U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.
Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
What a surprise, and so soon after Obama was reelected. Probably no connection.
So soon? Couldn’t have anything to do with the election,and the roughly 2500 new business regs the Chief muzzie and his EPA goons have ready to go. Could it?
What a disconnect! Moody’s recent study of corporate cash in Canada indicates corporations are at the same levels as 2006 with the same credit rating. It indicates a fairly confident outlook.
Both the Demos and the GOP gave lip service to business as the main drivers to a recovery but I don’t trust Barry and by all appearances neither do USA industry. I suspect that not only will he reinstitute higher income taxes on incomes over $250K but he will also take a run at corporate taxes in some form. USA corporate taxes are already almost double those of other countries.
Exactly, Ken, what a surprise. I wonder how the Obama supporters will explain the implosion of the US economy that is coming under Obama?
Why is it coming? Because Obama is destroying the Investment capacity of the nation. And therefore, destroying its Production capacity. How? Two major actions.
First, his ObamaCare is too costly. Companies, to get out of it because it would bankrupt them, are downsizing employees and even, moving full time employment to part time. Disastrous.
Second, he’s taxing away all the Investment money.
I’m astonished at how people simply don’t understand how an economy operates. An economy or the means to live, also known as ‘wealth production’, doesn’t come from the air. It comes by producing goods which you sell.
Again, compare with wheat. Seeds, which are the means by which wheat lives now and into the future, don’t come from the air. The plant has to produce these seeds. And produce more than are eaten by birds and humans. So, men have to produce goods to sell.
In order to produce these goods, men have to INVEST in a long term infrastructure: the factory, the equipment, the workers. No investment means no production. No production means that workers don’t get paid. So, they can’t buy any goods.
Obama’s health bill is removing wealth from workers who are losing jobs and his taxes are removing all the money that could be used for Investment and Production.
I’m also fed up with Obama’s litany of ‘paying your fair share’. The ‘wealthy’ are defined by Obama as any family making over 250,000 a year. His ignorance of this set is phenomenal.
This group is not, in large proportion, made up of individual living on salaried wages but of people operating as SMALL BUSINESSES. Remove their profits and the economy has lost its capacity to invest in that business. No new equipment, no marketing of products, no new jobs offered. Incredibly stupid.
Third, Obama is encouraging a US population made up of people focused on Rights To Receive, not Rights to Work and Create. So, people consider it their right to receive food stamps, unemployment lasting several years, student loan reduction, subsidy after subsidy, guaranteed jobs for life, and so on. These are the people who voted for him and they have become the majority in the US.
Obama does not listen to advice; he lives within his own bubble. His Backroom Gang are made up of hard core socialists who haven’t a clue about how an economy works.
…”You’ll have a retarded growth trajectory.”… emphasis on ‘retarded’…
Who is this John Galt fellow?
You know, the Lefties just love to mock and revile Ayn Rand. And now that she’s been proven right, again, will the revilement stop? NO, they’ll double down.
Because Lefties are -smart/stupid-. They’re extremely clever at making up ways to attack their opposition, but too stupid to notice their “opposition” is actually people screaming “LOOK OUT FOR THAT BUS!!!” at them.
Look out for the bus Lefties, its… oh too late. That’s going to leave a mark. On the road.
Can these people stop calling it a “recovery” now?
Enjoy your Twinkies while they last.
Who are the zombies still calling this a “recession”?
Seems the business community is heeding the advice to “get revenge” on your political enemies.
BamBam is going to learn to be careful what you wish for.
The progressive element will demand a government office to co-ordinate all the boycotts of those companies who are really being racist. Oh, and an enforcement service to ensure those companies stay in business with less business. Or no business.
The irony of course, is that barry got tons of cash from the very “business leaders” that are now hunkering down and hoarding their cash. barry is coming for you anyway so you better get out while you can. Hostess is just the beginning. 18,500 people without work just before Thanksgiving. Not to worry, barry will help you out with green jobs. It’s the future don’t you know. Yeah right. The end really is near this time.
Rob Huck, I was about to post the same thing. We are in a depression!! How do these fools get away with calling it a recovery?
