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Chart Of The Day: Hourly Earnings, Or The Lack Thereof

Tyler Durden's picture


You know the drill: please point out on this chart, which shows the yearly change in average hourly earnings for all US private workers, just where is this so-called "recovery", which an additional $6 trillion in public debt, and 5 quantitative easing episodes, have allegedly created out of thin air. For those confused, like us, we bring attention to the fact that in the past two months we have seen the smallest Y/Y increase in avg hourly earnings. Ever.

Source: St Louis Fed


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Mon, 10/15/2012 - 08:02 | 2889707 GetZeeGold
GetZeeGold's picture



Earned credit at the company store...that carp is overpriced and it's not even brand named.


Screwed again Amigos.


Mon, 10/15/2012 - 08:04 | 2889714 Alpo for Granny
Alpo for Granny's picture

At first glance, I thought I was looking at a daily silver chart.


Fuck you JPM.

Mon, 10/15/2012 - 08:15 | 2889731 LongSoupLine
LongSoupLine's picture



just another buying opportunity my friend...Blythe's day is coming, just BTFD, pick up some more MRE's for the basement shelves and hang tight.

Be strong my silver brothers!

Mon, 10/15/2012 - 08:55 | 2889802 Thomas
Thomas's picture

Looks like Nikkei

Mon, 10/15/2012 - 08:58 | 2889805 Arttrader
Arttrader's picture

"The private sector is doing fine"!

Mon, 10/15/2012 - 08:17 | 2889737 LongSoupLine
LongSoupLine's picture

...that carp is overpriced...


that's nothing...have you seen salmon pricing?!

Mon, 10/15/2012 - 08:44 | 2889785 GetZeeGold
GetZeeGold's picture



Wouldn't know......I shop in the Spam aisle.


I don't think that crap comes from the sea Amigo.



Mon, 10/15/2012 - 09:12 | 2889835 pods
pods's picture

Well they are feeding Chinese farm raised fish with Spam crap, so close enough.


Mon, 10/15/2012 - 10:31 | 2889887 Cognitive Dissonance
Cognitive Dissonance's picture

Don't you mean "Spam carp" a new GMO fish breed? :)

Mon, 10/15/2012 - 11:35 | 2890573 Lohn Jocke
Lohn Jocke's picture

Long Monsanto, bitches! /sarc


Mon, 10/15/2012 - 08:52 | 2889800 Offthebeach
Offthebeach's picture

Is that adjusted for cheaper I -Pads( Dudley Variable )?

Mon, 10/15/2012 - 08:02 | 2889709 Robslob
Robslob's picture

Where is My Raise MR. BERNANKE?

Mon, 10/15/2012 - 08:19 | 2889744 cossack55
cossack55's picture

JPM is holding for you, its in the Corzyne account.

Mon, 10/15/2012 - 08:40 | 2889781 disabledvet
disabledvet's picture

"and all I got was a Greek island" no less.

Mon, 10/15/2012 - 08:03 | 2889713 max2205
max2205's picture


Mon, 10/15/2012 - 08:11 | 2889723 duo
duo's picture

I think he meant since 1913

Mon, 10/15/2012 - 08:05 | 2889716 fonzannoon
fonzannoon's picture

is this chart proof hyperinflation won't happen? More likely stagflation where people just go piss broke trying to stay afloat? 

Mon, 10/15/2012 - 08:10 | 2889724 northerngirl
northerngirl's picture

I think that is already happening.

Mon, 10/15/2012 - 08:17 | 2889738 fonzannoon
fonzannoon's picture

sorry edit (continue to) go piss broke....

Mon, 10/15/2012 - 08:17 | 2889740 Zadok
Zadok's picture

I KNOW it's already happening!

Mon, 10/15/2012 - 08:30 | 2889764 Jack Sheet
Jack Sheet's picture


you are confusing wage-pull inflation with currency-induced cost push inflation

Even as hourly earnings are falling, the "real" CPI  is rising at an annual rate of 5 to 9% using the 1990 or 1980 measures, respectively (source:

Mon, 10/15/2012 - 08:35 | 2889771 fonzannoon
fonzannoon's picture

Thanks for the info Jack. I sometimes fall back into the bullshit current calculations and forget how they keep changing the way they input the data.

