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ex-im bank sen chuck schumer

Conservatives almost won the Export-Import Bank fight last time, but now Democratic backers for K Street and Wall Street aren’t taking any chances. (Photo: AFP)

Conservative groups and members of Congress fighting to close the revolving door between K Street, Wall Street and Congress got a welcomed nod from the new House Majority Leader Kevin McCarthy (R-CA) in late June. McCarthy said he favored allowing the authorization for the Ex-Im Bank to expire. Now, big business Democrats are kicking up lobbying and legislative efforts to save the crony cash cow.

House leadership and conservative groups argue the Ex-Im Bank perpetuates corporate welfare, corruption and crime at the expense of the taxpayers. The Export-Import Bank, which was established in 1934 by Franklin D. Roosevelt, is supposedly in existence to “facilitate exports and imports and the exchange of commodities between the United States and other Nations.”

Proponents of the Ex-Im Bank argue that the loans, which are funded by money borrowed from the U.S. Treasury, are necessary to gain a competitive advantage in the global economy. In fiscal 2013, the bank authorized $27 billion to support an estimated $37.4 billion in U.S. export sales, including aircraft, power-generation equipment and oil and gas projects.

While past efforts almost succeeded, the push to close the bank this year by far has the best chance at success to date. Citizens Against Government Waste, Senate Conservatives Fund, Heritage Action for America, Generation Opportunity and Club for Growth, all have made pulling the plug on the Ex-Im Bank a top priority. If reauthorization does not move forward, the Department of Treasury would assume control. The bank would then only be able to manage existing loans, but not authorize new loans.

The groups and their allied lawmakers in the House, including Financial Services Chairman Jeb Hensarling of Texas, have not been without opposition. However, new efforts to save the bank are starting to gear up.

At a recent House hearing on reauthorization of the Export-Import Bank, lawmakers were handed a friendly reminder in the form of index cards noting which companies in their districts receive funds from the bank and how many people are employed as a result of those projects. The lobbying trick came directly from lobbyists for corporations such as Boeing Co. (NYSE:BA) and General Electric Co. (NYSE:GE), as well as business groups such as the U.S. Chamber of Commerce and National Association of Manufacturers.

Even though the argument to keep the Ex-Im Bank in existence is filled with rhetoric focusing on U.S. jobs, in practice the money tends to benefit those who do not have the interest of the taxpayers in mind. Gennady Timchenko, one of Russia’s richest billionaire oligarchs and long-time friend of President Vladimir Putin, benefited from Boeing’s deal with the Ex-Im Bank. He sought a U.S. government-backed loan from the Ex-Im Bank to purchase 11 luxury Gulfstream jets for himself.

“To smooth the path for financial backing from the U.S. Export-Import Bank and allay possible U.S. government concerns about him, Timchenko hired lobbyists from powerhouse Washington law firm Patton Boggs, according to emails and documents viewed by Reuters,” the news agency reported back in July of 2013.

It is dealings just like this, and worse, which make opponents of the bank cringe.

“The Export-Import Bank is nothing more than a slush fund for corporate welfare,” Club for Growth Spokesman Barney Keller told People’s Pundit Daily. And it gets even worse. The bank “has given subsidies to everything from Mexican drug cartels and Enron, and it should be eliminated,” he added.

Meanwhile, Senate Democrats are attempting to pull a legislative maneuver to ensure their big business cronies keep their favored status with Uncle Same. Sen. Chuck Schumer (D-NY) said he will push the Senate to take up and pass a bill to reauthorize the bank before Congress leaves for the August recess.

“I think that if we can pass it in the Senate, particularly with a good bipartisan majority … it will put pressure on the House,” Schumer said in a conference call Wednesday with reporters.

Schumer, appears to have so-called moderate Democrats falling in line behind him, and said Sen. Joe Manchin (D-WV) will introduce a reauthorization bill, which would go to the Senate Banking Committee, where Chairman Tim Johnson (D-SD) “wants to move the bill as quickly as possible,” according to Schumer.

