Friday, November 21, 2014

It's Official: Party Like It's 1933

The Collapse Behind the Smoke and Mirrors

The hypothesis of this blog has always been that imported Third World deflation would swamp the Developed World and force a latent convergence of living standards. 2008 of course appeared to be that "Minsky" Moment, but then Bernankenstein and the League of Extraordinary banksters went dumpster diving and rescued Globalization from self-implosion. Or did they?

Wage Deflation + Cost of Living Inflation = Middle Class Annihilation
Post-2008, Third World deflation indeed flooded the developed world, but recognizing that, Central Banksters counter-flooded the world with new money to "offset" the impacts of deflation. However, all they did was rescue the wealthy from deflation, the Middle Class has been buried under ever-growing personal debt, ever-growing sovereign debt, and higher costs of living. 

Middle Class Purchasing Power has been Obliterated
We've been so focused on that "one-time" adjustment that apparently the smoke and mirrors occurring in the meantime obfuscated the fact that the convergence of living standards has been happening all along. Third World Deflation has manifested itself in stagnant wages, a broken job market, foodstamps, and child poverty, meanwhile inflation has manifested in the cost of everything else, most notably: food, energy, education, medical - only those things that are essential to survival. This convergence in real-time has all been "covered up" by an ever-rising Dow, ongoing debt accumulation, bogus unemployment statistics, foodstamps, extended unemployment benefits, minimal welfare, and most importantly - abject denialism on the part of the lamestream media and wealthiest individuals.

Convergence is Well Underway
The thesis remains the same: the Third World was never bootstrapped to our standard of living so the developed world is right now being lowered to their standard of living, in real time. The fact that it's occurring behind a smoke screen of lies and bullshit doesn't make it any less real.

Disposable Humanity
Since 2000, GDP grew 35% while median household income fell 10%

Therefore, the inevitable one-time final "event" will merely bring the acknowledgement to the self-absorbed elite, that their Ponzi party is over.

The ultra-wealthy won't stop partying until their magic show reaches surprise finale