Mon, 10/15/2012 - 09:15 | 2889843 pods
pods's picture

There is a lot of money to be made for someone to translate government BS into useful, real world information.

Shadowstats does a very good job.  The cliff notes version is all the bad charts go up, the good ones are falling.


Mon, 10/15/2012 - 08:39 | 2889779 kridkrid
kridkrid's picture

I don't think we can conclude that it wont happen, can we? Each individual doesn't have to have more money for prices to bid up, there only needs to be enough bidders with enough money, no? I think what is more likely, however, will be big supply chain disruptions. We will see price inflation in key inputs that will force an increase in prices in the final product, or the final product won't be delivered.

Bi-flation... Increase in the price of things you need, decrease in the price of the things you already own. In the US, we have a long ways to go until we spend the same % of our income on food as most of the rest of the world... This will change rapidly over the next 12-24 months, I would guess... If the whole thing doesn't unravel first.

Mon, 10/15/2012 - 09:28 | 2889873 Shizzmoney
Shizzmoney's picture

Remember, folks, that the magic number is 40%.  Right now, Americans are at around 17-20% for how much of their income is eaten up by food expenses. Once it gets to 40% = revolution.  Hell, it even happens ealier in some nations, like Tunisia.

You can only skae the bottle so much until the fizz pops out (that's what she said).

Mon, 10/15/2012 - 09:41 | 2889904 kridkrid
kridkrid's picture

^^^ this. And it would be more than 20% if people would buy healthy food. But people are able to keep grocery bills in limbo by replacing produce with packaged garbage. This fuels the obesity epedimic and raises healthcare costs. Nice vicous cycle. Someday this war's going to end...

Mon, 10/15/2012 - 09:45 | 2889917 dark pools of soros
dark pools of soros's picture

laughable.... EBTs will just rise and stagflation will go until only the rich are left to squeeze themselves..  then hyperinflation happens as they all race out the door

Mon, 10/15/2012 - 10:13 | 2890303 Kickaha
Kickaha's picture

Well, its just statistical verification that wages in the USA are, and have been, much higher than what the rest of the world receives for essentially the same labor.  Think of it as a "wage bubble".  That bubble is bursting while inflation is ongoing.

The only "structural problem" we have with the US economy is that wages are still way too high, and roughly 25% of the working age population is prohibiting from working by minimum wage law because they don't know how to do anything that produces value in excess of the $10.00 per hour or so it costs a business to employ them under current minimum wage laws.

Instead they sponge off government programs to stay alive.

I don't think that chart is adjusted for inflation, and with inflation rates really running higher than 6% right now, you are looking at negative real wage deceleration year over year.

That is the intended goal of current economic policy.  It is politically impossible to tell any part of a constituency that they must take a wage cut.  It is much easier to just inflate the currency to produce a slow but steady decline in real wages until those folks who used to work in manufacturing can once again become employable.  As a nice side effect, you can give all of the newly printed currency behind the inflation to those who make the largest political contributions and thereby boost your chances of re-election.

Other nations, of course, will have their central banks do the same thing in a race to the bottom.  Maybe we will reach a point where real wages become so cheap compared to the cost of transportation and distribution that importation of goods manufactured overseas will no longer be profitable unless those goods are truly non-fungible.

China's hoard of dollar denominated investments will be greatly devalued in the process.

This is the plan.  What could possibly go wrong?

Mon, 10/15/2012 - 10:56 | 2890460 monogratis
monogratis's picture

If America had a higher savings rate, then we would likely have seen higher inflation as they pulled money out of their savings to buy stuff.


When inflation rises AND people have no savings AND wages remain stagnant, then we are talking about a serious problem here.


The only people who seems to have any money are a) government jobs b) government pensions c) military d)government contractors e)government bailed out bankers f)government bailed out realtors g)government subsidized big box stores


Retail sector be damned......

Mon, 10/15/2012 - 08:05 | 2889717 max2205
max2205's picture

Plot Govt wages growth then watch the riots

Mon, 10/15/2012 - 08:30 | 2889732 nmewn
nmewn's picture

No shit.