Sen. Heidi Heitkamp (D-ND), who also sat in on the call, said both she and Schumer were confident the measure would pass in both the House and Senate.

“We believe the case is absolutely stellar for moving this in July,” Heitkamp said. “We also believe there are votes in the House, so hopefully that will happen.”

Big business Democrats, led by Sen. Chuck

It’s Bill Ayers vs. Dinesh D’Souza in Part 3 of a “Kelly File” exclusive. Fox News Channel anchor Megyn Kelly interviews Bill Ayers, the co-founder of the radical 160s leftist group, the Weather Underground, and producer of the new film “America,” Dinesh D’Souza.

“America” is a film that answers the attacks from the left that focuses only on the evils in U.S. history and policy. D’Souza explores what the world would be like without America. What if General George Washington, who took several close calls during the Revolution, was killed on the battlefield?

Who would have destroyed the Nazis? Or checked the Soviet Union in the world’s first-ever true, bi-polar international system? And, who would have fought the proliferation of communism?

Of course, as a man on the left, Bill Ayers is a communist and finds little wrong with a world filled with centralized governments.

Watch Bill Ayers vs. Dinesh D'Souza in

Former POW Jessica Lynch appeared Saturday on The Huckabee Show on Fox News to discuss the current chaos in Iraq. Jessica Lynch is a former Quartermaster Corps Private First Class (PFC) in the United States Army, and was held as a prisoner of war by the Iraqi military during the 2003 invasion of Iraq.

She was rescued by U.S. Special Forces on April 1, 2003, an operation that marked the first successful rescue of an American POW since World War II and the first ever of a woman. Lynch, then a 19-year-old supply clerk serving in the 507th Maintenance Company, was injured and captured by Iraqi forces after they were ambushed on March 23, 2003 near Nasiriyah. The group made a wrong turn near a major crossing point over the Euphrates River northwest of Basra.

She was initially listed as missing in action (MIA). Eleven other soldiers in the company were killed in the ambush.

Former POW Jessica Lynch appeared Saturday on

mother of murdered palestinian teen

July 5, 2014: Suha Abu Khdeir, mother of 15-year-old Tariq Abu Khdeir, a U.S. citizen who goes to school in Tampa, Florida, sits in her home and shows a tablet with a photo of Tariq taken in a hospital after he was beaten and arrested by the Israeli police during clashes sparked by the killing Thursday of his cousin Mohammed Abu Khdeir in Jerusalem. (AP Photo/Mahmoud Illean)

Mohammed Abu Khdeir, 16, was kidnapped last week and murdered in what Palestinians claim was a revenge killing for the previous deaths of three Israeli teens. Khdeir’s charred body was found just a short after his abduction in a Jerusalem forest.

Now, with news of six Jewish men being arrested in connection with a crime officials characterized as ‘nationalistic” in nature, the family of the Palestinian teen is speaking out.

“I don’t have any peace in my heart, even if they captured who they say killed my son,” said Suha Abu Khdeir, mother of the murdered Palestinian teen. “They’re only going to ask them questions and then release them. What’s the point?”

“They need to treat them the way they treat us. They need to demolish their homes and round them up, the way they do it to our children,” she said.

But his father, Hussein, took a different approach. He also said the family still had not been officially informed of any arrests. “Even if they rounded up all of Israel, they will not bring my son back,” he said.

Palestinians have claimed that Israeli extremists had kidnapped and murdered the boy in response to the grim discovery of the three Israeli teens buried in a shallow grave in the West Bank, who initially disappeared on June 12. Eyal Yifrach, 19; Gilad Shaar, 16 and Naftali Frenkel, 16, were snatched while in the West Bank, and Israeli forces were conducting raids in the West Bank where Hamas operates up until the grim discovery. Frenkel holds duel U.S.-Israeli citizenship.

