Mish's Global Economic Trend Analysis

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Fear vs. Anger: Door-to-Door Fear-Mongering in Ireland on Merkozy Referendum; Expect Fear-Mongering in Greece as Well Posted: 20 May 2012 10:07 AM PDT Door-to-Door May Drive Irish Towards Yes Vote in Referendum on Merkozy Pact. In a hard-fought battle to convince Irish voters to back Europe's unpopular fiscal discipline treaty, Ireland's deputy finance minister has the task of convincing the leafy Dublin suburb of Templeogue. Going door-to-door, Brian Hayes faces scepticism and occasional abuse. One constituent calls him "a waste of space", another "just a yes man". "If Greece goes down we are next in the firing line. I know people who are trying to put their money into US dollars. We just don't know what is going to happen here," says Mr O'Reilly. "This referendum is all about fear on the one side and anger on the other," says David Farrell, professor of politics at University College Dublin. "Most people have no great deal of enthusiasm for it and will only vote reluctantly in this referendum." "The sight of soup kitchens in Greece on TV screens is concentrating minds," says Mr Hayes, as he goes door-to-door hammering home his message. The dominant theme of the campaign so far is a claim by the government that rejecting the treaty would bar Ireland from receiving funds from Europe's new bailout fund – the European Stability Mechanism. Without this insurance policy, Dublin says, Ireland will struggle to exit its EU and International Monetary Fund bailout programme on schedule at the end of 2013. "The government is scaremongering rather than arguing the merits of the treaty. Most people are opposed to this treaty but are scared out of their wits," says Paul Murphy, a Socialist member of the European Parliament and prominent No campaigner. Nothing bad can possibly happen if this treaty is rejected. Accepting more bailout funds from the IMF or ESM would be the absolute worst thing for Ireland. Indeed, accepting funds from the Troika is one of the things that destroyed Greece, and it is pathetic that clueless, brainless, scare-mongering political shills for Brussels are now going door-to-door in an attempt to convince Irish voters the exact opposite. Heading into the Greek June 17 national elections, expect to see door-to-door fear-mongering in Greece as well. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

First Time Ever - Majority of Unemployed Have Some College Education; Five Solutions to Education, Student-Loan Crisis Posted: 19 May 2012 11:42 PM PDT Those who think the answer to the unemployment problem is more education might be surprised to learn the Majority of Unemployed Attended College. For the first time in history, the number of jobless workers age 25 and up who have attended some college now exceeds the ranks of those who settled for a high school diploma or less. Out of 9 million unemployed in April, 4.7 million had gone to college or graduated and 4.3 million had not, seasonally adjusted Labor Department data show. click on chart for sharper image In 2011, 57% of those 25 and up had attended some college vs. 43% in 1992. Those without a high school diploma fell from 21% to 12% over that span. But along with the increasing prevalence of college attendance has come a growing number of dropouts, who have left school burdened by student loan debt but without much to kick-start their careers. Among everyone up to age 24 who has left college or earned a two-year degree — including those not actively searching — the full-time employment-to-population ratio has plummeted from 69% in 2000 to 62% in 2003 to 54%. This has occurred even as student lending and enrollment at community colleges has soared, elevating the student loan crisis to the center of political debate and a rallying cry for the Occupy Wall Street movement. Those who graduated with a four-year degree fared better employment-wise but many of those still struggle with student loans. Many other end up underemployed in retail sector jobs as opposed to the curriculum they studied. Student loans are a trillion dollar problem, and growing every quarter. President Obama wants more student loans, but all that does is make many graduates debt slaves for the rest of their lives. The cost of education is preposterous and the solutions are easy to describe. Five Solutions Kill federally funded student loan program entirely. Student loans do nothing but drive up the cost of education. Anyone can get a student loan because the loans are guaranteed and cannot be discharged in bankruptcy. The beneficiaries of this horrendous setup are teachers and administrators, not the kids receiving loans. Kill state aid to colleges as well Increase competition by accrediting more online universities, even foreign universities. This will drive down costs immensely. Public unions are a huge part of the reason for driving up teacher salaries, so collective bargaining (collective coercion actually), must end. High school counselors and parents must educate kids that there simply are no realistic chances for those graduating with degrees in political science, history, English, art, and literally dozens of other useless or nearly-useless majors. The deflationary overhang of student debt is enormous. Those in debt will postpone buying homes, getting married, starting families, and spending money in general. The only solution is to ensure kids to not get into massive debt in the first place. The way to achieve that is to drive down the cost of education. Sadly the Obama administration (like many before it and many at the state level as well) has done nothing but throw money at the problem, rewarding unions and administrators while making debt slaves of kids as education costs spiral out of control. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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