"When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger, according to the BEA data. In 2011, federal worker compensation averaged $128,226, or about double the private-sector average of $64,560. Figure 2 shows that average federal compensation has grown rapidly over the last decade."

Mon, 10/15/2012 - 09:12 | 2889838 BigDuke6
BigDuke6's picture

I guess that shows how much a vote is worth to them.

Mon, 10/15/2012 - 10:06 | 2890270 nmewn
nmewn's picture

Its a vicious symbiotic relationship Big D.

Make a segment of the population dependent on government for direct employment. Make another segment dependent on that federal employee for "their services". Make still other segments dependent on the federal government for contracts (from defense to Volts to fucking windmills). It all works fine until no one accepts the Benny bucks paid for their labor because the tax base has been completely destroyed.

Well, I finally got my riding lawnmower loaded up this morning to take it in for repair. I'll be paying the shop owner with money I earned in the private sector and I will be taxed on it...which is the way it was designed...or I could just print a few Benny bucks like they do ;-)

Mon, 10/15/2012 - 09:37 | 2889895 Whoa Dammit
Whoa Dammit's picture

Its hard to have a viable society when stupidity and bureaucracy is rewarded twice as well as intelligence and independence.

Mon, 10/15/2012 - 10:10 | 2890292 nmewn
nmewn's picture

Well stated.

Friggin LTER was on here last night saying regulation (which requires a bureaucracy) had actually gone down. I asked her where she heard that from and she ran away...again...with her tail between her

Anyways, I gotta run too and get this mower fixed.


Mon, 10/15/2012 - 08:21 | 2889745 LongSoupLine
LongSoupLine's picture

riots??? by Americans?  lol...not until Starbucks is boarded up, SNAP is shut down and Dancing with the Stars is pulled off the air.


I think you overestimate the priorities and attention span of the average American.

Mon, 10/15/2012 - 08:30 | 2889765 10mm
10mm's picture

Esp white americans,they don't riot.

Mon, 10/15/2012 - 09:49 | 2889780 GetZeeGold
GetZeeGold's picture



White Americans just shoot....don't piss them off.


They'll put up with a lot a crap....but I wouldn't advise pushing it.


Mon, 10/15/2012 - 10:24 | 2890311 toomanyfakecons...
toomanyfakeconservatives's picture

Nobody wants to see what millions of crazy, armed American citizens, Patriots, verterans, and so on could do in a fight! The U.S. Marshalls must direct the prison buses and paddy wagons to Washington and Wall Street while the military clamps down the border...


With multiple liens placed on the FED, the BIS, and the rest of the American Corporation, the Corporation is already literally under arrest. Once the real arrests occur and the media turns on the global cabal, we win. However, reconciling 100 years of financial rape will be the hard part. 

Mon, 10/15/2012 - 08:43 | 2889784 LawsofPhysics
LawsofPhysics's picture

Correct.  just like the "elites" they hire professionals.  Long soldiers of fortune.

Mon, 10/15/2012 - 08:48 | 2889795 LongSoupLine
LongSoupLine's picture

"elites" hire the Fed.  Long silver.

Mon, 10/15/2012 - 09:16 | 2889846 LawsofPhysics
LawsofPhysics's picture

no shit, and who does the Fed's dirty work again?  I suggest you read "Confessions of an economic hitman"

Mon, 10/15/2012 - 09:32 | 2889885 LongSoupLine
LongSoupLine's picture

great point...(however, I'm still long silver)

Mon, 10/15/2012 - 09:01 | 2889811 Offthebeach
Offthebeach's picture

Fat, diabetic on disability slobs don't riot. Their couch atrophied knees won't take the standing and their scooters batteries are crap.
Besides, this fall's cable line up of new shows is snapping up nicely.

Mon, 10/15/2012 - 08:20 | 2889747 cossack55
cossack55's picture

Fair warning. Doing as you suggest will make you a terrrrist.

Mon, 10/15/2012 - 08:32 | 2889768 BurningFuld
BurningFuld's picture

I'll see you that chart and raise you this one:


Mon, 10/15/2012 - 08:10 | 2889721 Robslob
Robslob's picture

 So true Max...looks like the Guberment wants THE MASSES TO JOIN THE "OTHER 1%"...

