American Elephants


Good News is Just Not Welcome in Some Places by The Elephant's Child

Investor’s Business Daily said on Friday “You have to look really hard at the May employment data to find anything even remotely resembling bad news about the economy. At some point, maybe the mainstream media will notice something’s changed dramatically, and for the better.”

Businesses added 223,000 jobs for the month, pushing the unemployment rate down to 3.8% — its lowest rate since April 2000 and matching the lowest rate ever, first set in 1969, according to the Labor Department. Economists surveyed by Bloomberg expected on average a 190,000 gain in jobs. And job gains in March and April were revised up by 15,000, so the number is even stronger than it looks.

Further cementing the idea of surprising strength, most economists now say that a mid-June hike in interest rates by the Federal Reserve is baked in the cake. When the Fed worries about too much good news, you know the economy’s strong.

But it’s even better than that, because minority employment right now is also booming. The unemployment rate for African-Americans fell to 5.9% in May from 6.6% in April. The May number is the lowest unemployment rate for African-Americans ever. Moreover, the 2.4 percentage point gap between the overall unemployment rate and the African-American rate is also the smallest since modern record-keeping of jobs and employment began in 1973.

Tyler Durden reported at Zero Hedge that Nancy Pelosi seemed to have reached “peak cognitive dissonance” this morning. He adds some dandy graphs if you like your facts illustrated.

In a prepared statement Minority Leader Nancy Pelosi panned the “strong” jobs numbers as bad for the middle class. She explained that::

May’s jobs report shows that strong employment numbers mean little to the families hit with soaring new costs under the Republican’s watch.

and she whined that:

…the President’s reckless policies are exploding gas prices, wiping out the few meager gains that some families should have received from the GOP tax scam, as wages remain stagnant.

Odd, because in fact wage growth is near its best (admittedly slow) since June 2009. Gas prices are up but just back to 2014 levels, well below the levels during President Obama’s reign and well in line with the average price at the pump during Obama;s entire 8 years. Then Pelosi summed up with what the Democrats plan is:

Democrats know that the American people deserve A Better Deal, with Better Jobs, Better Wages and a Better Future. 

We are committed to creating millions of new good-paying jobs and raising wages, lowering the soaring cost of living for families and giving every American the tools to succeed in the 21st Century economy.  Democrats will never stop fighting for the hard-working middle class families who are the backbone of our nation.

This is simply another example of the fact that the Democrats believe that the voters are stupid, and will fall for their propaganda every time. People just don’t pay that much attention to things, and are easily influenced by Democrats’ messages of caring and feelings.

I don’t think so. I think maybe that was one of the messages of the 2016 election. They’re not buying it.

 



Imagine, the price of oil actually depends on supply and demand. by The Elephant's Child

Last November, a barrel of light sweet crude oil was getting about $147 in futures trading.  Yesterday, oil was fetching $69.85 a barrel, down $4.69 a barrel for the day.  A report from the Energy department said that over the last month, domestic oil demand has fallen to its lowest level since June 1999, at 18.6 million barrels a day.  The economic downturn means  less crude is needed moving the economy.

A lower price for oil will help consumers, lowering winter heating bills and the price of gas at the pump. One of the chief contributors to inflation over the past year has been the rise in oil prices, and declining prices will ease the inflation threat.

OPEC, however, is not happy. Member states will be meeting next week to discuss a production cut in an effort to keep prices firm.  Nigeria and Venezuela have grown heavily dependent on oil.  We will see.

But it’s nice to know that there are some bright spots in the economy.




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