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The Myth Of Wage Inflation Comes Crashing Down: Real Hourly Earnings Slide To Lehman Bankruptcy Levels

Tyler Durden's picture




 

One of the more insidious lies spread by the recently flipflopping cadre of "suddenly" permabullish millionaire sellers of newsletters has been that wages - that most important component of any real, durable, self-sustaining economic recovery - are rising. Maybe they are rising for said millionaires, but not for the US population. Of course, this propaganda is perfectly explainable: if there are expectations of, and confidence in rising wages, Keynes 101 says that sooner or later employers will have no choice but to match expectations with reality. And sure enough, in nominal terms, after plunging to just a 1% increase in Y/Y terms, absolute wages paid to US workers have staged a tiny, if observable rebound, still well below historical levels.

Of course, what said newsletter sellers always fail to mention is that nominal wages are meaningless in a world in which food and energy prices are soaring, and where, as even the BLS admitted earlier, food prices have surged the most since 2011. In other words, what matters are real, not nominal wages.

Luckily, there is propaganda ("ignore the present focus on the future"... for 6 years now), and there are facts.

The chart below shows that, as reported moments ago by the BLS, real average hourly earnings just posted their third sequential decline in a row, dropping from $10.33 in February, to $10.32 in March, to $10.30 in April, to $10.28 in May.  Furthermore, this was the first year over year decline since October 2012.

 

And to put today's $10.28 real average hourly earnings number in context, this is the same real wage seen last in July 2013, July 2012, March 2011 and then, if one goes further back... the month after Lehman failed!

In other words, while the S&P has nearly tripled since its lows real American wages are.... unchanged.

But please keep believing the lies that wages are virtuously rising, any minutes now.

Source: BLS

 

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Tue, 06/17/2014 - 09:49 | 4864697 the not so migh...
the not so mighty maximiza's picture

NICE RECOVERY GUYS

Tue, 06/17/2014 - 09:52 | 4864716 ejmoosa
ejmoosa's picture

If only we had a natural recovery, instead of this fake one.

Tue, 06/17/2014 - 09:54 | 4864731 Haus-Targaryen
Haus-Targaryen's picture

The Coming Great American Expatriation

For those of you who are active in the ZH Comments section, you know by now I am an American who has expatriated himself to Germany, without any desire to return. Some of my reasons are financial, political, personal, but moreso than anything – it was the ability to find work. While the number of expatriates who renounce their citizenship remains fairly low (maybe … to be discussed later), I keep running into more and more Americans who are in my shoes, and after a bit of number crunching, it’s a trend I expect not only to continue, but to accelerate as well.

According to the IRS’ numbers, in 2013 over 3,000 Americans gave up their citizenship. This is not new information for ZH readers, as this trend has been very well documented. What has yet to be documented is the discrepancies between the IRS’ figures and the figures from foreign nations.

The inherent problem with the Federal Register – other than it being a number being released by the Federal government – is that if they are to be believed, in 2012 over 200% (2,158) of the individuals who turned in a Green Card of the passport went to South Korea(1), while almost 50% went to Switzerland (411) in the first 9 months of 2012 alone(2). (Yes, those percentages are correct – let me explain.) The problem with these figures, if correct, in 2012 of the 933(3) people, per the IRS, who gave up their American citizenship or Green card – 2,158 of them went to South Korea, per the South Korean government, and 411 (almost half) of them turned in their passport to the Embassy in Switzerland alone, per the American Consulate in Switzerland. Made even easier – according to the Treasury, in 2012 only 933 gave up their GreenCard or passport, whereas according to the South Korean government, 2,158 South Koreas gave up their American citizenship to become South Korean, or are South Korean and gave up their Green Card. Seems rather impossible, maybe the South Koreans invented a new form of QE. Never mind the other 180 some-odd countries on the planet. Just like most figures released by the Treasury – the above numbers are either cooked, or they are using Federal Reserve/IMF math to come up with them.

While the world works itself away from the Petro-Dollar model and, as the USD as the world’s reserve currency comes to an end (both topics have been discussed on ZH in such detail, it almost isn’t worth citing) – one has to ask what societal consequences will come about when the United States’population wakes up on a Saturday morning one day – to have none of their cards working, their bank accounts wiped out, and all the societal chaos that goes along with that. Need I remind you all –that DHS has purchased over 1.6 billion rounds of hollow point (not target practice ammo) ammunition at this point(4), enough for an Iraqi style “hot war” in the United States that lasts for 20 years. Never mind the thousands of APCs, Armored Humvees, and other odd military like procurements ZH has documented extensively that have been acquired for domestic use over the past few years.

