G.E. CEO Jeffery Immelt was named by US CEO Barrack Obama to head the President's outside council of economic advisers, replacing Paul Volker. The new council has been renamed to President's Council on Jobs and Competitiveness. Doesn't that sound better? A rose by any other name would smell as sweet. Corporate CEO's for America's Fortune 500 sit on a board and make recommendations to the President on how he should make adjustments to the economy to benefit... someone.
When Paul Volker first took
the job he had agreed to serve on the council for only two years but
as the President announced his replacement yesterday he seemed to
forget that fact. The President said the economy is "in a different
place" from where it was during the financial crisis when Volker
was brought on, and new ideas are needed to keep the momentum going.
Obama continued, "The past two years was about moving our economy
back from the brink," He, Immelt, "understands what it takes for
America to compete in the global economy."
This charlatan who had promised us hope and change has given the keys to the White House to the CEO's of the Fortune 500. The President's Economic Recovery Panel was also chaired by Immelt and recently held open meetings in the White House with their plans for tax reform.
"The purpose of this meeting is to continue discussion of the issues impacting the strength and competitiveness of the Nation's economy, including workforce development. The discussion will include an update on the research and preparatory work conducted in the PERAB subcommittees."
Other members of the PERAB include
James Owens, CEO- Caterpillar
Mark Gallogy, founder and managing partner of Centerbridge Partners a private equity firm specializing in leveraged buyouts and distressed securities
Penny Pritzker, owner and CEO of Pritzker Realty Group, which operates high-end retirement communities and is the ninth largest privately held corporation in the country
John Doerr, partner at Kliener, Perkins, Caufield & Byers, a venture capital firm
Monica C. Lozano, Director of Bank of America
Martin Feldstein, former chief economic adviser to Ronald Reagan.
But let's look at this brink we've been pulled back from just in the nick of time. When Obama inherited the Bush economy unemployment was 7.8 percent. No one is blaming Obama for the economy he inherited. But with his all-star team dream team of the best and brightest, it should come as no surprise that our economy is foundering. Last month the Bureau of Labor Statistic reported a gain of 103,000 new jobs while neglecting to announce the loss of 85,000 existing jobs--a net gain of 18,000 jobs in economy with 16 million long term unemployed.
Back from the brink? December's improved 9.4 percent unemployment number was due in large part to large numbers of workers no longer counted as unemployed. The number of discouraged workers in December of 2009 was 8,375,200. The number has grown significantly by nearly one half million to 8,519,900 in December 2010.
Morgan Stanley, the world's second largest Wall Street brokerage firm, reported a 35 percent increase in fourth quarter profits while it sales volume decreased almost 9 percent. You might ask yourself, how is that possible? Simple, the bank is selling debt! Morgan Stanley has offered one billion dollars in new securities that pay a higher return than treasury notes.
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