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This Is What Keynesian "Success" Looks Like: Soaring Part-Time Jobs, Record Low Real Wages
Though we noted the plight of the Japanese worker in a previous post, a plight which arrived in the US some five years ago yet which the mainstream still refuses to acknowledge, the punchline may have been somewhat diluted. So here it is again, without much additional commentary.
When it comes to the consequences of Japan's QE, now in its third year, the head of the BOJ has been very clear:
- KURODA: BOJ'S EASING IS HAVING INTENDED EFFECTS: 5/14/2015
- KURODA: JAPAN IS APPROACHING FULL EMPLOYMENT: 5/13/2015
- RODA: JAPAN ECONOMY IMPROVED CONSIDERABLY AFTER QQE POLICY: 5/13/2015
In short: Keynesian policies (courtesy of the sage advice of none other than Paul Krugman), coupled with some $80 billion in monetarism monthly, have been a smashing success. At least that's the propaganda. Now, here is Japan's "full employment" truth.
Exhibit A: soaring part-time jobs:
Exhibit B: ... consisting of "senior citizens and housewives"
And Exhibit C: working for record low real wages.
If that's "success", we would hate to see what Keynesian failure looks like. Perhaps we should just look to the US economy for the answer.
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This is exactly what TPTB and the .01% wanted... An army of serfs and peasants to wait on them...for pennies and sustenance.
Class War, and the 99.99% are losing. Badly.
Which is odd as one can see that a whole lot of that 99+% are clearly participating in their own enslavement.
Don't mention C War....not C war....its NOT CLASS WAR DAMMIT! Its just a little trickle up economics.
The answer is NOT Marxism, but structural changes are needed.
"Physical violence is for the amateur in dominance. Structural violence is the tool of the professional."
-- Johan Galtung
Paul Krugman for world biggest dunce of all time.
If that's "success", we would hate to see what Keynesian failure looks like. Perhaps we should just look to the US economy for the answer.
Keynesian economics worked perfectly well as expected in america for the past 40 years, built the worlds largest middle class of productive workers...only problem is they are all in China. Perhaps the low wages are more a factor of smashing unions + neo-liberal outsourcing than keynes?
Aye. Don't expect the victors to give any quarter to the vanquished.
The wave of the future - the Daily Mail has a story about a Nigerian restaurant that served meals containing human meat to customers, apparently not telling them first about the meat's source. Paging "Soylent Green."
http://www.dailymail.co.uk/news/article-3084326/Nigerian-restaurant-shut...
Your post is like a blank page on which I can explore my own thoughts.
A real sense of space, truly profound.
it is openly ethereal
"Taste like chicken" Jeffrey Dalmer
I lost the link but there was a report (study?) that came out about a year ago that concluded human flesh tastes like a combination of pork and veal! I have always suspected that this is where the prohibition against eating pork came from. I would also suspect that this prohibition would be more likely to be in those "societies" more inclined to partake than others. Let's see, whom would that be?
I'd be looking sideways at the guy doing such a study.
How would he know?
He wrote the book ALIVE.
Gives a whole new perspective to trying to decide between Italian, Chinese, or Mexican for dinner tonight.
Exactly
but also they obviously didn't realise that if they drive wages into the ground then demand will collapse as no-one has any money to spend. These people aren't smart - or at least the smarts they have gets buried under short term greed.
This is combined - legal and illegal immigration. Must have done a lot of damage to the prevailing local wages. And don't forget all those manufacturing jobs that went to Asia.
I see that my table did not get published. Anyway it shows that total immigration numbers rose from 30 million to over 41 million during the Bush-Obama administration.
dont be racist, we need 265,000 indians with fake degree each year to plow into the USA because without them... who would make piles of stinky poo?
Low wages and more part time workers with declining overall employment (as well as labour participation rates worldwide except China) means ....DEMAND DESTRUCTION.
From Sanyo to Sharp to Panasonic to Blackberry to Ericsson to coal and shipping companies to supermarkets in Germany and banks in Switzerland to retailers in US are all dying in front of us, yet money printing has not stopped.
What is needed for this madness of money printing to end?
"What is needed for this madness of money printing to end?"
Lead poisoning?
A consumers' strike. Stop buying crap you don't need. Get your money out of the banks. Buy gold. Stop throwing away working appliances because the new ones "look better" ( truth : you don't want to do less than the shiny neighbour ). Keep driving your old car. Fuck the system, that's what you should do.
That's true, Hendrik.
But will it not lead to more demand destruction and consequently less jobs at a time when we need more jobs to stabilise the world?