The abductions outraged the Jewish state as well as their allies in the international community, resulting in Palestinian President Mahmoud Abbas condemning the abduction on June 16.

However, Netanyahu said he would hold the Palestinian Authority responsible for any harm that would come to the teenagers, because Abbas has not only failed to reign in the violence but aligned with many elements of the group to stay in power. In fact, back in early June, Abbas formed a unity government that had the backing of Hamas.

Meanwhile, Israeli leadership said they are committed to apprehending whomever is responsible for murdering the young Palestinian teen, and bring them to justice.

“If Jews are becoming killers, they will be put to court like any killer,” President Shimon Peres said Sunday while addressing foreign journalists in the southern town of Sderot. Shimon was meeting with local residents who have been living with an increasing and ongoing barrage of rocket attacks from the Gaza Strip since early last week.

“Whoever was killed for us was murdered, for us is a victim.”

Prime Minister Benjamin Netanyahu said Sunday at the open of his cabinet meeting that now as an important time to act rationally, not impulsively. “Experience proves that in moments like these, one must act calmly and responsibly, not hysterically and hastily,” Netanyahu said.

On Sunday, Tariq Abu Khdeir, a 15-year-old Palestinian American and cousin to Mohammed Abu Khdeir, suffered injuries during clashes with Israeli police. His parents said he goes to school in Tamp. Florida, and that he was sentenced to nine days of home detention.

But, as Israeli officials are cautious in tone, Palestinian President Mahmoud Abbas said he had already sent a letter to U.N. Secretary-General Ban Ki-moon requesting an “international investigative committee” into the violence, to include Abu Khdeir’s death. Rather than take into account his alliance with a radical Islamic terror group, who even Secretary of State John Kerry said was responsible for the original kidnapping of the three Israeli teens, Abbas instead blamed “criminal settler groups” for the violence and said Israel should outlaw them.

Jerusalem’s Mayor Nir Barkat condemned the violence in a recent interview and said an end must come to all extremism. “We have to fight the extremists who try to destabilize our life and we will do that and return the city back to normal life the way it was a few weeks ago as soon as possible,” he said.

As news of two men Jewish being

governor tom corbett vs tom wolf

Incumbent Republican Governor Tom Corbett from Pennsylvania faces Democrat Tom Wolf in November. (Photo: Philly.com)

Incumbent Republican Governor Tom Corbett will face Democrat challenger Tom Wolf in November in the Pennsylvania gubernatorial election. Most pundits have agreed it wouldn’t be easy for Gov. Corbett to secure re-election, but PPD now sees Corbett as the single-most vulnerable Republican incumbent up for reelection this cycle.

After giving several weeks latitude to the incumbent to turn things around, our model strongly suggests this race now strongly favors the Democrat, Tom Wolf, though it is truly borderline between ratings. We have seen two other Republican incumbents who initially appeared to be just as vulnerable as Corbett improve their standing in the polls and our model. Gov. Paul LePage in Maine has not only held competitive numbers, but has a better than average chance of winning a plurality in his three-way race. Gov. Rick Scott in Florida, who once appeared almost as vulnerable as Corbett, is actually slightly favored in our model. Early ad buys and typical blunders from Crist turned the fundamentals of that race completely around.

Gov. Corbett, however, has been unsuccessful at pulling off similar improvements, though it doesn’t even appear that he is trying.

Pennsylvania’s political trends show there is a historical likelihood this race will tighten, or perhaps even flip back the other way. However, it appears that the Penn State debacle may have not yet claimed its last victim. Corbett has been severely damaged in by the scandal that rocked the Keystone State, and his connection in the minds of the public is strongly linked to his time as attorney general.

The Pennsylvania governor’s race is a perfect example of how “All politics is local” on the gubernatorial level. Pennsylvania, according to two significant pieces of data, is actually moving slightly in the Republican Party’s direction. In Gallup’s party ID by state annual survey, less people identified with the Democratic Party than the previously year, while more identified with the Republican Party from the same period. The electorate, or who will actually vote in 2014, will also likely favor Republican candidates more so than in 2010. The PVI, or Partisan Voting Index, clocked in at D+2 in 2010, but will by all accounts tick to the right modesty to D+1.