Mon, 10/15/2012 - 08:12 | 2889725 LongSoupLine
LongSoupLine's picture

no worries, Hilsenrath and Dudley are pumping the recovery propaganda MSM dildo up everyone's ass today...all's better now.

Mon, 10/15/2012 - 08:12 | 2889727 Mister Ponzi
Mister Ponzi's picture

These are nominal average hourly earnings changes. It would be interesting to see this chart in real terms using a realistic estimate of inflation in order to see how earnings did really develop over time.

Mon, 10/15/2012 - 08:47 | 2889794 WatchingIgnorance
WatchingIgnorance's picture

Shoot. I thought the winner was the one that reached the bottom first.

Yeah . . .  urrr . . . ummm . . .

Luckily, we can print our way to prosperity.

Mon, 10/15/2012 - 09:47 | 2889925 FrankDrakman
FrankDrakman's picture

When I first looked at the chart, I thought "wait a second" - it shows wages zooming up in the late 70's during Jimmah Cartuh's tenure. I sure don't remember everyone getting richer in real terms during that time.

Figures that aren't tied to a constant dollar are misleading, although I'm not sure deflating this chart with the current BLS inflation numbers would be any more meaningful.

Mon, 10/15/2012 - 08:14 | 2889730 Solid Gold Bubble
Solid Gold Bubble's picture

And S&P futures are....... GREEN!

Mon, 10/15/2012 - 08:27 | 2889758 insanelysane
insanelysane's picture

For this article the MSM would create a headline like "Less People in the Workforce Earning Less"

Mon, 10/15/2012 - 08:16 | 2889734 john_connor
john_connor's picture

all to corporate bottom lines, which are still struggling!

Mon, 10/15/2012 - 08:17 | 2889736 Zadok
Zadok's picture

Gee, with inflation running about 10% this year (shadow stats), 10% - 1% = 9% in the hole for the year. I guess you can make it up by working another job, on top of the 3 part time ones you already have.

Good luck with that, your going to need it!

Mon, 10/15/2012 - 08:18 | 2889742 eddiebe
eddiebe's picture

Just enough to buy another jumbo jar of petroleum jelly.

Mon, 10/15/2012 - 08:19 | 2889743 q99x2
q99x2's picture

At the rate they're going I'm never going to want to get a job.

Mon, 10/15/2012 - 08:21 | 2889749 JPM Hater001
JPM Hater001's picture

Let go baby.  Refuse to rejoin the system.

Mon, 10/15/2012 - 08:20 | 2889746 Disenchanted
Disenchanted's picture




1980 to 1987(roughly)


There's your 'trickle down'

Mon, 10/15/2012 - 08:22 | 2889752 cossack55
cossack55's picture

Looks more like "avalanche down".  Maybe its voodoo.

Mon, 10/15/2012 - 09:47 | 2889922 GetZeeGold
GetZeeGold's picture



It's not's clearly visible on the Laffer curve.

Mon, 10/15/2012 - 08:46 | 2889788 GeezerGeek
GeezerGeek's picture

Did you bother to read the caption of the chart? Did you see the part that refers to the 'percent change' from the prior year? While inflation was soaring in the late 1970s, companies frequently paid more to employees to keep them. One year the computer company for which I worked (not IBM) even gave everyone a mid-year salary increase. I think it was around 5%. Mid-year! When Volcker raised interest rates to extremes the expectation of inflation receded quickly, and companies stopped giving the extreme raises.

The falloff in the rate of increase shown in the chart was the result of inflation being tamed. It had nothing to do with 'trickle down'. Now the rate of change is so low because, I assume, the supply of workers exceeds the demand in many fields. Too bad we can't apply the law of supply and demand to government workers.

P.S. Ditto for cossack55: did you read the caption?

Mon, 10/15/2012 - 09:08 | 2889828 Disenchanted
Disenchanted's picture



Yes I knew it was the percentage of change in yearly hourly wages...


So from about 1980/81 to 1987 an hourly worker's wages went from increasing at roughly 9.5% each year to only increasing about 1.5% each year meanwhile interest rates were do you think that worked out for the average hourly worker?


I know...I lived it as an hourly worker. It was bad enough that we ended up uprooting our young family and moving about 1500 miles away from where we were from originally. Things weren't so great for us at the new location for awhile either.


btw the 1980s was when they started fiddling with the numbers like how inflation was measured and such...



