• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Election Euphoria For The Poor Evaporates

Tyler Durden's picture




 

While budgets are thrown around that tax wealth in every way possible and transfer payments are ever-increasing, it seems the post-election euphoria among the poor in the USA has worn off just as rapidly as it did in 2008. Bernanke's irrational exuberance has pushed the 'comfort' of the 'rich' (earning over $100k) to its highest since October 2010 while the comfort of the 'poor' (those earning under $15k per year) has slumped back to the lowest comfort in three months. We need moar wealth transfer.

 

 

Charts: Bloomberg

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Thu, 04/11/2013 - 10:14 | 3436086 TeamDepends
TeamDepends's picture

Have some of that, Krugman.

Thu, 04/11/2013 - 10:13 | 3436096 Bastiat
Bastiat's picture

Because the Fed has been to tight!

Thu, 04/11/2013 - 10:22 | 3436105 hedgeless_horseman
hedgeless_horseman's picture

 

 

Truth be told, I have more than a dozen debt slaves (consumers) that work for me. the poor sons of bitches.

In my experience, it is their complete lack of understanding of the value of capital that makes them debt slaves (see savings rate), and an amazingly strong unwillingness to learn.

Thu, 04/11/2013 - 10:20 | 3436122 johnQpublic
johnQpublic's picture

over 100k is rich?

 

in zimbabwe maybe...

Thu, 04/11/2013 - 10:29 | 3436129 hedgeless_horseman
hedgeless_horseman's picture

 

 

I know many debt slaves that earn more than $100k.

If the monthly interest you pay is greater than your savings, then you are a debt slave.

Sorry to break it to you, boy, but deep down inside, you already knew it.

Thu, 04/11/2013 - 10:30 | 3436169 Manthong
Manthong's picture

At least those guys have good security.

Thu, 04/11/2013 - 11:08 | 3436272 hedgeless_horseman
hedgeless_horseman's picture

 

 

Election Euphoria For The Poor Evaporates

Now, where do Obama's elections fall on this chart?

Anyone know where I can find a chart of personal interest expenses?  GM's sales is probably a fairly good proxy.

FRED tracks guns, food, gambling, gas, girl's underwear, recreation, etc., but the Fed doesn't appear to track personal interest expenses; it is not surprising.

 

Thu, 04/11/2013 - 11:18 | 3436461 malikai
malikai's picture

I know it's silly, but to be fair, girls' underwear is a fairly strong indicator of Japanese growth.

Thu, 04/11/2013 - 11:37 | 3436609 Don Diego
Don Diego's picture

at least their fellow slaves are not armed....you never know when a fellow slave can go into a shooting rampage!

Thu, 04/11/2013 - 10:30 | 3436172 malikai
malikai's picture

Yeah, well, as far as I'm concerned, if you make over $5k/yr, you're rich. So you should pay 100%.

Signed,

The government.

Thu, 04/11/2013 - 10:31 | 3436184 Dr. Richard Head
Dr. Richard Head's picture

Indeed, when one cannot save MOAR than they have to spend to servicing debt, then they are not saving at all.  That was the math that provoked me to withdraw from the market and pay down debt.  Oddly enough, that math is something ever a liberal voter can understand.  I try to transition that math to describe how destructive the policy of ZIRP is and those same liberal voters then call me a gold bug.  Sigh.....

Thu, 04/11/2013 - 10:24 | 3436145 Dr. Engali
Dr. Engali's picture

Like Zimbabwe, there will  be plenty of starving trillionaires in the near future.

Thu, 04/11/2013 - 11:10 | 3436413 Freddie
Freddie's picture

Hope and Change rolls on.

Thu, 04/11/2013 - 10:28 | 3436154 hapless
hapless's picture

The objective is to drive down the cognitive retention of the proles so that they can remember who they voted for last time (easy), but can't remember why (alas, also easy).

Thu, 04/11/2013 - 11:45 | 3436659 Freddie
Freddie's picture

The objective will also be to brainwash the public into forgetting what it was like to have a job or how people had a chance to actually find a job.   F TV and F Hollywood.

Thu, 04/11/2013 - 11:19 | 3436469 Go Tribe
Go Tribe's picture

How much you paying them?

