The party's already over so all we are doing now is waiting around for Wall Street and clueless policy-makers to reach the same conclusion...This situation reminds me of my younger days at the bar with my cousin when he would order six shots of whiskey for each of us at last call because he didn't want the party to end...good times. Of course Wall Street's complimentary Mix Master Bernanke has been pouring for four years straight and just now with 'QE Eternity', he opened all the bottles and put them on the bar. Of course, it's all fun and games until the hangover.
Faux News Says No to 'Redistribution' - Wait, unless of course, it's from bottom to top...
While we wait for the lights to come on, let's assess the damage that has already been incurred. Below are the only charts necessary to realize that the Middle Class left the party years ago and hasn't been back since. These are the scary stats that neither Presidential candidate nor the lamestream media wants to discuss.
While we wait for the lights to come on, let's assess the damage that has already been incurred. Below are the only charts necessary to realize that the Middle Class left the party years ago and hasn't been back since. These are the scary stats that neither Presidential candidate nor the lamestream media wants to discuss.
First, Median Household Income (inflation adjusted), from the latest U.S. Census data. This chart shows how fucked up this economy really is. This is what Main Street is trying to get across to the tone deaf morons running the country. Income below 1996 levels. Those were the Macarena days. And notice how income peaked twice - once in 2000 and again in 2007 both peaks coinciding with a top in the stock market. Yet this time we are again at/near a third multi-year peak in the stock market (shown at right), except this time, median income didn't come along for the ride. Since the top in 2007, it's been straight down. The country is now going in reverse. Five trillion dollars of new debt was added since 2008 and what does the middle class have to show for it - declining wages. Just to put things in perspective $5 trillion equates to $42,000 per household handed straight to the ultra wealthy via Obama & Co, specialists in reverse wealth transfers. I mean "Economic Recovery". This income data just further bolsters my assertion that the corporate plutocracy used "Shock Doctrine" principles during the 2008 crisis to give cover for outsourcing the middle class. Of course, what comes around goes around, as the middle class can no longer afford iPads and other non-essential trinkets, so overall corporate revenues are shrinking. The economy is a zero sum game between wages and profits, with a limited time to expiration. The stock market went up as profits were squeezed out of the middle class, a strategy that has now reached its predictable bad ending with the nascent decline in corporate revenue. The salesmen of the day killed their own market. And what more proof do we need, to show that monetary policy is only benefiting the ultra wealthy at this point and otherwise obliterating the middle class via higher commodity (food and energy) prices i.e. stocks straight up, inflation-adjusted incomes straight down.
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This second chart makes fools out of all the cheerleaders who say that the jobs market is improving. We are constantly told that the unemployment rate is falling, however, it's only falling because people have given up looking for work. In other words, some corrupt government bureaucrats have decided that as more and more people give up finding jobs, the unemployment rate should fall, falsely signalling an improving job market. With fucked up logic like that, it's only a matter of time before the unemployment rate will soon be at 0%. And then won't the politicians be surprised when the streets are lit up like the Fourth of July, even though it's not a holiday.
Here below from the Bureau of Labor statistics is the real story. The percent of the eligible U.S. population that is gainfully employed. Once again, cliff diving. This chart goes back to 2002, so clearly despite the multi-trillions wasted on "fiscal stimulus" the Middle Class are getting ploughed under. No surprise, the trillions fell straight to the bottom line, bypassing the Middle Class.
Instead of me making yet another dire prediction, I leave to you to draw your own conclusions as to how all this turns out.
