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Politics, Video

In the final segment of Friday’s edition of HBO’s Real Time, Bill Maher ripped into liberals for their “Islamophobia kills” campaign, calling out hypocrisy over “bullying.”

“Yeah, liberals hate bullying alright but they’re not opposed to using it when they causally through out words like bigot and racist,” Maher said. “It does cower people into avoiding this debate. And if you’re doing that, you don’t get to wear the ‘Je suis Charlie’ button; the button you wear is ‘Je suis party of the problem.’ And that goes for everybody.”

Maher, a devout liberal and outspoken critic of Islam, also tore into Catholic League president Bill Donahue for blaming the editor of Charlie Hebo for not understanding what Donahue described as “the role he played in his tragic death.” Maher equated the logic to blaming a woman for being rape because she was wearing provocative clothes.

“It reminds me of one of those protest signs that I saw up in Berkeley last month; it said: ‘Islamophobia kills.’ Does it?” Maher asked. “The phobia kills? Or maybe it’s more the AK-47s, and the beheadings, and the planes into buildings.”

BILL MAHER: Now that it’s been a month since I gave the commencement address at Berkeley someone needs to check in with the people who tried to have my speech canceled, and make sure they made it though okay.

Also, since they were protesting me for once saying “Islam is the only religion that acts like the mafia (and will) kill you if you say the wrong thing or draw the wrong picture,” and then two jihadists gun down 12 people in Paris for saying the wrong thing and drawing the wrong picture, you have to tell me where do I go to protest you?

The march we saw in Paris last Sunday with the leaders of 44 countries standing up for free speech was very heartening. But unfortunately, not everybody got the memo, like the Pope and his American vigilante Bill Donahue. Bill is the head of the Catholic League and as such he’s called me an anti-Catholic bigot so many times it’s now my ringtone. Bill also once took umbrage at my stance on pedophilia, on against it, and threatened to — I guess this is a Catholic thing now — punch me in the nose. Because whether you’re representing the prince of peace or the religion of peace threatening violence is a great way to drive home the point that you’re secure in your medieval beliefs.

Last week, Mr. Donahue wrote that it was too bad Charlie Hebdo’s publisher, “didn’t understand the role he played in his tragic death,” which is like saying the rape victim didn’t understand that her clothes were too provocative. And that’s the great irony of Bill Donahue. He’s a staunch advocate for a religion which considers masturbation a sin and yet he’s a huge jerk off.

Glenn Greenwald says anti-Muslim speech like the cartoons in Charlie are, “a vital driver in bombing and occupying Muslim countries and killing the innocent.” Really? Newspaper cartoons did all that? Wait until they get to the horoscopes and the crossword. It reminds me of one of those protest signs that I saw up in Berkeley last month; it said: “Islamophobia kills.” Does it? The phobia kills? Or maybe it’s more the AK-47s, and the beheadings, and the planes into buildings.

(MAHER to audience): Anyway, wow, you don’t agree with that?

Thank you. Thank you. Hey one guy, thank you.

You’d think that someone like Glenn Greenwald wouldn’t be so ambivalent about terrorism since terrorism is really just bullying. Extreme bullying. And I thought that we hated bullying now? When it happens in high schools these days people go nuts. When I was a kid adults just shrugged and said, “kids are assholes, what are you going to do?”

Yeah, liberals hate bullying alright but they’re not opposed to using it when they causally through out words like bigot and racist. It does cower people into avoiding this debate. And if you’re doing that, you don’t get to wear the “Je suis Charlie” button; the button you wear is “Je suis party of the problem.” And that goes for everybody.

This may surprise you, but I am not a big fan of Rush Limbaugh. However, if you’re one of the people with a website devoted to making him go away, you are part of the problem. Ironically you’re not even a proper liberal because you don’t get free speech. You’re just a baby who can’t stand to live in a world where you hear things that upset you. Oh, you’re not alone.

In much of Europe denying the Holocaust is a crime. It shouldn’t be. The French arrested an anti-Semitic comedian this week for his comments about the attack, which were vile, but opinions shouldn’t be illegal. Everyone can always come up with a reason why the thing that bugs you should get a waiver. But free speech only works if there are no waivers. No waivers. Including for religion.

