Friday, August 5, 2011

BloggeRhythms 8/5/2011

This morning's jobs report for July showed an upswing of 117,000 added, an improvement but nowhere enough to demonstrate the corner's been turned. So the markets, desperate for any good news after yesterday's blowout, upticked on the news...but then came right back down again.

Naturally all the talking heads had all kinds of explanations, predictions and comments about the job results, most of them saying they were somewhat relieved that there was some hiring going on. Nonetheless, many stated that the economic problems in Europe, especially Italy, were dragging things down and negatively affecting things here. Others added that globalization has naturally changed financial strategy's for large, multi-national American businesses, worrying investors here about problems overseas. But there was only one guy that I saw directly address the crux of the problem on CNBC, and I didn't catch his name.

This guy, however, thinks that globalization may indeed be problematic for some and may be causing them to re-think financial strategies and I agree with his conclusion. But, we both think that most U.S. businesses that drive our economy are small ones, many of whose owners may not even know where Europe is. But what they all do know is, that the morning after the debt deal was done the president made a speech in which he said that now additional revenues are needed and indicated redistribution will continue. And in plain English, what "revenue" means is taxes.

So, having just dodged a major economic bullet, instead of trying to set the stage for growth the Taxer-in Chief is back to the same old, same old and petrifying business owners again. And unfortunately not only for businesses, but everyone else included, when it comes to growing our economy he hasn't a clue. Beyond that, instead of looking for ways to get both political parties on the same financial page, he chose to go right back to instilling fear and employing verbal abuse.

What all this means, I believe, is what I've been typing about for the last few months. There's a major stumbling block that will continue to stifle our economy's growth and that won't change until it's gone altogether. And the rock that's tied to our financial heels is the president and his failed idealism. So, in the meantime, smart businesspeople will continue to do what they're doing now, and keep waiting him out. Because as each day goes by, I get more confident that he's a one-term disaster whose fifteen minutes is just about over.

That's it for today folks.

Adios

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