You are currently browsing the category archive for the ‘economic fallout’ category.
On July 1st the interest rate on student loans rises from 3.4 percent to 6.8 percent of this year.
One year ago, the trillion dollar mark was crossed for the amount owed and required to be paid back for a student’s education..
3.4 to a 6.8 is a doubling… Just on a gross scale, off a Trillion dollars, the interest per year is jumping from $34 billion to $68 billion. On a $16 trillion GDP, that is nothing. But when you look at other figures, that jump has shocking consequences for the world-wide banking system.
The post graduate boom is usually what drives our economy. New cars, New electronics, New houses. Dining out. Spontaneous purchases. A study by the New York Federal Reserve shows that graduates are living austerely to pay of their gigantic debt, most of which are more costly than the mortgages owned by middle America. Asking someone to buy a house while paying off their educational loan, is equivalent to asking then to buy a second house while still paying off their first, How rich does one have to be in order to do that? What amount of yearly income is required to do that? +$125,000? Does this mean there will be no net new buyers of houses for 20 years? Anyways, after July 1st, there will be $34 billion less with which to purchase houses.
The Department of Education predicts a default rate of 13.4%… Off a trillion that means $130.4 billion dollars will be the amount defaulted. $130.4 billion.
So adding the two together, the upcoming shock on our economy will now cost $198 billion. Poof, right out the door, $198 billion. Gone from our economy.
Tran Union a credit reporting agency says the data in it’s files show that almost half, or 43.5% of student debt is in deferment. In dollars off that trillion total, that would amount to $435 billion dollars of debt not being paid in a timely fashion.
Particular concern must be paid here, because more than half of college graduates under the age of 25 are either unemployed or underemployed — the highest rate in 11 years, according to an analysis of government data.
Putting the two together, we have half of those required to pay $435 billion defaulted, who are either under or unemployed.
As we saw with mortgages, when people can’t pay, there is no notice, They just walk away.
A nation depends upon its newest generation to lead them forward with energy and enthusiasm, long after the previous ones are tired and ready for rest. This generation is coming out on the playing field, weighed down like knights of old, in ancient armor…. The upcoming football game does not look promising… Their best 100 yard dash is just under 10 minutes.
Not likely one would say today. But, hear me out. This session the corporate financial targets that got hit, all missed their revenue. That means people did not spend as was planned, but some fat on the corporate skeleton could be cut to compensate. That fat is not there for the next report…
The economy has taken a shock from $85 billion sequestered despite only $10 billion having been applied already. The $75 billion cuts are coming.
Even though the US market is the only safe place to put ones money today, the rest of the world is as unsafe as ever. Since there is no where else to go with one’s money if he US market dives,… panic will begin very quickly….
The possibility is rather good for a 30-50% correction in the US Stock market. I would still stay out and remain in Treasuries if I were you….
I watched the Sequester take down another man….. Gone, gone, the damage done…..
Just a quick review of the Wilmington News Journal this past week to keep up with exactly all the unnecessary waste and wasteful perks we needed to cut so our billionaire friends won’t have to pay one more single penny of every dollar they earn over the $1 million mark…… .*
Here are those things less important than a penny to a billionaire……
- Air Force suspended its military tuition assistance program for the remainder of fiscal year 2013, impacting more than 1,000 Dover Air Force Base Airmen…
- DAFB has already endured deep cuts to flying hour programs, training cancellations and civilian furloughs,,,
- Delaware will lose approximately $1.4 million in funding for primary and secondary education, putting around 20 teacher and aide jobs at risk.,,,,,
- 2,000 fewer students would be served and approximately 4 fewer schools would receive funding…
- Delaware will lose approximately $1.8 million in funds for about 20 teachers, aides, and staff who help children with disabilities… including autism.
- Head Start and Early Head Start services would be eliminated for approximately 100 children in Delaware,
- Delaware would lose about $1.1 million in environmental funding ..
- Delaware’s to lose another $359,000 in grants for fish and wildlife protection.
- 2,000 civilian Department of Defense employees would be furloughed or around $7.6 million in payroll no longer hitting Delaware’s economy…
- Delaware will lose about $83,000 in Justice Assistance Grants,, used to prosecute criminals.
- Delaware will lose about $86,000 in funding for job search assistance, referral, and placement,..
- 100 disadvantaged and vulnerable children are being dropped from child care, meaning their parent will have to quit work to care for them.
- Reduced funding for vaccinations of about $26,000. 380 fewer children will receive vaccines
- Delaware will lose approximately $86,000 in funds to help upgrade its ability to respond to public health threats..
- Delaware will lose about $330,000 in grants to help prevent and treat substance abuse..
- Delaware will lose about $70,000 resulting in around 1,800 fewer HIV tests….
- Gone are the $19,000 in funds that provide services to victims of domestic violence,
- Gone are the $201,000 in funds that provide meals for seniors, currently the only meal they have.
- Elimination of inspections to prevent the introduction of foreign pests and diseases into U.S
- 1,000 fewer grants awarded by the National Science Foundation, and 5.1 percent cuts to the National Institute of Health..