Like, say you are, and I’m just picking a religion at random here — Muslim. And you love, love, love you some Islam. It’s what uplifts you and inspires you and you can’t imagine your life without for what everyone doesn’t love it too. Believe me, I get that, that’s how I feel about weed. But when someone criticizes weed, I think, “good, more for me,” not off with their head. And as a comedian I like it that jokes can hurt. I like it that Kim Jong-un was wounded by a movie. If you’re a satirist, that’s winning. Kim Jong-un hates jokes, he doesn’t get them and he takes them too seriously, which proves something I’ve always expected about him. He’s a lesbian. (HBO’s Real Time with Bill Maher, January 16, 2015)

In the final segment of Friday's edition

US

scotus-gay-marriage

Supporters of gay marriage wave a rainbow flag in front of the US Supreme Court, March 26, 2013 in Washington. (Photo: AP)

The Supreme Court will review a ruling that upheld gay marriage bans in four states — Kentucky, Michigan, Ohio and Tennessee — and a decision is expected by late June.

The Friday announcement sets the stage for what could be a historic ruling if the justices decide same-sex couples have a right to marry everywhere in America under the Constitution. Whether an opponent or proponent, the ruling would mark a massive expansion of federal power over state sovereignty and voters’ approved legislation.

The cases will be argued in April, and proponents of gay marriage said they expect the court to settle the matter indefinitely and invalidate voter-approved and legislature passed state provisions that define marriage as between a man and a woman.

“We are now that much closer to being fully recognized as a family, and we are thrilled,” said April DeBoer, a hospital nurse from Hazel Park, Michigan, after the justices said they would hear an appeal from DeBoer and partner Jayne Rowse. “This opportunity for our case to be heard by the Supreme Court gives us and families like ours so much reason to be hopeful.”

Attorney General Eric Holder said the Obama administration would urge the court “to make marriage equality a reality for all Americans.”

Proponents of traditional marriage want the court to let the political process play out, preserve state sovereignty and respect the will of the voters, rather than override them with their own will.

“The people of every state should remain free to affirm marriage as the union of a man and a woman in their laws,” said Austin R. Nimocks, senior counsel for the traditional marriage group Alliance Defending Freedom.

Due to federal justices overturning voter- and state government-approved bans, same-sex couples can now marry in 36 states and the District of Columbia, which is nearly double what it was just three months ago, when federal justices, who initially declined to hear gay marriage appeals, reversed the trend beginning with five states. Currently, there are only 14 states where same-sex couples cannot get married.

The court’s decision marks only the fourth time in 27 years they will weigh in on cultural and societal norms. In 1986, a 5-4 ruling on Bowers v. Hardwick, 478 U.S. 186, which was the first of those cases, upheld Georgia’s anti-sodomy law in a devastating defeat for gay rights advocates. The majority opinion, written by Justice Byron White, argued that the Constitution did not confer “a fundamental right to engage in homosexual sodomy.”

However, the following three rulings, all written by Justice Anthony Kennedy, a supposed 10th Amendment (states’ rights) champion, were devastating defeats to proponents of traditional marriage. In its most recent case on the Defense of Marriage Act (DOMA) in 2013, the court struck down part of a federal law defining marriage as between a man and a woman. Ever since that decision was handed down, federal justices have cited the precedent in their rulings overturning gay marriage bans.

The court is extending the time it usually allots for argument from an hour to two-and-a-half hours, and will consider two related questions.

The first is whether the Constitution requires states to issue marriage licenses to same-sex couples and, the second, is whether states are required to recognize same-sex marriages performed in other states.

The federal appeals court responsible for the four states in question upheld their gay marriage bans in November, reversing the rulings of lower court federal judges in all four states. But that was the first ruling by an appellate court that upheld gay marriage since the 2013 decision. Judge Martin Feldman also upheld Louisiana’s gay marriage ban, ruling that representative in the state have the right to ban same-sex couples from marrying.

“The court is persuaded that a meaning of what is marriage that has endured in history for thousands of years,” Judge Feldman wrote, adding it “prevails in a majority of states today, and is not universally irrational on the constitutional grid.”