The Republican Party, put frankly, made a colossal mistake by not pressuring Corbett to step aside. Sources in the RGA, the Republican Governors Association, told PPD that New Jersey Gov. Chris Christie was asked to do just that to his neighboring fellow-governor. But after the complete media-backed assassination, known as “BridgeGate,” the Republican establishment eased up on asking Christie to pressure Corbett, because they felt the New Jersey governor no longer had the clout needed to do so.

While the media focuses on races where the insurgent versus establishment narrative is playing out elsewhere this cycle, notice there was no challenge to Corbett from a Tea Party rival, either. Unfortunately for Republicans, who most pundits would agree were bound to lose some governorships this cycle, are now more likely than ever to lose the Pennsylvania governor’s mansion.

Again, a comeback is certainly not out of the question, but the incumbent has little choice but to make this a negative, nasty campaign. Still, we see this race is clearly “Likely Democrat” on our 2014 Governor’s Map Predictions model, and that would be the case even if the same (though fraudulent) 125 percent turnout rate Obama enjoyed in the Philadelphia precincts, is not duplicated in November.

Poll Date Sample MoE Wolf (D) Corbett (R) Spread
PPD Average 5/27 – 6/29 51.5 29.8 Wolf +21.7
Franklin & Marshall 6/23 – 6/29 502 RV 4.4 47 25 Wolf +22
Quinnipiac 5/29 – 6/2 1308 RV 2.7 53 33 Wolf +20
PPP (D) 5/30 – 6/1 835 RV 3.4 55 30 Wolf +25
Rasmussen Reports 5/27 – 5/28 750 LV 4.0 51 31 Wolf +20
Quinnipiac 2/19 – 2/24 1405 RV 2.6 52 33 Wolf +19
Quinnipiac 12/11 – 12/16 RV 44 37 Wolf +7
PPP (D) 11/22 – 11/25 693 RV 3.7 44 32 Wolf +12
Quinnipiac 3/6 – 3/11 RV 39 39 Tie
PPP (D) 3/8 – 3/10 504 RV 4.4 42 33 Wolf +9
PPP (D) 1/4 – 1/6 675 RV 3.8 29 41 Corbett +12

Incumbent Governor Tom Corbett, who faces Democrat

independence day american flags

American flags wave on Independence Day, July 4, 2014. (Photo: REUTERS)

It may seem like a cynical question to ask when most of the nation is planning to celebrate the July 4th with food, friends and fireworks. But if we were to be honest with ourselves, then whether or not we are still deserving of our founders’ sacrifices is a fair question to examine, given recent developments.

Last week, the Supreme Court grabbed President Obama by the bit and ruled thirteen consecutive times — sometimes unanimously — that he exceeded his authority on issues ranging from recess appointments to various coercive measures that force Americans to cede private property, personal choice and religious freedom. A panel of appellate judges also ordered the Obama administration to release a 40-page memo that outlined the president’s legal justification for ordering the CIA to kill American citizens. But they did so only because Obama first claimed the memo was a state secret, but afterward made the political decision to leak a portion of it to his lackeys at NBC News.

Sadly, neither the court’s justification nor the memo itself ever mentioned the Fifth Amendment. Our founding fathers, who knew all too well about the dangers of arbitrary and unjust punishment, enshrined due process into the Bill of Rights. The Administration of Justice Act passed by Parliament in 1774, which was punishment for the Boston Tea Party outlined in the more “comprehensive” Coercive Acts, allowed Royal governors to order that trials of accused take place in Great Britain or other loyal regions within the Empire. Together, the colonists referred to Parliament’s legislation as the Intolerable Acts.