@ET
I am sorry ET you are right 99% of the time and i enjoy reading your extremly challenging comment’s (i am being serious i learn alot from people like you)
But on this we have to go back abit. I agree Obama is the problem but he did not put himself there the people of america have been indoctrinated since the 60’s when russia swore to destroy america from with in all they did was waited until america (becasue they knew it was only a matter of time osama said america has all the watches but we have all the time some how i think osama herd that from russia) opened immigration from russia then they sent thier faithful too lern , assimilate and grow like lenin said if you have thier mind when they are children you will ahve there hearts forever or soemthign to that effect so these faithful educated themselves and thier kids and taught and told them to become teachers , proffessors, political in any way possible …to bring about “change” in america and america being what it was did not judge (those christians roots haunting them ) and allowed this to carry on …and so no not all leftist proffessors are russian but if you take a few generations of indoctirnation of say 3 hardcore leftist’s in each university across america it doesn ot take long before that becomes a multiplier ..and say then next years university admitents say those three indoctrinate solidly 4 peers and so on and so forth and son you have a communistic university atmosphere where only one kind fo speech is protected (as is today) and you have successfully underminded ameerica education system but many purposeful teachers who purposly do not challenge the kids dumbing down the masses .
Those masses belive in the utopian indocrtination spread by the infiltrator communists but it takes on several hiden names instead of comunism becasue most americans know communism ISbad and there for would reject it so if you tweek it here and there and turn a few knobs and pull a few levers you end up with progressivism, and “green” environmentalism…(notice the ism’s here) .
It is my beleife based on what uri brezmianov (look on youtube for his videos) has stated that this has been a long time coming and been in the works perhaps even before the 60’s .
So while Obama is the face of this evil in my opinion it is all of the culmination of soviet communism indoctrination americas universities ,colleges etc etc that has brough about a guy like Obama. Obama is a manifestation of the evil unleashed on america by communist russia from with in not all russians in america are secret communist spies that was part of the plan to have some lame ducks just doing the do innocently so the two political parties could banter on about who is good or bad while the good did nothing the bad kept plugging away at american minds through college , university, elementary, you name it . Then you have union’s and the likes .
It may sound outlandish but i think this is a culmination of a concerted effort by russia maybe with the help of others to bring america to it’s knees becasue they know that america is very patriotic , the bonds americans share with each other is very strong so they need to DIVIDE and conquer …and what is america today ..more divided than it has ever been every one on the left blames bush , and everyone on the right blames obama , but they left the gold standard in 72 , they introduced income tax in 1914 if there was anything to blame it was that but no one did ..that left an opening for russia to use this to it’s advantage to watch a nation tear itself apart from with in just again by simply turning a few knobs here , pulling a few levers there , pushing a couple buttons and voi la there you have a divided america …obaam,bush all of them are guilty but regular americans dont see it that way becasue they are perfectly divided ..so america rips itself apart , then say russia or china invades what is left will further destroy america becasue they are favorable to communism and want to help the communists invade while the others try to fend it off …it will be to late . So my point is Olamer is the manifestion of the ideology of the people of america they have been infiltrated and indoctrinated . I mean how can nancy pelosi, harry reid and the likes actually beleive that what they do is good for america …they no damn well they are destroying it and they dont care they are drunk on power they will say and do anything to be re-elected …if the people of america were hard right so would nancy pelosi and harry reid be …they just blow in the wind to get re-elected to stay in power .
Sorry i will take my foil hat off now . but i do beelive russia has a hand in this the irony of it all is that both russia and china are startingto embrace freedom and liberty in very very molecular amounts but they are …maybe america has done the same to them who knows.
RH
No recovery until after the (next) crash.
What we have seen in the last three years is the gradual reduction of the 08 crash. To the Bamabots, that’s a ‘recovery’. To the rest of the world, its the bottom. Now Bamster and his minions are doubling down on taxes and regs.
Stupid is as stupid does
There is also a movment starting of conservatives boycotting liberal leaning business.
http://accordingtohoyt.com/2012/11/14/dont-lie-flat/
I would suggest you get your money out of the markets as much as you can too.
You’t think the idiots would notice what was happening in France…and do the opposite of what the French did….Socialists world-over are truly STUPID.
BWAHAHAHAHAHAH
Paul in Calgary, whew, that’s quite the outline!
Sorry, I don’t think that economic and social causality is as reductionist and simple as you describe, ie, ‘it’s all a deliberate plot by Russia and the communists’.
I think that economies and societal structures are far more complex than such singular and unilinear agendas…ie, driven by ONE factor, ONE ‘mind’, one Will. We’ve seen over history that any societal agenda, which is reduced to the WILL of one man, will always fail. That’s valid in various cults as well as in the Third Reich and Mao’s China.