In all, $18 million that would otherwise flow into Delaware’s economy…… The CBO uses this formula to judge the economic impact of Federal cuts. 1.6 times the Federal Cuts = local economic damage…. Delaware then is facing a slump of $28.8 million dollars…
And why are we facing all these hardships?
So billionaires won’t have to pay one penny off every dollar they earn over a million….. Just curious,… what part of society do you think deserves and needs that money more? If we were choosing where in society that money should go to do the most good, would you vote to keep it in a billionaires pocket?
If you are Republican, you would?……..
*(one penny on every dollar earned over 1 million equals almost exactly $85 billion, the amount of the sequester...)
Roosevelt’s Inauguration 3/4/33
Courtesy of CSpan.
Franklin Delano Roosevelt’s Inauguration Day. (It was the last before the 20th Amendment moved it to January 21st.) It is hard for us to see though the old film clips but here are some additional notes from H.W. Brand’s biography of Franklin Roosevelt, titled “Traitor To His Class”….
In 1933, the pervading bitterness was similar to that experienced by today’s Republicans. They had talked themselves into believing Herbert Hoover was a shoo in. Instead it was a rout for Roosevelt. Hoover was not a social person to begin with, and his awkwardness continued though out the inauguration….
It was customary at that time, to have the outgoing president host a dinner for the incoming President. Hoover refused, and instead, settled on an awkward afternoon tea… When Mr. Roosevelt tried to mitigate the awkwardness and offer Hoover an early exit, Hoover aggravated the discomfort. “Mr. President” said Roosevelt. “as you know it is rather difficult for me to move in a hurry. It takes me a little while to get up and I know how busy you must be. So please don’t wait for me.” Hoover stood up and affixed Roosevelt with a glare. “Mr. Roosevelt. After you have been President for a while, you will learn that the President of the United States waits for no one…” and stormed off, leaving his wife to say the goodbyes..
Roosevelt began what later becoming tradition, of spending the morning at a private service, this time at St. John’s Episcopal Church. At 11 o’clock the car swung by the Mayflower Hotel and picked up both Franklin and Eleanor, then swung by the White House to pick up Hoover. Hoover surveyed the White House grounds then climbed in and scarcely looked at the Roosevelts…
As the open car pulled down Pennsylvania Avenue, Franklin politely acted like the cheers were for the actual president at that moment, the outgoing one, and declined to acknowledge them… But within blocks the fiction became unattainable and he began acknowledging the crowd by tipping his silk hat and smiling and the anger radiated by Hoover, intensified stronger.
In the Capitol he watched the swearing in of the Senators, and the Vice President John Nance Garner and watched what would be the last adjournment of a Lame Duck Congress. At one o’clock all moved outdoors and in front of a crowd of 100,000, began the ceremonies. Roosevelt was uncharacteristically serious. Many of his staff were surprised by his somber character…
As you can see in the beginning of the clip above, upon taking the oath of office Franklin took the unusual step of repeating back the entire part read from the Constitution, before saying “I do.”
This is a day of national consecration and I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our nation impels.”
Hoover was standing next to Roosevelt and his dour expression became a grimace as he anticipated another attack upon his administration… But Roosevelt proceeded with words of encouragement and hope.
“This great nation will endure as it has endured, and will revive and prosper. Let me assert my firm belief that the only thing we have to fear is fear itself.– nameless, unreasoning, unjustified terror, which paralyzes needed efforts to convert retreat into advance.”
This line did not resonate as it does now, as the famous line we now know from our study of history. At the time, it was patiently false. Americans did have a lot to fear. Banks were closed. There was massive unemployment. Hunger was widespread, and a financial system could barely get up onto its knees.. If you notice in the clip above, to the line… there is no applause.
More noticed and featured in the following day’s headlines, were these lines assailing “unscrupulous money changers” of Wall Street as those responsible for America’s plight. “Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply”.. “Primarily this is because the rulers of the exchange of mankinds’ goods have failed through their own stubbornness and incompetence.” Waxing eloquently, “the money changers have fled from their high seats in the temple of our civilization. We may not restore that temple to the ancient truths…”
Other applause lines: “our greatest primary task is to put people to work.” This would be accomplished in part by the “direct recruiting of the government itself; treating the task as we would the emergency of war.”
“We must frankly recognize the overabundance of population in our industrial centers and, by engaging on a national scale in a redistribution , endeavor to provide a better use of the land for those best fitted for the land.”
He calls for “definite efforts to raise the values of agriculture products” for insistence that the “federal, state, and local governments act forthwith on the demand that their cost be drastically reduced”, and he spoke for an “adequate but sound currency”… He set the agenda with this: “The international trade regulations though vastly important, are, in point of time and necessity, secondary to the establishment of a sound national economy.”
If you didn’t get the gist of it, Roosevelt’s words were purposefully vague. They were crafted to inspire confidence that action was forthcoming, without belying that on one yet knew what action or actions would begin to take place. “We must act, and we must act quickly.”