In Arkansas, Mississippi, Missouri, South Dakota and Texas, judges have also struck down gay marriage bans, which remain in effect pending appeals. In Missouri, same-sex couples can marry in St. Louis and Kansas City only.

There have been no rulings on lawsuits in Alabama, Georgia, Nebraska and North Dakota.

The Supreme Court will review a ruling

US

teen-crime-couple

Dalton Hayes, 18, and his 13-year-old girlfriend Cheyenne Phillips, the teen crime couple, have been referred to as “Bonnie and Clyde” in local media.

A teen crime couple, dubbed “Bonnie and Clyde” by local media, have embarked on a crime spree across the South, stealing vehicles and pilfering checks. The teenage sweethearts were spotted in Florida, according to a report from The Washington Post.

Dalton Hayes, 18, and his 13-year-old girlfriend Cheyenne Phillips, have eluded authorities and are now believed to be traveling around in a stolen truck with two guns. Phillips allegedly convinced the boy and his family that she was 19, and disappeared with Hayes nearly two weeks ago after last being seen in Grayson County in Kentucky.

Norman Chaffins, the sheriff of Grayson County, did not want to tip off the teens by disclosing the specific town. He did, however, make perfectly clear that the mood of the investigation and hunt will soon change if the teens do not turn up and turn themselves in.

“There’s going to come a time when we’re not going to see him as an 18-year-old kid,” Chaffins said. “We’re going to see him as someone who’s stolen three vehicles with two handguns in them, and the outcome is not going to be good for either one of them if they don’t turn themselves in.”

Hayes and Phillips simply disappeared on Jan. 3 from their small hometown in western Kentucky, according to Sheriff Chaffins sheriff. The authorities believe the teen crime couple have traveled to South Carolina and Georgia.

Hayes’ mother is pleading with the young couple to turn themselves in and “face the consequences.”

“I pretty much cry myself to sleep every night worrying about where they are and if a police officer or any random individual tries to pull them over and isn’t so nice and hurts them,” Tammy Martin said.

The two had been a couple for around three months, and by the time her son realized she was a mere 13, “he was already done in love with her,” his mother said.

“She (Cheyenne) would go in and write checks, and she would come out with cigarettes and stuff, so I didn’t have any reason not to believe she wasn’t 19. Because normally you can’t buy cigarettes when you’re 13 years old,” Martin said.

Hayes faces burglary and theft charges from last year in his home county, according to Grayson County court records. He was planning to be at the local judicial center on Jan. 5 to find out if a grand jury had indicted him on the charges, according to his mother. But, she says his case had not yet come up. Now, he’s gone.

However, Sheriff Chaffins is concerned the couple’s behavior is “becoming increasingly brazen and dangerous.”

“They’re going on people’s property,” Sheriff Chaffins said, adding that without money, “they’re going to get desperate.” “They’re forging checks to get money. … They could have stopped in Kentucky, but they didn’t.”

Chaffins believes Hayes is calling the shots, which has thus far been pretty successful. They have twice eluded authorities in close calls, despite crashing a stolen truck and hiding only in a patch of woods. The couple stole another truck and quickly made their escape.

If the South Carolina pattern holds, the two will be attempting to pass stolen or bogus checks in a Wal-Mart somewhere in Florida. They were seen in a vehicle that apparently was stolen from Kentucky, the sheriff said.

Martin said her son texted her a few days after the couple left South Carolina and said they were in Mississippi. But they were spotted soon after that in Kentucky.

“He was just trying to throw me off,” she said. “I’m sure he thought that I would call the police and tell them where he was.”

The longer the chase goes on, the more serious the situation becomes, says Chaffins.

“This is not a game to us,” Chaffins said. “Our biggest fear is that Dalton is not going to stop for the police. He’s going to run every time they approach him.”

A teen crime couple, dubbed "Bonnie and

World

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President Barack Obama and British Prime Minister David Cameron hold a joint news conference in the East Room of the White House in Washington, Friday, Jan. 16, 2015. Growing fears about the specter of terrorism in Europe and the West are lending themselves to a sense of trans-Atlantic solidarity as President Barack Obama and British Prime Minister David Cameron met at the White House. (Photo: AP/Carolyn Kaster)

President Barack Obama and British Prime Minister David Cameron Friday explained their joint-effort to lobby Congress against passing an Iranian sanctions bill. The leaders of the trans-Atlantic alliance said any new effort to impose sanctions on Iran could “fracture the global coalition and jeopardize negotiations.”