But George Washington dubbed the Administration of Justice Act the “Murder Act,” and went on to lead a revolution to cast off such despotism. Our founding fathers would never have tolerated the execution of American citizens by executive fiat on the grounds a citizen “may be difficult to arrest,” because they are abroad and “do not wear a uniform of an enemy combatant.”

Presidents from both parties have stretched the constitutional limits of executive power and expanded the size and scope of government for most of the twentieth century. They have done so at the expense of the people’s power, which was constitutionally allocated to our state and national legislative bodies, mainly because voters have populated them with members who have not the virtue nor the courage and competence to stop them.

Following the Hobby Lobby decision last week, Bill O’Reilly said in his talking points memo that “if one more liberal justice gets on the Supreme Court,” then individual liberties are gone.

He’s right.

Yet, most American voters don’t understand the significance of the president’s power to make judicial appointments, and the Senate too often is derelict in its duty to confirm justices that follow the Constitution. It is absolutely astounding that four of the nine justices on the highest court in the land believe religious freedom should take a back seat to the forced support of the abortion and prescription drug industries. But again, government is government, and government is tyrannical by its nature. In the end, we can only blame them for so much before we begin to look in the mirror at our own dereliction of civic duty.

The vast majority of voters never even consider the future make-up of the Supreme Court when deciding which candidate to vote for in presidential and Senate elections. And even if that changed in 2016, a large amount of American voters would still be persuaded by emotional and false arguments from people like Sandra Fluke. Aside from Megyn Kelly, a shamefully corrupt media not only refused to challenge the blatant falsehoods regurgitated by Fluke and others after the decision, but also helped to perpetuate them.

Sandra Fluke and those persuaded by her lies might be surprised to learn that religious activists were responsible for the Declaration at Seneca Falls, which resurrected the women’s suffrage movement after it took second place to abolition; another movement established and carried out by evangelical Protestants who banded together as “Holy Warriors” against the evil enterprise of slavery. It was only because of the principles found in the Law’s of Natural and Nature’s God that our founders justified independence in the first place, and they were preached of in sermons in houses of God throughout the colonies.

So, how did a republic of self-governing states, largely made up of autonomous communities populated with empowered individuals, who focused on maintaining strong family units, end up succumbing to a strong, despotic centralized government?

When the president and Congress expand government, which by nature further degrades individual liberties, they never step up to the microphone and tell the American people their true intention. No, I dare say not. Instead, it’s always either some manufactured moral imperative, a “necessary” government response to a manufactured crisis, or to protect us from some manufactured security threat.

The Sixteenth and Seventeenth Amendments, as was also the case with ObamaCare, were argued as moral imperatives. But rather than further the people’s interest, they concentrated power in and around Washington D.C., and created careerism in the now-derelict Senate. The progressive pension reform movement to deal with the supposed crisis of superannuated workers, was completely manufactured and unwanted, but it sure was a nifty way to literally invent retirement, hurt the extended family and weaken the Protestant work ethic.

I could go on and on, and each instance would be a revelation to most American voters. The bottom line is that we are pawning off what are necessary civic duties for those who wish to live in a free society to a government we naively believe we can control. Even worse, some of us know better, but for free contraceptives or a government check that doesn’t even keep pace with inflation, or whatever the poison, we are willing to trade our liberties.

Thomas Jefferson wrote that a citizen has “no right in opposition to his social duties.” Or, in other words, if you want to be free, then you need to take responsibility for that freedom in every area of your life. Too many Americans aren’t taking that responsibility, so I ask: Are we are no longer sufficiently virtuous to be free? Do we deserve the despotism that is barreling down upon us?

Honestly, our founding fathers would say no, we aren’t. Only 58 percent of Americans consider Independence Day to be one of the most important holidays, and a pathetic 44 percent say they didn’t often feel proud to be American. Large majorities of American believe the country is headed in the wrong direction and that big government is the greatest threat today, yet only 28 percent said that America was the greatest nation on earth. How can expect we have what it takes to preserve freedom when so few of us think the only country on Earth built upon its principles is worth fighting for?

