Real 2014 Fourth Quarter GDP increased 2.2%
On Friday the Bureau of Economic Analysis (BEA) issued its third and final estimate of 2014 fourth quarter GDP:
Real Gross Domestic Product-the value of the production of goods and services in the United States, adjusted for price changes-increased at an annual rate of 2.2 percent in the fourth quarter of 2014, according to the “third”estimate released by the BEA. In the third quarter, real GDP increased 5.0 percent.”
We start the week with the current Chicago Fed National Activity Index (CFNAI):
The CFNAI edged lower to -0.11 in February from-0.10 in January. The index’s three month moving average (CFNAI-MA3) declined to -0.08 in February from +0.26 in January. February’s CFNAI-MA3 suggests that growth in national economic activity was slightly below its historical trend.
US Auto Industry Manufacturing: Global Economic Effects on American Jobs & Wages
The Wall Street Journal published a front page article on Tuesday regarding manufacturing wages in the auto industry which tells a very big, yet disturbing story:
US auto production is nearing all-time highs on the back of strong domestic demand and steady export increases but American made cars and trucks are increasingly loaded with parts imported from Mexico, China and other nations.”
The US imported a record $138 BILLION in car parts last year – up from $89 BILLION in 2008 (this averages over $12,000.00 per vehicle). In 1990 only (???) $31.7 BILLION of parts were imported. The trend casts a cloud over the celebrated comeback of one of the nation’s bedrock industries. As the inflow of low-cost foreign parts accelerates, wages at the entry level are drifting away from the generous compensation packages that made car-factory jobs the prize of American manufacturing.”
We’ve never produced so many cars in the US but we’ve never made so few of the parts,” said Sean McAlinden, chief economist at the Center for Automotive Research.”
In my view this is a huge injustice to the American people ( 17,000,000 {projected-per annum} vehicles X $12,000.00 per vehicle = you do the math, it would support a lot of American jobs in a lot of American industries). Why do we support these foreign economies when we seem to be unable to provide good paying jobs for our own citizens? It is policy lacking in common sense. These should be OUR jobs, run in OUR factories operated by OUR citizens, made with American steel and other American made products.
I understand that we operate in a world economy…… or is it that the world cannot operate without the American economy? That is likely the case. The American economic engine is the most powerful on the planet, we make the best products with the best people and yet we persist in allowing the rest of the world economies to dump their shit on our shores.
Exports of American made vehicles topped 2 million for the first time in 2014 US trade data show, however, the growth of parts imports has left the US with a growing deficit in overall trade in cars and parts- $168 BILLION last year.”
The shift of parts production to other countries has shrunk an industry that has long been one of the largest sources of US manufacturing jobs.”
To survive in an increasingly global market, the larger US parts makers have implanted themselves abroad. Detroit based American Axle, for example, has plants in Mexico, Brazil, the UK, Poland, India, China and Thailand. Only about 30% of the company’s 12,820 employees are in the US.”
That is one company, 8,000 of their employees are in foreign lands making parts which are NOT being made by American citizens, American steel and related products. To hell with the politicians who have sold us out to fatten their own pockets.
American Metal Market 3/26/15
The Port of Houston handled 706,000 tons of steel in February, up 40.6 percent from the same period last year.
The authority does not break down steel imports vs. exports but the United States imported 40.2 million tons in 2014 and exported 10.9 million tons. The authority also doesn’t include tonnage handled by the four private docks in Houston, the largest import-export port in the United States.”
US steel production reversed course last week after seven consecutive weekly declines.
Production rose 1.0% as mills operated at an ACUR of 69.3 percent. In the corresponding week last year mills operated at an ACUR of 77.7 percent. Thus far this years’ ACUR to date is 73.7 percent. Down from 77.1 percent in the same period last year.
The US Department of Commerce Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders February 2015 on 3/25:
- New orders for manufactured durable goods in February decreased 1.4 percent. This decrease, down three of the last four months, followed a 2.0 percent January increase.
- Shipments of manufactured durable goods in February, down four of the last five months, decreased 0.2 percent. Primary metals, down five consecutive months, led the decline.
- Unfilled orders for manufactured durable goods in February, down three consecutive months, decreased 0.5 percent.
- Inventories of manufactured durable goods in February, up twenty two of the last twenty three months, increased 0.3 percent.
Way to Go Barry …
A few days ago this piece of crap, Ali Khamenie (not sure of the spelling and I really don’t give a sh*t), the supreme leader of Iran, gave a speech in which he proclaimed “death to America” among other pleasantries. The Iranians continually deny inspectors access to nuclear facilities, they lie continually and obfuscate the truth. And yet, they have become the ally of our president. Way to go Barry….
