More Keynesian Konfusion: Payroll Employment Up More Than Expected

Nonfarm payroll employment edged up by 103,000 in September, and the unemployment
rate held at 9.1 percent, the U.S. Bureau of Labor Statistics reported today. (Part of the gain reflected the return to payrolls of about 45,000 telecommunications workers who had been on strike in August). Further, the change in total nonfarm payroll employment for July was revised from +85,000 to +127,000, and the change for August was revised from 0 to +57,000.

In September, job gains occurred in professional and business services, health care, and construction. Government employment continued to trend down. The U.S.
Postal Service continued to lose jobs (-5,000). Local government employment declined
by 35,000 and has fallen by 535,000 since September 2008.

As for the major worker groups, the unemployment rates for adult men (8.8 percent),
adult women (8.1 percent), teenagers (24.6 percent), whites (8.0 percent), blacks
(16.0 percent), and Hispanics (11.3 percent) showed little or no change in September.

As for Keynesian econometric trend followers, CNBC has the details:

The US jobs picture beat tepid expectations, with the economy creating a significantly better than expected 103,000 new jobs in September...Economists had been looking for 60,000 total new nonfarm jobs.

Bottom line: Keynesians are clueless. The private sector continues to improve because of Bernanke money printing and the shrinkage is now pretty much at the local government level, as a result of declining tax revenues (which will also reverse itself in coming months). There is no double dip. The stock market and economy will soon go into a Fed manipulated boom, that will have Keynesians scratching their heads even more.

NYPD Goes Wild at Occupy Wall Street

While things were exceptionally peaceful at Occupy Washington DC on Thurdsday night, things were the exact opposite in New York City on Wednesday night.






And in Boston, they get the Fed is the problem (Note: raw anatomically difficult suggestions from the protesters in this video.)




(Thanks2AndreGrillon)

The Signs of Occupy Washington D.C.

A few hundred people are out at Freedom Plaza in Washington D.C. , many with sleeping bags, who appear ready for a long occupation. There were no police in sight. All appeared very peaceful. A female folk singer was on stage, which brought a type of 1960s peace movement feel to the occupation. Here are a few pictures I snapped of the signs created by the protesters. It's obviously a mixed crowd, with very different messages with regard to what needs to be done in America.

There were many anti-war signs such as this one.



There were signs aimed in protest at the new $5.00 fee instituted by Bank of America.



There were 'End the Fed' type signs.



There were signs created by those who aren't yet aware that the Fed is already part of the government.



Free stuff seemed to be popular, like free healthcare.




And the crowd is definitely aware of the Koch brothers. I spotted a few signs like this one.

Paul Ryan a Disciple of the Evil Cass Sunstein?

Among the never ending parade of interventionists that today visited, and were interviewed at the World Ideas Forum in Washington DC, was Congressman Paul Ryan, chairman of the House Budget committee. Don't mistake Ryan for a tax cutter, during his interview he called for an end to tax shelters so that other taxes could be cut. In other words, no cut in total taxes just a shifting of how taxes are paid. It's a scam that has been used forever by Republicans, including Ronald Reagan. In fact when Vice President Biden was interviewed at the Forum, he read a long pro-tax quote from Reagan.

Murray Rothbard called out the plugging of loopholes myth when it was introduced during the Reagan years:

Since the tax cut of 1981, that was not really a cut, taxes have gone up every single year, with the approval of the Reagan administration. But to save the president's rhetorical sensibilities, they weren't called tax increases. Instead, ingenious labels were attached to them; raising of "fees," "plugging loopholes" (and surely everyone wants loopholes plugged), "tightening IRS enforcement," and even revenue enhancements." I am sure that all good Reaganomists slept soundly at night knowing that even though government revenue was being "enhanced," the president had held the line against tax increases.

But in addition to the closing of loopholes scam and the ending of tax shelters scam, it gets worse.

It turns out that Ryan may be a disciple on the Obama Administration's Cass Sustein. This is what I wrote about Sunstein back in August:

Cass Sunstein, author of Nudge, believes in, well, "nudging" people in directions the government wants you to go in, through limited "choices". Think: "Do you want to get groped or go through a cancer causing naked body scanner?"

I consider him the most evil man in the Obama Administration for his promotion of his "nudge" pseudo options.

