Posted Feb 4, 2015 by Martin Armstrong
As we move into 2015.75, American job losses during the Great Recession 2007-2011 have been erased, but long-term joblessness remains much higher than when Obama first took office following the 2008 election. When we look at corporate profits and stock prices, they have continued to set records, while workers’ wages remain stagnant and the home ownership rate continues to decline.
The definition of the “rich” has become anyone who has investment income. Home ownership has declined since mortgages generally now want 20% down and taxes have risen. Of course, the socialists say this is not fair and the rich are getting richer yet this is not income from wages, but rather investment. The gains go predominantly to mutual funds and pensions not to mention foreign investment since retail participation has also declined since the Great Recession. This means the yelling and screaming is by no means reflecting a purely domestic situation. Furthermore, had Congress privatized Social Security long ago, then those funds would have been invested in the stock market so the very people they say are not participating would have a stake in the economy.
The number of food-stamp recipients has retreated from the record high of 2012 following the ECM wave and indeed there are fewer beneficiaries today than what had been added under George W. Bush. This is simply the business cycle in motion and it is not related to either side of politics. We should see this rise between 2015.75 and 2020.05.
Under Obama, federal spending has risen more slowly than the rate of inflation. But the total debt owed to the public has nearly doubled during Obama’s tenure, and large annual deficits are projected to continue as far as the eye can see with interest rates historically low. When rates rise to chase the rise in share prices set in motion by inflow of international capital, the deficit should rise much more rapidly.
Obama has been rather upset that the handgun production rose 128% during his first term, and sales continue to boom. He has instructed the DOJ to black-ball gun stores and has tried to buy all ammunition to prevent people from arming themselves.