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alstry (35.35)

ONLY JOBS matter in a Service Economy

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November 04, 2009 – Comments (11)

The concept of a jobless recovery is nonsense in a service economy.  Sure it is a lagging indicator in a production economy where you can increase production without hiring more....but in a service economy, it takes people to service.  Job/hours creation is a leading indicator in a service economy.  America is declining in both jobs and hours worked.

Right now we are seeing a large increase in layoffs at cities, counties, and states.....including schools and hospitals......these layoffs are as a direct result of a slowing economy and evaporating tax receipts.  In a service economy, cutting jobs also decreases tax revenues causing even more job cuts.

In a nation where the government is the largest consumer in the world like America''s.....no economy in the world is impacted by declining tax receipts like ours....and right now we are seeing record declines in tax revenues.

The world is now taking a stand against our spiraling and unsustainable deficit.....it is selling off its dollars and driving the value of our currency in the ground.  Gold almost hit $1100 setting a new record.  Oil is over $80 despite declining demand as revenues to our large and small corporations are shrinking.

EXPECT MASSIVE LAYOFF ANNOUNCEMENT BETWEEN NOW AND THE END OF THE YEAR.

Even Microsoft announced today ANOTHER round of cuts of approximately 800.....that is after cutting thousands.

What makes this time different than any in the past is the very limited hiring....vacancies are being left unfilled and new hires are few and far between.  It would be interesting to see how Motley Fool was faring in these turbulent times???

The concept of a jobless recovery is simply to conceal the fact that government's policies of Zombulation are shutting down the Industrial Economy in preparation for the Alstrynomic Age.  This will be very exciting times as we approach....but in the meantime, shutting down the industrial economy will be very convulsive for many around the world as most are currently employed in the industrial economy. 

In addition, most assets current value is due to an industrial economy.  Many assets now valuble will be worthless or near worthless in the Alstrynomic Age.  Just look at what a buggy and or buggy whip was worth in 1900 and what one was worth just a few decades later.

These are interesting times.  Creative destruction will be convulsive and rapid.....the magnitude of change will surprise many....the only question now is not if, but how......and that is what Alstry will focus on in addition to the shutting down of the old industrial economy.

11 Comments – Post Your Own

#1) On November 04, 2009 at 5:10 PM, jddubya (52.61) wrote:

"The concept of a jobless recovery is simply to conceal the fact that government's policies of Zombulation are shutting down the Industrial Economy in preparation for the Alstrynomic Age."

Wow, the gov't has been using Alstrynomics as it's light at the end of the tunnel.

Hmmm...

[pondering silence]

 

 

LOL - HA HA HAH HAH HAH HAH!!!!

Just when I think you've covered all the Alstrydiculous bases, you come up with some even funnier Alstrydiculous stuff!!! 

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#2) On November 04, 2009 at 5:11 PM, Rasbold (92.63) wrote:

I agree with your point; no jobs, no velocity of money, no recovery (for 85% of the nation)

But..... 

 

You forgot to mention "Feeling on 11.10.09!!!"

Is that date no longer accurate? Have we averted collapse?

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#3) On November 04, 2009 at 5:14 PM, jddubya (52.61) wrote:

Ah yes... 11.10.09

Here's what's REALLY happening on 11.10.9:

INTERNATIONAL HOTEL/MOTEL & RESTAURANT SHOW®

TelcoTV 2009

Apollo Space Program Virtual Conference for Educators

Arctic Monkeys and Eagles of Death Metal in Heineken Music hall, NL


Oh man, and look what's happening at Stanford University:

Hepatitis B Virus and Aflatoxin: A Conspiracy for Liver Cancer in China

Biodiversity and Biooptics of Gelatinous Zooplankton

Simple Parenting 101

SiCa Presents: Gwyneth Lewis, National Poet of Wales

"Stalking the Two-Dimensional Electron"

An Evening with Verlyn Klinkenborg

Exciting things are about to happen. 

NOW YOU KNOW!!!!!! NOW YOU FEEL!!!!

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#4) On November 04, 2009 at 5:20 PM, alstry (35.35) wrote:

Qualcom's Revenues DOWN 19%

Cisco's Revenues DOWN 12%

These are our leading technology and growth companies.......some growth!!!!

