Economic Weather Report --- the Republican’s continue to rain economic s**

[The Whiskey Priest]

Today, tomorrow and forever the wealthy elite can expect sunshine and fair weather. The rest of the country can expect to be under economic storm warnings, with occasional s*** storms for many generations.

A quick review of the facts behind this prediction:

There is a front of Republican National Debt -- 12/05/2005 __ $8,119,496,424,139.25 which is going to cause drag on the economy and an increase in short and long term interest rate.

To understand the trend in the Republican Deficit, we can examine past fiscal years:

Prior Fiscal Years

09/30/2005--$7,932,709,661,723.50
09/30/2004--$7,379,052,696,330.32
09/30/2003--$6,783,231,062,743.62
09/30/2002--$6,228,235,965,597.16
09/28/2001--$5,807,463,412,200.06
09/29/2000--$5,674,178,209,886.86
09/30/1999--$5,656,270,901,615.43
09/30/1998--$5,526,193,008,897.62
09/30/1997--$5,413,146,011,397.34
09/30/1996--$5,224,810,939,135.73
09/29/1995--$4,973,982,900,709.39
09/30/1994--$4,692,749,910,013.32
09/30/1993--$4,411,488,883,139.38
09/30/1992--$4,064,620,655,521.66
09/30/1991--$3,665,303,351,697.03
09/28/1990--$3,233,313,451,777.25
09/29/1989--$2,857,430,960,187.32
09/30/1988--$2,602,337,712,041.16
09/30/1987--$2,350,276,890,953.00


SOURCE: BUREAU OF THE PUBLIC DEBT

Historical Debt Outstanding – Annual---1950 - 2005
http://www.publicdebt.treas.gov/opd/opdhisto4.htm

The recent Republican tax reductions were touted as economic stimulators and to keep the economic good times rolling. Given the national productivity rate is up and strong, but that is not equating to good times for the wage earners of this country. According to the Federal Reserve report in August 2005, most of the increase in wealth to income ration is due to an increase in real estate holdings. A look at the following data on compensation revels that wages are flat over an extended period of time.


Table B. 12-month percent changes in Employment Cost Index, not seasonally adjusted

Civilian Workers Compensation cost: September
Compensation costs:
2000------------ 4.3
2001------------ 4.1
2002------------ 3.7
2003------------ 3.9
2004-------------3.8
2005-------------3.1

Wages and salaries
2000------------ 4.0
2001------------ 3.6
2002------------ 3.2
2003------------ 2.9
2004------------ 2.4
2005------------ 2.3

Benefit costs
2000------------ 5.3
2001------------ 5.1
2002------------ 4.9
2003------------ 6.5
2004------------ 6.8
2005------------ 5.1

Private industry--September
Compensation costs:
2000------------ 4.6
2001------------ 4.0
2002------------ 3.7
2003------------ 4.0
2004-------------3.7
2005-------------3.0

Wages and salaries
2000------------ 4.1
2001------------ 3.6
2002------------ 3.2
2003------------ 3.0
2004------------ 2.6
2005------------ 2.2

Benefit costs
2000------------ 6.0
2001------------ 4.9
2002------------ 4.8
2003------------ 6.5
2004----------- 6.8
2005----------- 4.8

“Annual compensation cost increases moderated for civilian and private industry workers for the year ended September 2005 compared with over-the-year increases for September 2004. Compensation costs for civilian workers increased 3.1 percent for the year ended September 2005, lower than the 3.8 percent over-the year increase for September 2004. Compensation costs in private industry rose 3.0 percent in the year ended September 2005, slowing from a 3.7 percent increase in September 2004. Compensation costs increased 3.7 percent for State and local governments for the year ended September 2005, compared with an over-the-year gain of 3.4 percent in September 2004.” BLS October 2005 http://www.bls.gov/news.release/pdf/eci.pdf

Table D. 12-month percent changes in Employment Cost Index, constant dollars,
not seasonally adjusted

Compensation costs
2000__ 0.8
2001__1.4
2002__2.1
2003__1.5
2004__1.2
2004__-1.5

http://www.bls.gov/news.release/pdf/eci.pdf

The wage earners of this country are maintaining by expanding their debt, not because of some robust economy that is propelling their income higher. Corporations are experiencing higher profits, but the worker is working harder and falling behind.

Consumer Credit Outstanding: Total, Billions of dollars

2000___1704.5
2002___1921.5
2004___2099.1
http://www.federalreserve.gov/releases/g19/current/default.htm


The bottom line is the Republican Congress continues to reward wealth, while cutting government services that the middle-class has come to rely upon. The last belt-tightening hurt the poor, disadvantaged and the middle-class. The plethora of 2005 tax cuts rained more wealth on those who were already wealthy.

Please remember to wear you rubbers this next decade, century…because the sh*tty economic outlook is going to be bad.

[Kolesar]

1. What can Japan &China *really* do with that US debt they hold?

They cannot really "cash it in" and build a thousand tunnels and airports. They could not even cash in a tenth of it without causing an economic shock. Japan & China are going to have to hold that debt for decades. They risk that the US dollar will drain in value and they will lose their investment. That would mean that they sold us all that consumer product and machine tools for less than they should have back in the 90's and the 00's. :sarcasm:

[The Whiskey Priest]

2. What happens when or if they see the futility of such transactions

Wal-mart would no longer have cheap underwear.