Liberals Panic Over the Economy
June 2, 2011
RUSH: The AP: "The economy is tiring again." The press, they're so depressed because Obama had a week of "no negatives." There were no negatives, and then all this rotten economic news hit. This rotten economic news never went away! This rotten economic news has been what has defined this administration since the stimulus bill. There hasn't been any good economic news since this bunch assumed power. One of the biggest lies, one of the biggest myths in the last two-and-a-half years is that there has ever been a recovery. There has not been, statistically or otherwise. In terms of real people and their lives, there has not been an economic recovery. The AP says today, "The economy is tiring again.
"Reports Wednesday on manufacturing and company hiring were so weak that many economists immediately downgraded their forecasts for Friday's jobs report for May. Some analysts also slashed their estimates for growth in the April-June quarter." Now you got people out there talking about another recession. You've got some Democrats talking about perhaps a Great Depression. So now the doom and gloom is surfacing -- and believe me, this is not what the regime wanted. This is not part and parcel of the giant plan here. You don't have miracle economic recoveries from this baseline, but they're trying to set something like that up.
Here are three examples, for instance, of the bad economic news over the last few days just from CNBC. "Horror for US Economy as Data Falls Off Cliff." "Wall Street Baffled by Slowing Economy, Low Yields." Trader: Prepare for More Money Printing: Analysts." This last article reported that QE3 is about to start. That's Quantitative Easing 3. This is like a heroin addiction to people on Wall Street. It is the printing of money. Quantitative Easing 2 that kept stock prices up. You saw what happened. Stock prices were down demonstrably lower yesterday; this creating a panic. They're down again today. And so now the Wall Street people say, "Hey, give us more money, Ben! Pump some more money in! Start printing some more money." All of these official fixes have done nothing to revitalize the economy. Let's go to the audio sound bites and give a listen to this. A panic is beginning to set in out there and the media spin is that we're in recovery and they couldn't sustain it. The numbers don't lie. We have never been in a recovery. This is CNBC's Squawk on the Street today.
YASTROW: What we've got right now is almost near panic going on with money managers and people who are responsible for money. Ben Bernanke's not a magician. We're on the verge of a Great, Great Depression. The Fed knows it. We have many, many homeowners who are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown, and the economy's gonna suffer -- and all the Fed tweaking and all the interest rate tweaking and all of the tax adjustments are actually not going to be able to save us if we cannot get a cost of labor that's in line with the rest of the planet and we can't get our productivity levels high enough to justify the wages we're already being paid. It's not that complicated.
RUSH: That is Peter Yastrow, by the way, Peter Yastrow, he's a market, DT trading market strategerist just, you know, one of the analyst talking heads from the Street. Got a panic out there, nothing's working, the recovery is gone. There never was one. Who are these people to miss real life right in front of them. Here's former labor secretary Robert B. Reichhhh last night on MSNBC during a discussion about the debt ceiling. The host said, "Explain what uncertainty is over the debt limit deadline and what it could do ultimately to the economy if we drag this out until August 2nd?"
REICH: This debate is becoming increasingly disconnected from where most people in this economy are. I mean, the reason that the stock market plunged today is because, uh, ADP -- which is a payroll...employee payroll firm, -- uh, projected that in this month -- that is, last month of May -- ehhh, there were only 38,000 jobs created. We're in an economic crisis right now. We're heading back toward a double-dip recession, the whole recovery is stalling, and Washington is debating budget deficits five or ten years from now. This is ridiculous!
RUSH: It's not what Washington is debating, Secretary Reich. We are in this mess precisely because of economists like you. We're in this mess precisely because people with your beliefs have been running the economy and running the show for two-and-a-half years now -- actually longer in the House of Representatives starting in 2007. It's an abject mess because your ideas are flawed and do not work. We can't continue to raise the debt ceiling, we cannot continue to spend money we don't have and borrow money we don't have. We just cannot continue on this path. We can't kick this can down the road. It's what everybody seems to want to do.
Debt ceiling? You know, nobody expected the debt ceiling vote to be the way it was. Everybody expected the Republicans to cave, and it was the exact opposite. Here's David "Rodham" Gergen, last night CNN on In the Arena. (chuckles) Democrat and a member of their client culture of erection, Eliot Spitzer asked David "Rodham" Gergen, "Isn't there a problem now, 'cause the president's entire political debate relates to the deficit -- and yet in order to get out of the economic quagmire that we're in right now he may need a second stimulus, a second round of fiscal policies. There's no political argument that he's making or that will carry Congress toward those policies right now. Isn't he sort of in a bind right now?"
GERGEN: It is really this picture darkens, and it is -- was particularly stark today with manufacturing, with housing, auto sales, jobs, all of these issues. We obviously have a -- an economy that's stalling out, and we're in very great danger of a double-dip here now which would be a very big disaster for an awful lot of Americans. As the news comes in there's gonna be a jolt out of this. I mean, all of us are looking at this, "Oh, my goodness, this is terrible. We've got to get this economy up and running again." You have to have a good-running economy, you've got to get some growth in order to deal with the deficits.
RUSH: Such wizardry! Well, you believe that? You gotta get some growth in order to deal with it? What happened to the increased taxes argument, Mr. Gergen? I guess that's kind of out the window now? Yeah. Growth is a new idea to you guys. All of a sudden now we need growth? Where's that been for the last two-and-a-half years? Oh, we've had growth? Oh, I'm so sorry! Oh, we have been in a recovery, right. Let me tell you something: Obama's stimulus plan has had about as much effect on this economy as the Weiner photo would have on a woman: zilch, zero, nada. In fact it's a turnoff, not a turn-on! What a derelict. So now there's abject panic setting in. Look at the lies these people are willing to tell themselves.