One thing we have to keep in mind, that I sometimes believe is lost here and on many other alternative media sites is, that our current overlords are not stupid people. Quite the contrary –actually. These procurements tell us something interesting about the coming reset – wealth will not be completely destroyed. Someone has to drive these APCs, use the Ammo, fly the helicopters, and follow orders to do so. I find it unlikely the people doing this will be doing it for free – and they will want some form of compensation. There is an old Roman saying, which I find applicable here. “The first and last people paid is always the Praetorian.” You see, the upcoming reset will not be a destruction of wealth – but will be the transfer thereof. There will be a small group of people with excessive wealth with a well-armed and well-paid Praetorian, and then everyone else. This elite, if history is any indicator of what is to come, will hide behind the US flag, the Star-Spangled Banner, Summertime Baseball and Hotdogs, and will be able to convince a large group of people they are here to help, and anyone who opposes them are “terrorists.”

What makes things scary in conjunction with the military build-up of the American police forces, the coming financial collapse (whether it be tomorrow or in 5 years – it is coming) is the current demonization of Constitutionalists, Libertarians and the non-religious sects of the Tea Party by the Justice Department, White House and the military. Couple this with the eroding American middle class – for many/most today, the “American Dream” is nothing but a propaganda tool used to keep people in place, calm and compliant.

If, after the banking system eventually does collapse under its own weight, and financially – the ability to retire, work, or even provide a better life for your children than you had (aka the “American Dream”) is now materially more of an impossibility than it already is isn’t an incentive enough for many to start looking elsewhere – bullets flying across their front lawn from the ensuing chaos likely will. Couple this with the IRS’ mad dash for cash post -ollapse – and taxes for those of us who have anything left will be skyrocketing (see Greece, but worse), the United States will not be a great place to be.

However, it isn’t all “doom and gloom.” While I am of the opinion, that the above is inevitable, stemming from the American middle class makes you more or less a desired commodity on a global scale, especially in Europe. Just like the United States – most European countries had a “Baby Boom” after the end of the Second World War, have overpromised, and now need people to immigrate & work to help pay their bills. Traditionally, in this day and age of “social welfare” it is more financially prudent to “import” people who are either independently wealthy, independently educated/skilled, or both (preferably). If these European countries (I will use Germany as an example, as it is what I am familiar with, but essentially it’s a wash) see the opportunity to import potentially millions of the American middle class, and thus reduce their dependency on the Third World to supplement their respective populations, I imagine many would be rolling out the “red carpet.”

When it comes to immigration, one wants other states to pay to educate/teach a trade to people, and then have said educated/skilled laborers relocate and generate wealth in the new country. What makes this difficult is, the state that has trained these people usually has a vested interest in keeping them themselves. However, in times of civil war, inconsistent supplies of basic commodities, extreme poverty, or a combination of the above – these people tend to go where the grass is greener – especially if there is a concerted effort to attract these people.

All this being said – when things get really bad in the United States, the intrinsic nature of people is to try and make a better life for yourself as well as your children. If it no longer becomes possible to provide that within the United States, those with the intelligence and/or good advice will look elsewhere. Couple that with northern European nations needing to fill in their populations with people who are workers, who don’t want to rely on the system, and people they do not have to educate – there is a“perfect storm” brewing where many of the descendants of those who came to the United States in the 18th and 19th centuries might make the return trip, in rather large numbers.


So how does this apply to me? Well, before the market went mad after the implosion of the .com bubble in 2000/2001 diversification meant – at least for the layman – differing stocks and bonds. After the Real Estate explosion people started to diversify into precious metals, other currencies, and some back into real estate. However, now with the storm clouds on the horizon, looking more imposing than either of the two bubbles before – if you have the means – perhaps diversifying into real estate outside of the USSA isn’t that bad of an idea, especially when you compare prices with many locations within the American real estate market to places outside of it.

You a “big city” kind of person? About $65k in today’s dollars gets you a 1 bedroom apartment in Berlin, with no closing costs, a balcony, and there is already a renter there.

http://www.immobilienscout24.de/expose/74598026?referrer=RESULT_LIST_LISTING&navigationServiceUrl=%2FSuche%2Fcontroller%2FexposeNavigation%2Fnavigate.go%3FsearchUrl%3D%2FSuche%2FS-4%2FWohnung-Kauf%2FBerlin%2FBerlin%2F-%2F2%2C00-%2F-%2FEURO--150000%2C00%2F-%2F-%2F-%2Ftrue%2F-%2Ftrue%2F-%2F-%2F-%2F-%2F-%2F-%2Ftrue%26exposeId%3D74598026&navigationHasPrev=false&navigationHasNext=true&navigationBarType=RESULT_LIST

