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Wages & Lowflation (Or Why Rick Santelli Is Right)
As Goldman notes, the driver behind the recent modest rise in real weekly earnings: lowflation - is the wrong recipe for wage growth...
Confirming what Rick Santelli said Friday...
"deflation is the boogeyman... and the only thing that can save the middle class is lower prices"
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And cheap CL will drive global growth because everyone has a spare $ hunski or 10 laying around to drive their 2.5 knuckledragging brats to Disney...
Yes, yes, the group of people once known as middle class and henceforth known today as the decimated class, has all kinds of spare fiatscos just laying around waiting to be spent now that oil is so cheap.
Greenshoots here we come! +Infinity% GDP is on the horizon, free kool aid as well, just ask the roadrunner at the kiosk near the edge of the cliff!
https://www.youtube.com/watch?v=qBCUCJNWimo
I don't know what Yen was saying, but I take it you guys agree that if we have no money, then we can't cause scarcity.
I agree with Rick Santelli in that Wages are flat, will continue to be flat, and we do need cheaper prices to keep up US Consumption and we should get lower prices.
However, we do see many areas where the winners in the Economy are getting inflated compensation including in the Public Sector, we see inflation of the Fed Balance Sheet, inflation of the Federal Budget and Weapons, DOD, Security Spending, even inflation of federal Agencies. Home prices are still high and supply of houses seem to be low for some reason maybe a plan by those in control.
I'm sure they will figure out how to raise gasoline prices just as they have kept Diesel prices high since it is a write off for Businesses and is passed on to customers.
My gasoline prices are too high now, like .60 cents above the low. Someone is gaming the system.
Maybe I am rich if Deflation sets in.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Deflation...never going to happen as longas Yellen can breathe...
Moe "Bowl Cut" Yellin is just reading his script. Nothing new there.
And "low inflation"? Well, that's bowlshit too...
I want 99 cent gas and 1.99 ground beef damn it.
You won't need low prices when you are making millions at McDonalds....but you will wish a return to before gas cost $3000 a gallon....it is the coming hyperinflation that'll getcha...and good...
@heisenberg: I'm sure you'd make good use of the price drop, but don't you think too many would simply drive 2.5 ton SUVs again and load up on yet more useless iCrap and stuff from the Megalomart?
I'd prefer people had cause to realize they don't need all that stuff and we had a chance to get off the more stuff » more growth » better life hamster wheel.
Unfortunately you can't legislate values. Society has gotten to where it is by being blinded to what others tell them, they're outer directed.
Trying to correct that through extraordinarily high fuel prices won't happen, people will just complain and continue to drive their suburbans and excursions.
Sometimes it's just better to let things run their course and let people suffer the consequences of their bad decisions.
People who live on the hamster wheel often don't relish the idea of getting off, it's change and for many change is never good.
Less is more. WE downsized years ago - couldn't be happier in a small, cosy cottage in rural area of UK - no money, therefore no money worries - just enough income to keep us sweet. Spend time helping others - it's great therapy.
Buy a car that gets 40-50 mpg and you'll have your 99 cent gas. Think small. Also go vegan and you won't have to buy that artery-clogging meat. You can't always get want you want.
$0.99 a gallon is really just the tax. At that price the gas is free.
Coming, if you qualify for free healthcare.
Here's something to think about: My Grandfather and Grandmother, who were young adults who FORTUNATELY HAD A SOURCE OF INCOME during the great depression of the 1930's, used to bake pies every day, and then put them on their windowsill to cool. The pies would always be stolen off of their windowsill by people in the neighboorhood. These were people who couldn't find any work, because there just wasn't any work to be had. My grandparents baked those pies every day on purpose, so that their neighbors could steal those pies. They knew that if they let their destitute neighhbors steal the pies off of their windowsill, their neighbors wouldn't come into their house and kill them, beat them up, or whatever, and steal whatever was inside their house.
And they also practiced a daily ritual of standing on their back porch and passing out potatoes and fruit to young children who were hungry. And then they would shoo the children away and tell them to come again the next day.
Yep... my grandparents actually did that.
Sorry, but your grandparents were dumb...they should have bought Bitcoin instead.
Surely you jest. But that was pretty funny.
Don't call me Shirley.
I live in a sort of a wetish woodland area.
I guess they had a dry Cellar, Root Cellar.??
My potatoes start to grow and get soft in just a few months.
There must be a secret to keeping Potatoes for 8-9 months.
I spent some time in Belarus. They use earth clamps, very large ones, you can see them for miles. This seems to work - not sure why they don't grow - maybe it's just a seasonal thing? Google for the instructions
Lessons to learn here - well done
Does anyone actually believe that the Fed will ever tighten?
(other than the retarded donkey banging its head against the brick wall day after day)
Nope...Fed will never tighten, at least it won't ever normalize rates. It may do a symbolic 25bp hike but it will be nothing but show and they'll probably have to reverse course relatively quickly.
When you've painted yourself in a corner this is what you get....
The lower class will be 'monitored' by the US Dept of Agruculture.. They will add fuel to the 'handouts'.