I certainly don’t mean to imply that Obama and his socialist gang, who are acting only for their own CURRENT personal power, are the sole cause of the US implosion. No way. But, they are the ‘final nail’ so to speak.
The formula can practically be analyzed in mathematical terms. Can a population last if its ‘take outs’ from the economic goods and services is more than the ‘put-ins’?
Can you order more cheeseburgers than a restaurant’s kitchen can supply? No?
Now, consider a government. It gets its money from taxes. It provides various services which it pays with these taxes. These include welfare, health, security, etc. Now, what if the population wants and uses MORE services than the govt can pay for?
One, increase the taxes. But wait! You’ll destroy the capacity to produce wealth because the people won’t be able to Invest and Produce anything! Tax income will dry up.
Two, borrow. Whew, the interest cost is enormous.
Three, reduce your services. Ah, but over the past generation or two, the West has changed its identity. Instead of being focused on individual rights to freedom and work, it has switched to individual rights to social services!
So, now, people feel that they have a right to ‘free health care’ and welfare, and unemployment, and housing subsidies and student subsidies and on and on. That’s what got Obama elected this time, he focused on the population who want their Social Rights! Not freedom to work but freedom from work!
The basic problem is, that an economy cannot function if its social services, which it pays for out of taxes, costs more than it takes in, in taxes. Simple.
This is to be expected. 49.5% of the country just realized their worst fear. They are not going to go out and buy a bigger house or a new car. They are going to hunker down as we are only half way through this.
This half of the country is the one that could effect GDP if they decided to spend. The half that elected Obama do not have any money anyways so they cannot effect GDP other than their food stamps payment.
Companies hoarding cash have been proven correct. They probably don’t have enough yet, they probably need to double their cash on hand to make it until 2016. The bottom line is they are not investing in new equipment or hiring people and who could blame them. I imagine in about six months all companies not hiring will be called racist but at least they will be around four years from now.
And this not even considering the effect of Obamacare on small business hiring practises or the higher tax rates that will result in the bush tax cuts expiry. Both will result in less cash in consumers pockets. Nothing on the horizen looks good and hasnt for much of this year, and it is inevitable now.
This is very true. Spending is being scaled back. Mid-October there was a little bit of improvement in sentiment, some careful optimism and some spending was planned (but not yet executed), but the breaks have now been put on hard.
Them’s the facts, trust me.
The idiots that voted for Obama have no clue whatsoever that the economy is currently balancing on a knife’s edge.
Can a population last if its ‘take outs’ from the economic goods and services is more than the ‘put-ins’?
History repeats itself, but not always exactly the same way. There will be no economic implosion or collapse.
The sages, as always, will be left in the dust puzzling over why it didn’t happen. Just like they had no clue the USSR would collapse.
@ET
True most definatly , but what caused America to go from a right to work and freedom ,liberty and self reliance to this mess that we have now? What changed it …well it was an ideological change a change of HEART. …not mind the mind followed the heart in America and before the heart followed the mind …..something changed the mind and ultimately the heart of Americans …not all Americans but enought to the point as you clearly stated to take them from being a nation of makers , into a nation of takers as you rightfully explain ….Americans know what you know about the hamburgers and the restaurant .
It would be very stupid of you and me both to assume Americans do not understand the most basic of economics after all they have displayed before the world for decades how it is done and how to succeed ,and so now it is all of a sudden a bad thing in America to be a maker it is a bad thing in America to be a monetarily rich person you are hated maybe only by the vocal minority but still the media is even on there side why this change of heart in America . It is the attitude and ideology that has changed …why ?
The economy is one problem but even the moral fabric is being unraveled , protesting the removal of the Ten Commandments from court houses as an example ….the tidal change is what I am getting at . Economic,political,media,moral all of it .
This debt issue is the result of a greater problem in America and for that I bring in the Russian plot ….only because I cannot think of any other logical reason that America would just all of a sudden start eating its own…
Thank you ET I really learn a lot and I appreciate your opinions always .
This mini-Galt notion is ocurring spontaneously.
Actualy Paul’s comments have some merit.
The USSR was the prime disseminator of socialism/communism during Stalin’s era but that was a means to an end…Russian imperialism.
Marx was a Brit, Gramsci was an Italian….Sun Yat Sen never was influenced by Russia, Chaing Ki Shek was Sun Yat Sen’s heir and in reality just as socialist as Mao’s communists (who was probably as much a disciple of Sun Yat Sen as Lenin). Ho Chi Min was influenced in Paris not Moscow. The “Frankfurt School” was classically of German origin.