Inflation, as reported by the Consumer Price Index (CPI) is understated by roughly 7% per year. This is due to recent redefinitions of the series as well as to flawed methodologies, particularly adjustments to price measures for quality changes. The concentration of this installment on the quality of government economic reports will be first on CPI series redefinition and the damages done to those dependent on accurate cost-of-living estimates, and on pending further redefinition and economic damage.


The CPI was designed to help businesses, individuals and the government adjust their financial planning and considerations for the impact of inflation. The CPI worked reasonably well for those purposes into the early-1980s. In recent decades, however, the reporting system increasingly succumbed to pressures from miscreant politicians, who were and are intent upon stealing income from social security recipients, without ever taking the issue of reduced entitlement payments before the public or Congress for approval.


In particular, changes made in CPI methodology during the Clinton Administration understated inflation significantly, and, through a cumulative effect with earlier changes that began in the late-Carter and early Reagan Administrations

quote from:

Mon, 10/15/2012 - 09:43 | 2889909 cossack55
cossack55's picture

No. I was taught never to read the fine print.

Mon, 10/15/2012 - 08:21 | 2889750 fonzannoon
fonzannoon's picture

Quote of the day?

Citigroup Inc. said Monday its third-quarter profit dropped 88% to $468 million, or 15 cents a share, from $3.77 billion, or $1.23 a share.

Citigroup Chief Executive Vikram Pandit said the bank's core business "showed momentum"

Mon, 10/15/2012 - 08:29 | 2889763 Dr. Engali
Dr. Engali's picture

Hey I'm all for downside momentum with those pigs.

Mon, 10/15/2012 - 08:42 | 2889783 awakening
awakening's picture

Preferably dangling off the nearest convenient lamp post, same excuse was acceptable propaganda to them in Nuremberg (something about following orders, though I'm yet to see that in a genuine transcript).

Mon, 10/15/2012 - 08:45 | 2889787 LongSoupLine
LongSoupLine's picture

Vikram Pandit said the bank's core business "showed momentum"


"core business" = Fed Primary Dealer activities

Mon, 10/15/2012 - 11:18 | 2890537 ceilidh_trail
ceilidh_trail's picture

Just in time for ski season!

Mon, 10/15/2012 - 08:23 | 2889753 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Trickle down monetary policy = FAIL.


Mon, 10/15/2012 - 08:26 | 2889756 DOT
DOT's picture

Don't forget to subtract the Tax Cut cuts, and what appears to be an increase in employee share of Health care Insurance of about 9-15 %.  HR departments are in a quandry over how and WHEN to inform the employees.

Mon, 10/15/2012 - 08:28 | 2889760 Dr. Engali
Dr. Engali's picture

Just think of how bad it would have been if they hadn't taken in all that debt. Clearly we need to print more.


That's sracasm by the way for you people who need the sarc tag to know who you are..

Mon, 10/15/2012 - 08:44 | 2889786 fonzannoon
fonzannoon's picture

Watching this stuff everyday rots your brain eh Doc? I need a hobby. Flyfishing or something. This is really tweaking me lately.

Mon, 10/15/2012 - 09:01 | 2889808 Dr. Engali
Dr. Engali's picture

Yeah me too. I had to take a couple days off reading about it . I'm going camping with my son this weekend that should get it off my mind for a bit......a tiny bit. 

Mon, 10/15/2012 - 09:05 | 2889818 RSloane
RSloane's picture

This is perfect camping season. Crisp cool air, less chiggers and mites, less intrusions by weekend hikers, and a roaring fire to keep you warm in the evenings as you watch inexperienced campers search for thermostat regulators on trees. There is nothing so satifying as waking up to 30 degree weather and building a roaring fire to make breakfast and coffee on. Can't wait for this weekend, either.

Mon, 10/15/2012 - 09:10 | 2889832 fonzannoon
fonzannoon's picture

I went camping last month. I must have looked like my cousin vinny in the woods. I have been conditioned to my environment and need constant stimulus. Also bears freak me out. I know...pathetic....

