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Stocks tumble over growing concern about the U.S. economy and the continuing economic crisis in Europe. This follows the sharp decline in the markets on Friday, after the dismal job report by the Labor Department, where employment in the U.S. remained stagnate, as for the first time since 1945 the economy produced no new jobs.
The President faces a difficult week, when Thursday he will give a Joint Address to Congress and announce his plan for reducing the persistent high unemployment, which has been over 9% for much of the past two and half years. Recent polls have shown a sharp decrease in the public's overall confidence in the President's ability to solve the nation's economic woes.
If on Thursday the President unveils polices of the past, or announces very little new policy initiatives, the markets on Friday will react negatively, as the business community will then refrain from investing in the economy. This stems primarily that the uncertainty of doing business has not been removed from the economy.
The nation will have to wait to see what the President proposes on Thursday.
http://militarybriefingbook.com/topic.cfm?topic=U.S.%20Politics
Today, the Labor Department released August's unemployment numbers and for the first time since 1945, employers added no net jobs. The Labor Department also revised downward July's job's report, instead of adding 117,000 jobs as was initially reported, the economy added only 85,000 jobs.
This report by the Labor Department has ominous repercussions for the President, as the White House forecast's unemployment rates to be 9.1% at the end of the year, and will remain high through 2012.
Next week the President will address a Joint Session of Congress and announce his proposal for jump starting the stagnate U.S. economy, as well as what will be his plan for creating jobs. Both sides have been pressuring the President to do something on the job front, and after having spent close to $5 trillion dollars in just over three years, it will be interesting to see what the President proposes next Thursday.
The markets will be watching for anything different in the President's approach to job creation. If the President reiterates policies he has pursued in the past, the markets will act negatively and will reflect continued uncertainty about the future of the U.S. economy. With this, businesses will just wait until after the 2012 presidential election to assess where the economy is headed.
Unfortunately, the American people can't wait that long.
http://militarybriefingbook.com/topic.cfm?topic=U.S.%20Politics
Yesterday, President Obama addressed thousands of veterans at the American Legion convention in Minneapolis and reiterated that his administration would not reduce the federal debt on the backs of veterans. Veterans represent the largest demographics of any group, with the highest unemployment.
The American Legion and the Veterans of Foreign Wars, which held its convention in San Antonio, are asking what the President plans to do about unemployment as it relates to veterans? Next week the President will announce his proposal for job creation while the nation is still reeling from high unemployment, which has persisted for the past three years.
Veterans returning from both Iraq and Afghanistan face bleak unemployment prospects and a country who know very little of their sacrifice. Next weekend the nation commemorates the tenth anniversary of September 11th. The euphoria and patriotic fervor of that time has faded into history as Americans have really little or no connection to those who served in Iraq and Afghanistan.
Veterans today face a different set of circumstances then was faced by veterans from Vietnam. The nation shunned Vietnam veterans, but today the country knows little of their sacrifices and even less of military service. Too often companies have no concept of what veterans can bring to their organizations. Much of what they do know is rooted in misguided or delusionary rhetoric portrayed by Hollywood.
Veterans face the prospects of having to explain in basic terms what they accomplished in the military and at the same time reservists face the prospect of being denied a job simply because they serve in the military reserves.
Where is the America that honored its veterans?
http://militarybriefingbook.com/topic.cfm?topic=Military%20Strategy%20and%20Transformation
Today, President Obama chose labor economist Alan Krueger to be the new Chairman of the Council of Economic Advisers, replacing Austan Goolsbee who left this month and returned to the University of Chicago.
Krueger comes into the administration having run the "cash for clunckers" program and served in the Labor Department during the Clinton administration. His most recent position was an an economist at Princeton University. Unfortunately for Krueger, this requires Senate confirmation, which will undoubtedly highlight his lack of practical business experience.
Much of Krueger's experience has been in government and academia, with little or no business experience, which has been the complaint against many of the President's advisers and appointments.
This comes at a crucial time for the President, as his next task after Labor Day will be to unveil his job proposal and his plan for reducing the enormous federal debt. His speech will come on the heals of Friday's job report by the Labor Department, which will further fuel the fire already raging over the stagnate economy.