Thu, 04/11/2013 - 11:25 | 3436523 azzhatter
azzhatter's picture

Think about it. The rich will gladly give up a little more in taxes if they are allowed to plunder the system freely. The extra 10 can help shower crumbs on the peasantry. It's all good. Corruption is king

Thu, 04/11/2013 - 10:13 | 3436089 Dr. Richard Head
Dr. Richard Head's picture

The old bait and switch of both political parties as seen in graph form.  Nice.

Thu, 04/11/2013 - 10:16 | 3436094 Cognitive Dissonance
Cognitive Dissonance's picture

Rich man, poor man. Who says there is no class system in America?

<The American myth says so.>

Thu, 04/11/2013 - 10:29 | 3436167 NoDebt
NoDebt's picture

Every society has a class system.  Just that in some societies you're allowed to move from one class to another.  In some, you're not.

Thu, 04/11/2013 - 10:31 | 3436175 Spastica Rex
Spastica Rex's picture

Everyone is middle class in the US.

Middle class means you deserve a a 2,000+ sqr ft home, a pickup truck, an SUV, meals at Red Lobster once per week, a kitchen remodel for the wife at least every 5 years, an airplane vaction at least once per year, a trailer with quads, snowmobiles, or PWC, and four years of college for the kids.

Thu, 04/11/2013 - 10:35 | 3436192 Dr. Richard Head
Dr. Richard Head's picture

Off topic, but related to Red Lobster.  Samual Adams claims that they made some special sort of glass for drinking beer and I have found that Red Lobster had it first.  https://twitter.com/FamilyRotten/status/317088255759749121/photo/1

Thu, 04/11/2013 - 10:55 | 3436231 Dr. Engali
Dr. Engali's picture

Well yeah they are completely different...one clearly has a lobster on it and the other has a Sam Adams lable........that completely changes the drinking experience. Sheesh...I would think that you might have noticed that :)

Thu, 04/11/2013 - 11:13 | 3436435 Meat Hammer
Meat Hammer's picture

Now THAT'S cutting-edge research, Dr. Dick.

Thu, 04/11/2013 - 10:42 | 3436200 Dr. Engali
Dr. Engali's picture

I deserve that and a lot more. I'm an Amerkun dagumit!

Thu, 04/11/2013 - 10:46 | 3436259 hairball48
hairball48's picture

You forgot all the free iShit

Thu, 04/11/2013 - 11:11 | 3436417 Stuck on Zero
Stuck on Zero's picture

Middle class in America also includes 450 hours a month spent watching Oprah, the Kardashians, and American Idol.

 

Thu, 04/11/2013 - 10:16 | 3436100 Winston Churchill
Winston Churchill's picture

The marks have buyers regret.

Bah bah bah.

Thu, 04/11/2013 - 10:14 | 3436101 Bearwagon
Bearwagon's picture

"For to everyone who has will more be given, and he will have an abundance. But from the one who has not, even what he has will be taken away."  (Matthew 25.29)

There happens nothing new under the sun.

Thu, 04/11/2013 - 20:03 | 3438878 StychoKiller
StychoKiller's picture

"As ye believe, so is it done unto thee."

Fri, 04/12/2013 - 03:04 | 3439802 Bearwagon
Bearwagon's picture

Now, that is really deep. Do you know how right you are?

Thu, 04/11/2013 - 10:16 | 3436102 Shizzmoney
Shizzmoney's picture

Please stop saying, "wealth redistribution".  It's a buzz word that only confuses the serfs.

"Held up by invisible gunpoint" is a more apt term.

Thu, 04/11/2013 - 10:17 | 3436106 Bearwagon
Bearwagon's picture

It's called robbery!

Thu, 04/11/2013 - 10:20 | 3436115 Seasmoke
Seasmoke's picture

I dont want to hear it. It is the poor people's fault for not being in the market.

Thu, 04/11/2013 - 10:21 | 3436117 Hohum
Hohum's picture

At its core, QE is the greatest redistribution of wealth (or claims on it) in American history.  Quite a weird sort of socialism, isn't it?

