USA-Unemployment statistics for America!

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Unemployment statistics for America remained at 9.1 percent for the month of August, and while that tally was all to be expected, a surprise came as, despite predictions that new jobs were created last month, economists’ expectations of 75,000 new jobs were not met.

The latest reports from the Labor Department reveal that only 17,000 jobs were added to the private sector in August while the government shed more and more positions. Payroll figures in the manufacturing sector were down, as were the hours in an average work week and the average hourly wage earning among American workers.

The White House announced on Thursday that they predict an unemployment rate of 8.3 percent in 2012, but the country will need to add 200,000 jobs per month in the meantime in order to bring the unemployment statistic down a full percentage point in 12 months’ time. With zero job growth for the month of August and the Labor Department now revising statistics for June and July to show fewer jobs created than calculated earlier, the pickup necessary to push the unemployment rate down seems more unlikely than ever.

Taking into account the three summer months, an average of 35,000 jobs were created in June, July and August.

President Barack Obama is scheduled to give a speech next week to address the dire jobs situation as the country grows wearier of the administration’s failure to keep the country from an economic slump.

Economist Patrick O’Keefe from the accounting firm JH Cohn says a slump isn’t likely, but instead expects the economy “to slouch and stagger,” reports Reuters. Other economists from the Federal Reserve Bank of Richmond released a paper recently in which they write, “After a long period of unemployment, affected workers may become effectively unemployable,” suggesting that the actual rate of unemployment is only accelerating. Nearly 43 percent of unemployment Americans have been without jobs for more than six months.

A strike of around 45,000 employees at Verizon Communications contributed in part to the sad statistics for August, which overall saw a drop of around 48,000 workers in the information industry. The 17,000 jobs added in the private sector shows the smallest increase in over a year and a half and fell short of the prediction of 95,000 that Bloomberg expected. Little to no job growth across the board was displayed for August, with healthcare services being the only notable exception.

Whole sectors of this whole economy have just gone. You have whole sectors which are gone, sectors which are at risk and a few sectors that are still there. According to one person who previously worked as a director for World Bank, the whole picture of manufacturing is changing before our very eyes.

There was another figure that managed to go up for the month of August, however: the measure of Americas who have stopped looking for work and those that have settled for part-time employment.

Does China Own the USA?

Estimated ownership of US Treasury securities ...
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China, the biggest buyer of U.S. Treasury debt, increased its holdings in May for the second straight month, after five months of declines.

Total foreign holdings of Treasury securities also rose, as Japan and the United Kingdom, the second and third-largest overseas owners of Treasury’s, boosted their stockpiles.

China’s U.S. debt holdings increased US$7.3 billion to US$1.16 trillion, the Treasury Department said Monday. Total foreign holdings rose 0.6 percent to US$4.51 trillion.

The report shows that foreign investors didn’t lose their appetite for U.S. government debt in May, even though the U.S. reached its US$14.3 trillion borrowing limit that month. With European governments mired in that continent’s debt crisis, U.S. Treasury securities are benefiting from being seen as a less-risky alternative.

“U.S. Treasuries are still looked upon as being the safest assets in the world,” Jay Bryson, an economist at Wells Fargo Securities, wrote in note to clients. “Investors do not seem to be the least bit worried about a U.S. default as yields continue to move lower.”

The U.S. government sold five-year Treasury notes at a record low yield Wednesday. Yields on longer-dated Treasury’s rose sharply after a large increase in orders for durable goods last month.

// The five-year notes were priced to yield 1.029 percent, about the same as those bought on the open market. The results show that demand remains strong for short-term government debt. Bond yields rise as their prices fall.

Stronger economic news pushed yields of longer-dated notes and bonds higher and their prices lower. A 4-percent increase in orders for long-lasting manufactured goods decreased demand for longer-dated Treasury’s, which are more sensitive to inflation. Stock prices rose for most of the day, decreasing demand for relatively low-risk investments. The Dow Jones industrial average closed up 144 points at 11,321.

The yield on the 10-year note rose to 2.29 percent in afternoon trading, from 2.15 percent late Tuesday. The price fell US$1.22 for every US$100 invested.

The yield on the 30-year bond rose to 3.65 percent from 3.49 percent. The price fell US$3 for every US$100 invested.

The yield on the 2-year note rose to 0.23 percent from 0.21 percent.

Wednesday’s US$35 billion auction was the second of three scheduled for this week. On Tuesday, the government sold US$35 billion of two-year notes, also at record-low yields. It plans to sell US$29 billion of seven-year notes Thursday.

“Obama out of his depth” says Trump!

President Barack Obama is out of his depth when it comes to negotiating a way out of the debt ceiling crisis, according to billionaire developer Donald Trump.

And Republican negotiators hold all the cards in the talks, he adds. They are in a no-lose situation where they can either extract a great deal from the administration, or they can delay a decision so the president has to take his unpopular stance up again just before the election.

The only thing the GOP negotiators can do wrong is make concessions just to get a deal through Congress, he said. “Obama’s totally lost,” Trump said. “He’s obviously not somebody who’s made a lot of deals in his life. “The man is not a man who makes deals. The one deal he made was Obamacare and that’s a  disaster for the country.”

Trump was speaking just a week before Treasury Secretary Timothy Geithner’s August 2 deadline day, which he said is not an important date.

Trump said the president is trying to scare people when he talks about a possible default if a deal is not reached by then. “The administration doesn’t want this dialogue to go on much longer because it hurts Obama.