You more of a rural person? Just north of $200k gets you a 4 bedroom house with a large yard just outside Leipzig, and it is considered “altbau,” or built and survived the second world war

http://www.immobilienscout24.de/expose/72337621?referrer=RESULT_LIST_LISTING&navigationServiceUrl=%2FSuche%2Fcontroller%2FexposeNavigation%2Fnavigate.go%3FsearchUrl%3D%2FSuche%2FS-T%2FHaus-Kauf%2FSachsen-Anhalt%2FHalle-Saale%2F-%2F-%2F-%2FEURO--200000%2C00%26exposeId%3D72337621&navigationHasPrev=true&navigationHasNext=true&navigationBarType=RESULT_LIST

Or if you want a “fixer upper” this can be had for $13k

http://www.immobilienscout24.de/expose/74946676?referrer=RESULT_LIST_LISTING&navigationServiceUrl=%2FSuche%2Fcontroller%2FexposeNavigation%2Fnavigate.go%3FsearchUrl%3D%2FSuche%2FS-T%2FHaus-Kauf%2FSachsen-Anhalt%2FHalle-Saale%2F-%2F-%2F-%2FEURO--200000%2C00%26exposeId%3D74946676&navigationHasPrev=true&navigationHasNext=true&navigationBarType=RESULT_LIST

Lastly, I am sure some of you are thinking: “But wait Haus, if the US gets wiped out, so will the Europeans, it would be chaos over there as well.” Sure, there would be chaos here too, but lest we not forget, that in many European countries over the past few hundred years there have been wars which were devastating, hyperinflation, bankruptcies without the continent descending into utter chaos. While I cannot quantify it, save for anecdotal evidence like what happened post Boston Bombing, Hurricane Katrina and Rodney King, I lack that same kind of social optimism I have in my countrymen that I have for people in (at least the north of) Europe.

Time will tell.

1 https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fny.koreatimes.com%2Farticle%2F742326&edit-text=

2 http://www.swissinfo.ch/eng/politics/Rise_in_US_passport_renunciations.html?cid=36688996

3 http://money.cnn.com/2014/02/17/pf/taxes/citizenship-taxes/

4 http://www.forbes.com/sites/ralphbenko/2013/03/11/1-6-billion-rounds-of-ammo-for-homeland-security-its-time-for-a-national-conversation/

 

Tue, 06/17/2014 - 09:56 | 4864737 JRobby
JRobby's picture

You should write a book

Tue, 06/17/2014 - 09:57 | 4864746 Haus-Targaryen
Haus-Targaryen's picture

I've thought about it.

Tue, 06/17/2014 - 10:30 | 4864897 CheapBastard
CheapBastard's picture

Nice thoughts Haus. I could move to any of these three in a heart beat: germany, Austria or South Korea. SK is pretty expensive these days [and I'm a Cheap Bastard] but you can budget and make ends meet there. As far as I know [which is not much] foreigners are not allowed to buy an aprtment or house in SK. I am not sure about Germany or Austria but you say a foreigner can for Germany.

 

Do you have any info on SK? Thanks for your post. Verythought provoking.

Tue, 06/17/2014 - 10:35 | 4864927 Haus-Targaryen
Haus-Targaryen's picture

I don't know much about South Korea, save the huge discrepancy between the South Korean and IRS numbers.  I've never been there. 

I can tell you foreigners can buy essentially whatever you want to in Germany.  There are a ton of 200-400 year old castles for sale if you want them. 

I can recommend Germany a lot.  Austria is nice as well.  Switzerland is where it is at, its just hard to get into.

Tue, 06/17/2014 - 10:57 | 4865018 Four chan
Four chan's picture

we shipped your wage inflation out to the slave nations decades ago along with the middle class and neither is coming back to our shores. it points up the folly in the false mandates the fed states. remember the 2 real ones, capture all assets with boom and bust it creates and enslave the people to debt. none dare call it treason.

Tue, 06/17/2014 - 11:00 | 4865037 CheapBastard
CheapBastard's picture

Thanks for the great info and reminder there are many options out there. Please keep posting your info and thoughts!

Tue, 06/17/2014 - 09:57 | 4864747 klinko
klinko's picture

TLDR

Tue, 06/17/2014 - 16:13 | 4866533 Black Warrior W...
Black Warrior Waterdog's picture

It

Tue, 06/17/2014 - 10:19 | 4864829 roadhazard
roadhazard's picture

Germany... You should have moved to the woods instead.  I'm werking on my second book.