These socialist concepts arose in western europe…and america…..in the french revolution and probably inspired by the American Revolution in turn inspired by British/french political/economic thinking. Blame it on the Industrial Revolution.
It was Stalin’s regime, for their own imperialistic agenda, who institutionalised socialism globally and until his death were the major inspiration and facilitators. This did not end with Stalin’s death but gradually declined until the fall of the USSR.
Alyniski may have had some clandestine contact with Soviet agents but is for the most part american in origin.
ET, I’m afraid I have to agree with Paul in Calgary. It isn’t perhaps a “Russian plot”, but certainly the left has taken its time and indoctrinated from inside the university culture and then from the “education faculty” to the public school system. You can’t tell me you don’t see the leftist propaganda pumped out by the teachers and professors. Just look at the “freedom to be censored” at university or schools (or for that matter, in public). We, as conservatives have been marginalized and told to sit down and shut up. Do you remember the “hidden agenda”? No matter what the PM said, there was a hidden message there somewhere. Now it’s creeping into the US political dialogue. Listen to Chris Mathews and his “code words”. No matter what Mitt Romney said, it was always code for hating women, blacks, hispanics, poor people, middle class, name your group. Class warfare in full attack mode.
I wonder how the Obama supporters will explain the implosion of the US economy that is coming under Obama?
Blame it on the GOP like always.
Paul, I don’t think Bezmenov had to bring in Russians to implement socialist policies over the last several decades. During his talks he stated he and the Russians couldn’t believe how easy it was to convince their main targets, the academics, the media and the Hollywood crowd of socialism’s goals. Their focus on these groups was to enable their message to be spread quickly and extensively in our society.
Remember he said once these people were indoctrinated nothing would change their minds, no facts, no information, nothing, which is why as Yuri said when we take over we just shoot these people as they did to 10,000 “intellectuals” in Viet Nam.
I just finished reading Hitch22 a memoir of Christopher Hitchens. The number of hard core leftists as he was in university, both students and faculty, was amazing. Their hatred for us conservatives is unbounded.
As ET stresses, when you have more takers than makers we are in deep do-do.
@ DAVE
Yuri was an ex kgb defector who sought refuge in America and want back to Russia as a double agent and told his story , and you are correct in stating that he and many other communist socialist agents were amazed at how willing the American faculties were to adopt these ideologies but again we are not at why , why were Americans of all stripes so inclined to adopt these terrible philosophies .
What is it and why .
Yuri is right is that the face of evil unwilling leftist .
Rick, I certainly agree with the explosion of socialist ideology, post war, in Europe and America. It’s incredible; I’m an academic and I’d say that 95% of academia, particularly in the humanities and social sciences, are cocooned within the utopian elitism of socialism.
But notice, I used the word ‘cocooned’. These people are cocooned or isolated from reality. They live within an environment made up, totally, of words. A safe, secure, tenured environment. Alienated from the real world of contracts, losing jobs and requirements for accountability and performance.
Academic words are without any effect, without any contact with the outside real world. So, they can pontificate for hours about ‘the Best Society’, and since this society remains existent only within words, it is never put to the test.
And with the rise of universities post war, and the increase of this academic class, we got a set of elitists in the population, ‘experts’ who knew how to set up The Perfect Society. The fact that this existed only in the seminar rooms never occurred to them.
Socialism has been tried over the centuries; it always fails, because it is utopian. That is, it requires a universal mode of behavior where everyone must behave and think the same. But the real world, thank goodness, is made up of differences. These differences actually function to keep the real world alive.
Biologically and physically, if there are no differences, then, all matter reduces to its LCD, or lowest common denominator. Differences make the world live, and I don’t mean this in the multicultural sense but in the physical and cognitive sense.
As human beings, we do live in two worlds, fact and fiction. Our task is to keep both, for our imagination is what enables us to develop new technologies, but we must always acknowledge the hard limits of factual reality.
ET @ 9:15, well, yes, academia may be ‘cocooned’, but they seem to slowly but surely brainwashing our societies into believing in the promises of this ‘utopia’ even from their cocoon. Having some idea of what happened in the major ‘experiment’ in Russia, I do not much relish a similar experiment occurring here in North America.
As noted @ 7:42, the collectivist mindset even rears its head here on occasion.