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The big news this week: unemployment dropped to 8.9% and 192,000 jobs were added in February.
Great news, right?
Not so fast.
A closer reveals that nearly all the jobs added were in the $9-12/hour sectors, while the addition of higher-paying jobs in the $20-30/hour sectors were nowhere to be found.
Will the new emerging "middle-class" working at such starvation wages in the face of $4/gallon gas and $4/loaf of bread cause the dollar to crash or will the dollar manage to adapt to these new realities as our standard of living slips to third world status?
I think you are a little confused. Your last paragraph makes no sense. The loss of purchasing power of the dollar has nothing to do with wages and everything to do with the expansion of the money supply or printing of money that the Federal Reserve and Ben Bernanke has been doing like CRAZY to help out the "too big to fails" who are the LAST ones on earth that need help. By doing that there are more dollars to buy the same amount of products that existed before the money was printed (and handed out to the elites behind our backs). Now there are twice as many dollars in circulation to buy the same products so what happens? Prices go up. To see who all Ben Bernanke's buddies are who are the beneficiaries of the secret bail-outs, read this: Trillions In Secret Fed Bailouts For Global Corporations And Foreign Banks – Has The Federal Reserve Become A Completely Unaccountable Global Bailout Machine?
I think you are a little confused. Your last paragraph makes no sense. The loss of purchasing power of the dollar has nothing to do with wages and everything to do with the expansion of the money supply or printing of money that the Federal Reserve and Ben Bernanke has been doing like CRAZY to help out the "too big to fails" who are the LAST ones on earth that need help. By doing that there are more dollars to buy the same amount of products that existed before the money was printed (and handed out to the elites behind our backs). Now there are twice as many dollars in circulation to buy the same products so what happens? Prices go up. To see who all Ben Bernanke's buddies are who are the beneficiaries of the secret bail-outs, read this: Trillions In Secret Fed Bailouts For Global Corporations And Foreign Banks – Has The Federal Reserve Become A Completely Unaccountable Global Bailout Machine?
Fed buys Treasuries. Treasuries are IOU's. The Fed buys the Treasuries and gives the Treasury digital money for them thus creating more money.
It is not a good thing for the Fed to be buying treasuries. If treasuries were in demand the FED would NOT be buying them. They just do that to prop up the dollar. If other people and other countries wanted our treasuries it would indicate they were confident in our ability to pay when the treasuries come due. The fact that nobody is buying them like they used to indicates that people know that by the time the treasury comes due, the dollar will be worth a lot less...or worse, may not even be in existance!
I think you are a little confused. Your last paragraph makes no sense. The loss of purchasing power of the dollar has nothing to do with wages and everything to do with the expansion of the money supply or printing of money that the Federal Reserve and Ben Bernanke has been doing like CRAZY to help out the "too big to fails" who are the LAST ones on earth that need help. By doing that there are more dollars to buy the same amount of products that existed before the money was printed (and handed out to the elites behind our backs). Now there are twice as many dollars in circulation to buy the same products so what happens? Prices go up. To see who all Ben Bernanke's buddies are who are the beneficiaries of the secret bail-outs, read this: Trillions In Secret Fed Bailouts For Global Corporations And Foreign Banks – Has The Federal Reserve Become A Completely Unaccountable Global Bailout Machine?
Quote:
Originally Posted by NorthGAbound12
Yes precisely, something has to give. Unfortunately both parties will continue to spend like a drunken sailor while cutting taxes.
Quote:
Originally Posted by emilybh
It is not a good thing for the Fed to be buying treasuries. If treasuries were in demand the FED would NOT be buying them. They just do that to prop up the dollar. If other people and other countries wanted our treasuries it would indicate they were confident in our ability to pay when the treasuries come due. The fact that nobody is buying them like they used to indicates that people know that by the time the treasury comes due, the dollar will be worth a lot less...or worse, may not even be in existance!
Yes, several of you have touched on what I'm driving at: it's NOT a good thing for the Fed to have to buy treasuries. But they do it anyway. Why? Because the Federal govt cannot collect enough taxes from us to pay the govt's tab. If the Fed govt could collect enough taxes, there would be no need for the Fed to print money to pay for the treasuries.
But the Fed does print the money. Why? Because more and more of the "little guys" like you and me are not making $20-30/hr anymore; we're making only $10/hr. and that shrinks the tax base, so the Federal govt's revenue stream has been obliterated, making it necessary for the Fed to make up the revenue loss with printing more money to pay the bills (i.e. buying treasuries).
Do you see where my premise in the last paragraph was headed, emily? Unless my thinking is skewered, lower wages is linked to the Fed printing more money.
Now the 64 thousand-dollar question I was trying to ask: is the dollar doomed because of the Fed's reckless printing OR will the dollar eventually adapt to the situation of all these trillions of excess $'s floating around out there--printed up because the tax base has been obliterated---and survive in the long term?
Will the new emerging "middle-class" working at such starvation wages in the face of $4/gallon gas and $4/loaf of bread cause the dollar to crash or will the dollar manage to adapt to these new realities as our standard of living slips to third world status?
Starvation wages? I've never heard of such a ridiculous comment. There are no such thing as "starvation wages" my friend.
9-12 dollars an hour is better than jobless.
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