So what does Ryan want to place Obamacare with, free markets, personal choice and keeping the government out of healthcare? Huh, he wants to automatically enroll people via the income tax form in a government designed tax credit. Got that? yYou have an option, agree to Ryan's health terms, who you can visit, what medications will be allowed or you won't get the tax credit and your taxes will increase accordingly. Some choice. A totally evil Sunstein designed "nudge" which pushes you toward government approved health providers. In fact, David Leonhardt of the New York Times who interviewed Ryan at the forum, called Ryan out on it and said that it sounded like a Sunstein "nudge". And this is from the Republican side! From a so-called Tea Party congressman! I have called Sunstein an evil bastard because I believe that is exactly what he is. He is about control of the people in the most devious ways. To see Ryan adopting his tactics tells you how deeply Washington D.C. has been corrupted. Except for Ron Paul, they are all a bunch of micromanaging, opportunists that will likely collapse this country. Paul Ryan included.

Is Bank America About to Replace Goldman Sachs as the Most Hated Financial Institution in America?

From all indications, yes.

From the performance I witnessed by BofA CEO Brian Moynihan, at the World Ideas Forum, where Larry Kudlow grilled him mercilessly, and Moynihan only managed wimpy responses, to my personal experience with a snotty BofA branch manager in Washington DC, Andrea Bullock, the bank appears to be falling apart from one end to another.

The bank's Three Stooges like introduction of a $5.00 fee for those using debit cards, which if skillfully handled could have caused no uproar, instead appears to be a new talking point of the Obama Administration, and America, as an example of bankster thievery. Move over Lloyd Blankfein, allow me to introduce you to Brian Moynihan.

At today's World Ideas Forum, Vice President Joe Biden spent what seemed like half his time on stage dissing the Bank of America fee increase. It's never a good idea for any corporation's increase in prices to be the subject of national focus, but for a bank, in these times, with the current anti-bankster sentiment in the country, it could be a major problem for the bank. How bad was the diss by Biden? At one point he argued that it was more justifiable for airlines to charge additional fees for extra luggage than it is for Bank of America to institute the $5.00 bank fee.

Now, again, I think there is a strong argument to be made for why the fee was introduced and it could have been properly explained to the public, but Moynihan clearly has zero skill when it comes to public relations. In fact, from my brief observation of him, I think he is a total buffoon that the media is going to have more fun with than Blankfein. The fact that Biden spent so much time dissing BofA is indication enough that the Administration thinks they have found a true Joe Palokka punching bag. Now all we need is a Congressional hearing at which Moynihan testifies. That would be a total circus now that word is out that Moynihan and BofA are fair game. I'm sure that will come. In the mean time catch the buffoon during any media interviews because before long he is sure to crawl into an anti-media cave, and he'll likely stay there until Warren "Howdy Doody" Buffett panics over his recent BofA investment and fires the man.

64 Million Vacant Apartments in China

As a follow up to Vice President Biden's remark that there are somewhere between 30 to 50 million vacant apartments in China, Brian Shelley sends along a link to this video clip on China's ghost cities and notes that at the 5:40 mark of this video, the number of vacant apartments in China is reported at 64 million.

What's likely going on here is that the apartments were built by local governments, thus they are not reflective of market demand in any sense. These apartments would sell if the prices were marked down dramatically. Simple supply and demand economics tells you that, but local government officials, unlike private developers, will just sit on them and let them rot away rather than mark them down and take a loss.

A 64 million apartment vacancy problem is a big enough problem in itself for China, but it is likely reflective of many parts of the Chinese economy, where the government has played a major role. In other words, the GDP boom that is hailed by many, like Henry Kissinger, may be a huge facade.

The sad fact is that China never went into a full free market mode. Instead, government control is distorting what could have otherwise been impressive economic growth, after the shackles of Mao were thrown off. It looks, though, like China is really one big grand mess, with only pockets of thriving private sector activities.

Wenzel Gets Dissed by Henry Kissinger

In addition to Vice President Joe Biden being interviewed today at the Third Annual Washington Ideas Forum. Two first team war criminals took to the stage, Henry Kissinger and Dick Cheney.

Kissinger, who has a major consulting business based on China,was pumping his new book, On China, and spewed loudly about the booming economic growth in that country. This despite the fact that there appears to be at least a business cycle down turn, or worse, if Vice President Biden is to be believed, developing in China. Outside of the babble about China, Kissinger seems to recognize a growing anti-war sentiment in the country. He correctly called it, "a US consensus building against American military abroad". Curiously, he seemed to consider this sentiment causing, what he called, a "contraction" of the country.

After he spoke and during a break, I went up and introduced myself, he listened intensely. Then I asked him if he detected any short-term downturn in the Chinese economy, thinking I would follow up with his view on Biden's comment on 30 to 50 million vacant apartments. But this is one sensitive war criminal, given other questions I could have asked him.

As soon as I asked my question about a possible short-term downturn in China, he mumbled with disgust on his face, "I don't want to talk about this," and walked away from me.

