The New York Times teases, "Dismal Jobs Report Puts Policy Makers on the Spot."
Zero Job Growth Latest Bleak Sign for U.S. Economy.
August brought no increase in the number of jobs in the United States, a signal that the economy has stalled and that inaction by policy makers carries substantial risk.
At The Washington Post:
Job creation came to a halt in August, according to new government data, intensifying pressure on the Obama administration and the Federal Reserve to find new tools to save an economic recovery in danger of sputtering out.
As heard on Lou Dobbs Tonight, the evening of May 24, 2011:
Lewis E Lehrman stated:
"...this problem of eliminating the budget deficit of a trillion and a half dollars is something that cannot be done overnight. The proposal by Paul Ryan was very dramatic, one Republican called it radical, (was) not happily received. The solution of course is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy."
The Roosevelt Institute, a leading Progressive policy institute, is preparing a reprise of William Jennings Bryan's famous 1896 critique of gold: "you shall not press down upon the brow of labor this crown of thorns."
Mike Konczal, a Roosevelt Institute Fellow and influential liberal blogger, in announcing "The Future of the Federal Reserve Event," writes:
Conservatives are organizing against a full employment mandate and rallying around the gold standard wing of their party, and I believe it is time progressives and liberals start to play offense.
Mr. Konczal is correct about conservatives organizing around the gold standard. Yet he is deeply misinformed, or being mischievous, in claiming that conservatives are "organizing against a full employment mandate." The gold standard is the full employment mandate. Perhaps the primary reason that conservatives are rallying for the gold standard is because of its extensively documented success, in the laboratory of history, as job creator.
Trade wars are coming back from the dead. Donald Trump is talking about scuttling free trade arrangements as he contemplates a presidential run. It’s fair to ask why so much manufacturing in the US has been abstracted to places like East Asia. The decline of trade barriers is not the reason; the failure to return to fixed exchange rates and gold convertibility are at fault.
There is no reason why major countries with similar low inflation rates should not have their currencies trade at fixed rates of exchange. After all, if the real purchasing power of currencies is not changing, why should the exchange rates of the currencies themselves be anything but stable? And yet over the last 30 years, as inflation rates in the first world converged, wild swings in the exchange rates of the major currencies were the norm. The result was that worldwide, people hoarded dollars, because in an era of flexible rates, the greenback was most likely among all competitors to maintain its value and prestige.
Next we turn our attention to the economic infirmities of the world dollar system, which: