RUSH: We have the unemployment news that we are now at 9.1% unemployment. We have next to no growth. We have massive unemployment. We're in the midst of a housing disaster, oppressive regulations. All of this and the regime is demanding massive tax increases. We face a threat of reduction in the nation's credit rating. We have systemic, historic deficits and still today you can read certain stories or go to certain networks and hear them talk about the recovery! There is no recovery. If this isn't a depression, then what is? And the sad thing is, what's even worse, Obama's entire motivation is to destroy what's left.
Now, for two and a half years we've been sitting here and we've been warning people who Obama is, what he is, what his policies are, what his objectives are, and it may be time to change tack, change the approach a little bit. I think we've gotten to the point we're preaching to the choir. Everybody knows that is a quagmire. Everybody knows it's either a depression or a recession. They don't need the proof every day; they live it. The question is, what do we do to get through the next 18 months and preserve what's left so that there can then be a genuine recovery? Fifty-four thousand jobs and they're still reporting that it was unexpected. They expected twice that many jobs. Based on what? Fifty-four thousand jobs created, unemployment up to 9.1%, hundreds of thousands of Americans have dropped out of the job market altogether. The housing market is drowning.
Folks, I have a story that as an American, as a human being with a large, beating heart -- ba-boom, ba-boom -- this story is heartbreaking. It's in the Wall Street Journal and all you need is the lead, the first sentence. You don't even need to read the whole story. It's about the housing market. We're talking about our country. "Home prices have sunk to 2002 levels, effectively wiping out almost a decade's worth of home equity across the U.S. and imperiling the fragile economic recovery as Americans confront the falling value of their biggest investment." Forget fragile recovery. There is no fragile recovery. How anybody can write that with a straight face or an honest cell in their body is beyond me. But here you have what Americans all over the country who were playing by rules, rules the country had promised them, assured them, a lot of people, the American dream and so forth.
Now, I know market fluctuations are what they are, don't misunderstand here, but this is just heartbreaking and so unnecessary. Home prices, 2002 levels effectively wiping out ten years' worth of home equity, wiping out the value of many Americans' biggest investment. It's just unbelievable. I can't really put this into words. I see a story like this, I see people, genuine human beings. This is not abstract to me. It's written statistically, but this is real, these are real lives, real circumstances that are being affected here. There is no private sector growth. Obama says this is a recovery. Let's take him at his word. That for him, this is what a recovery looks like. Let's just take him at his word, just for the fun of it. This is what a recovery looks like.
I saw Ichabod Crane on TV this morning, Austan Goolsbee. Most people have a 14-inch part in their hair. This guy's neck is 14 inches long and probably about four inches around. I don't know where he goes to buy shirts. Austan Goolsbee, yeah, said to be the funniest man in... well, there's this guy, this journalist that used to be at TIME Magazine, Matt somebody that used to be the funniest guy. At any rate, Obama looks out across the fruited plain and he sees a recovery. This is what a recovery looks like. He is at war with the private sector and he's winning, folks. The president of the United States is winning his war against the private sector. He is destroying it. That is his mission. His administration is succeeding. So for Obama this is a recovery. Let's go to the audio sound bites. February 10th, 2007. Springfield, Illinois. This runs by real quick, five, six seconds. This is Obama explaining to the country his view, his vision for revitalizing America.
OBAMA: Let's allow our unions and their organizers to lift up this country's middle class again. We can do that.
RUSH: Unions, organizers, let them lift up the middle class. The private sector middle class is his target. The public sector middle class are his beneficiaries. Now, I submit, folks, everybody knows, and I mean everyone, the way you get out of a recession, the way you get out of the economic mess that we are in is to create incentives for private sector growth. You do that by lowering taxes, by reducing regulations. We had a call yesterday, Snerdley put a call up there from a guy, and I wanted to walk him through this. He asked, "Well, what would you do?" I've always found it can have much more impact to actually walk people through it, but he was sadly mentally incapable of walking through it on his own so it didn't work out. So I gotta explain it here myself.
You create incentives for private sector growth by lowering taxes, by reducing regulations, getting obstacles out of people's way, you strengthen the dollar, you reduce the size of government. But, you see, if you're a committed socialist and an authoritarian, you're simply not gonna do these things. You are not going to take the obvious and necessary steps to create prosperity because what I just described to you as the definition of an economic recovery is not how Obama sees recovery. What's happening is how he sees recovery, taking him at his word. In fact, if you're like Obama, if you are a socialist, authoritarian, you're gonna do the exact opposite of lower taxes, reduce regulations, strengthen the dollar, reduce government, you're gonna do the exact opposite. You're going to insist that the problems require more government. You are going to insist the problems require more regulations, higher taxes. You are going to continue to attack success and profits and businesses.
Alan Greenspan, the puppet of Andrea Mitchell, NBC News, Washington, came out today and joined the chorus for raising the debt limit. I see how this is gonna go now. Republicans are going to be blamed for this recession. Republicans are going to be blamed for a lack of recovery. Republicans are going to be blamed because they are going to stand in the way of more spending to fix this. It's exactly as I warned you a couple of weeks ago. This economy was in much worse shape than Obama even knew. Their policies are working. We are in a recovery. You hear them say so. But it's going to take much longer than we thought, and we do not dare change horses in the middle of the stream. We simply don't turn over the reins to the people who drove us into this ditch in the first place. We don't turn over the reins to people who will not agree to more spending and the solvency of our country, blah, blah, blah. That's exactly what's coming here, folks. Just get ready for it. More government, more regulation, higher taxes, continue to attack success and profits and businesses.
I'm taking him at his word. He says we're in a recovery. This, to him, is a recovery. He wants more of it, he says. So he's going to keep saying the same things. He's going to give never-ending life to the bogeymen he's already created, the rich, the millionaires, the billionaires, while leading a war against the middle class. The middle class, that's whose home values are plummeting. The middle class, that's who doesn't have any jobs. The middle class, that's whose savings are evaporating. That's the target. Obama attacks the millionaires and billionaires, they remain millionaires and billionaires. The middle class is losing it all in the private sector. The public sector middle class are making out like bandits. Just look at what Obama is doing and what he will continue to do and just listen to what he says and will continue to say. While this economy is causing great suffering and while Obama will pretend he actually cares about you, he will continue full speed ahead with his war on the private sector, his war on the middle class, and his promotion of socialism and authoritarianism. This is what Obama wants. This is his recovery. We take him at his word.
RUSH: According to Mark Hemingway at a blog, the Weekly Standard: "Half of Last Month's New Jobs Came from...McDonald's -- According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent." By the way, speaking of which I guess I ought to share with you the way the AP is reporting this. Here's their headline (excitedly) "Employers Add 54,000 Jobs, Rate Ticks up to 9.1 Pct." The AP's reporting this as though jobs are being created here. Wow! The casual reader will think that the number of employed has gone up, when it hasn't -- the number of employed has gone down -- and they did the same exact thing last month.
"Employers hired only 54,000 new workers in May, the fewest in eight months. The employment rate rose to 9.1%. The Labor Department report offered startling evidence the US economy is slowing." What is "startling" about any of this? I'm getting blue in the face asking this question: What recovery? So, anyway, 54,000 jobs. Here's a report from MarketWatch. As you remember, "McDonald’s ran a big hiring day on April 19 -- after the Labor Department’s April survey for the payrolls report was conducted -- in which 62,000 jobs" were created at Mickey D's. "That’s not a net number, of course," because they added some jobs and people quit.
There's always fluctuation, there's seasonal adjustment, and so the number is fluid. So Morgan Stanley is estimating that McDonald's hiring the 62,000 jobs nets out to an increase of actually 25 to 30,000 jobs, by the time you tabulate people quit and retired, what have you. The Labor Department will not detail an exact McDonald's figure. (They won't identify any company in the survey; it's not they're avoiding it, just they don't do it.) But here's the point: If Morgan Stanley's right, we got 54,000 jobs created, and McDonald's may account for 25 to 30,000 of them, that would be over half of them, and we remember.
We remember what the left said about McDonald's jobs. "They're worthless! No health care! They're hamburger-flipper jobs. No future, can't feed a family of four on one of those jobs!" They were always deriding those jobs, putting them down.
RUSH: Eric in Wilmington, Delaware. Thank you for waiting, sir. Appreciate your patience. Hi.
CALLER: Thank you for taking my call. I'm a 1995 Mac user back in the bad days. (chucklds)
CALLER: But I'm still... Mac's a great machine. But, anyway, another thing: A president pick is J. C. Watts, but I'll get to my point now. I was calling about a lady name Brooksley Born, she was the Commodity Futures Trading Commission person during the Clinton administration, and she warned against the derivatives.
RUSH: Oh, yeah.
CALLER: And she was shut down by Greenspan, Summers, and Rubin so they couldn't regulate 'em which caused the financial -- helped cause the financial -- crisis that we have now. And these same people today are telling us things are getting better. It's nothing but crony capitalism.
RUSH: Yeah. Well, there are, as is the case in every economic cycle, good and bad. There are people who do well while others aren't and vice-versa, but you're right: A lot of corporate entities that are doing well are doing well because of crony capitalism. They're in bed with Obama. He's helping them out. They're getting health care waivers or what have you, any number of things to help shield them from other market forces and so forth. But the entire financial services industry you could say, at one time or another in the past three to four years, has been part of this crony capitalism. What is QE3? What is QE2? What is Quantitative Easing?
It's just the printing of money funneled in such a way that a lot of it was used to buy stock, ergo the stock market looks healthy, stays good; people that are invested in it back out like bandits. QE2, the printing of money, either has expired or is about to soon. You saw Wall Street on Tuesday: A 240-point drop and abject panic set in, and they started calling for a new round of Quantitative Easing. This is artificially being propped up, and if you're in the market that's good for you. You'll take it. That's how crony capitalism works. That's how you get people to throw away their ideological beliefs. It's how you get people to throw away their principles. You promise to take care of 'em financially, corporately take care of them financially and you own 'em.
That's how Obama got a lot of his health care bill passed. The insurance companies involved in it and some of the medical associations and so forth. Derivatives, same thing. It's the kind of stuff when people learn about it that they throw their hands up and say, "I can't stop any of this. You know, this is the kind of stuff, Rush, you can say, 'Liberalism, conservatism, principles,' none of that matters in this stuff. When you have a president who's gonna allow certain people literally reach into the federal Treasury and grab whatever they want from it, then, you know, don't tell me about big government, Tea Parties and all that. It doesn't matter, 'cause it's still money that everybody wants and everybody focused on, especially those that tell you that it isn't the money."
RUSH: Here's James in Harrisburg, Pennsylvania. Welcome to the EIB Network. Hello.
CALLER: Hello. Thank you for taking my call, Rush. I'm a lifelong listener, and I'd just like to say that before Obama's election I got a phone call about a possible job opportunity and then they said, "We have to see who wins the election," and then Obama won and they said the wrong person won. (cell garbled) They're not hiring now, and I'm one of those chronically unemployed persons who weren't counted in the current unemployment numbers, but I'm making progress. There are no stimulus jobs. I can tell you that factually.
RUSH: No, not unless you're in a union, not unless you're in a public sector union -- and there never were gonna be any private sector jobs with the stimulus. Let me ask you a question, James, because you're on a cell phone and I have a devil of a time comprehending what people say on a cell phone. Did you say that you get a phone call about a possible job opportunity and they said that the opportunity won't really exist until after they see who wins the election?
CALLER: Yes, that's correct.
RUSH: That's a year and a half away, James.
CALLER: No, that was 2008 election.
RUSH: Oh, 2008. Oh. Okay.
RUSH: Well, that's still the case. It's still the case. People are not hiring.