In America, we have over $50 Trillion dollars of public and private debt.....if we are not growing NOMINALLY at least 5%....we simply cannot service our debt.

Not only are we NOT growing...we are contracting at double digit rates....unless you contemplating military, welfare, or unemployment.

Gold, Oil, and the Falling Dollar are signaling that the world is Fed UP with our massive deficit simply to feed our poor, care for our elderly, and prosecute our wars.  Other nations have poor that need to be fed and elderly that need better care but they simply don't print money to compensate.

Further, it appears many are getting tired of our wars.

Right now we are witnessing the shrinking and/or shutting down of our cities, counties, states, schools, hospitals, and businesses.  This will mathematically continue under current Zombulation policies.  The evidence is everywhere and growing.

Citigroup - 175

Fortune Small Business Magazine - 11

Abington Teachers Notified of Layoffs

Sunrise Greetings - 11

Anglo Irish Bank - 230 Globally

Macomb County - Layoffs Today?

Update: Microsoft Confirms 800 Layoffs

Goochland County School Faces Layoffs

Daimler - 1,000 Layoffs in Germany

It is not hard to see, just difficult to accept knowing that this is the policy of our Federal Reserve by cutting off credit and raising interest rates on the citizens but giving free money to the bankers.

 

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#5) On November 04, 2009 at 5:22 PM, Formula51 (< 20) wrote:

jddubya, I don't get caught up in the Alsty references, but it is a very interesting thought that I am sure many, including myself, have had.

America has only recently become such a severely service nation.  One could argue that we were a service nation during the tech bubble recession but unemployment was not nearly as bad then and housing/banking were no effected.  America has also become much more of a service nation since then.

Is it enough to make this time different?  I don't know, it honestly could be.  Despite government stimulus, revenues are still falling for most companies.  Cost cutting has been the only thing keeping earnings up and earnings have only beat estimates because of low-ball estiamtes in most cases. 

Cost cutting wouln't be effective forever and when stimulus money runs out, companies will have no revenue and no profit.

I guess one must ask thereself this question: "Will the stimulus work?".  If the answer is "yes", then I can see the optimism for a solid recovery.  If the answer is "no" or "im not sure" then there is very good cause to be very worried.  The consumer is not pulling us out of this one.

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#6) On November 04, 2009 at 5:24 PM, jddubya (52.61) wrote:

It is obviously the end of the world as YOU know it.  For me and millions upon millions of others, the end of the world as *I* know it isn't happening in my lifetime.

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#7) On November 04, 2009 at 5:29 PM, Formula51 (< 20) wrote:

How do YOU know the world then because I don't see how record defecits, socialist policies, and three emerging nations are not going to change things.....

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#8) On November 04, 2009 at 5:33 PM, alstry (35.35) wrote:

Both of you can Relax....WW3 or some other event is going to ease the transition from an emotional perspective....there is always something:

Israeli Navy Captures Ship Carrying Arms

Israeli naval commandos seized a cargo ship carrying about 500 tons of weapons bound for Hezbollah 100 miles off Israel's Mediterranean coast.

Isreal has been amassing troops along the Lebanese boarder for the past few months.  We have been fortifying our troops in Iraq and Afghanistan flanking Iran.

Do you think America is going to let the rest of the world drive our currency into the ground?????

 

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#9) On November 04, 2009 at 5:38 PM, jddubya (52.61) wrote:

#7 - sorry, my #6 comment was aimed at comment #4.  I was not commenting on your comment.

But to comment on your comment - I understand what you're saying - I wouldn't necessarily agree about the need to be "very worried."  Worried yes.  A massive breakdown in the economy doesn't necessarily need to be a cause for overwhelming concern because most of the population will be on a level playing field... my 2 cents

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#10) On November 04, 2009 at 6:00 PM, Pennyperson (< 20) wrote:

Bust a gut - do you ever sleep - or does the family step in to help?

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#11) On November 04, 2009 at 6:51 PM, OneLegged (< 20) wrote:

jddubya = Alstrydomous

 

Now I see! 

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