Podcast 293

Wash Cycle. Updates for the new work week start with laundry in the Broadcast Bunker. You’ve probably been feeling pretty good lately, what with all the stories about how great Christmas Shopping was going and how cheap gas was like a tax cut, and how we’ve finally turned the corner on the economy, with the multitudes heading back to work, right? The toward the end of last week, someone punched the mute button on the celebration. Now, this won’t stop the President from taking credit for ‘booming’ economic growth in the United States in his State of The Union message, but new numbers temper the enthusiasm a little bit and may even explain why more than half of Americans aren’t so sure we’ve got the party started yet. As with almost every development related to President Obama and the economy, the compliant media continues to paper over mistakes, and grasp at green shoots in the economy. Unemployment is 5.6 percent! We’ve created over 250,000 jobs! What they don’t tell you is today’s 5.6 percent isn’t the same as when Bill Clinton was president, since there are 65 million some people who apparently are out of the work force permanently. Moreover wages, which have been rising slightly, are not rising fast enough, or high enough to sustain economic growth, say some analysts. At the end of last week, the compliant media was again surprised – stunned in fact – to see that retail sales actually contracted in December, a whopping .9 percent. Economists (astrologists) had predicted only a .1 percent drop. Remember when cheap gas was supposed to act like a tax cut? Gas stations got hit the hardest. Auto sales got hit. And, even though we ‘created’ two hundred fifty thousand plus jobs last month, there were 314,000 applications for unemployment, up 19,000 and the highest number in four months. Note to self; A tax cut is a permanent reduction in a tax rate, allowing people to plan for the long term future by investing, or purchasing big ticket items, or starting businesses. A reduction in a price is not a tax cut. Meanwhile the energy price and commodity price rout continues, and now banks in the oil patch, manufacturers like CAT, rail roads and energy states are taking the hit. Oh we’ll take the cheaper oil, but the media needs to stop crowing about how great a commodity price collapse is. It should be viewed as a danger sign, because the rest of the world economies apparently got the wrong flu shot. What’s wrong? No one is asking whether or not we should be stimulating supply, rather than demand. Are conservatives proposing dynamic, proven solutions? Finally, the IRS wants more money. They don’t have enough employees. Has anyone bothered to report how many employees the IRS actually has? You’d be surprised. Sponsored by Ryan Plumbing.

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Podcast 290

Southwest Light Rail. News that Minnesota Speaker of The House Kurt Daudt says the House will not consider funding for the Southwest Light Rail, leads this midweek update from the Bob Davis Podcasts. SWLR has caused headaches for the Minneapolis Park Board, Bicyclists, Residents of Western Suburbs, Mayors, City Councils and legislators since its inception, and it isn’t even built yet! Despite the fact that light rail does not carry more passengers than buses, doesn’t spur development without expensive subsidies, and doesn’t generate employment beyond construction crews (which is a small swath of the working population and short term) the unelected Met Council and transportation ‘activists’ plan as many as twenty of these light rail projects, with the Southwest Light Rail central to the overall plan. Moreover, media coverage of how the state funds transportation projects is very confusing. Senate transportation chair Scott Dibble wants to add a wholesale gas tax which some report could add as much as twenty cents to a gallon of gas, which is projected to raise almost a billion dollars, add a license fee increase and then borrow 576 million for ‘roads and bridges’. What’s the other 800 million plus a year for? And let’s not forget the transportation amendment, passed a few years ago, which generates God knows how much in revenue. Is there a sinkhole someplace where this money goes? Oddly enough people who a month ago were touting the lower gas prices as acting economically as a ‘tax cut’, now advocate raising the federal gas tax. Hint, there is plenty of money if they would just dedicate all of the money raised in gas taxes for roads and bridges. Furthermore, what about Obama’s trillion dollar stimulus? Wasn’t that for roads and bridges too? New economic numbers this week has the media touting the ‘booming’ Obama economy, and leftwing commentators laughing at Republicans for spinning the good news, bad. But, there are still some questions about employment, central bank policy, and worrisome signs. 2.5 to 3.5 percent GDP growth is good, but wages are not increasing and some say, this isn’t enough to sustain the growth. Don’t get too cocky. The Bob Davis Podcasts provoked a lot of reaction in Podcast 287 regarding tea party politics in Minnesota, chiefly that rhetoric does not win elections, or force politicians to do your bidding. Almost as proof is a new poll of registered republicans in Iowa. If there is a grassroots tea party movement, the poll doesn’t show it. Mitt Romney and Jeb Bush lead a field of GOP candidates in the first primary state. Shockingly, the White House says journalists should be careful what they say, since it might provoke attacks against US military personnel and in his role as Commander in Chief, President Obama might have to shut down journalists who write stories jihadists don’t like, or satire that might make them attack. Not making this up. And you wonder why the President didn’t go to Paris. Finally, the IRS head continues to bitch and moan about the lack of funding for the agency, saying fewer audits are in store, and they may not be able to collect taxes …The Nation Rejoices! Sponsored by Baklund R&D.

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Podcast 252

The Gathering Storm. Business and Economic News. The latest headlines include a Mayor who throws alleged gang signals to curry favor with unsavory characters, a video of an MIT Obama Care ‘architect’ who says the law was poorly written to fool ‘stupid’ voters (what a surprise!), and the mainstream media election 2014 chatter is increasingly vapid. Time to turn to an issue no one seems to be paying attention to, save for the financial and market watchers. As commodity and housing prices decline the mainstream media tells us deflation is bad, because falling prices mean people will ‘wait’ to make purchases. Never mind we have had deflation (dropping prices) for things like flat screen TV’s and tech for years, and people keep buying. The real problem with deflation is that governments need inflation to pay off their debts. Inflation is how governments have robbed Americans of purchasing power and hidden the ill effects of profligate spending for decades. Central Banks and governments all over the world are trying, and failing, to create inflation. Now they are terrified that slow, or no economic growth may finally be creating a deflation, which means debts will become more difficult to repay. What the mainstream media isn’t telling you about lower oil prices is, major economies all over the world are stalling, lowering demand for energy and everything else. The EU, Japan, China, Russia, India, Brazil, even the US have anemic economic growth, or they are contracting. Housing is not cooperating with efforts to stimulate. Half the people in this country make less than $28,000 a year, the average college graduate has at least 26,000 dollars in debt, making some wonder what the millennials will be buying houses with. Years of anemic economic growth is taking its toll in people out of the labor force, stagnant wages and substandard job creation. The statistics look good, but don’t tell the real economic story in the United States and the rest of the world; Things aren’t going so well. The gathering storm isn’t deflation, it’s the political reaction to it. Bill Gross said recently, stimulative efforts by governments and central banks aren’t ‘working as well as they used to’. The cure? More of the same! What about the idea that what they’re doing just isn’t working? Politicians aren’t addressing this issue at all, whether they be democrat or republican. Does this mean a disaster is brewing? Democrats want to double down on failed economic policy (basically print and borrow more money) and Republicans don’t seem to have an agenda which will lead to the growth we need. Add to this, chaos in the world as the US withdraws … a confused foreign policy … and you have a recipe for disaster; A gathering storm. Sponsored by Ryan Plumbing and Heating of Saint Paul and by Depotstar.

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