However, the carefully crafted responses were also meant to send a message to Iran.

“I don’t doubt the intentions of members in Congress, but it’s my team at the table,” President Obama said. “I will be the first one to go to Congress if the talks fail, but I am requesting Congress hold off for a few months.”

The president said he takes no option off the table, and any discussion of a response to a failed deal would also include military action.

Prime Minister Cameron said the choice was clear and “rather simple.” He said either allow the talks to move forward or take military action to prevent Iran from obtaining a nuclear weapon. President Obama, as well, said a failure would likely lead America and the United Kingdom little choice but to confront the inevitability of military action.

However, when asked to clarify if a failed deal would put America and its allies on “a war-footing” with Iran, the president backed off from the heightened rhetoric.

“I am not, repeat not stating that we are on an immediate war footing with Iran if negotiations fall,” Obama said. But as David put it, it’s simple.”

The president did admit that the chances “are less than 50/50” that a deal will be reached, but considering the alternative is war it worth the effort. Meeting with Democrats Thursday in Baltimore, Maryland, Obama and Sen. Bob Menedez (D-NJ) traded “sharp words” over the issue, with the Democratic senator growing frustrated by the fact the president didn’t seem to care that if nuclear talks failed, then the U.S. could not be expeditiously impose new sanctions.

Cameron also admitted to calling a number senators to discuss the issue.

“Yes, I did call members of Congress. I spoke to a number of senators this morning, and will speak with 2 or 3 more later this afternoon,” Cameron said. “Not as the Prime Minister of the United Kingdom trying to tell the U.S. Congress what to do, because that wouldn’t be right. But to let them know that it is my opinion that any further legislation at this time could jeopardize the very important negotiations.”

It is rare for another world leader to essentially lobby Congress on a piece of pending legislation. In fact, it has happened at no time in recent American political history.

President Barack Obama and British Prime Minister

Politics

obama-republicans-meeting

President Obama, center, meets with House Speaker Jon Boehner, left, and new Majority Leader Mitch McConnell, right, on January 13, 2014. (Photo: AP)

President Obama told Senate Democrats in a private meeting that he will “play offense” with the new GOP-majority Congress, and any Democrat not aboard. In a gesture that shows little hesitation about fighting with Republicans for the next two years, he vowed to issue a slew of new executive orders to tempt the new majority into a congressional crisis.

Congressional sources said Thursday Obama also threatened to fight any Democrat willing to compromise or work with the Republicans on several issues where compromise appears possible. Obama’s comments, which a few members clearly viewed as a threat — came during a summit in Baltimore, Maryland. Republican leadership, which met with the Obama on Jan. 13 at the White House, rallied their lawmakers at their own summit in Hershey, Pennsylvania.

The president already issued a series of veto threats in the opening days of the 114th Congress, including the legislation on the Keystone XL pipeline, which has passed the House and is making its way to the Senate. According to a recent PPD Poll, roughly 70 percent of American adults support the projects construction.

Yet, the president not only said he will veto that legislation, but also other pieces of legislation that have bipartisan support, such as legislation imposing additional Iran sanctions. That bill is being authored by Sens. Robert Menendez (D-NJ) and Mark Kirk (D-IL). According to The New York Times, Sen. Menendez and Obama traded “sharp words” over the issue at Thursday’s meeting, with the Democratic senator growing frustrated by the fact the president didn’t seem to care that if nuclear talks failed, then the U.S. could not be expeditiously impose sanctions.

Sen. Bob Corker (R-TN) said Thursday at the GOP retreat that Congress would seek to have a vote on any nuclear deal the U.S. and its allies strike with Iran.

Meanwhile, the House voted 236 to 191 Wednesday to block the president’s executive order on immigration, which was issued last November. The order will defer deportation for millions of illegal immigrants and offer them work permits. Currently, nearly half of the country are suing President Obama in federal court over an abuse of power. This past week, we learned the court will listen to president Obama himself stating some 25 times that he did not have the authority to issue such an order if the court finds the states have standing.