Next week should be an interesting and volatile week.
http://militarybriefingbook.com/topic.cfm?topic=U.S.%20Politics
Yesterday, the Congressional Budget Office (CBO) issued a report that unemployment is projected to fall from 9.1 percent in the second quarter of 2011, to 8.9 percent in the fourth quarter of the year, and to 8.5 percent in the fourth quarter of 2012--and then remain above 8 percent until 2014.
Remember, back in 2009 the passage of the controversial stimulus package, which if passed, unemployment was never supposed to be above 8 percent. Fast forward to August 2011, almost $5 trillion dollars later and the nation's unemployment rate has been over 9 percent for almost three years, with it dropping below 9 percent only briefly. The Labor Department reported today that new applications for U.S. unemployment compensation rose 5,000 to 417,000.
Next month, after the Labor Day holiday, the President is going to give an address on his plan to stimulate job creation, and his proposal to reduce the massive federal debt. Since assuming office the President has repeatedly signaled that he is focusing on jobs, but has always pivoted to other priorities as the employment situation worsened in the country.
The debt debate signaled to American's the depth of dysfunction in Washington as each side blames the other for the fiscal mess, with neither side focusing on what matters most to Main Street USA; jobs.
The speech will be watched closely, and if the President reiterates previous proposals of more government spending and tax increases, the markets will have a negative reaction. Will just have to wait and see what the president proposes.
http://militarybriefingbook.com/topic.cfm?topic=U.S.%20Politics
The forty two year regime of Moammar Gaddafi appears to be over with the rebel conquest of his compound. The real work is just beginning! After forty two years of brutal rule, the institutions that sustain a modern democracy are non-existent in Libya.
Remember the euphoria that erupted after the fall of Saddam Hussein, quickly followed by anarchy as there was no government to provide for the rule of law. The west has to realize that like Iraq & Afghanistan, Libya is a tribal society with its own internal dynamics, and one we had better tread lightly as we move forward.
Currently, the U.S. needs to build a broader coalition beyond NATO, one which includes at the very least Tunisia, Egypt and other African nations, in stabilizing Libya. The U.S. will have a role, but that will be up to the President to articulate a broad strategy for Libya, and for that matter the broader Middle East. So far the President and his national security team have always been a step behind in the "Arab Spring" revolutions that have swept the region.
The President has already stated, 'no American boots will be on the ground in Libya,' but the question is, will NATO assume that role. NATO was barely hanging on when the rebels advanced into Libya. NATO is having a difficult time sustaining troop commitments in Afghanistan, will they be willing to provide the forces necessary to sustain the transition to a democratic Libya?
The weeks and months ahead should be interesting.
http://militarybriefingbook.com/browse.cfm?category=Africa&subcategory=North%20Africa
After 42 years in power, the brutal regime of Colonel Muammar Qaddafi appears to be over. Over the weekend rebel forces entered the Libyan capital of Tripoli, and reports have it that one of Qaddafi's son's has been captured by rebel forces.
For six months rebels have been trying to over through Qaddafi. In March, NATO entered the fray to prevent a humanitarian disaster, with the U.S. playing a subordinate role. The U.S. however, was still providing 75% of the funding and other logistical support. Recently NATO was having a difficult time continuing the operation as the conflict was fraying the alliance.
If this latest events provide for the removal of Qaddafi, the transition to democracy will be problematic and chaotic as the National Transitional Council (NTC) begins to assume some sort of control over the country. This rebel council had been recognized by France in March, with the U.S. reluctantly supporting it last month. As Libya is tribal society, the question remains if the NTC be able to incorporate all elements of Libyan society into a cohesive government?
In tribal societies we have seen the fragmentation of the country once the authoritative government is removed, one only has to remember the euphoria that swept Iraq after the removal of Saddam Hussein. What role will the U.S. play in assisting with the establishment of a democratic Libya? Remember, President Obama stated `there will be no American boots on the ground.`
The Libyan people are close to ending their long nightmare, but before one gets all euphoric, especially those in the west, it is important to remember that Democracy takes time to build and doesn't happen over night! The U.S. still doesn't have a clear policy for Libya, or for that matter the Middle East.
http://militarybriefingbook.com/browse.cfm?category=Africa&subcategory=North%20Africa
