Debt based delusion: Fed spending far outstripping revenues, balance of trade, and business inventories decline.
One clear symbol of our new Gilded Age is that of the peaking DOW while food stamp usage is at a peak as well. Even though the DOW is only a reflection of a handful of companies, the media focuses on this as if it were a barometer of the real economy. It isn’t. Household [...]
The Sequestered Gilded Age: Top 20 percent of households control over 90 percent of all stocks and financial wealth: Bottom 40 percent of all households have an average net worth of -$10,600.
Income inequality is now at levels last seen in the United States during the Gilded Age. This was a time of incredible opulence for the few while the many struggled to get by. There is even a story of a Mrs. Stuyvesant Fish throwing a dinner party to honor her dog that arrived wearing a [...]
Part-time America: How we increased our part-time for economic reasons workforce by 4 million people since the recession began. Healthcare costs encourage low wage employers to hire more part-time employees.
The rise of part-time employment in the United States is part of the low wage system that is spreading throughout the country. Part-time workers are cheaper to hire and easier to fire. You also avoid paying benefits from a healthcare system that is seeing skyrocketing costs. Prior to the economic crisis, the number of Americans [...]
Sequestering the working and middle class – The implications of runaway debt. GDP at record levels yet nonfarm employment is 4 million below previous peak. Trillion dollar coins. Greece unemployment reaches a new record.
Gear up those printing presses. You might be thinking that some of the policy talk coming out today is from The Onion but no, the idea of a $1 trillion coin is being discussed. The Federal Reserve is already very willing to become a shadow bad bank and take on all the questionable assets from [...]
American Gerontocracy: Since 2009 2.7 million jobs for those 16 to 55 have been lost yet 4 million jobs were added for those between 55 and 69.
It is still a tough time to be young and looking for work in the United States. With the steady destruction of blue collar industries with living wages, many have to pursue a college degree for any chance at becoming middle class. Yet higher education has become a debt plagued mess where students have to [...]
Inflation has a subtle and quite way of eroding your purchasing power. The process can unfold slowly and before you know it you suddenly wake up realizing your paycheck no longer stretches so far. This is happening across the US in many ways. Those on very tight budgets, especially those now on food stamps are [...]
The Temple of Inflation – where does the typical Americans spend their money? A comparison between 1986 and today.
For most people that I know the mortgage and rent payment will eat up the largest portion of a monthly budget. This is the case for the vast majority of Americans as well. Housing is the biggest line item expense on the monthly budget. For the most part people tend to think that the Federal [...]
Recession probabilities – For the 50 million Americans in poverty the probability of a recession is 100 percent. Growing economic divide for working class.
The probabilities of the US slipping into another official recession are growing. Don’t tell this to the 50 million people that are reportedly at the poverty level according to a new US Census report. This trend isn’t something new and it certainly is not going to be resolved overnight. We have nearly 47 million Americans [...]
A nation in the pangs of deleveraging – The long-term trend of a declining dollar and a collapsing middle class.
As Americans go out to vote many go blissfully unaware of the reality that our total public debt is now above $16.2 trillion. If your only source of information was the mainstream press this fact rarely came up in any debates or journalistic investigations. The discussion of stagnant household income never even came up in [...]
Who controls the wealth in the US? Western countries expand balance sheets at the expense of their younger population.
If the debates reflected the true interest of what Americans have on their mind the entire debate would revolve around the slow erosion of the US middle class. Yet this is something that will only be a footnote and for any discussions that do come up the specifics will be lacking. The reality is we [...]