Emperor Parties at White House as Left Spins Economic Statistics
August 5, 2011
RUSH: Man, we can't even hold a small rally. We open up at 151 and now we're back down to 190. Yesterday the birthday, they tell us, of Barack Obama. He had a big party at the White House last night, Hollywood celebrities, food, drink, you name it, partying hearty on a day the American people lost $1.1 trillion of assets. I'm talking about one day, $1.1 trillion of wealth lost in one day, and that night our esteemed Dear Leader sits there at the White House with a massive party with Stevie Wonder singing tunes and all this kind of stuff. He doesn't care, folks.
JOHNNY DONOVAN: And now, from sunny south Florida, it's Open Line Friday!
RUSH: Where the views expressed by the host on this program really tick off the liberals. We have some funny sound bites to illustrate that. Oh, man, are they mad at me for the way I accurately described Keynesian economics. NBC actually played an audio sound bite of me from a year ago claiming I had said it yesterday, making a joke about how do we really know it's Obama's birthday? You know, tweaking 'em on the birther stuff, and they fell for it again. Ah, the fun, the fun just keeps on happening.
Great to have you with us, my friends, El Rushbo as we head into the weekend. Our telephone number if you want to be on the program, 800-282-2882. The e-mail address is ElRushbo@eibnet.com
Ladies and gentlemen, the unemployment news is out, and, as always, it falls to me to explain the truth of it to you. It's not pretty, and we are being lied to. We are being really lied to about this unemployment number. And, of course, the media sycophants, particularly at CNBC -- I got a question, I got an e-mail today from a friend of mine, "How can these people on CNBC be saying that the job numbers are so good? So 70,000 more jobs are added than estimated, 117,000 total, after spending how many trillions? It's a joke." The answer is CNBC is owned by Comcast, but still 49% of it's owned by GE, which is Jeffrey Immelt, who is a corporate crony of Obama's.
Now, you've heard the news that the unemployment rate fell from 9.2 to 9.1%, and you've also heard that we added 117,000 jobs. Let me give you a little statistic that will put this all in perspective and explain it at the same time, in one sentence. Look at me, are you listening? The unemployment rate today, if the active labor force was as big as it was when Obama was inaugurated, would be 11.7%. In other words, what they've done here -- and I'm sure there's some monkeying around with this number today because of the crisis that happened yesterday in the euro zone and the market plummeting. I am positive there's some monkeying with this number to try to stave off more of what is happening. I mean the NASDAQ is down, what, 90. It's rallying a little bit, now it's only down 70. But none of this has been warded off.
The word over from the euro zone is that the Germans are not gonna bail out the Italians or the Spanish. Angela Merkel is on a hiking vacation somewhere in the hills and isn't coming home for six weeks, and that's what she says. So there's no confidence whatsoever. The only way that they can get to this number of 9.1%, the only way they can possibly do that is to reduce the universe of people working in this country, and that's what they've done. Once again, if the labor force was as big today as it was when Obama took office, if there were as many jobs available today as there were then, the unemployment rate would be 11.7%, and the real unemployment rate, the U6 number, would be over 20%. This is a bogus number that's been put out today.
What's happening to this country is just a damn shame. Record number of people on food stamps. Race riots in Wisconsin at the state fair, in Wisconsin! I mean you expect race riots in LA. But at the Wisconsin state fair? So let's look at some of the actual facts of this. Nonmanufacturing jobs, in the current report, nonmanufacturing jobs worse than expected. Manufacturing jobs far worse than expected, as in below even the lowest guess. GDP far, far worse than expected. We had a growth rate of 1.3% the second quarter, four-tenths of a percent in the first quarter. Consumer sentiment is worse than expected. Consumer confidence, and employment is unexpectedly up? This doesn't work. The math doesn't work unless you simply subtract from the universe of available jobs a sufficient number to give yourself a reduction from 9.2 to 9.1%. And, by the way, I don't think they're monkeying with this. I think this number of jobs actually has been destroyed. I think the number of jobs possible in this country, no question about it, has been destroyed.
The labor market, forget unemployment itself, the overall labor market, the opportunity for a job is way down after two and a half years of Barack Obama. The number of people who are on the unemployment rolls over 40 weeks is at an all-time high. And they're trying to tell us in the media that this great economic news today signals perhaps an economic rebound. And it's an insult to everybody's intelligence. And folks, politics aside, I would love for this not to be happening. I would love for the stock market to be going up. What's happening to this country is just... I don't know. It's a shame. I sit here and I say, "Look at what's happening to America." I see the numbers of people on food stamps, record number.
By the way, that stat comes from our buddy Jim Pethokoukis at Reuters, and Jim Pethokoukis has another stat. There were more Americans working this June than there were in July. There were more Americans working in June than there were in July, and yet we are told today that unemployment went down. In June there were 139,334,000 Americans working. In July, there were 139,296,000. There were more Americans working in June than were working in July. So we're dealing with trumped up fake numbers. It's a shame, it is sad, and it's unacceptable. And furthermore, it's unsustainable. Yesterday $1.1 trillion of wealth vanishes. This is people's futures. This is on top of what they've already lost and the New York Post, Page Six, has a detailed story of this massive party at the White House last night, the second birthday party for Obama. And next week the great filmmaker Harvey Weinstein is hosting a dinner at his West Village place that is a $2 million fundraiser for Obama.
At this point in his first term George W. Bush had held seven fundraisers; Obama's now held 38. It will be 39 or 40 by next week. We have an emperor. We have somebody who is totally disconnected from life in this country, and flaunting it, by the way. Flaunting it. Not trying to do it on the down-low. "Average Length Of Unemployment Surges To New All Time Record 40.4 Weeks." This is Tyler Durden at ZeroHedge.com. So Obama sure is historic. He's achieved what has never been done before. The average length of unemployment now surges to a new all-time record of 40.4 weeks. That's just a month shy of a year, for those of you in Rio Linda.
"We already learned that the one biggest red flag in unemployment data had been raised when we found that the labor force participation rate was the lowest since 1984." That's how you get Pethokoukis' number, that if the unemployment rate, active labor force was as big today as it was when Obama was inaugurated the unemployment rate today would be 11.7%. The labor force participation rate, the lowest since 1984, and "now we find that the other critical data point: average length of unemployment, just hit a new all time high of 40.4 weeks in July, up from the previous record of 39.9 in June. Someone should tell the average American who is rapidly approaching one year in average unemployment that the stock market soared on good payroll news."
It lasted for ten minutes. They say the stock market soared today on the unemployment news. Who really knows why the market did what it did. But whatever it did what it did, it ain't doing it right now. Bloomberg has a story on unemployment, and they buried the lead. "The jobless rate declined as 193,000 people left the labor force and the number of unemployed dropped by 156,000. The share of the eligible population holding a job declined to 58.1 percent, the lowest since July 1983." That is the only way that we can have an unemployment rate below 11.3%, which is what it really would be if Obama had not done the damage and the wreckage and the destruction that he has done.
Folks, let me put this in context for you. The share of the eligible population holding a job is 58.1%. Forty-two percent of the country is not working. The share of the eligible population holding a job is now 58.1%. Sorry, I don't want to hear about recovery or turning the corner or back from the brink. It's impossible with these numbers. It is simply impossible. And these people say they're out of bullets? They are out of bullets in what they consider ammo, but there's plenty of stuff that could be done. The first thing that has to be done is this guy is not gonna do any of it.