Tue, 06/17/2014 - 10:25 | 4864872 Haus-Targaryen
Haus-Targaryen's picture

Meh - woods are fun an all, but not where I would want to spend forever. I'd get lonely.

Tue, 06/17/2014 - 10:30 | 4864902 max2205
max2205's picture

That's where the shallow graves are...

Tue, 06/17/2014 - 10:37 | 4864935 Ghordius
Ghordius's picture

Germany and woods aren't mutually exclusive. in fact, one third of Germany is covered with forests. here a link about what you can even hunt, in Germany

Tue, 06/17/2014 - 10:24 | 4864850 firstdivision
firstdivision's picture

Yes people, you to can move to Germany and be under Putin's thumb. 

At least the APC's will be driven by an American that is running over other American's.  In Germany, it'll be a Russian driving those APC's.  Russia is an expansionist empire just like Britain, France, and America.  They're just waiting for the right time to do it again.

 

Tue, 06/17/2014 - 10:25 | 4864865 Haus-Targaryen
Haus-Targaryen's picture

This comment is so stupid, I am actually at a loss for words. 

Well done.

Tue, 06/17/2014 - 11:38 | 4865218 firstdivision
firstdivision's picture

Let me know where all your $NG comes from again

Tue, 06/17/2014 - 11:52 | 4865299 Haus-Targaryen
Haus-Targaryen's picture

So LNG = Russian APCs in the streetz? Plz.

Tue, 06/17/2014 - 12:37 | 4865510 Monty Burns
Monty Burns's picture

Idiotic comment.

Tue, 06/17/2014 - 10:22 | 4864853 duo
duo's picture

I've always wondered if us European-Americans would be enticed by European countries to re-patriate.  We don't seem to be welcome here much anymore.

Tue, 06/17/2014 - 10:26 | 4864876 Haus-Targaryen
Haus-Targaryen's picture

I think those who have a skill/trade and/or independently wealthy would be welcomed back without much "to-do." 

Tue, 06/17/2014 - 12:40 | 4865522 Monty Burns
Monty Burns's picture

No.  A certain tribe has ensured that Third World flotsam will get preference. Ask the millions of white south africans living in poverty there now.

 

https://www.youtube.com/watch?v=k2Vq_e2Z1ug

Tue, 06/17/2014 - 10:34 | 4864925 papaswamp
papaswamp's picture

Just read an article...number of expats to exceed last years record breaker. Those that can do so seem to be getting out while the getting is good.
http://www.marketwatch.com/story/record-numbers-of-expatriates-renounce-...

Tue, 06/17/2014 - 10:41 | 4864947 Haus-Targaryen
Haus-Targaryen's picture

Yeah, I can imagine it is going to keep going up.  I wish I had more definite demographic info, but I would imagine the young and very educated will be the ones turning in passports with ever increasing frequency.  Let me explain --

After finishing school, most of us aren't married -- aren't tied down, and are wanting to start our careers.  Given the abysmal state of the American job market for college educated grads, expanding ones job hunt abroad seems ever more likely.  So you move to a place like Germany at 24 or 25 or so.  You live here for a couple years, get married to a "local" in your late 20s, and then the IRS not only wants all of YOUR info, but hers as well.  Oh, you nor her can open bank accounts with Banks X, Y and Z for a bunch of nonsense reasons.  So at this point, you'Ve been in the foreign country for a while, married, maybe a kid or two -- and the IRS is trying to make your life miserable -- here is my passport k, thx.

Oh, and expat'ing yourself is a great way to escape federal student loan debt.  Especially in countries that have forbidden the garnishing of wages due to student loans. 

Tue, 06/17/2014 - 11:07 | 4865073 Dingleberry
Dingleberry's picture

Good read Haus.

Two things concern me. The euro is the DM in drag, and I fail to see how the southern euro membrs are ever going to hold their end of the bargain. So the Germans will have to bail them out so they can buy BMWs. This will never end, unless the south changes its entire culture.

Also, I have read the local munis in Germany make Chicago's structure debt look good.

The grass is always greener.  Hope it stays that way for you.

Tue, 06/17/2014 - 11:57 | 4865331 Haus-Targaryen
Haus-Targaryen's picture

It depends on the Muni. 

You have some (Offenbach) which might as well be an Athens suburb.  Most Munis are able to keep their debt managable, the problem is ultimately the Bund is reponsible for Muni debt, unlike in the USA.  So they are lacking the incentive to keep it as under control.  This is expected to change soon.