“I shall not evade the clear course of duty that will then confront me. I shall ask the Congress for the one remaining instrument to meet the crises– broad executive power to wage a war against the emergency as great as the power that would be given to me if we were in fact invaded by a foreign foe.“
No president, not even Lincoln, had spoken boldly of the power he would require. The American people were demanding much, and they deserved all that government could accomplish for them.
“They asked for discipline and direction under leadership. They have made me the present instrument of their wishes. In the spirit of their gift….. I take it.“
He had an amazing 100 days.
There is a huge irony that on this same date, 80 years later, we are facing our first full day of sequestration; the exact opposite of what Franklin Delano Roosevelt ran against, won against, and fought against the entire length of his presidency. And his policies would still be in effect today. if it weren’t for the Republicans and the presidency of George W. Bush.
So, you who have put your faith and service into the United States of America, who have sacrificed a lot for principle, and enlisted or volunteered in the armed forces, are now, about to get a 20% cut in pay?
- How will your family live?
- How will you pay your bills?
- How long until the Sheriff puts your home up for auction?
And why it this?
Because Republicans don’t want billionaires to pay one more penny per dollar earned on all income OVER a million dollars……...
There is no other reason you are taking a 20% cut in pay for serving your nation in the most patriotic fashion….
You just got bumped by millionaires…. Thanks to the Republican Party of the United States of America……
So, how do you feel now?
By now, everyone knows the Republicans are the ones who created the sequester. So let us look at what they did to us,here living in both the first state and second smallest state.
If sequestration were to take effect, some examples of the impacts on Delaware this year alone are:
Teachers and Schools Delaware will lose approximately $1.4 million in funding for primary and secondary education, putting around 20 teacher and aide jobs at risk. In addition about 2,000 fewer students would be served and approximately 4 fewer schools would receive funding.
Education for Children with Disabilities: In addition, Delaware will lose approximately $1.8 million in funds for about 20 teachers, aides, and staff who help children with disabilities.
Work-Study Jobs:Around 150 fewer low income students in Delaware would receive aid to help them finance the costs of college and around 50 fewer students will get work-study jobs that help them pay for college.
Head Start: Head Start and Early Head Start services would be eliminated for approximately 100 children in Delaware, reducing access to critical early education.
Protections for Clean Air and Clean Water Delaware would lose about $1.1 million in environmental funding to ensure clean water and air quality, as well as prevent pollution from pesticides and hazardous waste. In addition, Delaware would lose another $359,000 in grants for fish and wildlife protection.
Military Readiness:In Delaware, approximately 2,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $7.6 million in total. Army: Base operation funding would be cut by about $0.6 million in Delaware. Air Force: Funding for Air Force operations in Delaware would be cut by about $1 million.
Law Enforcement and Public Safety Funds for Crime Prevention and Prosecution: Delaware
will lose about $83,000 in Justice Assistance Grants that support law enforcement, prosecution and courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, and crime victim and witness initiatives.
Job Search Assistance to Help those in Delaware find Employment and Training: Delaware
will lose about $86,000 in funding for job search assistance, referral, and placement, meaning around 3,230 fewer people will get the help and skills they need to find employment.
Child Care:Up to 100 disadvantaged and vulnerable children could lose access to child care, which is also essential for working parents to hold down a job.
Vaccines for Children: In Delaware around 380 fewer children will receive vaccines for diseases such as measles, mumps, rubella, tetanus, whooping cough, influenza, and Hepatitis B due to reduced funding for vaccinations of about $26,000.
Public Health Delaware will lose approximately $86,000 in funds to help upgrade its ability to respond to public health threats including infectious diseases, natural disasters, and biological, chemical, nuclear, and radiological events. In addition, Delaware will lose about $330,000 in grants to help prevent and treat substance abuse, resulting in around 400 fewer admissions to substance abuse programs. And the Delaware Division of Public Health will lose about $70,000 resulting in
around 1,800 fewer HIV tests.
STOP Violence Against Women Program Delaware could lose up to $19,000 in funds that provide services to victims of domestic violence, resulting in up to 100 fewer victims being served.
Nutrition Assistance for Seniors: Delaware would lose approximately $201,000 in funds that provide meals for seniors.
Delaware loses 15.1 million at least in funding forever if the sequester goes through….
Not only is that money lost, but the ripple effect impounds and deepens that loss. With every loss of a government job, there is a loss of a .67 of a private sector job…. The predicted loss or 700,000 jobs in March will be accompanied by 469,000 in the private sector….
Roughly Republicans driving us over the cliff, will put another 1.2 million Americans out of work…. again…..
And if you read Republican blogs like this one, they are laughing and laughing at how bad they are going to hurt America, how they are going to teach us all a lesson because we didn’t vote for their billionaire president….. They are smirking over the hardship and suffering everyone else will be living…
Where are those trillions?
The ones we gave big banks,
To invest in our economy?
The Dow Jones fell 216 points or 1.6%.
Because of no new news on any movement by the Republicans in regards to the sequester.