ECONOMIC RIP TIDE – UNEMPLOYMENT UP AGAIN
TWO MAJOR STATES BREAK 10% UNEMPLOYMENT RATE IN MAY
CALIFORNIA 11.5% FLORIDA 10.2%
MOST OF WEST GREATER THAN 10%
Sources:
http://www.google.com/hostednews/ap/article/ALeqM5iG41E9cl-hj1iLR6_ln6q-z8FY4QD98U17703
http//www.businessweek.com/ap/financialnews/D98TVDC80.htm
http://www.miamiherald.com/news/florida/story/1105958.html
The forces of destiny will not be denied. Unemployment is the U.S. is expanding in widening circles, like the waves in a lake in which a heavy rock has been thrown. Unemployment begets unemployment. A service economy rests on total employment. You cannot export or trade services as you can manufactured goods, commodities or agricultural products.
With a few insignificant exceptions, services produce money only in their home country. But, the present U.S. government is living in the last decade, trying to revive a dead social function that cannot exist unless the entire society has income. The government is pouring money into banks and financial institutions with the hope that the defunct lending of the past three decades will resume. Lending will not resume.
Bank officers are being threatened with serious governmental penalties if they lend recklessly. Lending in today’s market would be reckless. The government has an unnatural ambivalent
interpretation of the reality of 2009.
The U.S. Government would like lending to resume, but simultaneously, would like banks to be safe. Like a schizophrenic patient, the U.S. Government wants two contradictory events to occur simultaneously.
UNEMPLOYMENT MUST GROW
The numbers of unemployed reflect the data of May. Each additional month will see an increase in those numbers. There will be a natural slowing of the upward curve as the foundations of the U.S. Economy is reached. Public service, health and utility services are required for a society to exist and these jobs are probably safe. In the Great Depression of the 1930′s unemployment reached 25%. This took approximately four years. Today, the same amount of time may see a higher percentage since we now have a large migrant population whose primary function is construction and cleaning. These areas will not recover in less than eight to ten years.
If the American government were composed of more erudite leaders instead of the inexperienced
members of the Obama team, the government might improve the economic disaster. But, the present leaders led the U.S. into this disaster.
Not knowing what and why they do something—these fledgling learners still believe that “Profit” is the only game that exists, and they will continue to play it. At the expense of the American public.
