, serious shortages in technology, engineering, science, health and biology of the necessary labor to do the jobs required.  

We do not have shortages of potential labor in most manual areas; mostly in retail and food service.  However, that does not mean shortages of labor are not felt in the lowest levels of manual labor, but they are shortages of choice not numbers.  For instance, In the Central Valley of California there are shortages of necessary farm labor.  In food service, there are shortages of willing workers.  Jobs, many could do but do not choose to do, because of what the jobs are and what is required; low wage, low skill, low prestige, low respect and questionable potential advancement, both real and perceived. 

How is value inputted in the preparation, cooking and serving a hamburger?  Usually, as the markets demand; quick and cheap, which means that paying $30,000 a year, with benefits,to those doing those burger joint jobs means some one has to pay, and it will not be the cow.  

And yes, eat mor chikin, it is probably better for you, no matter what the price.