Posts Tagged ‘two-thirds’

64% Of Small Businesses Planning To Wait Out Obama, Will NOT Be Adding New Jobs (12% Say They Will CUT Jobs)

July 13, 2011

There’s the old conundrum about the wolf, the goat and the cabbage:

A farmer and his wolf, goat, and cabbage come to the edge of a river they wish to cross.  There is a boat at the river’s edge that only the farmer can row.  The farmer can take at most one other object besides himself on a crossing, but if the wolf is ever left with the goat, the wolf will eat the goat; similarly, if the goat is left with the cabbage, the goat will eat the cabbage.  How can the farmer get all of them across?

There’s actually a solution to that problem.

Now we’ve got an even more intractable problem, involving a healthy job-creating economy, a Marxist president and a Marxist Democrat Party.

This one is unsolvable, because unlike the above dilemma involving the wolf, the goat and the cabbage, BOTH the Marxist President AND the Marxist Democrat Party will devour the economy unless it is somehow taken away from them.  Like the goat with the cabbage, they will insatiably eat every job they can and turn those jobs into dead crap.  Like the wolf with the goat, they will kill the economy and systematically devour it until only bones are left.

We are still over a year away from getting the chance to save ourselves from this insoluble dilemma.

And here’s the consequence:

Little Hiring Seen by Small Business
JULY 11, 2011
By SIOBHAN HUGHES

WASHINGTON—The U.S. labor market could stay sluggish for a while, with small-business executives reluctant to hire amid the murky economic outlook.

A survey of small business owners shows a lack of
confidence in the U.S. economy. More than two-thirds indicated they do not plan
to add payrolls in 2011 or 2012. WSJ’s Siobhan Hughes reports. Photo: Justin
Sullivan/Getty Images

Almost two-thirds—64%—of small-business executives surveyed said they weren’t expecting to add to their payrolls in the next year and another 12% planned to cut jobs, according to a U.S. Chamber of Commerce report to be released Monday. Just 19% said they would expand their work forces.

This comes after a Labor Department report Friday showed employers added few jobs in June, and unemployment rose to 9.2%. The bleak figures joined other data showing the recovery losing momentum in recent months, which has caused many analysts and policy makers to lower their forecasts for economic growth in the second half of the year.

The Small Business Administration says small businesses, defined as companies with fewer than 500 workers, employ about half of the workers in the private sector. In the Chamber’s survey of 1,409 executives, conducted by Harris Interactive, small businesses were defined as firms with revenue of $25 million or less.

More than half of the small-business executives in the June 27-30 survey cited economic uncertainty as the main reason for holding back on hiring. About a third blamed lack of sales, while just 7% pointed to problems getting credit.

“I think it’s safer to stay on hold and not hire workers,” said Harold Jackson, chief executive of Buffalo Supply, a Lafayette, Colo., distributor of high-tech medical equipment used in operating rooms.

[JOBS]

Mr. Jackson said he has halved his staff to 15 workers since 2009 and was unlikely to start hiring soon even if his business picked up. “I can handle a reasonably large increase in business without having to increase the staff.”

Many of the executives surveyed were gloomy about the economy’s prospects. About 41% see the business climate getting worse over the next two years, compared with 29% who expect the climate to improve.

The modest hiring plans of small businesses don’t make up for the job losses in the past year, when some 29% let go workers, far outpacing the numbers that now plan to hire.

As the wise philosopher Scoobert Doo once put it upon hearing dire news, “Roh-roh.”

Between ObamaCare and the massive $500 billion in taxes it’s going to take out of the private sector, along with the 158 government bureaucracies and the thousands of pages of regulations; between the trillion dollars in NEW taxes Obama is demanding as part of any debt ceiling deal; between the Obama EPA which is simply ruling by fiat and imposing regulations that were actually voted down by Congress; between the fact that Obama won’t let us drill for our own oil even as his green energy sends the cost of energy (in his own words) “skyrocketing”; between the Obama NRLB that is openly warring with companies like Boeing for creating jobs in non-union states; between the Obama Labor Department, which is putting together some 100 job-killing regulations to strangle businesses from further hiring as we speak; and between the Dodd-Frank legislation which will systematically cut businesses off from credit, we are pretty well screwed.

We can have jobs, or we can have Obama and his Democrats.  But we’re not going to get jobs until we get rid of the people who are demonizing the job creators.  And that should just be an obvious fact by now.

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America Cut Off Like Spoiled Brat: China Planning To Massively Divest Itself Of U.S. Debt

May 7, 2011

Imagine you’re a rich kid, a spoiled brat.  All your life, you’ve lived on daddy’s money.  But you’ve finally taken that one giant step too far and daddy has pulled the money plug on you.

What would you do?

You’d better figure it out quick.  Because it’s just about to happen to you and to everybody else. 

Because China is beyond fed up with Obama’s hopey-changey:

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings
Submitted by Tyler Durden on 04/24/2011

All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week’s announcement by PBoC Governor Zhou (Where’s Waldo) Xiaochuan that the country’s excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the “buy US debt” Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that “end of QE” again?

From Xinhua:

 
 

China’s foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.

And as if the public sector making it all too clear what is about to happen was not enough, here is the private one as well:

 
 

China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.

The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.

Tang’s remarks echoed the stance of Zhou Xiaochuan, governor of China’s central bank, who said on Monday that China’s foreign exchange reserves “exceed our reasonable requirement” and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.

Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.

However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.

The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity. In fact, we are confident that the reval is a likely a key preceding step to any strategic decision vis-a-vis US FX exposure (read bond purchasing/selling intentions). As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.

It’s not like the Chinese didn’t try to warn us:

The Chinese government contacted our tax-cheating Treasury Secretary Timothy Geithner and said:

“We want some kind of a guarantee that your money is going to be worth something if you keep spending so much over there and devalue not only your currency but the currencies throughout the world… We hate you guys.  Once you start issuing $1 trillion, $2 trillion, or more dollars, we know the dollar is going to depreciate.”

But of course, that is precisely what Obama did: issue $1 trillion, then $2 trillion, then so on and so forth, in new spending.  And now our dollar is tanking into poo-poo land.