Thu, 04/11/2013 - 10:29 | 3436162 GeorgeHayduke
GeorgeHayduke's picture

QE is typical socialism in the US of A. Socialism for the wealthy and well connected. Add the President's Working Group on Fonancial Markets into the mix and you have the stock market socialized for the folks who invest in it. But hey, it's all those poor welfare queens who cause ALL the trouble with the economy. Forget that their welfare is usualy spent in their local economy instead of reinvested into more speculative paper.

The more I think about it, this economic shitpile cannot collapse soon enough.

Thu, 04/11/2013 - 10:41 | 3436230 toady
toady's picture

Sometimes I imagine what it would be like if that 85B per month was sent to the bottom 1% instead of the top.

Thu, 04/11/2013 - 14:32 | 3437506 BooMushroom
BooMushroom's picture

Cadillac would have a banner year, as Escalade sales outpace bicycle trailers for the first time EVER!

Also, the price of steak and lobster would skyrocket.

http://en.m.wikipedia.org/wiki/Reversal_of_Fortune_(2005_film)

Thu, 04/11/2013 - 10:33 | 3436189 toady
toady's picture

That 85B a month just isn't trickling down... So they will go after it in other ways.

Thu, 04/11/2013 - 10:20 | 3436123 QQQBall
QQQBall's picture

Weirdly worded. The pressure on the poor is increasing. People earning over $100k in many parts of the country do not have an elevated level of comfort, particularly if self-employed with kids in college and are underwater in the casa.

Thu, 04/11/2013 - 10:23 | 3436127 Dr. Engali
Dr. Engali's picture

Maybe, at some point in time, these idiots will figure out that politicians don't really have their best interests at heart....maybe, but I doubt it.

Thu, 04/11/2013 - 10:27 | 3436161 malikai
malikai's picture

What?!

Say it ain't so..

Thu, 04/11/2013 - 10:31 | 3436173 NoDebt
NoDebt's picture

Doubting is unnecessary.  They won't get it.  Period.

Thu, 04/11/2013 - 10:24 | 3436132 Sandmann
Sandmann's picture

Bernanke is simply taking the pressure off the two political parties whose main goal seems to be looking after the Finance-Media Elites. Only by creating New Political Movements and taking control of States can the Establishment be shattered. Americans should be reading De Tocqueville:

Ancien Regime and the French Revolution

to find out how it goes from here

Thu, 04/11/2013 - 10:23 | 3436135 irie1029
irie1029's picture

I am so sick of this government... fuck them all.  Fuck the loser nonworking 47% as well.  Having to do taxes this weekend has me in a very foul mood.  

Thu, 04/11/2013 - 10:23 | 3436138 q99x2
q99x2's picture

And where does that Bernanker think the money he's giving to banksters and crooked politicians (not to mention Eric Holder) comes from? They know they are bleeding the working people that's why they are building a civilian military called Dept. of Homeland Security. Hitler did the same thing. Instead of Hitler though, this one appears to be run by a masculine lesbian which I thought seemed a little odd. Anyhow the money for the war against the world has to come from somewhere and unless it comes from the Rockefellers and Rothschilds it will come from working mom's paychecks. Looks like little Johnny will be eating a little less this year.

Sincerely,

Fuck You Bernanke

Thu, 04/11/2013 - 10:30 | 3436179 GeezerGeek
GeezerGeek's picture

Speaking of Janet, she apparently likes bagpipe music. Bagpipes are often used at funerals. Is she preparing for the funeral of American liberty?

Thu, 04/11/2013 - 11:20 | 3436481 Go Tribe
Go Tribe's picture

No, she's preparing for the day when she dresses all of us in kilts.

Thu, 04/11/2013 - 13:15 | 3437149 Taffy Lewis
Taffy Lewis's picture

she's preparing for the day when she dresses all of us in kilts...

and she'll make us all put our clothes on backwards and walk backwards on the holiday Backwards Day just like the plebes in John Waters' classic "Desperate Living".

Thu, 04/11/2013 - 10:25 | 3436139 gamera9
gamera9's picture

It's not so much the market making new highs nor the fact my losses going short are sickening. But really what makes me what to committ hari kari is all the office douche bags talking amongst earh other like they are some second coming when it comes to day trading and their upcomeht never seems to arrive.

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