Cheney was up next and was interviewed by his daughter.

It is even more difficult listening to Cheney in person, than it is on television. His superiority complex is even more irritating in person.

During the interview, he went into a justification of enhanced interrogation, and said he supported the assassination of Anwar Al-Awlaki, but questioned the Obama Administration's criticism of enhanced interrogation, given that it's Obama that assassinated an American.

He said he supported drone strikes and said his great fear is that the military budget might be cut.

He also said he was involved in President's Nixon's implementation of wage and price controls, but doesn't put that on his resume. Paul Wolfowitz, who sat in the front row, laughed when Cheney said this. In fact, during most of the interview Wolfowitz sat in nodding approval of what Cheney said and laughed whenever Cheney said something that the two of them apparently thought was funny. And there it was, banksters and war criminals laughing amongst themselves, having a good time.

Biden Indicates Concern about Chinese Economy

Vice President Joe Biden was interviewed today at the Third Annual Washington Ideas Forum. During the interview he raised concern about the difficulties in world economies.

He mentioned problems in the eurozone, but then, seemingly out of the blue, brought up China. According to Biden, there are, get this, 30 to 50 million vacant apartments in China.

I have been warning about China for some time, especially in the EPJ Daily Alert, but this is the first time I have heard the 30 to 50 million number thrown out. If Biden's number is accurate, and presumably he would be getting good intelligence on this, China is in a far greater trouble than even what I have been expecting, and I have been expecting a major collapse of the Chinese stock market.

It is beginning to appear that in addition to the problems created by China's money printing, which would create a boom-bust cycle of its own, much of the created money fell into the hands of local government bureaucrats, who built up their locales without any consideration of the demand for such construction. China appears to be a major diaster in the very early stages.

The vice-president also mentioned a firewall with regard to the eurozone, but didn't go into any details. At the forum yesterday, I heard from some people that what will likely occur in the EZ is a managed default of Greece, but with a firewall built around banks and other countries, where all liabilities of major European banks will be 100% guaranteed by some European entity. Biden's mention of a firewall, seems to dovetail with the indications that I have been getting on the coming EZ bailout. This, of course, suggests major inflation is possible in the EZ, as the banks and non-Greek governmnets are propped up.

Headed to World Ideas Forum

This should be a trip. In the next two hours, speakers are Biden, Kissinger, Cheney.

Obama to Endorse 5.6% Millionaire Surtax

Senate Democratic leaders are proposing a 5.6% surtax on annual incomes beyond $1 million as a way to pay for President Obama's "jobs plan."

CNN is now reporting that at a press conference later today, President Obama will endorse the 5.6% millionaire tax, which would go above and beyond allowing the Bush tax cuts to expire — potentially raising the top marginal tax bracket to 44.6 percent.

Naturally, the President and Senate leaders will not be found discussing the jobs lost as a result of the money that is taxed away, and thus not available for tax payers to invest or spend.

More Keynesian Konfusion: Retail Sales Topping Estimates

Ben Bernanke is printing money like the true mad man he appears to be. This will have an impact on the economy, as understood by those Austrian economists who really believe in the business cycle. It's not always down hill, and the world is certainly not like the econometric models built by the Keynesians, who simply project out what occurred the day before.

Bottom line: At key turning points few recognize the turn as it is occurring. The economy is turning now. Fed manipulation will turn the numbers positive, create another false boom, but this time the price inflation is going to be much more intense. Bernanke got away with strong money printing in late 2008 to early 2009, but that was a period when the demand to hold cash balances was increasing, thus muting the price rise from that money dump.

This time there appears to be no increasing demand to hold cash balances, if anything the demand to hold cash balances is declining. This will result in an amplification of the money printing, which will mean even higher prices.

The latest confusion for the Keynesians, higher retail sales. CNBC reports:

Retail Sales Topping Estimates, Despite Growing Caution

Amid slumping consumer confidence, shoppers remained resilient, and many retailers posted solid results for the month of September...According to Thomson Reuters, U.S. retailers are expected to post an average gain of 4.6 percent in sales at stores open at least a year, or same-store sales.

Update: Even more confusion for Keynesians, this time on the unemployment front. Here's CNBC, again:

New U.S. claims for unemployment benefits rose less than expected last week, according to a government report on Thursday that hinted at an improvement in labor market conditions.

Initial claims for state unemployment benefits climbed 6,000 to a seasonally adjusted 401,000, the Labor Department said, from a revised 395,000 the prior week.

Economists polled by Reuters had forecast claims rising to 410,000 from the previously reported 391,000...[Also]The number of people still receiving benefits under regular state programs after an initial week of aid dropped 52,000 to 3.70 million in the week ended Sept. 24. That was the lowest level since July.