I have no doubt the Euro is on limited time.  Its a horrible idea -- and when it does break apart, there will be much crying and gnashing of teeth, et al. but after lots of complaining, beer drinking, pounding on tables, people will get back to lives a lot quicker here than in the USA.  Why?  The elderly people here have lived through 3 to 5 (depending on DOB and where they lived) currency implosions.  There is a "meh, again.  Damnit" type of mentality and things will move on. 

I can only imagine in the USA, when EBT cards quit cashing, and chaos starts to break out, the police will do what they did in Katrina, and go home to protect their families, as will many soldiers/national guard, and it will snowball in the US.  The societal implications of such a disaster -- especially nation wide would be felt for decades.  It would fundamentally change the country, and I am not sure for the best.

 

Tue, 06/17/2014 - 13:16 | 4865666 Dingleberry
Dingleberry's picture

You are correct about the societal implications of the EBT crash. Europeans are used to living with less consumerism than the States, plus they do not have tens of millions of dependent "disenfranchised" on the permanent dole in exchange for democrat votes. Nearly all major cites here are now feral, if not apocalyptic.

Does Germany allow mass illegal immigration like we do? I cannot imagine with the social supports offered that it does.

Wed, 06/18/2014 - 02:08 | 4868086 Haus-Targaryen
Haus-Targaryen's picture

Immigration in Germany suffers the same problem as it does in the USA -- discourse about it, when put into an economic context makes you a "racist." The good news here, is Germany is run by a ton of budget hawks.  Typically the German government only does stuff if it can pay for it.  So this brings me to your answer; 

No -- Germany does not have the same social-demographic issues that the USA does.  Its largest demographic sub-segment of society are Turks.  These turks came over to the United States in mass numbers beginning in the late 40s, which stopped in the 70s.  There are millions of turks here, but now more Turks are returning to Turkey than are coming to Germany.  (Another demo hole the German government needs to fill)  The Turkish subsegment of German soceity looks similar to that of Irish immigrants to the US in the late 19th century -- there is a small, but rapidly growing middle class of them.  

The worst part about Turks is young Turkish men from the ages of about 14-28.  They, for the most part are truly insufferable.  This of course doesn't go for all of them, as I work with two interns at work, both Turkish who are awesome dudes who fit into this Demographic.  You just go to shopping malls, and you'll see groups of these guys chasing and cat-calling German windows.  They love e46 BMWs with huge mufflers, stickers everywhere, etc., etc., but if you can overlook the egregious immaturity -- for a working class immigrant population -- really good people.  

Because of the EU -- Germany hasn't been hit nearly as hard as the UK and France for other poor immigrants.  The German social system is not nearly as kind as the UK and France'S is.  Moreover, the total German speaking world in just over 100 million people, whereas English is the world's language and French is almost 200 million people.  These langauges are easier to learn than German as well.  So the UK and France take most of the hits -- but this is legal immigration thanks to this stupid "Free movement of peoples" idea within the EU.  

Illegal immigration isn't a problem her, per se, the largest issue we have is North Africans getting on a boat and going to Italy, the Italians not wanting to deal with them give them 50€ and a train ticket to somewhere in Germany.  Again, the German government doesn't appreciate this, and there are about 300 illegal immigrants hiding inside a church in Hamburg for the past 10 months.  German political aslyum can be easy to get if you are coached on what to say, but the German government has started hiring native peoples from lands (Sierra Lyon for example) to filter out those who are actually from there seeking political asylum and those from places like Chad who (lost their passports) and then say they are from Sierra Lyon.  

The Worst immigrant population here are the Senti and Roma.  Truly the lowest life-forms on the planet.   These people live, eat, breed and think link animals.  There aren't many of them -- but wherever they go -- they destroy the entire neighborhood around them for decades to come.  There is a reason why everyone in Europe hates the Senti and Roma -- truly horrible poeple. 

Tue, 06/17/2014 - 11:52 | 4865304 KnuckleDragger-X
KnuckleDragger-X's picture

It's the silicone tits of recovery....

Tue, 06/17/2014 - 09:53 | 4864714 Ness.
Ness.'s picture

Consumer prices rising, wages flat and falling, housing collapsing, wars raging, oil wells burning.  I mean if you can't find a reason to BTFATH you must be taking crazy pills!!

 

 

Tue, 06/17/2014 - 09:59 | 4864751 mrdenis
mrdenis's picture

Sounds like Billy Joel's....." We didn't start the fire ".............

Tue, 06/17/2014 - 10:07 | 4864766 onewayticket2
onewayticket2's picture

i suppose the answer is, sadly, "there's a LOT of [central bank] money on the sidelines"  (hattip knuckles)

if the Fed wants it to go up, it'll go up...they're majority? owners/operators now.  (and there doesnt appear to be ANY press on the story leading me to believe the masses do not, will not, and may never "get it")

 

Tue, 06/17/2014 - 09:53 | 4864717 nuclearsquid
nuclearsquid's picture

And ye, the deflation thus caused a thousand thousand central bankers to cry out with gnashing of teeth.