Mon, 10/15/2012 - 09:28 | 2889874 RSloane
RSloane's picture

Look at it this way Fonz, fear of bears is a constant stimulus. Half the fun of camping in deep wilderness is guessing the weight of the animal that just entered your campsite based on the loudness of scratch timber snapping under its feet. Soft snapping, so what....loud snapping, sit up while quietly listening to figure out if its coming closer or moving away.

Mon, 10/15/2012 - 09:42 | 2889906 fonzannoon
fonzannoon's picture

Good point. You would think that as a perma bear I would almost be at one with them....but alas I did sit up, half scared out of my wits, with each snap. I could picture 3 squirrels laughing their asses off as they dropped acorns 15 feet away and watched that big animal jump up and look around every time.

Mon, 10/15/2012 - 09:19 | 2889853 Dr. Engali
Dr. Engali's picture

Good morning Sloane. I'm looking forward to it. We are camping with his boy scout troop, so I'm sure that there will be plenty of humor with the less experienced campers. A lot of the dads are pretty wimpy. I get a good chuckle when I watch them try to teach (learn ) how to do any basic survival technique with their sons.

Mon, 10/15/2012 - 09:29 | 2889880 RSloane
RSloane's picture

Good morning Doc. Do not give inexperienced campers sharp objects! Your tents will thank you.

Mon, 10/15/2012 - 09:49 | 2889949 fuu
fuu's picture

I've found that writing songs based on a theme of "Fuck You Bernanke" is very cathartic.

Mon, 10/15/2012 - 09:04 | 2889819 kridkrid
kridkrid's picture

Actually, it's a reasonable question. The system must create more debt or you end up with cascading defaults... Collapse. We will get collapse eventually, no matter what, it's just timing.

Mon, 10/15/2012 - 08:33 | 2889766 Shizzmoney
Shizzmoney's picture

That is why the whole BLS BS number and the retarded "debate" by Welch, et. all was really so trite. 

5%?  10%? 6%?  Does it really matter when WAGES ARE COLLAPSING?!?!?!?!?!11

This was the Fed's plan, remember.   Greenspan wanted controlled inflation with wage stagnantion to create "job insecurity" which in turn would produce "labor productivity". In a sense, the 7% unemployment will be touted as "The New Normal", as jobs and wages and employment will be inelastic.

It's not sustainable, maybe even short term.  The only thing this will deliver is fail, especially when interest rates will be raised (they have to be at some point, right?). 

Or if we are lucky, appointments with the guillotine.

BTW, there will be NO TALK of this by any of the POTUS candidates.  Their corporate masters don't want them to reveal the true plan to ante us to serfdom.

Mon, 10/15/2012 - 08:43 | 2889782 LawsofPhysics
LawsofPhysics's picture

Income and wealth for the 1% has been growing at over 300%, what are you talking about?  Life is great for your corporate masters, but yes, why won't Romney call out Obama on John Corzine?  "What's that mister president?  Someone who stole 2 billion from farmers is now working for your campaign?"

Yes, their masters are the same, nothing changes until these people are forcibly removed from power.

Mon, 10/15/2012 - 09:30 | 2889881 Shizzmoney
Shizzmoney's picture

My CEO makes 300% of my salary.

In Communist America, you pay to go to work!

Mon, 10/15/2012 - 09:39 | 2889889 RSBriggs
RSBriggs's picture

Let's see - 60k versus 32 million base salary + options.  I think my CEO makes considerably more than 300% of what I make...  More like 53,300.0% isn't it?

Mon, 10/15/2012 - 08:33 | 2889769 q99x2
q99x2's picture

Brent is at $115.17 and CNBC's reason is: RETARDED!

UK is in Recession and CNBC's headline is" Good recession to Boost UK next year.

Don't end up brain damaged. Don't go to CNBC.

Mon, 10/15/2012 - 08:37 | 2889773 LawsofPhysics
LawsofPhysics's picture

Thermodynamics is a bitch.  Welcome to the "new normal" where the "winner" is whomever is moving backwards more slowly."

Currency wars, trade wars, bloody wars...   prepare.

Mon, 10/15/2012 - 09:02 | 2889814 GeezerGeek
GeezerGeek's picture

Thermodynamics may be a bitch, but it applies to an entire system. If you're part of TPTB (the 1%) you can apparently make entropy decrease in your area while everyone else has an increase in entropy. Takes some effort, but in at least the short term it works. And in the long term we're all dead, so who cares?