“I thank God that I have lived to see my country independent and free,” Samuel Adams wrote after the American Revolution. ” She may long enjoy her freedom and independence if she will. It depends on her virtue.”

Happy Fourth of July, America. Maybe next year we will have virtue enough to come to the understanding why it was first called Independence Day.

Note: Virtue is about sacrifice and personal responsibility, which too many of us are sorely lacking. But the good news is that virtue and charity is contagious. So, in the spirit of Benjamin Franklin, who often discounted his services when they would provide a benefit to the general public, particularly regarding educating the public, I will offer a 25% off discount code (Enter: BVBU424Nfor “Our Virtuous Republic: The Forgotten Clause in the American Social Contract,” which can be used on the CreateSpace online bookstore. Or, for Smashwords ebook online store readers, enter LB59P.

Also, don’t forget to download your FREE copy of “The Meaning of Independence Day – An American Holiday” from the PPD Library.

Examining whether or not we are still

independence dayOn this 4th of July, Team PPD would like to remind our readers that our growing PPD Library has some great books, including several free E-books focusing on American history. The Meaning of Independence Day – An American Holiday, written by Amy and Leon Kass, contains over 50 selections from colonial times to the present.

The selections were chosen and arranged to illuminate a series of themes, including declaring, securing, and maintaining independence; the promise of the new republic; seeking a more perfect union (with special attention to securing equal rights for African Americans and women); and celebrating the holiday and remembering its national promise.

Let us not simply pay lip service to either of our founding documents, but rather understand and appreciate that without Independence Day, and the subsequent sacrifices of our founding fathers, then Americans would not be enjoying an existence that no other nation in the history of civilization has ever provided to its people.

Team PPD would also like to thank all of our readers for their support. Since its founding nearly one year ago, People’s Pundit Daily has grown at an enormous pace. We have strived to bring you timely, accurate and honest content on politics, economic and world news. Thus far, using our election projection model as a compass, we have called just one race incorrectly this entire primary and special election cycle, including a correct prediction in the FL-13 special election that other pundits and pollsters led you astray on.

Because you trust us, we thrive! Don’t forget, you can now add us to your dashboards on both Google News and Bing News.

Visit the PPD Library and get your free E-Book on Independence Day now!

Get the FREE E-Book, The Meaning of

NJ Governor Chris Christie

Gov. Chris Christie speaks to media after vetoing a draconian gun bill, opting instead to focus on mental health reforms. (Photo: Tom Spader, Asbury Park (N.J.) Press)

New Jersey Governor Chris Christie vetoed a draconian gun control bill that would have further restricted the number of rounds a legal magazine could carry in the already-anti gun rights state. Christie told Democratic lawmakers they should focus on mental health reforms rather than pass further Second Amendment restrictions.

Americans, by large majorities, agree with the assessment made by the governor, as recent polls conducted by Gallup, Rasmussen Reports and CNN, all found the initial knee-jerk reaction to the Newtown shooting faded rather quickly. The last time Gallup posed the question, the number of Americans who blamed the mental health system “a great deal” was at 48 percent, while 32 percent blame it “a fair amount,” or 80 percent in total.

Similarly, a Rasmussen Reports survey found that 54 percent of American adults think more to treat mental health issues will have the most benefit to reduce the number of mass shootings, which was up 6 points from the 48 percent measured previously in the aftermath of Newtown. A  CNN poll found the highest level of opposition to any new gun control measures since CNN started asking in 1989, which was mimicked by Gallup and examined overall in a previous PPD article.

The decision made by the governor was one made between a rock and a hard place regardless of widespread public opinion. Parents of children killed in the Sandy Hook Elementary School shootings in Newtown visited his office Wednesday to personally hand him an online petition with more than 55,000 signatures nationwide urging him to sign the bill.