Obama met with congressional leaders of both parties at the White House earlier this week to give the appearance of bipartisanship, but the first two weeks of the congressional session point to a rough two years ahead.

Asked Thursday about the White House meeting with the president, House Speaker John Boehner said they had a “nice” and “polite” conversation.

“But I don’t know that we learned a whole lot,” he said, adding it’s “too early to tell” whether Obama got the message from the historic electoral defeat his party suffered largely due to him in 2014.

“I’m the guy born with the glass half-full. And I believe hope springs eternal,” he said. “The American people want us to find a way to address their concerns. That was the big message out of the elections. You hear it from our members on both sides of the Capitol. I’m hoping the president heard the same message.”

Judging by President Obama’s willingness to threaten his own party as well as Republicans, the glass half-full approach appears to have failed.

President Obama told Senate Democrats in a

Politics

joni-ernst

Sen Joni Ernst (R-Iowa), right, talks with a reporter on Capitol Hill in Washington, Tuesday, Jan. 6, 2015, before being sworn-in for the 114th Congress in Washington. (Jacquelyn Martin, AP / AP)

Majority Leader Mitch McConnell announced Thursday freshman Republican Sen. Joni Ernst of Iowa will be giving the party’s State of the Union (SOTU) rebuttal.

“Americans voted for change in the last election, and Joni understands that middle-class Americans want Congress to get back to work and that they want Washington to get refocused on their concerns, instead of those of the political class,” he said, adding that Ernst has a “unique” connection to everyday folks.

Ernst, a rising GOP star and first woman senator elected from Iowa and first female combat veteran to serve in the U.S. Senate, gained headlines and support for her ad “Squeal,” which equated castrating pigs with her ability to cut spending and “make them squeal” in Washington. She handily won the party nomination in a crowded field before defeated Democratic Rep. Bruce Braley is a race most pundits, except PPD, thought to be a Democratic-leaning contest.

“I am truly humbled and honored to have this opportunity to deliver the Republican address,” Ernst said. “It is a long way from Red Oak to Washington, D.C., and growing up on a Southwest Iowa farm years ago, I never, never would have imagined that I would have this opportunity.”

Party members and leadership have praised Ernst for her military service, running stellar campaign, her political talent and energy.

House Speaker John Boehner, noted that Ernst “built a campaign by listening to the people of Iowa and focusing on their priorities, especially jobs and our still-struggling economy.” Plus, “she knows first-hand the sacrifices our men and women in uniform make to keep us all safe in a dangerous world.”

The choice to select Ernst is telling one. It indicates that the party is seeking to show the American people they are capable of governing responsibly, but also suggests party leadership is reaching out to their more conservative members. Ernst opposes amnesty and federal funding for abortion through ObamaCare, both issues conservatives feel they are being sold out on.

“[Ernst] built a campaign by listening to the people of Iowa and focusing on their priorities, especially jobs and our still-struggling economy,” House Speaker John Boehner said, adding “she knows first-hand the sacrifices our men and women in uniform make to keep us all safe in a dangerous world.”

Still, the choice to have a woman deliver the Republican response for the second year in a row may have been an easy one for the party heads to make, but it carries risk for Ernst, herself. A SOTU rebuttal can signal the beginning of a rising star’s career, but it also can stop it right in its tracks.

Last year, Rep. Cathy McMorris Rogers (R-WA), won high praise for her address. But Florida Sen. Marco Rubio saw a different reaction after he repeatedly reached for a bottle of water during his address. Louisiana Gov. Bobby Jindal was widely criticized for the delivery of his speech in 2009. Jindal, a bright politician and fast speaker, was clearly out of his comfort zone. What they decide to focus on sometimes gets overshadowed by delivery.

Still, Ernst adds a folksy Iowan, everyday American element that — if delivered effectively — would make a good start for the new Republican majority.

“Like so many of our colleagues, our folks back home sent us to Washington, D.C. with a clear mission, and that mission is to get to work,” Ernst said. “That mission is to craft and implement good policies and good solutions, which will enable us to get America on a better path.”