The nature of economics is such that young people, whether graduates or not, need to buy or rent a house (in order to live) and eat food (in order to live) and have a job (in order to live and reduce unrest). With all this, comes buying of homes, appliances, cars, furniture, kids (hence demand for schooling etc), demand for healthcare and entertainment etc.
The problem in today's world is that we have too many young men and women and too little jobs!
No amount of debt printing can bring jobs to these people. Their future is in peril.
If the objective of money printing was to create jobs and hence new demand for goods and services, we would be just fine. However, the main objective of money printing has been to bail out billionaire buddies.
It is sad but the economic world is going to collapse if these policies continue and cause massive uprisings as people have nothing to lose (e.g. Syria...Iraq...Afghanistan..now South Africa....Libya...Baltimore, Ferguson...)
There is still time to immediately and urgently reverse the course of money printing and let capitalism work (it is the last opportunity) because within the next 3-5 years, if this continues, in the future, people will blame the people alive today as being responsible for the biggest collapse in world history. This will happen in the next 3-5 years at anytime.
There is still time to stop all the wars and bring the peace doves out.
There is still time to let go of all the billionaires who are surviving just because of easy money printing.
There is still time to arrest top executives who perpetrated financial crimes over the last 2 decades.
If all these actions are taken today, we still have a chance to live peacefully for another few decades.
If not, well....I do not have words to suggest what is coming our way.
WE NEED JOBS AND WE NEED THEM NOW.
Politicians of the world must unite and take this bitter pill NOW, rather than hope for the best.
I hope some politicans and central bankers who have a little bit of common sense are listening!
There is no easy way out.
We are currently passing the point of NO RETURN. By 2016 or 2017, we will be way past the point of no return. Armies and militaries will be unable to contain the unrest. Whatever businesses are alive today, will also go under hence it is in everyone's interest to reverse militarization and bring back capitalism NOW (not faux capitalism of QE) in order to create jobs as well as global peace.
We saw in Thailand a military coup unable to return to peace. We saw military in Johhanesburg last month. We have also seen military in Romania and other parts marching towards Ukraine. We also saw military practicing in California. Military is all over the Middle East, Venezuela, various parts of Africa (contanining Ebola and fighting Boko Haram) etc.
In the history of time, military has never been the answer to unrest. Military causes a bad situation to get worse over time. Just look at Iraq or Afghanistan after more than 13 years! And Syria and Libya after 4 years. Or Israel - Palestine or India-Pakistan after several decades.
Peaceful coexistence is the only way out of this quagmire that we have created. Egos must be toned down and peace should be given a chance. and let every country do whatever they want internally with no external political or military intervention.
Let us give diplomacy a chance instead of wars!
I salute those who keep trying to bring peace on earth whether NGO's or UN or activists or pacifists or diplomats or civil servants etc.
May the best of them win.
diluted, like piss beer. the whole of it is a diluted watered down scheme.
quality of goods, quality of life and value of dolla, cost of health care, all compromised to summation of part time, crap for profit made in china, cheap ass system of max profit by the controllers with a limited controlled opposition to keep the facade going as a hand few of insiders skim the profits to billionaire status. the new normal...
The ones attempting to write history and sit in the throne will always pat themselves on the back and make it official. They'll justify murder too.
None of the economic models of the past ever visualized a global economy like we have today. None if them ever visualized the fiscal insanity of QE and unlimited debt to the extent we have today. None of them ever visuslized an electronic trading world that replaces human traders and opens up fraud and abuse.
As a result, many of the models of how to 'tweak' an economy have been smashed and are worthless.
The dow is at a record high. Interest rates on every consumer loan are at record lows. Over 3 million jobs created JUST last year most of them were full time high or medium skill based on actual research by the Federal Reserve
Thank you for your input Joe Biden. Now go back to gazing at your navel and licking Obama's shoes.
Does it take much effort to be such a moron?
Exactly. This is a crucial point that is stunningly missed by nearly everyone.
A) Even on the first graph, Full time employment has been trending up except for a slight decline in the previous month
B) High & Medium skilled jobs have been increasing since 2012 while low skilled jobs (retail where most of the employees have an IQ of a used napkin) have been decreasing. Of course every thinks the "solution" is to wage minimum wage to between $15 - $20 an hour by 2020 (ex. these $20 by 20 slogans) with 12 PAID days off at a minimum because "scandinavia does it that way"
12 paid days off? The law here is 4 weeks vacation some countries 5 weeks. This has been like that for decades and our wages are higher and unemployment is much lower than the USA.