Economists had expected so-called continuing claims to dip to [only]3.72 million from 3.73 million the previous week.

Remeber you heard it here first. No one else is out there forecasting the manipulated resurgent economy that EPJ is forecasting.

Herman Cain versus Bill Clinton

There's a fascinating clip of Herman Cain questioning Bill Clinton over healthcare, when Clinton was President.

The first thing that comes to my mind in watching the clip is that I can't imagine President Obama having the command of facts that Clinton did in this back and forth with Cain. Clinton is wrong as an advocate of government involvement in healthcare, but he sure appears much sharper than I have ever seen Obama.

The second point coming out of this clip is how slick Cain is. At one point he states that his costs will go up 16% under Clinton's proposed healthcare plan, which really can't be the case if the charge is only 7.9%. Clinton catches Cain on this point, but it shows an early case of Cain, in a generally well reasoned argument, stating something that just isn't the case, and saying it with a straight face, just like he does when he tells people to just call up the Fed to get answers to questions. Cain needs to be monitored for this tactic.

The Cain-Clinton video is here.

Is Geithner Now Running the EuroZone?

Treasury Secretary Timothy Geithner was interviewed late Wednesday afternoon in Washington D.C. at the 2011 Washington Ideas Forum.

During the interview Geithner said that it was "inexplicable" why banksters were "not appreciative" of Administration efforts on their behalf. He continued by saying, "I don't understand why they are so sensitive."

But despite this feeling of non-appreciation from the banksters, it doesn't mean he is going to stop bailing them out.

In other comments, Geithner made it clear that the US is now playing a role in the EuroZone crisis. "They invited us, through the IMF and currency swaps" Geithner said, and "We will have opinions."

Specifically, Geithner said the EuroZone "must act more forcefully."


Bottom line: The US is running the show in the EuroZone and the region will be flooded with funds to protect the banksters. Expect near global price inflation.

A Day of Posing Before Congress for Geithner on Thursday

At 10am on Thursday, treasury Secretary Geithner will testify before the Senate Banking Committee, and at 2pm, the Secretary will testify before the House Financial Services Committee. The topic for both hearings will be the Financial Stability Oversight Council’s Annual Report, which was released in July and can be found here.

Did Warren Buffett Make an Error in His Purchase of Bank of America Stock?

The Warren Buffett purchase of Bank of America stock must, to a major degree, be a bet on new Bank of America president and CEO, Brian Moynihan, since the bank is in terrible shape.

Moynihan was interviewed this evening in Washington D.C. at the 2011 Washington Ideas Forum. He was interviewed by Larry Kudlow.

Kudlow drilled Moynihan from start to finish and Moynihan sat there like a marshmallow. I have never before seen such a poor performance by a CEO.

The man has no balls, no ability to think on his feet and couldn't lead a bunch of mice to cheese. The idea may come to Howdy Doody Buffett, when he is in the bath tub, or when he is on the can, but he will replace Moynihan in no time.

I'll post the video of the sad interview, when it is available.

How to Protect Yourself from a Crash of Your Bank's Computer System

I just had a long discussion with a top level computer programmer. Her bottom line view is that the banking computer system is very fragile.

She said that because of all the mergers, the systems just barely talk to one another. She said that despite the fact that she does most of her banking online, she still has a paper copy of all her transactions sent to her by mail. She advises that everyone should do so, even if the bank charges for such paper back up. If your banks system goes down, you may need the paper back up. She calls a major crash, "the loss of organizational memory."

Your paper records could be the only thing that could protect you in such a situation.

She points out that the youth are the most negligent about getting receipts. They make deposits at ATMs and don't keep the receipts and don't keep receipts from purchases, which they should.

She hinted, but did not come right out and say, that it seems that bank errors tend to be to the advantage of the bank and thus there may be some institutional bias by banks to not solve customer problems in software with the same urgency that they solve software problems that hurt the bank. (I got the distinct impression that she knows more than she told me on this last point.)

Bottom line: Keep paper records of financial transactions. If a bank system crashes, your statement may be the only proof you have of what is in your account.

Bruce Bartlett: Won’t Somebody Please Love Me?

Tom Woods writes:

Poor Bruce Bartlett. He’s spent his career trying to be loved, and it just ain’t happening. First he was a Ron Paulian. Then he realized his career would be better served by jumping on the supply-side train. Then he ditched that to jump onto (yes) the Obama train. He was received with yawns instead of huzzahs.

Read an awesome exchange between Tom and Bartlett, plus the scoop on the Bartlett-Murphy controversy, here.