While the government and analysts are reveling in the latest positive economic indicators, for vast segments of the unemployed population, these developments will not matter at all. We need a strategy to solve unemployment targeted at Blacks, Latinos and manufacturing workers.
Last week, the Dow Jones reached a new record of 14,539. Other favorable economic indicators included initial claims for unemployment compensation, increase in retail and food sales and consumer confidence. The economic advances appear to be are real and sustainable.
Uhuru Kenyatta (son of the country’s first President Jomo Kenyatta), was declared President this week by the Independent Election and Boundaries Commission (IEBC). The intense conditions surrounding the elections have the country’s security forces are on high alert.
Uhuru Kenyatta continues to maintain the commanding lead in the race for Kenya’s President. His lead is 53% to Odinga’s 42% with close to one-half the votes counted. Thus far, the main international election observers have issued positive statements on the electoral process.
The Dow Jones Index has set a new record while ordinary individuals are bracing for the doom and gloom of the sequester, which hit hardest at the less fortunate segment of society. But investors will continue to benefit as long as economy shows signs of growth.
The effects of sequester will not be like a fiscal cliff, or an immediate economic collapse. Instead, the results will operate like a slowly tightening vise, gradually squeezing the life out of the economy. Think of the sequester as death by 1000 cuts, rather than by a knockout punch.
Congress has played chicken with the deficit so much the public was surprised the sequester occurred. The gamesmanship has moved to Russian roulette and the outcome will stagger the economy. Expect to see a bullet in the head of a political party. The question is, which one?