Germany may have won the war after all.
Check Current Account Balance, Germany is #1 in the World, not bad for a country without oil & mining.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/21...
#193 is USA.
Wrong. The Germans lost the war ( twice, even a very able country with less than 2% of the world population cannot win a global war, not even when you are at 5% - hello USA ) but they learned : they don't start wars anymore while the USA does start a war every 2nd year ( because in your constitution, there is a clause which says the federal government cannot impose federal taxes if there is not a ( foreign ) war ongoing ). So, in order to keep you guys paying federal taxes, the USA needs wars. Which are bloody expensive, hence your massive trade balance deficit. Belgium is a different case : they do not fight wars ( way too small for that ), they are practising re-invented communism, state corruption and unlimited import of morons. "Belgium" fights a war against its autochtonic Flemish citizens and is about to win. Like the Greek.
Does your handle JMT stand for Just Meaningless Tripe?
It all started with the Great "trickle-down" Economics. Give all to the few and they will throw bread crumbs to the many.
Check this out. Proof USA is following UK Style Economy:
- We are Dead Last on the list of Current Accounts by CIA out of like 193 countries:
192 United Kingdom -$117,900,000,000 2014 est.
193 United States -$385,800,000,000 2014 est.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/21...
und Deutscheland uber ales:
1 Germany $257,700,000,000 2014 est.
No... Everything else in the world is upside down and backwards, so this really means we are #winning!
"This Is What Keynesian "Success" Looks Like: Soaring Part-Time Jobs, Record Low Real Wages"
Well what are the other possibilities has anything else being going on to effect Fiscal Policy, Monetary Policy, Central Planning of the Economy, Princes of the Yen Banking loaning and spending money into the economy, Looting of Banks or Government, Racketeering where Executives form Cartels which give themselves big compensation increases for doing nothing to add value to the Economy, Corruption?
- What do you call it when everyone in the Economy with earning power sets out to Loot any source of big Funds, ANARCHY
I'm not being silly here, there are a lot of Moving parts... these two articles are talking about Japan, USA, and maybe Europe.
- Is Globalism, Free Trade, Slave Labor, Foreign Investment Extracting Wealth from the USA, EU, and Japan??
- Do Modern nations need a level of Protection for Organic Capabilities for Organic Industries not only for the Expertise, Skills, Velocity in the Economy, Local Wages, but also for Emergencies and National Security
-Is $31 Trillion USD in Foreign Ownership/Investment in the USA Extracting our Wealth?
- Do high Debt Levels Destroy Sensitive Levels of Disposable Income in the USA... and Channel that Wealth to Bankers and Financial Middlemen?
- Ya Think Money in Politics has Destroyed not only our Congress and Presidential Representation, but also our Key US Regulators like FBI, SEC, FINRA, FTC, GAO, or CBO?
- Ya Honestly think anyone is Monitoring the Federal Reserve, What they are doing, What Policies may be Harmful, and if Economic/Monetary Leakage or Velocity Leakage can be Traced to Globalism & US Bank Deregulation & Lack of Corporate Governance?
-
Velocity of MZM Money Stock, 2015:Q1: 1.353 Ratio (Collapse perfectly timed to the High in Manufacturing Employment as it also collapsed), Quarterly, Seasonally Adjusted, MZMV, Updated: 2015-04-29
http://research.stlouisfed.org/fred2/series/MZMV
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (wow huge trend, $31 Trillion in Foreign Property in USA vs $24 Trillion)
Rest of the world; foreign direct investment in U.S.; asset, Level, 2014:Q4: 3,298,931.7 Millions of Dollars (+ see more), Quarterly, Not Seasonally Adjusted, ROWFDNQ027S, Updated: 2015-03-12
https://research.stlouisfed.org/fred2/series/ROWFDNQ027S
https://research.stlouisfed.org/fred2/series/GPDIA (Gross Private Domestic Investment, $2,851.6 Billions of Dollars)
https://research.stlouisfed.org/fred2/series/GPDICA (Real Gross Private Domestic Investment, $2,704.7 Billions of Chained 2009 Dollars)
Trade Balance: Goods and Services, Balance of Payments Basis
2015-03: -51,367 Millions of Dollars (+ see more)
Monthly, Seasonally Adjusted, BOPGSTB, Updated: 2015-05-05
http://research.stlouisfed.org/fred2/series/BOPGSTB
Current Account Balance: Total Trade of Goods for the United States©, 2013: -703,911,000,000 US Dollars, Sum Over Component Sub-periods (2013 was last data), Annual, Not Seasonally Adjusted, BPBLTD01USA637S, Updated: 2014-04-03
http://research.stlouisfed.org/fred2/series/BPBLTD01USA637S
All Sectors; Credit Market Instruments; Liability, Level
2014:Q4: 58,715.58 Billions of Dollars (This is Total US Debt)
Quarterly, End of Period, Not Seasonally Adjusted, TCMDO, http://research.stlouisfed.org/fred2/series/TCMDO
The Dow Jones Industrial Average is poised for a sharp, swift collapse that will surprise everyone in its relentlessness. That point is only days away...
