Is The U.S. Economy Grinding To A Halt?

U.S. manufacturing is falling. Health-care firms threaten to cut patient care for America's sick as the U.S. government threatens to slash payments and London based global banking giant HSBC, with a major U.S. presence is considering firing 30,000 employees over the next 2 years, 5,000 now, some of them Americans. Book retailer Borders is shutting, also firing thousands of people.

What jobs are being added are primarily lower paid jobs in health care and in retail (McDonald's, Wal-Mart, etc.) Meanwhile the debt deal President Obama signed lifts the U.S. government debt ceiling but undermines confidence in the economy and in the U.S. government, as major debt ratings agencies consider downgrading U.S. debt, which would sharply raise government borrowing costs.

While 9.1% of American workers can't find work, which is more than 14 million people. But add in all those who have been out of work for longer than 99 weeks and no longer officially counted and add in those who can only find part-time work, the number jumps to 22 million people.

Those people and their families aren't buying homes, cars, boats or furniture or spending on vacations, restaurants, clothing or anything else not essential. Many of them are among the vast number of Americans buried in credit card and other debt. Of course given these factors the real estate market continues to fall.

So where is the basis for an economic recovery? There is none. We are facing a collapse.

Dick
For more details, please see "Passage of debt-ceiling won't curb consequences, " Los Angeles Times http://www.latimes.com/news/politics/la-pn-debt-ceiling-senate-geithner-20110802,0,7957470.story
"HSBC Strategy Shift Cuts Jobs, Branches," The Wall Street Journal http://www.latimes.com/news/politics/la-pn-debt-ceiling-senate-geithner-20110802,0,7957470.story
"Health-Care Companies Are Infected By Severe Case of Washington Jitters." The Wall Street Journal http://www.rocketnews.com/2011/08/health-care-companies-are-infected-by-severe-case-of-washington-jitters/ and "Factories Slow Pace As Orders Contract," The Wall Street Journal http://online.wsj.com/article/SB10001424053111903520204576481993587686186.html
"U.S. Economy: 117,000 Total Jobs Created in July: Unemployment Down To 9.1%," C-Span http://www.c-span.org/Events/117000-Total-Jobs-Created-in-July-Unemployment-Down-to-91/10737423230/?gclid=CLHbnP3HuKoCFYGJ5godQT9MyA