Tue, 06/17/2014 - 10:07 | 4864775 101 years and c...
101 years and counting's picture

wage deflation is allowed because the central printers dont care about the bottom 99%.  

Tue, 06/17/2014 - 09:53 | 4864718 Jayda1850
Jayda1850's picture

Anyone else waiting for the negative Q2 GDP print if only for the sake that the MSM couldn't spin its way out of a textbook definition of a recession?

Tue, 06/17/2014 - 10:29 | 4864895 ejmoosa
ejmoosa's picture

I talk to a lot of people on a daily basis.  Most are clueless.

They do know there was a golf tournament last weekend.

That the NBA season is over.

That the World Cup for Soccer has started.

That the NFL kicks off soon.

But they do not have any idea about Learner lost emails, the flood of immigrants acoss the southwest border, that the US collects more in Federal tax dollars than all businesses combined earn in after tax income, or that Iraq is now worse off than before we went there.

So for the second quarter GDP print to matter would take a miracle.

 

Tue, 06/17/2014 - 09:53 | 4864720 BullyBearish
BullyBearish's picture

Definately a BTFATH indicator.

Tue, 06/17/2014 - 09:53 | 4864721 Seasmoke
Seasmoke's picture

Income is going down. Better raise the income tax !!!

Tue, 06/17/2014 - 09:54 | 4864723 Dr. Engali
Dr. Engali's picture

The globalists are dragging their feet. We are getting closer to China's levels, but we still have a ways to go.

Tue, 06/17/2014 - 10:32 | 4864726 LawsofPhysics
LawsofPhysics's picture

That which cannot be sustained, won't be.  Fuck the paper-pushers, their "labor" is of no real value anyway.

Tue, 06/17/2014 - 09:55 | 4864732 Chuck Knoblauch
Chuck Knoblauch's picture

Increase the value of existing money.

Stop making more of it!

Devaluation causes inflation.

Economics For Dummies.

Tue, 06/17/2014 - 11:01 | 4865046 Four chan
Four chan's picture

devaluation IS inflation.

Tue, 06/17/2014 - 09:54 | 4864735 JRobby
JRobby's picture

Oligarch / Republow marketing campaign to stop any minimum wage hikes that might reduce gross profit from "seriously evil, sinful, look out for lightning bolts greedy" to "wow, that's really fucking greedy"

Not leaving the Demogods out of this, not at all. They are assigned the min wage hike side of the argument so the electorate can be properly aligned. That is: divided and fighting amongst themselves.

VOTE ALL THESE BLOODSUCKING FILTH OUT!!!!!!!!!!!!!!!

Tue, 06/17/2014 - 10:12 | 4864800 BLOTTO
BLOTTO's picture

Voting doesnt work - we, the commoners, have lost the last 213,456,300,230 elections in a row.

.

Voting doesnt work when they own both sides - to control the outcome of course.

.

We need to 'sever the beasts' head right the fuck off its body...only then can we begin the healing process...

 

Tue, 06/17/2014 - 10:23 | 4864855 JRobby
JRobby's picture

Load your own then. Stocks are running out.

Tue, 06/17/2014 - 10:30 | 4864900 ejmoosa
ejmoosa's picture

Voting indeed does not work.

100% turnout, and we were still selecting from two choices that are both set on ruling us from afar.

Fri, 06/20/2014 - 14:07 | 4872724 Comte d'herblay
Comte d'herblay's picture

The ignorance of basic economics from some on this site is appalling.  You cannot just raise wages to any level over current one on a massive scale WITHOUT A CONSEQUENT INCREASE IN PRODUCTION. 

Why?

Because without more and better efficiency the raise from current levels to a higher level will---- within less time that it takes to make your next credit card payment---cause prices for everything to rise and if the past is any indication, will actually go beyond the wage increase.

If everyone in the world immediately got a 50% rise in income, that income increase would immediately flow back to the very same entities that gave you the raise in the first place due to worldwide gigantic increases in demand.

Think about it.

This isn't a conspiracy, it's natural economic law as certain as the earth rotates on its axis.

 

 

Tue, 06/17/2014 - 10:02 | 4864760 Nue
Nue's picture

Wages don't matter because workers don't matter. When I can borrow at 0% and use the alchemy of Wallstreet accounting to convert that debt straight to income. Why do  I need  workers? Why do I need a product?  Why do I need a middle class? I don't need anything but for the fed to keep pumping.

