These deals won't last

Report from the front lines

Obama's plan for our economy is proceeding according to plan - just what Dr. Ayers ordered.

Crisis at the American Dinner Table

Imagine life without a farm bill

The Washington Post, of all sources, questions the urgency behind Congress's 10 trillion dollar farm bill.   

Why farmers, alone among all businessmen, should be entitled to a nearly guaranteed income is especially inexplicable when total U.S. farm equity is projected to $2.3 trillion this year, up $500 billion since 2008, according to the Agriculture Department.

Here at South of 5 and 20 Industries, LLC, we support a guaranteed annual income for bloggers, and will endorse and support any politician who makes that vital cause a national priority.

Debt Class

Thanks to Ithaca's own Legal Insurrection.  Click cartoon for larger version.

US economic growth ahead of Tonga, but way behind Haiti

Kingdom of  Tonga

Boker tov, Boulder reports on US economic growth under Obama/Biden.

An annual growth rate of 1.5 percent puts us on par with Thailand, Saint Kitts and Nevis, Romania, Lebanon, Jamaica, Fiji, Denmark and Bahrain -- and ever so slightly ahead of the Kingdom of Tonga at 1.4 percent.

In North America, the fastest-growing economies are in Panama (7.4%), Haiti (6.1%) and the Dominican Republic (4.5%).

More on Tonga here. 

Economy stinks even worse

Bloomberg speculates the lack of retail spending may be due to lack of jobs:

A lack of jobs may prompt Americans to keep focusing on replenishing depleted nest eggs, hurting sales at retailers from CarMax Inc. (KMX) to Red Robin Gourmet Burgers Inc. (RRGB) Economists at Goldman Sachs Group Inc. and Morgan Stanley were among those cutting forecasts after the figures, indicating the economy slowed further in the second quarter.

The data are “consistent with a weakening growth backdrop,” said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York. “There’s still this propensity for consumers to boost their rate of savings, which is what you’d expect in an environment where they are very skeptical about the outlook for the labor market.”

We hesitate to disagree with a professional economist, but we doubt that consumers aren't buying because they want to build up their .01% interest rate savings accounts.  We suspect households are not visiting CarMax or Red Robin because they don't have enough money.

Economy still stinks

In case you missed this amid all the Obamacare hubub, here's the latest on Obama's Recovery Summer II:

The number of applications for unemployment benefits hovered last week near the highest level of the year, showing little improvement in the U.S. labor market.

Jobless claims decreased by 6,000 to 386,000 in the week ended June 23, in line with the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The prior week’s reading was revised up to 392,000 from 387,000, matching an April figure as the steepest of 2012. 

And if you happen to be, or are the parent of, a recent college graduate, this research from Rutgers University should make you think twice about your "Obama 2012" bumper sticker.

Just half of the college students who graduated during the Great Recession and its aftermath currently have full-time jobs, a new report says.

The survey, called "Chasing the American Dream: Recent College Graduates and the Great Recession" and conducted by Rutgers University’s John J. Heldrich Center for Workforce Development, spoke to 444 people who graduated from college between 2006 and 2011.

Fifty-one percent of respondents had full-time jobs, the survey found, and 20 percent were in graduate school. Part-time workers made up 12 percent, while 11 percent were unemployed.

Bold added.  Our advice to the young:  unemployed college graduates, many of whom are facing a lifetime of student loan debt and fines for not buying health insurance, should refrain from voting for Obama again.

The problem with getting older

Dr. Robert Owens explains:

The problem with getting older is you can remember when what we now pay at the pump was a car payment, and what we now pay for groceries was a house payment.  The central-planers behind the curtain in OZ may tell us there is no inflation, but our eyes and our wallets tell us something else: the truth.

Washington, DC:  3/20/12

Politicians wake up to toll increase

Will billionaire Cuomo campaign donor Howard Milstein get away with his stake-through-the-heart Thruway toll increase?  Maybe not.  In the Finger Lakes:

You won't find any supporters of a proposed New York State Thruway toll hike among Cayuga County's state legislators...

The potential toll increase was criticized by Assembly Minority Leader Brian Kolb, R-Canandaigua, who said that it's another example of New York "not being open for business."

"It would increase the cost of goods and services and increase costs at a time that people do not need any more increased costs," he said.

Assemblyman Gary Finch, R-Springport, shared Kolb's position.

"At a time when we're trying to get the economy to come back, in addition to the high cost of fuel, we're putting an additional burden on trucks that will be reflected in the costs of goods and merchandise to the consumer," he said.

Assemblyman Robert Oaks, R-Macedon, and state Sen. David Valesky, D-Oneida, also oppose the proposed toll increase.

And from the remote Western New York outpost of Amherst:

Representative Kathy Hochul (NY-26) sent a letter to New York Governor Andrew M. Cuomo expressing her opposition to a proposed 45 percent increase in tolls for trucks on the New York State Thruway stating that the increase would negatively impact Western New York’s economy.

In the letter Hochul writes: “If implemented, this would seriously hinder economic activity in our region. I spoke to truckers just today who say they will have no option but to either pass on the additional costs of the higher tolls to their customers, or to avoid the Thruway altogether by using secondary roads. The Thruway Authority’s proposal would make the cost of business in our state even higher, especially in rural communities that depend on trucks for freight service.”

We remind Rep. Hochul that people who depend on truck transportation are not confined to New York's rural hinterlands.  Every man, woman and child in the United States depends on trucks for the necessities and luxuries of modern life. 