You have to be filled with self-loathing to lie to yourself that these past two-and-a-half years that we have been in a recovery. You talk about a major, major disconnect opinion? Folks, it looks like even Obama's staunchest acolytes in the media are giving up trying to spin these unemployment numbers now. The AP has come out with an article this morning that basically says the unemployment numbers are only as low as 9% 'cause of all the shirkers who aren't even bothering to look for work. They actually have a story about all the people who quit looking. AP can't carry the water anymore. They have run out of "unexpectedly," "surprisingly." They've run their gamut on it. Did you see...? This was funny. I don't know if you saw this, Snerdley.
But earlier this week Michael Barone had a column in which he chronicled all of these instances where the media's experts have expressed shock and surprise over the performance of the economy, as though somebody had just discovered that. We've been having fun with that for how many years here? But they can't even go back to that well. "In surprisingly unexpected news, job creation was unexpectedly lower than expected." They've expired, they have run through every possible credible explanation. Now AP finally says: You know, it's really even worse than this because people have stopped looking for work -- which is something else we've known for a long time. Yep, unemployment is only as low as it is because of all the shirkers who aren't even bothering to look for work.
AP tells us: If everybody who has given up looking for work were counted, the real unemployment number would be 11.5%. This is AP. These are the shock troops from Obama's Praetorian guard, and they can't carry the water anymore. Speaking of unemployment, there were only 422,000 new unemployment claims last week. By the way, remember Biden? He said 500,000 new jobs a months, that's what was gonna happen here? I've got quotes from Biden here. He can't believe how great the stimulus was working, never dreamed it would work this well. I've got it all here, folks. We're gonna run through it. Obama: "We've begun remaking America," April 29th, 2009. "President marks end of a hundred days, says he's pleased with progress but not satisfied."
Newsweek: "The Macho Democrat -- Obama looks unbeatable now, but the GOP sees weak spots." "The Fast Fix: Is Obama Now Unbeatable? This is CNN: "Cancel the Election! CNN Anchor Asks, 'Obama Unbeatable in 2012?'" That's one series of stories. Then we've got Biden and his promise of 500,000 jobs. The AP headline is: "More Job Seekers Give Up," finally admitting what we've been pointing out for a year and a half. They say that there were "only" 422,000 new unemployment claims last week. That means that they're down by, what, a whapping 6,000 claims -- and never mind, folks, that the previous week's number was quietly revised up by 4,000 just like it always is.
But there's no hope (you have to keep this in mind) for any real reduction in the unemployment rate as long as that number is above 400,000, and economists are saying it will be for years to come. That 400,000, you have to get sickle below that before you even start talking about replacement level jobs. It's a disaster. The real question is whether or not this is what Obama intends. The real question is: "Is this the objective?" I still maintain that that must be seriously examined, because nobody in their right mind-- with a modicum of experience, economic intelligence, and education -- would ever double down, triple down on failed policies like this, to whom this mess can be directly traceable. Something is really, drastically wrong with all of this, and it's not the United States of America. This is not deserved, this is not called for, this is not just what happens to be up next for us.
There's more going on here than just it is cyclical nature of economics.
RUSH: Here's a David in Norwood, ah. David, great to have you on the program, sir.
CALLER: Hey, I wanted to know how do we fix this horrible economy?
RUSH: David, how old are you?
CALLER: I'm 43.
RUSH: You're 43. At what age were you -- no wrong answers here, don't misunderstand, I'm trying to ascertain what might be your baseline of experience, knowledge, and paying attention to things. At what age were you when you started caring about any of this?
RUSH: Twenty-eight. Okay, so you have roughly been paying attention here for, what, 15 years?
RUSH: Okay, so those 15 years takes you back basically to the Bill Clinton administration. You know nothing prior to the Bill Clinton administration in terms of --
CALLER: No, no, I'm quite affiliate -- I'm a teacher. So, yeah, I know all about all of that, but I'm scared 'cause lately --
RUSH: Well, I want to try to help you come up with this. I could tell you this in 30 seconds. I want you to come up with this yourself. At what point in your past was the economy healthy, in good shape, roaring, and very little of it concerned you, how old were you, what were you doing, and where were you?
CALLER: It was during the Reagan administration. I was fine with Reagan, and then something keyed off, something went off kilter, and I suddenly as a teacher for, you know, I've been teaching for --
RUSH: Let me tell you bluntly what went off kilter.
CALLER: Well, it's a long story.
RUSH: No, it's very simple. What went off kilter was --
CALLER: A divorce.
RUSH: No, two things, Reagan worked. Reagan's policies posed the biggest threat to the Democrat Party they could ever imagine. The Democrat Party right now needs Reagan. Obama needs Reagan. That's why these clowns are now all of a sudden starting to talk about growth 'cause they got reelect numbers internal. I finally heard Pat Caddell say this. I knew it was the case. Pat Caddell has said that the internal reelect polling numbers the White House are awful. They are awful, and what they need is economic growth. That's what Reaganomics gave us. But economic growth with reduced tax rates, smaller government, less government involvement in people's lives, argues against the need for liberals. They could not allow that. So revision history began, writing what a dunce Reagan was, how bad those policies were, killed America, blah, blah, blah, blah, blah. If you want to fix the US economy, then you defeat every person with a D next to their name every November election there is.
RUSH: We were told during the campaign that Barack Obama would fundamentally change the way the United States economy works, and he has. We are finding out, getting to see exactly what he meant.