This morning’s key headlines from GenerationalDynamics.com
- Wealthy investors cheer bad unemployment report
- U.S. and Russia split bitterly over Syria intervention issue
- U.S. evacuates staff from Lebanon, Turkey, Iraq embassies
Wealthy investors cheer bad unemployment report
Labor force participation rate, 1978 to present (Zero Hedge)
The unemployment rate declined from 7.4% to 7.3% in August, but itwasn’t because of a growth in the job market, which was disappointing.Instead, it was caused by a new sharp fall in the “labor forceparticipation rate” — the percentage of workers who haven’t given upsearching for work, which fell to 63.2%, the lowest level since August1978. A whopping 516,000 more workers dropped out of the labormarket in August. The labor force participation rate beganto fall after the Nasdaq crash in 2000 and has been plummetingrapidly since the financial crisis began in 2007.
Friday’s jobs report was good news for wealthy stock market investors,because it means that the Federal Reserve is more likely to continueits quantitative easing project of pouring $85 billion into thebanking system EVERY MONTH. This money has been propping up the stockmarket, and from there going into the portfolios of wealthy investors.
If you’ve heard the word “tapering” a lot on financial newscasts, itrefers to the possibility that the Fed might start to gradually reducethe $85 billion monthly cash injection. This would be considered badnews for wealthy investors, since a lot of the $85 billion goes intotheir bank accounts. But the $85 billion has failed to stimulategrowth in the economy, so there is an increasing amount ofpolitical pressure for the Fed to begin tapering. Friday’s bad jobsreport makes it less likely that the Fed will start tapering right away,and so investors are generally pleased. Zero Hedge and LA Times
U.S. and Russia split bitterly over Syria intervention issue
It was U.S. President Barack Obama versus Russian President VladimirPutin on the last day of the G-20 meeting in St. Petersburg, Russia.Both of them were ranting, but Obama accused Putin ofparalyzing the international community, and Putin accused Obama ofviolating international law.
It’s hard to take either of them seriously. Obama has been babbling,incoherent, and indecisive for so long, and nobody has a clue what he’sgoing to do next. Putin talking about international law is a farce,with Russian troops still occupying Georgia in violation ofinternational law following his 2008 invasion of Georgia, also inviolation of international law. Nonetheless, the bitter divisionswere obvious.
The following countries sided with Obama: Australia Canada, France,Italy, Japan, Republic of Korea, Saudi Arabia, Spain, Turkey, and theUnited Kingdom.
The following countries sided with Putin: Russia, China, Brazil,Argentina, Mexico, India, Germany, South Africa, Indonesia, and the EuropeanUnion.
The United Nations was started after World War II in order to preventexactly what’s going on now, but the United Nations is now as uselessas the League of Nations.
The only thing that matters now is what happens in Washington, thehome of the Policemen of the World. The political battle is just asbitter and divisive as the battle at the G20, splitting both politicalparties, and far more consequential.
Obama will give a televised nationwide address on Tuesday about Syria. It shouldbe interesting. Independent (London)
U.S. evacuates staff from Lebanon, Turkey, Iraq embassies
Because of threats of retaliation over the situation in Syria,the U.S. State Dept. is evacuating some staff from embassiesin Beirut, Lebanon, from Turkey, and from Iraq. Accordingto the Beirut embassy:
On September 6, the Department of State drew downnon-emergency personnel and family members from Embassy Beirut dueto potential threats to U.S. Mission facilities and personnel.The Department of State urges U.S. citizens to avoid all travel toLebanon because of current safety and security concerns.U.S. citizens living and working in Lebanon should understand thatthey accept risks in remaining and should carefully consider thoserisks.
U.S. citizens concerned for their safety should consider makingplans to depart by commercial means. U.S. citizens will beresponsible for arranging their own travel out of Lebanon. BeirutInternational Airport is open and commercial flights areoperating. Travelers should check with their airlines prior totraveling to verify the flight schedule.
Those who remain should prepare to depart at shortnotice. … U.S. citizens should be aware that the Embassy doesnot offer “protection” services to individuals who feel unsafe.U.S. citizens with special medical or other needs should be awareof the risks of remaining in Lebanon given their condition andshould be prepared to seek treatment in Lebanon if they cannotarrange for travel out of the country. U.S. citizens traveling orresiding in Lebanon who choose to remain should be aware that theU.S. Embassy’s ability to reach all areas of Lebanon is limited.The Embassy urges all U.S. citizens in Lebanon to monitor themedia for the latest developments.
KEYS: Generational Dynamics, labor force participation rate,Federal Reserve, quantitative easing, tapering,Syria, Russia, Vladimir Putin, Lebanon, Iraq, Turkey