Majority Leader Mitch McConnell announced Thursday freshman

World

mullah-abdul-rauf-former-gitmo-detainee-joined-isis-afghanistan-recruiting-featured

Mullah Abdul Rauf, a former Taliban commander and Gitmo detainee, has established an ISIS base in the Helmand province in Afghanistan. (Photo: Islamic State affiliated Twitter account.)

A former Gitmo detainee released by the Obama administration established the first Islamic State (ISIS) base in Afghanistan, according to numerous reports. Mullah Abdul Rauf, a former Taliban commander and prisoner at Guantanamo Bay, is now in charge of recruiting members of the Afghanistan Taliban, and is even tapping tribal leaders that deal directly with the western-backed government.

“Many tribal leaders, jihadi commanders, some ulema [members of the religious council] and other people told me that Mullah Rauf had contacted them and invited them to join him,” General Mahmood Khan, the deputy commander of the army’s 215 Corps said.

Rauf, by all accounts, has been extremely successful, thus far.

mullah-abdul-rauf-recruits-taliban-isis

Several Taliban leader are seen swearing their allegiance to ISIS leader Abu Bakr al Baghdadi in a video posted on social media. (Photo: Twitter)

General Khan, the head of the Afghan army unit responsible for the Helmand province, said those recruited by Rauf have been replacing white Taliban flags with the black flag of ISIS, left and right. He said they were trying to win popular support for ISIS among these groups, because they were “preparing to fight” in the spring.

The news comes less than a day after President Obama released five Gitmo detainees against the wishes of both Congress and the American people. PPD recently examined public opinion on the issue over the years since 9/11, and found that closing Guantanamo Bay in consistently a far left position only. Yet, President Obama continues to move closer to fulfilling his 2008 campaign promise, releasing another 6 Gitmo detainees just in December, alone.

Now, of those just released, four of the five prisoners — Al Khadr Abdallah Muhammad Al Yafi, Fadel Hussein Saleh Hentif, Abd Al-Rahman Abdullah Au Shabati, and Mohammed Ahmed Salam — are being sent to Oman. The fifth, Akhmed Abdul Qadir, was transferred to Estonia, which marks the first time either country has accepted former Guantanamo detainees from the United States.

“We are committed to closing the detention facility. That’s our goal and we are working toward that goal,” said Ian Moss, a spokesman for the U.S. State Department on Guantanamo issues.

All five were captured in Pakistan, detained by the U.S. on suspicion of being al Qaeda fighters, and were held for nearly 12 years before they were cleared for release in 2009, immediately after President Obama took office. According to documents obtained by the government watchdog group Judicial Watch, which were shared with PPD, Rauf was designated to have the same risk level and intelligence level as several of the five just released.

The documents state Rauf “was in a position to have extensive knowledge of the opium trade in Afghanistan,” which Afghan military officials say are now being put to use by the Islamic State, adding to their already-lucrative kidnapping and black-market oil ventures.

Nearly 30 prisoners were resettled in third-party countries last year as part of Obama’s renewed push to close the detention center, despite the high rate of “return to the battlefield” former Gitmo detainees have demonstrated. U.S. intel officials recently told PPD upwards of 30 Guantanamo Bay detainees released by the Obama administration in the last two to three years have joined the Islamic State, while the overall percentage is conservatively estimated to be 30 percent.

“It’s clear that we need a time out,” Sen. Kelly Ayotte (R-NH) said at a press conference. “Now is not the time to be emptying Guantanamo.”

A few weeks ago, Judicial Watch uncovered documents revealing a $5 million reward for information on the whereabouts of a Saudi national named Ibrahim al-Rubaysh, an al Qaeda operative who had been freed from Gitmo a few years ago. The U.S. government has now put al-Rubaysh on a global terrorist list.

Meanwhile, all five of the Gitmo detainees released early Thursday morning — when Americans were asleep — were from Yemen, the stronghold of the very group that claimed responsibility for the Paris terror attack on Charlie Hebdo last week.

A former Gitmo detainee released by the

Economy

(Photo: Reuters)

U.S. factory activity in the mid-Atlantic region slowed in January, according to firms responding to this month’s Manufacturing Business Outlook Survey.