“Look at his popularity. It’s going way down. People are saying he’s got no control over the situation, he’s got no control over the economy, he’s got no control over the country and he’s the president. This is turning out to be Jimmy Carter-esque.”

But the August 2, date is meaningless, he said. “Monday of this week, everything was supposed to crash in Asia and it didn’t,” said the Trump, who earlier this year mulled running for the Republican nomination for president.
“It was supposed to crash throughout the world but it didn’t.

“That threat is highly overblown, and August 2 is no longer the date. There’s plenty of funds to keep it going quite a bit longer. That’s just a date that Geithner came up with mysteriously, so August 2 is not a real threat at all.”

He said Rep. John Boehner and other GOP negotiators are on the right track when it comes to dealing with the debt and deficit crises. “Right now he’s doing fine, but he’s got to stay the course. He cannot fold. This is the time to make a great deal for the country.”

And that deal, he said, should include a repeal of the president’s healthcare initiative, which he said will do untold damage to the economy if it is ever fully implemented.

“It would be a great time to get rid of the really terrible thing called Obamacare,” Trump said. “It’s going to cost tremendous amounts of jobs. I know people that are going to close their businesses over Obamacare, so in the mix, they really should start thinking about getting rid of Obamacare.”

He agreed with Republicans that the most important thing in any final deal is to cut federal spending. “if you don’t cut expenses, we’ll never be in a position to be a great country again.“

“The Republicans are on the right track, I only hope that they continue on this track. They have to get the 100 percent deal because they have all the cards. If they don’t get the100 percent deal, they should delay it or not make a deal at all.”

He said the Republicans are in such a powerful position in the debt ceiling talks that they should either make a great deal or not make one at all. But he warned, “If you make a great deal, Obama’s actually going to end up being much tougher to beat in an election.

The option, he said, would be to delay everything for up to a year. “If that happens, Obama cannot be re-elected.”

Trump claimed the debt crisis battle had turned America into “a laughing stock all over the world,” and now it’s for the Republicans to do a deal to “bring the country back to the greatness it once had.”

But he said the long-running talks will not necessarily lead to a massive stock market sell-off as has been claimed. “Nothing is inevitable,” he said. “If the right deal is made, you’ll have a big uptick on Wall Street.

 

The IMF Warns US to lift its’ Debt!

The IMF is telling the US to raise its’ Debt, only because we sponsor them in a big way. The IMF receives Billions from US government coffers, so why not cry out that we must do something drastic, and in-effectual without controlling spending!

The International Monetary Fund on Monday warned the United States to lift its debt ceiling swiftly for the sake of the US and global economy.

But, with US politicians battling over a plan to slash the deficit, the IMF executive board called on authorities to only gradually reduce spending, to avert “a disruptive loss in fiscal credibility.” “The federal debt ceiling should be raised expeditiously to avoid a severe shock to the US economy and world financial markets,” IMF economists said in a report on the US economy.

Executive directors called for the US to gradually unwind the extraordinary support provided the economy to deal with the 2008-2009 financial and economic crisis. “Spillovers from credible and gradual fiscal consolidation are limited,” it said, while those from a loss of confidence in US debt sustainability “are universally large and negative.”

A downgrade on the United States’s top-rated sovereign debt, which ratings agencies have warned could happen amid the political impasse, would reflect deep troubles in the US financial system.

 The IMF has told US authorities that “it’s worth (fiscal) consolidation, even if it has some negative short-run effects, because the alternative… is so complex, so difficult that it’s better not to go there,” Rodrigo Valdez, a senior IMF adviser, said in a conference call with reporters.

Another IMF official, Gian-Maria Milesi-Ferretti, told reporters that other countries were concerned about the risk of a “loss of confidence in the US and hence an abrupt and large depreciation of the dollar accompanied by disruptions in international financial markets.”

Democratic and Republican lawmakers were in negotiations Monday trying to break a prolonged deadlock over raising the government’s $14.3 trillion borrowing cap, linked to a long-term plan to reduce a swollen budget deficit.

US President Barack Obama’s administration and top lawmakers failed over the weekend to reach a deal to save the world’s richest country from a disastrous default on its debt on August 2.

The government hit the debt limit in mid-May but has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to continue operations.

There was little sign of an emerging consensus Monday, with Republicans who lead the House of Representatives and Democrats who control the Senate set to push rival plans. Republicans have opposed Democratic proposals to raise taxes.

 The IMF economists criticized rival deficit-reduction plans proposed by the Obama administration and the Republican majority in the House of Representatives, citing the economy’s tepid recovery two years after the official end of severe recession.

 “The official deficit reduction proposals could be too front-loaded given the cyclical weakness and, at the same time, insufficient to stabilize the debt by mid-decade,” they said in an annual review of the world’s biggest economy.

 The IMF projected public debt at 99.0 percent of gross domestic product this year, rising to a ratio of 103.0 percent in 2012, higher than its June estimates.

 “A politically backed medium-term framework that raises revenues and addresses long-term expenditure pressures should be the cornerstone of fiscal stabilization,” it said.

 “The strategy should include entitlement reforms, including additional savings in health care, as well as revenue increases, including by reducing tax expenditures,” the Washington-based institution said in a separate statement on the executive board’s discussions of the review.

 The IMF recommended that the US deficit reduction plan include “as many specific measures as possible,” and noted that clearly specified medium-term fiscal objectives were “essential.”