(I hope I got the changes to entropy right - it's only been 45 years since I took the Thermo course.)

Mon, 10/15/2012 - 09:07 | 2889823 LawsofPhysics
LawsofPhysics's picture

The room at the top is getting smaller, many lawsuits already coming.  Don't worry, that which cannot be sustained, won't be, and the sharks will consume themselves as all the gold and silver goes into hiding along with the truly powerful.  Know your history, it may not repeat exactly, but is sure as hell does rythme.

Mon, 10/15/2012 - 08:38 | 2889777 BeerBrewer09
BeerBrewer09's picture

This entire system is fucked. Do whatever you can to be self sufficient. Buy physical things: tools, food, medicine, PMs, guns & ammo, land, alcohol, clothing, water filtration.

I've begun purchasing extra shoes, boots, gloves, stuff that will wear out through normal use because they are sure to go much higher in price (if available at all). At this point, it may be one of the best investments I can make. I am saving all receipts to track just how abrupt inflation has and will become, so I can prove to those around me who have their heads in the sand.

Any projects you've been putting off on your dwelling(s), get them done now while physical things are still available/affordable. Get prepared. Don't put anything off.

Good luck all.

Mon, 10/15/2012 - 08:46 | 2889791 Sudden Debt
Sudden Debt's picture

What people lack in earnings, they make up in foodstamps and free cell phones!

Mon, 10/15/2012 - 08:46 | 2889792 disabledvet
disabledvet's picture

So what happens when you "secure" something folks? The answer is a scientific fact: "you get more of it." and what is it we are securing...since obviously it is not you are me (we are told to live our lives under the most extreme duress per Wall Streets orders.) no...we are "securing the data." as such I expect A LOT MORE going forward (we barely have any secured to date.) pay attention...securing Data has dramatic consequences for the way we live our lives in REAL time.

Mon, 10/15/2012 - 08:56 | 2889804 Arttrader
Arttrader's picture

"The private sector is doing fine"!

Mon, 10/15/2012 - 09:03 | 2889817 poldark
poldark's picture

A more important chart would be annual income per capita.

up 4.4% from 2010 to 2011.

Mon, 10/15/2012 - 09:07 | 2889826 kridkrid
kridkrid's picture

I would like to see that broken up by income level. The rich get richer, dont you know.

Mon, 10/15/2012 - 09:28 | 2889877 Village Smithy
Village Smithy's picture

Mark Zandi, is that you?

Mon, 10/15/2012 - 09:07 | 2889824 yogibear
yogibear's picture

No worry about inflation, Bill Dudley, head of the NY fed, said iPods are cheaper.

Mon, 10/15/2012 - 09:09 | 2889829 mayhem_korner
mayhem_korner's picture



This is why inflation isn't registering at the 20% that it soon will be: there can be no en masse money velocity when no one has disposable income.  Even so, when one normalizes for actual inflation (John Williams's, not the BLS's), the reality is that this is the intensification of a decades-long episode of diminishing disposable income.

Mon, 10/15/2012 - 09:15 | 2889844 venturen
venturen's picture

Hey at least banker bonuses will be back up! Citibank was able to trade the information Bernanke gave them, along with the free money. Let's get chant of Print..., Print..., Print...

Mon, 10/15/2012 - 10:22 | 2890325 earnyermoney
earnyermoney's picture

I'd like to see an overlay of Public sector data on this chart.



Mon, 10/15/2012 - 10:36 | 2890378 toomanyfakecons...
toomanyfakeconservatives's picture

The local teachers unions and police unions lay off employees at the bottom so their raises and benefits can continue, so it's easy to imagine what that overlay would look like.

Mon, 10/15/2012 - 12:05 | 2890697 Jumbotron
Jumbotron's picture

WINNING  !!!!   Since the Reagan Revolution !!

Mon, 10/15/2012 - 12:06 | 2890698 Shizzmoney
Shizzmoney's picture

Just as this was posted today, two managers get laid off in my company.

Reasoning I've heard under the grapevine? Payroll reduction.

I'm bullish!

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