In his comments after the veto, Christie noted that a 10-round limit is an arbitrary measurement, just as a 15-round magazine, and wouldn’t have prevented the massacre, particularly in the case of the first nine victims. He said people who commit mass violence are often “individuals in crisis falling through the broken safety nets of screening, treatment, and commitment” and that the only responsible response would involve reforming the mental health system.

“This is the very embodiment of reform in name only,” Christie said of the vetoed bill. “It simply defies common sense to believe that imposing a new and entirely arbitrary number of bullets that can be lawfully loaded into a firearm will somehow eradicate, or even reduce, future instances of mass violence.”

Gov. Chris Christie’s job approval ratings in New Jersey was at 50 percent in a recent Monmouth University/Asbury Park (N.J.) Press Poll, and the Asbury Park-based polling firm Rasmussen Reports found his approval at 51 percent in another recent survey. While that may seem to be fairly decent for most governor across the nation, particularly a Republican governor in a blue state, Christie’s approval ratings were in the high 70s before the media incessantly hammered him on the so-called “Bridgegate” scandal, which so far no investigation has been able to tie to him.

New Jersey Governor Chris Christie vetoed a

labor market jobs

Job seekers navigate through a weak labor market and teetering economy. (Photo: REUTERS)

The U.S. economy added 288,000 private-sector jobs in the month of June, while the unemployment rate dropped by 0.2 percentage point to 6.1 percent. Economists had forecast 212,000 new jobs and that the unemployment rate would hold steady at 6.3 percent.

But inside the June jobs report from the Bureau of Labor Statistics are concerning numbers that show the headline unemployment rate is extremely misleading until you dig into the data.

Much of the growth came from professional and business services, retail trade, food services and drinking places, as well as health care. The number of unemployed persons decreased marginally but remains at an abysmal 9.5 million, while the number of long-term unemployed (those jobless for 27 weeks or more) in June was still 3.1 million. Long-term unemployed individuals accounted for just 32.8 percent of the total number of unemployed individuals counted in the headline unemployment rate.

The civilian labor force participation rate in June remained stubbornly high at 62.8 percent for the third consecutive month. Meanwhile, the under-reported employment-population ratio, which is a measurement of the number of able-bodied Americans actually in the labor market, is at a pathetic 59.0 percent. Sadly, that number rose by just 0.3 percentage point over the entire year. Much of the number representing those who re-entered the workforce stems from either part-time employment or low-paying jobs.

The number of persons employed part-time for economic reasons, or involuntary part-time workers, increased by 275,000 in June to 7.5 million. These Americans were working part-time because their hours had been cut back, which is a known consequence of ObamaCare as employers attempt to compensate for excessive cost burdens, or because they were unable to find a full-time job.

In June, 2.0 million persons were marginally attached to the labor force, but are not counted in the headline unemployment rate even though they were not in the labor force, wanted and were available for work, and had actively looked for a job a some point during the past 12 months. But, because they had not look over the past 4 weeks, they are excluded from the misleading measurement.

The latest jobs report adds pressure to Fed Chair Janet Yellen to begin to start lifting interest rates and end money-printing policy, known as quantitative easing. “Yellen is not going to be able to wait until May 2015 to raise rates and that is what the U.S. Treasury market is responding to today,” Peter Boockvar, chief market analyst at The Lindsey Group said in an email.

Yellen, however, just said in a speech Wednesday that she isn’t concerned about money-printing and low rates causing inflation or future asset bubbles, despite the data. Inflation remains below the Fed’s 2 percent target rate and is now a primary indicator of whether the Fed will tighten future monetary policy. Prior determinations were predicated on the labor market, which showed sputtering growth at best until these past few months.

Still, if labor markets demand more workers, as is the case when so many Americans have simply quit looking for work altogether, the demand will increase wages. The real unemployment number came in at 12.1 percent, including those who are part-time and have quit on the American dream. Typically, the economy needs higher wages to begin to see higher prices, or inflation. But inflation, though below the arbitrary target, has risen steadily regardless. That’s what Yellen is waiting on, according to most analysts.

