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The Sound of Silence: Private Capital Leaving Obama's America

Hello darkness, my old friend
I've come to talk with you again
Because a vision softly creeping

Left its seeds while I was sleeping
And the vision that was planted in my brain -- Still remains

Within the sound of silence

Paul Simon
The Sounds of Silence
1964

The debt deal gets done as an anxious national waits to hear from the major credit rating agencies to find out if our sovereign debt will lose its AAA rating.

Meanwhile, live from the Rose Garden, Obama takes time spew more Keynesian drivel to the free world:

"You can’t close the deficit with just spending cuts, we’ll need a balanced approach where everything’s on the table. Yes, that means making some adjustments to protect health care programs like Medicare so they’re there for future generations. It also means reforming our tax code so that the wealthiest Americans and biggest corporations pay their fair share.

And it means getting rid of taxpayer subsidies to oil and gas companies and tax loopholes that help billionaires pay a lower tax rate than teachers and nurses."

Barack Obama
Rose Garden
August 2, 1011

In the unlikely event that Obama was going to pivot in a direction that would give investors comfort that they would be able to actually keep the capital gains they might make by investing in new businesses in America, he instantly removed all doubt. Same for job creating businesses that might have considered hiring more workers.

Instead, the price of gold shot through the roof. In case you didn't know it, gold is considered the "safe haven" when the US dollar is in trouble. And to pay for that gold, investors sold their US stocks in a near panic driving the the Dow to a near crash 265 point decline.

Hello Darkness my old friend -- I've come to talk with you again...

The sound you hear (or don't hear) is private capital running away from Obama's vision for the American economy.

Doctor [Economic] Death

The recent debt limit debate pretty much drowned out one of the most outrageous stories in the news. It seems that Obama's handpicked adviser and CEO of General Electric recently decided to move GE X-Ray to freaking China! Clearly Immelt doesn't have much faith in his ability to save Obama from his private sector job destruction tour.

Meanwhile, book seller Borders announced that it would liquidate all of its stores, laying off 10,700 workers, Cisco, the telecom equipment maker, said it would cut its workforce by 11,500 and, Lockheed Martin, the aerospace company, announced that it would eliminate 6,500 jobs.

Oh yeah, Obama's reported 1.9% GDP growth for Q1, 2011 turned out to be bogus and was recently revised to 0.4%, a number that is just spitting distance from a technical recession.

This just in from Bloomberg:

Job cuts surge 60% to 16-month high

The number of announced job cuts surged 60% to a 16-month high of 66,414 in July, according to the consultancy Challenger, Gray & Christmas. Merck & Co., Borders, Cisco Systems, Lockheed Martin and Boston Scientific accounted for 57% of the total, or 38,100 positions. "What may be most worrisome about the July surge is that the heaviest layoffs occurred in industries that, until now, have enjoyed relatively low job-cut levels, including pharmaceuticals, computer and retail," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

Of course, this is all to expected given Obama's targeted assault on a variety of companies and industries he doesn't like (see: 8 Ways Obama has Killed Private Sector Jobs in America) and the growing trend among new American companies to move their headquarters offshore to avoid Obama's wrath (see: US Corporations Retaliate Against Obama's Anti Business Policies). Yesterday's Rose Garden speech was simply more of the same.

And the vision that was planted in my brain -- Still remains...

Within the sound of silence

Dave

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The Sound of Silence: Private Capital Leaving Obama's America
Tuesday, 02 August 2011

Who Stole My Career?

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