A short U.S. economic roundup
Obama Economy Sends Americans to Their Mattresses: "Government policies designed to stimulate the economy seem to be having the opposite effect. Consumers aren't buying, businesses aren't hiring, and those fortunate enough to have some cash on hand don't seem to be investing. I call it the mattress economy. People seem to be following this investment strategy. Step one: Go to Mattress Discounters and buy the biggest mattress you can find. Step two: Take it home, and stuff all your money in it. Step three: Lie down, and get some rest. This hurts the economy, but it's a rational response to the Obama Democrats' public policies.
The economy sure is getting Obama panicked: "President Obama, who vowed in his State of the Union address to double American exports over the next five years, said on Wednesday that he would renew his efforts to renegotiate long-stalled free trade agreements with Panama and Colombia and persuade Congress to adopt them. The two trade pacts, and a third one with South Korea, were negotiated by the administration of former President George W. Bush, but all three have languished in Congress because of deep opposition from Democrats. Mr. Obama said in Toronto last month that he intended to make a new push for the South Korean agreement, and on Wednesday he pledged to press ahead with the two Latin American pacts as well."
Chinese credit firm says US worse risk than China: "A Chinese firm that aims to compete with Western rating agencies declared Washington a worse credit risk than Beijing in its first report on Government debt yesterday amid efforts by China to boost its influence in global markets. Dagong International Credit Rating Co's verdict was a break with Moody's, Standard & Poors and Fitch, which say US government debt is the world's safest. Dagong said it rated Washington below China and 11 other countries such as Switzerland and Australia due to high debt and slow growth. The report comes amid complaints by Beijing that Western rating agencies fail to give China full credit for its economic strength, boosting borrowing costs - a criticism echoed by some foreign analysts."
One job forward, two jobs back: "The Great Obamanomic Job Creation Machine rumbled into action again over the Fourth of July weekend, promising to spend as much as $2 billion to support creation of 1,585 ‘permanent’ jobs by two solar energy companies. That comes to a potential cost of over $1.25 million per job. In his weekly radio address on July 3, President Obama chided the Republicans for failing to climb aboard his job-creation bandwagon, which he claims — against strong evidence to the contrary — has created or saved 2.8 million jobs over the past year. And he isn’t finished.”
Posted by John J. Ray (M.A.; Ph.D.).