Tue, 06/17/2014 - 10:03 | 4864762 yogibear
yogibear's picture

Housing bubble #2 collapsing, wages declining,Federal Reserve buying up treasuries from countries dumping anything in dollars.

Baby-Boomers retiring at 10,000/day causing a significant tax collection decline.

Tax collection only going up on trading profits.

 

What can go wrong?

Tue, 06/17/2014 - 10:14 | 4864808 TexasAggie
TexasAggie's picture

Regarding hollow point bullets, the military can't use hollow point ammunition because of theeneva convention but the police and other semi-law enforcement are using hollow point bullets.

Tue, 06/17/2014 - 12:01 | 4865358 shitco.in
shitco.in's picture

Ask Ukraine how the Geneva Convention worked for them. 

Tue, 06/17/2014 - 10:03 | 4864764 Market Rage
Market Rage's picture

I know I'm not that smart, but doesn't it seem like there's desperation in the air?  How many more hours can this go before they're forced to let equities tank to save the bond market?  Just raise the damn interest rates already.

Tue, 06/17/2014 - 10:27 | 4864888 JRobby
JRobby's picture

Tax collections will not rebound. A one point increase cost UST (US) billions /yr at this point.

ZIRP - NO WAY OUT

ZIRP - NO WAY OUT

ZIRP - NO WAY OUT

Tue, 06/17/2014 - 10:45 | 4864968 Nue
Nue's picture

Oh there is a way out but there will be blood.

Tue, 06/17/2014 - 11:10 | 4865082 Four chan
Four chan's picture

throw off the central bank from lady americas back. it has has bled this country dry and is completely unnecessary. (unless you are a rothschild shill)

Tue, 06/17/2014 - 10:07 | 4864774 ziggy59
ziggy59's picture

...and we can buy soooo much more now than we could 5 years ago..

People just shake their heads when looking at food prices, especially protein..

Tue, 06/17/2014 - 10:38 | 4864938 NidStyles
NidStyles's picture

There will be plenty to eat once the killing starts.

Tue, 06/17/2014 - 10:08 | 4864777 yogibear
yogibear's picture

All we need is for Japan's debt to infinity model to blow up and the US will see it's future.

Tue, 06/17/2014 - 10:15 | 4864813 Comte d'herblay
Comte d'herblay's picture

You might as well wait for the Second Coming as to think Japan's debt will blow up.   

When you owe yourself, only a suspension of ALL activity  that generates income can crush you.  And that is not going to happen to Japan or the U.S. of A. 

Tue, 06/17/2014 - 11:07 | 4865074 JRobby
JRobby's picture

+1 there, balanced it to neutral. 

LIQUIDITY TRAP

 

Tue, 06/17/2014 - 10:11 | 4864793 jameswvu99
jameswvu99's picture

According to gallup poll, median amount American's spend per week on food is $125, that is $6500, Median household income is $51000, after taxes probably around $42000, That is about 15% of household budget, 10% food inflation, would be extra $650, that is close to 2% of your annual budget, that is quite a hit and doesn't even include fuel and utitlity inflation, which has got to be up at least 10% YOY after this past harsh winter. 

Now if your houshould is in the 1%, income wise, then your talking about .2% of your budget. 

 

Tue, 06/17/2014 - 10:15 | 4864818 Market Rage
Market Rage's picture

Maybe you spend that if you're single.

Tue, 06/17/2014 - 10:18 | 4864835 TexasAggie
TexasAggie's picture

I don't know about your math. Beside the income tax on this level is less than the SS tax. If housing is 25% of your household budget, car expenses, utilities, any rise in food has to be offset by other cuts, also healthcare costs are probably over 10% including any contribution by others (taxpayers).

Tue, 06/17/2014 - 10:41 | 4864948 CheapBastard
CheapBastard's picture

Health care costs and property taxes are eating my lunch. I have had to repeatedly cut back on other services/items b/c of it. I know many of my friends and colleagues at work are in the same position, esp those with kids. Fewer treats and absolutely zeromovvies at over $8 perperson. Even some museums are out of sight now with $25 to $50 admissions ?! 

I enjoy symphonies, art, etc online much cheaper ... esp since I'm a Cheap Bastard. More importantly, I do not want to be want to be forced to eat cat food or parakeet seeds when i get older.

Tue, 06/17/2014 - 11:03 | 4864949 CheapBastard
CheapBastard's picture

Did I hit that 'save' button twice? sorry

Tue, 06/17/2014 - 10:42 | 4864950 CheapBastard
CheapBastard's picture

sorry duplicate

Tue, 06/17/2014 - 10:15 | 4864807 I Write Code
I Write Code's picture

Those are "1984 dollars", the nominal current rate is more like $20/hr.