The Philadelphia Federal Reserve Bank said its business activity index fell to 6.3, which is the lowest since February 2014, plummeting from 24.3 in December. That widely missed economists’ expectations for 19.9, according to a Reuters poll.

Any survey reading above zero indicates expansion in the region’s manufacturing sector, which covers factories in eastern Pennsylvania, southern New Jersey and Delaware.

Along with The New York Federal Reserve’s Empire State Manufacturing Survey, the index are seen as one of the first monthly indicators of the health of U.S. manufacturing leading up to the national report by the Institute for Supply Management.

The predominant New York manufacturing index emerged from contraction territory in January, clocking in at 9.95 from -1.23 the month prior. It was the first contraction in regional manufacturing activity in two years.

The survey’s broadest measure of manufacturing conditions — the diffusion index of current activity — decreased 18 points from a revised 24.3 in December to 6.3 (see Chart 1). Demand for manufactured goods decreased 5 points, down from a revised reading of 13.6 last month to 8.5. Further, shipments also fell, with its index bottoming out 22 points to -6.9, its first negative reading since February 2014. Firms reported shorter delivery times and a decrease in unfilled orders this month, on balance.

As with the Empire State Manufacturing Index, signs of a weakening labor market in manufacturing were present.

“Firms’ responses suggest weaker labor market conditions in January. The percentage of firms reporting a decrease in employees (15 percent) exceeded the percentage reporting an increase (13 percent) for the first time in 19 months,” the report stated. “The current employment index fell 10 points, from 8.4 to -2.0. Firms also reported reductions in the workweek: The percentage of firms reporting a shorter workweek (23 percent) was greater than the percentage reporting a longer workweek (16 percent).”

U.S. factory activity in the mid-Atlantic region

Economy

The number of Americans filing first-time jobless claims for benefits last week increased to the highest level since early September, exceeding 300,000.

The Labor Department said on Thursday that weekly jobless claims for state unemployment benefits rose by 19,000 to a seasonally adjusted 316,000 for the week ended Jan. 10, while the prior week’s data was once again revised to show 3,000 more claims received than previously reported.

Economists polled by Reuters had forecast claims falling to 291,000 last week.

The four-week moving average of claims — which is considered a better measure of labor market trends as it irons out week-to-week volatility — increased by 6,750 to just under 300,00, up to 298,000 last week.

Though it has remained below the pivotal 300,000 for 18 weeks, a strengthening labor market it is not. Though employment gains have exceeded 200,000 in each of the last 11 months, which is the longest stretch since 1994, part-time jobs, zero wage growth, low participation and employment-population ratios continue to plague the American people.

Still, nearly 3 million new jobs were created last year, which is the strongest increase in one year since 1999. However, in the Reagan recovery, one month alone created 1 million jobs, which paid more in a far smaller workforce.

The claims report showed the number of people still receiving benefits after an initial week of aid fell by 51,000 to 2.42 million in the week ended Jan. 3, as more and more Americans find long-term unemployment shrinking the eligibility number.

The number of Americans filing first-time jobless

Economy

producer prices and Ford factory worker

Producer prices reported by the Labor Department. A Ford Factory worker on the assembly line. (Photo: REUTERS)

The Labor Department reported Thursday its producer price index (PPI) declined 0.3 percent in December, the biggest drop since October 2011, after falling 0.2 percent in November.

Economists polled by Reuters had forecast the PPI dropping 0.4 percent in December and increasing 1.0 percent from a year ago.

Excluding the food and energy components, prices rose 0.3 percent in December, compared to economists’ expectations of 0.1 percent increase. Last month, wholesale energy prices dropped a record 6.6 percent after falling for six straight months, fueled by falling crude oil prices, weakening global demand and increased shale production in the United States.

A broader measure of underlying producer inflation pressure — which excludes food, energy and trade services — actually increased 0.1 percent last month, after being flat the month prior. In the 12 months through December, it was up 1.3 percent.

The index comes as the Federal Reserve is deciding its next step on monetary policy, though experts expect the policy-making committee to begin to raise rates in June, or mid-2015.

The Labor Department reported Thursday its producer

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