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This has been spouted for hahahaahaha well almost every year, since bush left office.. Its Coming Its Coming.. Well there are cycles to everything and it you say it long enough it will happen.. BTW in some parts of America Its Never Been Good for any, but a select few..
Quote:
Originally Posted by richrf
Good analysis. Worth reading. Puts the blame squarely on the Fed where it belongs.
This has been spouted for hahahaahaha well almost every year, since bush left office.. Its Coming Its Coming.. Well there are cycles to everything and it you say it long enough it will happen.. BTW in some parts of America Its Never Been Good for any, but a select few..
Yep, and for someone such as yourself to lump a simple low pressure system into the same category as a super hurricane indicates that for you there is no differentiation in the destructive power of the two.
"Why is it going to be so historically bad this time around? Pento says, “In prior recessions, the Federal Reserve was allowed to lower the borrowing costs significantly and dramatically. For instance, the Fed Funds Rate, that interbank lending rate, was 5.25%. Today, it’s between .25% and .50%. The Fed is unable to reduce borrowing costs to the consumer. All they can do is take back their measly .25% rate hike that they did in December. So, there is no debt service relief coming from the Federal Reserve. That’s number one. Number two, a normal function of recessions is a surge in the deficit. We saw this in the Great Recession from about $200 billion a year to $1.5 trillion a year. This time, if they skyrocket again . . . who’s going to buy that Treasury debt? There’s no more QE. China is a huge seller. Japan is a huge seller. So, interest rates are going to rise because sovereigns are insolvent. It’s not the banks that are insolvent anymore, although that is still the case to a great degree. Central banks are insolvent, and sovereign governments are insolvent. That’s why this is no normal recession.”"
From the link.
Any one want to talk upping the minimum wage, and doing it a lot? The sovereigns are bankrupt and the only thing that will bail them out is more tax base. How do you get more tax base? Wage inflation.
"Why is it going to be so historically bad this time around? Pento says, “In prior recessions, the Federal Reserve was allowed to lower the borrowing costs significantly and dramatically. For instance, the Fed Funds Rate, that interbank lending rate, was 5.25%. Today, it’s between .25% and .50%. The Fed is unable to reduce borrowing costs to the consumer. All they can do is take back their measly .25% rate hike that they did in December. So, there is no debt service relief coming from the Federal Reserve. That’s number one. Number two, a normal function of recessions is a surge in the deficit. We saw this in the Great Recession from about $200 billion a year to $1.5 trillion a year. This time, if they skyrocket again . . . who’s going to buy that Treasury debt? There’s no more QE. China is a huge seller. Japan is a huge seller. So, interest rates are going to rise because sovereigns are insolvent. It’s not the banks that are insolvent anymore, although that is still the case to a great degree. Central banks are insolvent, and sovereign governments are insolvent. That’s why this is no normal recession.”"
From the link.
Any one want to talk upping the minimum wage, and doing it a lot? The sovereigns are bankrupt and the only thing that will bail them out is more tax base. How do you get more tax base? Wage inflation.
Of course, spreading wealth out so that more families would have greater purchasing power makes sense, and it was the hallmark of the Eisenhower era and all through the decades of the middle class.
But nowadays the Billionaire Class let's nothing get in the of its voracious appetite for a greater and greater share of the world's wealth, so a livable minimum wage is not on the cards until people turn their attention away from side issues and focus on what is happening to their everyday economic life.
Of course, spreading wealth out so that more families would have greater purchasing power makes sense, and it was the hallmark of the Eisenhower era and all through the decades of the middle class.
But nowadays the Billionaire Class let's nothing get in the of its voracious appetite for a greater and greater share of the world's wealth, so a livable minimum wage is not on the cards until people turn their attention away from side issues and focus on what is happening to their everyday economic life.
I'm not talking about a livable minimum wage. I'm talking about how to get inflation when QE doesn't work. The Sovereigns are bankrupt. We need more tax base for them to tax. And we need to stop the gutting of our productive base.
US minimum wage world wide. And then do a 4X or more on it.
I'm not talking about a livable minimum wage. I'm talking about how to get inflation when QE doesn't work. The Sovereigns are bankrupt. We need more tax base for them to tax. And we need to stop the gutting of our productive base.
US minimum wage world wide. And then do a 4X or more on it.
There are many ways to approach the issue in ways that have worked before. The Eisenhower era, for example, had much higher incremental tax brackets. Observing minimum wages to inflation and making it retroactive (true inflation) can be added to the mix.
But politicians and ruling Billionaires have no mindset or world view that allows them to be reasonable or care at all about the problems facing nations such as bankrupted sovereigns. It's just not part of their thought process. They are literally living in a different world, just like Royalty of old, so it would be unreasonable to expect that all of a sudden they are going to get some revelation about caring about the world economy and where it's headed.
Just listen to them speak on when they are interviewed. All they want is more and more QE so they can get more of the money they desire. And if you think it is strange just observe some of the banter in this forum where love of money trumps all.
Some people care about people and some people care about money. And those who care the most about money and will do anything to get it will naturally rise in the corporate ladder. It is all self selecting so don't expect them to be reasonable about anything except how to make more money.
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