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
Paul 'Cowbell' Krugman
What's happening has nothing to do with Keynes or any other economic ideology. It is entirely the product of the short term greed of an elite with no sense of long-term stewardship.
The roots of the problem are
1) mass immigration and off-shoring (aka supply and demand of labor)
2) debt-based consumption (aka usury aka the banking mafia).
They are both good for the elite in the short-term but deflationary in the medium term and between them they have led to the ongoing banking crisis and depression.
The solutions people like Krugman propose are not Keynsian or any other ism because they are not intended to help the broader economy at all. They are *all* mechanisms for pouring money into the banks to fill the black hole of toxic debt left by the housing asset bubble. Only the *spin* is Keynesian (or whatever else).
The aim of the post-crash policies is to transfer wealth to the banks to cover their gambling losses. They are not aimed at fixing the broader economy and so they don't. The spin around *why* they are doing what they are doing is just a smoke screen.
(edited for clarity)
Keynsianism is a stopgap theory that says that Government has to spend. Of course that is simplifying it, but that is the gist of it.
Deficit spending is Keynsianism.
QE is NOT deficit spending. QE is Central Bank spending to swap, to then change composition of money supply.
QE is new money created on a keyboard at FED, and that general purchasing power is traded/swapped for a debt instrument. The DEBT instrument makes its way to the FED balance sheet, expanding said balance sheet.
The Keyboard money is now held by a former debt holder. The former debt holder really doesn't need this keyboard money, so they use it to invest in other debt instruments.
In this way, QE funds a casino of new debt instruments, each of which makes claims on the real economy. A lot of QE money also gets caught in reserve loops of banks, where it is trapped. Yet more QE money creates loans as a carry trade on other economies, thus the banks make the difference in interest, especially with the BRICS. This pissed off the BRIC countries by the way.
Keynsian spending was meant to be done by a NATIONAL bank, not a CENTRAL bank. They are two different things, and hence the FIAT they create is DIFFERENT.
During the Reagan era, heavy deficit spending was spent into the military industrial complex, and this then fluxed out as wages, where it then became savings and general purchasing power. This deficit spending power meant that private debts were reduced, and people could then use their savings to start new companies, or invest.
In other words, the FED, a Central Bank, monetized TBILLS for deficit spending, and then the government spent into the money supply. The DEBT instruments stayed on the books at the FED and were then ignored. A national bank can do the same thing, only without a debt instrument. National banks are less of a game of musical chairs and less smoke and mirrors. National banks can spend into channels of production, QE Central Banks only swap and try to benefit their customers - private banking corporations.
Central Banks exist to bail out banks, and to subvert government. National Banks exist to empower government because Keynsianism understands there are flaws in the debt money system, mainly that the usury cannot be paid unless there is exogenous spending.
QE is NOT exogenous spending. It is within the banking system, it is endogenous.
Get your fiats straight please ZH denizens. The money system predicates the type of money and how it flows. All systems predicate their output.
People that just jump up and down and exclaim fiat fiat fiat are demonstrating they haven't done their homework.
The right kind of fiat is a boon to man, the wrong kind of fiat is curse
www.sovereignmoney.eu
This Is What Keynesian "Success" Looks Like: Soaring Part-Time Jobs, Record Low Real Wages
I see it everywhere on Main Street. But not on Wall-Street, or in the Banks.
If we expand the H-1B visa from 8 million invaders to all of india then we can flood our nation not with 265,000 fake resume fake degreed super technology workers, but over a billion. And all that job creation and innovation will result in a truly beautiful country. Why just exterminate our software geniuses and commite genocide against them we can commit genocide against all american workers just by expanding the H-1B visa. With a billion new people America will surely be the greatest nation on earth. Just think of all the MBA million dollar bonuses for the dumb schmucks who spent their college years drunk and laughed at the hard working engineers. Turns out, they were right, being smart and working hard is for chumps, fucking over your fellow man is where its at.