And I'd like to see (but don't have the time to winkle out) the same series going back to 1984 and earlier - because I think it would show things are *much* worse now, and the trend has been down for decades.

Tue, 06/17/2014 - 10:18 | 4864831 holmes
holmes's picture

This wage stagnation should be accompanied by price deflation which would soften the blow but the FED won't allow the latter. Also, if they weren't suppressing interest rates, savers could be earning some return which would also soften the blow.But that also isn't in the playbook for ass raping the middle class.

Tue, 06/17/2014 - 10:24 | 4864859 tecno242
tecno242's picture

Silly Rabbits.

The FED doesn't want wages to rise.  That in fact is the only thing that could really cause the headline inflation numers to finally move higher.

Wages suddenly rising would put the FED in a very bad spot. 

Everytime wages don't rise, i'm sure they all do a chest bump and a high five and let the presses roll on. 

The banks love low wages too, because it means the free money will keep coming their way.

Tue, 06/17/2014 - 10:31 | 4864909 BoingBoing
BoingBoing's picture

I don't understand the narrative here on ZH.

$10/hr = bankruptcy levels, banks are screwing us, it's all going to hell.

$15/hr min wage in Seattle = evil socialism, it's all going to hell

Tue, 06/17/2014 - 10:40 | 4864945 NidStyles
NidStyles's picture

Inflation is the enemy, not nominal wage levels. 

Tue, 06/17/2014 - 10:50 | 4864972 Jayda1850
Jayda1850's picture

The problem is that minimum wage is enforced by government which has been proven to be dissapportionately stricter in enforcement of smaller business, not in this case necessarily but overall, due to the fact they do not have the money for lobbyists or lawyers. So once again a well intentioned idea is co-opted to screw the very people it is intended to help only to profit those at the very top it was intended to punish. Welcome to Bizarro World.

Tue, 06/17/2014 - 10:59 | 4865032 Tyler Durden
Tyler Durden's picture

Here's the explanation then: if the $15/hour wage in Seattle was determined by the market, you know - supply and demand - not by some arbitrary apparatchik of the "fairness doctrine", ZH would have zero problems with it.

As it stands, it is yet another centrally-planned aberration which misallocates capital into unproductive pursuits, leads to slower small business formation, and generally strangles the local economy. If you want to call it "evil socialism, it's all going to hell" then by all means, please do.

Tue, 06/17/2014 - 12:59 | 4865592 Dan The Man
Dan The Man's picture

Youve sort of hit on the nature of the beast.

 

The $10/hr bankruptcy number is an inflation adjusted wage.  Thats the number of the true value of our wages. Like being paid in gold. And its falling.

 

The $15/hr minwage number is NOT inflation adjusted...its just a hard figure needed to protect ppl from poverty.  Thats one is rising kinda quick.

 

The number goes up...but the value goes down.  The central bank world can make $100 worth less than $1, easily.

Tue, 06/17/2014 - 11:39 | 4865230 Dingleberry
Dingleberry's picture

Remember bitchez...as long as there is no wage inflation, there is no actual inflation according to your esteemed federal reserve.

Wage inflation causes a inflationary positive feedback loop, and generally the only cure is high interest rates (e.g. Volcker).

You know what even a point raise in interest rates will do to housing, cars, derivatives, the banksters.

So sit down, buckle up, and continue to enjoy the slow ride into the economic abyss.

Tue, 06/17/2014 - 11:40 | 4865233 TheRideNeverEnds
TheRideNeverEnds's picture

There is a simple way around this, just buy stocks that have no earnings!  They have a whole index for them these days, its called the Russel 2000.

Tue, 06/17/2014 - 11:40 | 4865239 yogibear
yogibear's picture

The Fed loves inflation because it expands debt. Ever-increasing debt is their game.

Tue, 06/17/2014 - 21:37 | 4867548 RMolineaux
RMolineaux's picture

Retirees receiving benefits from the Social Security system receive automatic adjustment to their pensions based on the movement of the consumer price index during the previous year, unless there was no such movement.  At the same time, active workers have not received any increase in their real wages since the Lehman collapse.  This means that retirees receive better inflaton protection than active workers.  This situation is clearly inequitable and politically damaging to the integrity of the Social Security system.  IMO, the adjustment process to pensions in payment needs to be changed to ensure intergenerational equity.  This can be done by creating a special index for adjustment that uses the lesser of inflation or wage movement.   (I am a current recipient of a SS pension.)

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