FlintTalk.com Forum Index > Political Talk Topic: U.S. Heading into Recession

Author    Post   Adam Ford F L I N T O I D (Why we need Ron Paul) If prices go up, jobs go down and the dollar continues falling we could have a harsh recession http://news.yahoo.com/s/nm/20080104/bs_nm/usa_economy_payrolls_dc_4 WASHINGTON (Reuters) - U.S. employers added a scant 18,000 jobs in December and the national unemployment rate kicked up to five percent, its highest in more than two years, according to a government report on Friday that underlined the economy's rapidly slowing momentum. The Labor Department said December's pace of job creation was the weakest since August 2003 when 42,000 jobs were cut. The median estimate of analysts surveyed by Reuters was for 70,000 non-farm jobs to be added last month and the far weaker figure drove the dollar's value down and sent U.S. Treasury debt prices soaring on expectation of more interest-rate cuts. Stock futures sank in response to the soft jobs data. The unemployment rate jumped to 5 percent, its highest since it matched that rate in November 2005, from 4.7 percent in November and led some analysts to predict the economy was on the verge of contraction. "This report confirms the fear that we are starting to dip into recession," said Boris Schlossberg, senior currency strategist with DailyFX.com in New York, adding that he expected the Federal Reserve will be forced to continue lowering interest rates to counter a slowdown. The department said that for all of 2007, payroll employment growth averaged 111,000 a month, down from 189,000 a month in 2006. President George W. Bush told Reuters in an interview on Thursday that he was considering stimulus measures to shore up the struggling economy but had not made any decisions. Fed policy-makers meet at the end of this month and are widely expected to cut interest rates again by at least a quarter percentage point. The U.S. central bank began a series of interest rate cuts in September in response to housing and credit problems that have carried over into 2008. During December, manufacturing industries shed 31,000 jobs and construction businesses cut another 49,000. There were 31,000 more government jobs and 44,000 were added in education and health services but retail industries cut more than 24,000 jobs. Rick Meckler, president of Libertyview Capital Management in Jersey City, New Jersey, said the Fed now will be forced to cut rates even if some members fear it might fan inflation. "The risk to the Fed has always been between growth and inflation, and this seems to tip the scale toward sustaining growth and worrying about inflation another day," Meckler said. "It makes rate cuts not only likely but extends them." Weekly hours of work were unchanged at 33.8 in December but overtime hours dropped to 3.9 from 4.1 in November. Richard Yamarone, chief economist for Argus Research in New York, said the soft jobs numbers apparently reflect a "skittish" attitude among businesses about hiring when the economy's prospects are doubtful. But he noted that harsh winter weather may also have played a role in the weaker-than-expected December jobs picture -- "Most of the nation was iced over." (Additional reporting by Steven C. Johnson, Al Yoon and Herb Lash in New York, Editing by Andrea Ricci) _________________ Adam Ford Fri Jan 04, 2008 10:02 am  last time here Guest what are you talking about adam???? dubya sez the economy is bustling!! _________________ Guest post Fri Jan 04, 2008 11:15 am  Opprimo F L I N T O I D quote: last time here schreef: what are you talking about adam???? dubya sez the economy is bustling!! Once the Russian oil companies stop using the dollar as the standard for trade, it won't be long before the middle eastern countries follow suit. At that point, our useless paper will soon be better used for kindling to heat our homes.... _________________ All tyranny needs to gain a foothold is for people of good conscience to remain silent. Fri Jan 04, 2008 5:59 pm  last time here Guest that means i'll freeze to death. _________________ Guest post Fri Jan 04, 2008 8:50 pm    Display posts from previous:   All Posts1 Day7 Days2 Weeks1 Month3 Months6 Months1 Year Oldest FirstNewest First

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