The US Army on Wednesday, charged Sgt. Bowe Bergdahl with desertion and misbehavior before the enemy, concluding he had abandoned his post in Afghanistan …. as charged. Don’t forget that Obama traded 5 Taliban commanders for this scumbag. Three of those released are known to be trying to join the fight again. That’s nice. Way to go Barry…
The president of Yemen has fled the Port of Aden on a boat after militants drew closer to seizing the southern city where he had been hiding amidst an intensifying assault. It wasn’t too long ago president Obama declared Yemen as a model of our successful strategy in the area. Way to go Barry…
The Iran nuclear talks (due to be complete by month’s end…yeah, right) hit a snag over Tehran’s failure to cooperate with a UN probe into whether it tried to build atomic weapons in the past (of course they have tried in the past and the UN knows it, if they didn’t, they would not be asking the question).
Cato Institute Report
Here is something of interest a fellow steel man forwarded to me. I have not confirmed the information…but for some reason, I do not doubt its authenticity.
The Cato Institute released an updated 2013 study (original study in 1955) showing that welfare benefits pay more than a minimum wage job in 33 states and the District of Columbia. Even worse, welfare pays more than $15 per hour in 13 states. According to the study, welfare benefits have increased faster than minimum wage. It’s now more profitable to sit at home than it is to earn an honest day’s pay.
Hawaii is the biggest offender, where welfare recipients earn $29.13 per hour, or a $60,590 yearly salary, all for doing nothing.
Here is the list of the states where the pre-tax equivalent “salary” that welfare recipients receive is higher than having a job:
1. Hawaii: $60,590
2. District of Columbia: $50,820
3. Massachusetts: $50,540
4. Connecticut: $44,370
5. New York: $43,700
6. New Jersey: $43,450
7. Rhode Island: $43,330
8. Vermont: $42,350
9. New Hampshire: $39,750
10. Maryland: $38,160
11. California: $37,160
12. Oregon: $34,300
13. Wyoming: $32,620
14. Nevada: $29,820
15. Minnesota: $29,350
16. Delaware: $29,220
17. Washington: $28,840
18. North Dakota: $28,830
19. Pennsylvania: $28,670
20. New Mexico: $27,900
21. Montana: $26,930
22. South Dakota: $26,610
23. Kansas: $26,490
24. Michigan: $26,430
25. Alaska: $26,400
26. Ohio: $26,200
27. North Carolina: $25,760
28. West Virginia: $24,900
29. Alabama: $23,310
30. Indiana: $22,900
31. Missouri: $22,800
32. Oklahoma: $22,480
33. Louisiana: $22,250
34. South Carolina: $21,910
As a point of reference, the average Middle Class annual income today is $50,000, down from $54,000 at the beginning of the Great Recession. Hawaii, DC, and Massachusetts pay more in welfare than the average working folks earn there. Is it any wonder that they stay home rather than look for a job. Time for a drastic change. America is virtually bankrupt.
Note that Calif . is $18.50 an hour.
Are we Nuts or what? How do we un-do this type of stupidity … This is crazy!
Salary of retired US Presidents $180,000 FOR LIFE
Salary of House/Senate….$174,000 FOR LIFE
This is stupid.
Salary of Speaker of the House ….$223,500
FOR LIFE!
This is really stupid.
Salary of Majority/Minority Leader $193,400
FOR LIFE!
Ditto last line.
Average Salary of a teacher .. $40,065
Average Salary of Soldier DEPLOYED IN AFGHANISTAN.. $38,000
Think about this.
Nancy Pelosi will retire as a Congress Person at $174,000 Dollars a year for LIFE.
She has retired as SPEAKER at $223,500 a year.
PLUS she will receive an additional $193,400 a year as Minority Leader.
That’s $803,700 Dollars a year for LIFE including FREE medical which is not available to us …. the taxpayers
She is just one of the hundreds of Senators and Congressmen that float in and out every year!
Talk about politics as usual; in an analysis of the Mideast situation (Wall Street Journal 3/27) wherein the US has vowed to help a coalition assembled by Saudi Arabia: “This means the Obama administration finds itself in a highly awkward position: It now is lined up against Iran in Yemen. Meanwhile, it is trying to negotiate a nuclear deal with Tehran and is working on the same side as the Iranians to defeat Islamic state fighters in Iraq.” Sounds like a huge cluster f*ck to me.
Way to go Barry.
Have a great weekend and…
Hug your kids and grandkids…tell them you love them
Don’t forget what these scumbags have done:
Fast and furious- Americans die when the government sells guns to the Mexican drug cartel. No one held accountable. That’s Eric Holder’s baby
IRS targeting conservative groups
Shenanigans at the National Security Administration
Lois Lerner now on paid vacation-for life. Took the 5th to avoid testifying.
Benghazi…we still have no answers on the loss of four American lives but “…at this point, what difference does it make?” Hillary Clinton
“If you like your doctor, you can keep your doctor…” Barack Hussein Obama
“If you like your plan, you can keep your plan…” Barack Hussein Obama
God bless America!