The consensus among Fed policy-makers remains that rates will not begin to move higher until mid-2015, but there is no doubt increasing pressure is mounting to move up the date to the first quarter of 2015. The yield on the 10-year Treasury bond rose 0.04 percentage point to 2.67 percent following release of the June jobs report.

While it is true that the U.S. economy has now seen five consecutive months of job creation north of 200K, there are two serious concerns remaining. First, if the economy hopes to simply keep pace with population increases, then at least 250,000 jobs must be added monthly, which has not happened.

Second, the U.S. economy contracted by 2.9 percent last quarter, which was the largest contraction outside of a recession period. That means the economy must grow at nearly 3 percent this quarter if it hopes to clock in at zero growth on a yearly basis. If past performance over the past six years is any indication of future performance, then this is an unlikely feat.

The U.S. economy added 288,000 private-sector jobs

Israel Hamas conflict

Israeli firefighters try to extinguish a burning factory hit by a rocket fired by Palestinian militants from the Gaza Strip in the southern Israeli town of Sderot, Saturday, June 28, 2014. (AP Photo/ Tsafrir Abayov)

Israeli troops are building up on its border with the Gaza Strip after a night of Hamas-fired rockets hitting at least one residential neighborhood. IDF officials confirmed Thursday that 18 rockets have hit southern Israel since midnight, including two lobbed on residential buildings in Sderot.

While there were no injuries, one of the buildings hit was used as a nursery for infants. The Iron Dome anti-rocket system intercepted two of the rockets — one over Ashkelon and another over Netivot — but others fell in open areas. The Eshkol region was hit nine times, which prompted the Israel Air Force to conduct an attack on a mortar-launching cell in southern Gaza, which was successful.

The IDF claimed the Israeli Air Force struck 15 Hamas targets in response overnight. Still, four more rockets exploded in the Sdot Negev region, while another three exploded in Eshkol.

The fighting began earlier this week when the bodies of three kidnapped teenagers — one of which was also a U.S. citizen — were found in a shallow grave in the West Bank. The three youths disappeared as they were heading home from a West Bank religious school. Israeli officials said at the time that one of the teens called a police emergency line around 10:25 p.m. and said, “We’ve been kidnapped.” Unfortunately, they were not heard from again.

Israeli Prime Minister Benjamin Netanyahu had promised to make Hamas pay, claiming there was overwhelming evidence that the terrorist group was behind the attack. Even Sec. of State John Kerry said last week that it appears from U.S. intel reports that Hamas was behind the kidnapping.

“Hamas terrorists carried out Thursday’s kidnapping of three Israeli teenagers,” Netanyahu said earlier this month. “We know that for a fact. Hamas denials do not change this fact.”

The abductions outraged the Jewish state as well as their allies in the international community, resulting in Palestinian President Mahmoud Abbas condemning the abduction on June 16. However, Netanyahu said he would hold the Palestinian Authority responsible for any harm that would come to the teenagers, because Abbas has not only failed to reign in the violence but aligned with many elements of the group to stay in power. In fact, in early June Abbas formed a unity government that has the backing of Hamas.

Outrage broke out in Israel almost immediately after news of the shallow grave discovery hit the airwaves, resulting in an apparent revenge killing of an Arab teen in Jerusalem. The suspected revenge killing gave Hamas another reason to escalate the violence.

Five mortar shells were fired on Tuesday evening from the Gaza Strip toward southern Israel, landing in the Eshkol Regional Council. The timing was ill-advised to say the least, as Tuesday’s attack came during the funeral in Modi’in for the three kidnapped and subsequently murdered Israeli teenagers.

Early on Tuesday morning, the Israeli Air Force jets responded by hitting 34 targets in the Gaza Strip. Now, the situation has escalated into a Israeli military buildup, including tanks and heavy artillery on a scale not seen since late 2012.

[caption id="attachment_14337" align="aligncenter" width="630"] Israeli firefighters try

People's Pundit Daily
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