With the 2010 mid-term elections now less than 4 weeks away in November, the Obama Administration and Democrats may not like the latest economic news. Today, ADP reports that 39,000 private sector jobs were lost in September. Friday’s jobs report from the Bureau of Labor Statistics is expected to also show a major decline in jobs for September, increasing the national unemployment rate to 9.7%. Earlier this week, Federal Reserve Chairman Ben Bernanke raised more warnings about the National Debt and it’s impact on our economic future. Even the International Monetary Fund said today that the short-term outlook for GDP growth is poor.

A woman holds her fist up in reaction to a speaker at a rally for unemployed people on the steps of Federal Hall in New York September 1, 2010. REUTERS/Lucas Jackson (UNITED STATES - Tags: CIVIL UNREST EMPLOYMENT BUSINESS)

The last few days have seen gains in the stock market, but at the same time, gold has rocketed to new highs. This morning, gold is close to hitting $1350 a Troy ounce! All of this comes as more bad news on consumer confidence and lower spending, which dropped 3.5% in 2009 for the middle class. Income fell as well for both the middle class and the poor last year according to the Labor Department.

Goldman Sachs economist Jan Hatzius calls for the U.S. economy to be somewhere between “fairly bad” and “very bad”. He defines “fairly bad” as “the economy grows at a 1.5-2% rate and unemployment rises to 10%. His definition of “very bad” is where the economy double-dips back into a recession.

Employment consultants at Challenger, Gray & Christmas, Inc. report today that planned layoffs by U.S. companies is also up by 7% from August. The trend and surveys indicate that another 37,151 jobs were lost in September. With the need to create 150,000 jobs per month just to keep up with population growth, there seems to be no end to unemployment for years.

Which is probably why the IMF issued it’s dark assessment today, downgrading U.S. economic forecast. In addition to low GDP growth (if any at all) for 2011, the IMF is also predicting that the U.S. real estate market will continue to be troubled for another 8 years! Think about that one! Eight more years of a bad market for housing and commercial properties!

On top of all of this, a currency and trade war is heating up as China flexes it’s economic muscle on the U.S. and the world at large. The U.S. dollar has been getting hit hard as the 10-year Treasury note continues to be dragged through the mud. Other currencies are also being impacted. The Euro is in even worse shape. Even Brazil has been tightening the screws as a global currency war is played out like a game of ‘Chicken’ to see who can devalue their money faster.

None of this is good news in Washington. The Obama Administration continues to promote how successful their stimulus plan, as well as how their reforms of health care and Wall Street are putting America in the right direction. But all of the news show the exact opposite to be true. Major companies such as 3M are seriously looking at cutting health care benefits for their employees. Insurance premiums are still rising rapidly under Obama Care. What coverage that is provided is being reduced.

Between the latest reports by ADP and Challenger, Gray & Christmas on declining jobs, and the IMF warnings on stagnant GDP growth, declining consumer spending and high unemployment, the prospects for Obama and the Democrats look bleaker today for the 2010 mid term elections. November 2nd is now just 27 days away, many Democrats face their own unemployment. They and Obama have screwed up the U.S. economy so much in the past two years that no amount of blaming George Bush and the GOP will save them from utter defeat.

SAN FRANCISCO - SEPTEMBER 15: Demonstrators carry signs as they stage a protest demanding government action to create jobs outside of U.S. Sen. Dianne Feinstein's (D-CA) office on September 15, 2010 in San Francisco, California. Dozens of protestors demonstrated outside of Sen. Feinstein's office urging the senator to end the recession by creating jobs. (Photo by Justin Sullivan/Getty Images)

Related Articles:

ADP Estimates U.S. Companies Cut 39,000 Jobs in September

Middle Class Slams Brakes on Spending

Planned Layoffs Edge up in September

IMF: Global Financial Systems Hinders Economic Recovery