Dow up again today?

After yesterday's huge upward jump, as we write this the Dow Jones Industrial Average is up over 100 points.  Listening to network radio news as we travel through the Finger Lakes, it would appear that inventors are reacting to a lack of bad news from Greece, or perhaps an optimistic crop forecast from the Andromeda Galaxy.  Who knows what affects stock prices?

We'll tell you who knows - Larry Kudlow.

You didn’t see it in the mainstream financial media Wednesday morning. But stocks loved Governor Scott Walker’s spanking of public-sector unions and Democrats in Wisconsin. The Dow jumped about 165 points right at the opening on Wednesday, and was up over 200 points later in the day. There really was no other news. There was some speculation about central bank stimulus in Europe and the United States. Blah, blah, blah. But there was nothing specific or concrete.

So it’s an easy point to make: Markets love the Scott Walker landslide.

We always hesitate to give investment advice, but if you believe Obama is toast, it might just be time to buy.

Where our electricity comes from

From Gannett, yesterday.

Young people from around New York state are heading to the Capitol to call on Gov. Andrew Cuomo to ban “fracking” for natural gas and lead the state toward a clean energy economy.

From our NYSEG bill, today.

Fuel Sources Used to Generate Your Electricity...

Biomass Less than 1%
Coal 11%
Hydroelectric 16%
Natural Gas 44%
Nuclear 25%
Oil 2%
Solar 0%
Solid Waste Less than 1%
Wind 1%
Total 100%

It's going to be difficult to charge those iPhones, kids!

Where our food actually comes from

Family farm-raised Ronald Baily explains why he doesn't care where his food comes from:

One of the great glories of modern life is the enormous elaboration of the division of labor and how the efficiencies gained from that division makes people much wealthier than they could otherwise be. Since we all don't have to stitch our own clothes, bake our own bread, compound our own medicines, or even cook our own meals, we are all much better off.

Baily's 2002 post constitutes the official South of 5 and 20 position on  the "local foods" dogma so popular here in the Finger Lakes.

Cuomo confused by Econ 101

Andy Cuomo poses with pal Al Sharpton

2016 Democrat presidential candidacy front-runner Andy Cuomo appears to believe that an increase in New York's minimum wage will both decrease and increase employment, at the same time, in the financially struggling Empire State.

Gov. Cuomo played footsie with a possible minimum- wage increase yesterday, calling a hike a potential job-creator.

He acknowledged the argument of Senate Majority Leader Dean Skelos and other opponents that an increase could lead small businesses to cut jobs — especially for young, less-skilled workers.

But, he told reporters at the Capitol, “As a general rule, I don’t believe [increasing] the minimum wage costs jobs if it’s an intelligent increase. I believe it can create jobs, as a matter of fact, and create spending. The question becomes, what numbers?”

While we're at it, why don't we raise taxes again?  That should encourage more business to relocate here, right?

Increasing the cost of entry-level employees will result in fewer employment opportunities for the youngest, least skilled New Yorkers.  Candidate Cuomo needs to read up on basic economics.

"An economic suicide pact"

If I wanted America to fail, I'd start with energy... 

Tony Robbins, Iowahawk and our national debt

Self-help guru Tony Robbins wanted to get his arms around our national debt, so he turned to Midwestern blogger Iowahawk for inspiration (yes, that Iowahawk).  If you're concerned about the future of the United States, and the role your children and grandchildren will play in that future, watch Tony's video and make sure your friends do, too.

How Ford survived without a bailout

Apologies for the odd sizing.  Read more at Yahoo Finance.

Its official: you're subsidizing Peugeot

The joke's on you

As we predicted, the Obama administration is giving hundreds of millions of your tax dollars to failing French automaker Peugeot.

Attention U.S. taxpayers:  You now own a piece of a French car company that is drowning in red ink.

That’s right.  In a move little noticed outside of the business pages, General Motors last week bought more than $400 million in shares of PSA Peugeot Citroen – a 7 percent stake in the company.

Because U.S. taxpayers still own roughly one-quarter of GM, they now own a piece of Peugeot.

Peugeot can undoubtedly use the cash.  Last year, Peugeot’s auto making division lost $123 million.  And on March 1 – just a day after the deal with GM was announced – Moody’s downgraded Peugeot’s credit rating to junk status with a negative outlook, citing “severe deterioration” of its finances.

In other words, General Motors essentially just dumped more than $400 million of taxpayer assets on junk bonds.

"“severe deterioration” of its finances," indeed.  Next time your local Democrat-friendly congressman comes to town, be sure to ask him about this.

Our tax plan

Just in time for election season, Bob explains South of 5 and 20's tax reform proposal.

Wearing Sarah's dress

Looks better on her

Don Surber accuses Barry Obama of crossdressing.

Republicans have President Obama on the run. He has had to disguise himself and his stupid policies again — this time by donning the political garb of his arch rival. President Barack Obama looks pretty nice in Sarah Palin’s dress. And by dress, I mean her energy policy.

However, Mr. Surber isn't fooled by Barry's new outfit.

But President Obama is not the real deal. He’s in drag. President Obama is not a real believer in American energy independence. He’s a fake. A fraud. A phony.

Obama's commitment to increased energy production includes financially eviscerating the companies that are actually producing energy, while handing out billions to his campaign donors.  Algae?  Read the whole thing.  

Take it, boys!