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"We Reached The Tipping Point": Income Inequality Is Highest Since Records Began

Tyler Durden's picture




 

While soaring stock prices do nothing to boost the economy, because as 7 years of hard facts have shown, the only thing "trickle down" QE has done is forced economists to jump the shark and demand not one but two seasonal adjustments to goal seek collapsing economic data, the S&P hitting new all time highs on a daily basis has certainly succeeded in one thing: pushing inequality around the globe, and especially in the US, to new record highs.

And earlier today the latest OECD report confirmed just that, when it reported that gap between the rich and poor in most of the world's advanced economies is at record levels.

In most of the 34 countries in the Organisation for Economic Cooperation and Development the income gap is at its highest level in three decades, with the richest 10 percent of the population earning 9.6 times the income of the poorest 10 percent.

In the 1980s this ratio stood at 7 to 1, the OECD said in a report.

The wealth gap is even larger, with the top 1 percent owning 18 percent and the 40 percent only 3 percent of household wealth in 2012.

"We have reached a tipping point. Inequality in OECD countries is at its highest since records began,” said OECD Secretary-General Angel Gurria.

Keep in mind this only looks at earnings, which have actually slowed down in recent years, and ignores the massive imbalance in accumulated assets: assets which almost exclusively are controlled by the top 10%. As for the bottom 10%, 50% and even 90%? Well they have "liabilities."

Sadly as this point it is far too late for hopes of a change: the wealthy are so engrained in the fabric of official decision-making, that any hope they would willingly cede their wealth, or power, is naive. As a result, the failed policies which have pushed the world to this disastrous condition will continue as can be seen by the recent launch of QE in Europe and the boost of QE in Japan, which will make the rich even richer, and the poor and hungry even madder until one day, the entire world decides it has had it and is covered in a bloody revolution against a broken status quo regime.

The OECD's is a little more politically correct, but it too now gets the message:

"By not addressing inequality, governments are cutting into the social fabric of their countries and hurting their long-term economic growth," said Gurria.

Here is the direct evidence that it is the Fed's policies that are causing the economic slowdown: the study found that the rise in inequality between 1985 and 2005 in 19 OECD countries knocked an estimated 4.7 percentage points off cumulative growth between 1990 and 2010.

One can only imagine what inequality did to GDP after 2005 when it really took off.

Another point Zero Hedge has made since 2010: the reason there is no inequality is the surge in part-time labor and temp jobs, which the idiot economists have consistently spun as bullish for an "any minute now" recovery. As it turns out it was just another byproduct of the Fed's disastrous monetary policies.

According to AFP, "an increase in part-time and temporary work contracts as well as self-employment was seen as an important driver of increased inequality, with half of all jobs created in OECD countries between 1995 and 2013 falling into these categories."

So we guess that wasn't just yet another Zero Hedged "conspiracy theory" after all.

Naively, the OECD believes that wealth redistribution with taxation may fix the problem:

Redistributive taxes and transfers is another effective option, said the OECD as it noted that existing mechanisms have been weakened in many countries.

 

"To address this, policies need to ensure that wealthier individuals, but also multinational firms, pay their share of the tax burden," said the OECD, which has been playing a key role in an international effort to crack down on tax avoidance.

Great on paper; horrible in practice for the simple reason that it is the wealthiest 0.001% who now own the legislative branch, directly and indirectly, will never agree to laws that tax them more. Case in point: Buffett who is all about boosting income tax which crushes the middle class, while staying mute on carried interest and financial asset tax. Of course: he is no idiot, and realizes that in a crony capitalist world made for billionaires, the only thing that matters are "assets." Plus cash flow in a ZIRP (and certainly NIRP) world is a thing of the past.

And finally, while the US middle class is approaching extinction and millions are desperate to find how to feed their families, the 0.001% are spending their money on stuff like $50,000 monthly rentals. From Bloomberg:

There’s a four-story townhouse on the Upper East Side for $35,000 a month that Marilyn Monroe once called her “sanctuary,” according to the listing, and a four-bedroom duplex in Midtown for $70,000 that Oscar winner Anne Hathaway used to rent. There are rentals in iconic new buildings and in grand old hotels. For $42,500 a month, you can live in the Chelsea condominium designed by Pritzker-winning architect Jean Nouvel. For a cool quarter million, there’s the Jewel Suite at the New York Palace, decorated with glass-encased rings and necklaces by the designer Martin Katz. (Management will gladly add the baubles to your bill, said Margaret Bay, an agent at Brown Harris Stevens, who has the listing.)

 

In all, there were 82 apartments renting for at least $50,000 a month listed on StreetEasy during the first three months of the year, more than triple the number listed in the first quarter of 2008. At lower thresholds, luxury listings are also on the rise. Apartments renting for more than $25,000 a month made up 0.95 percent of total inventory in the first quarter of 2015, up from 0.46 percent in the first quarter of 2008. Real estate agents and wealth managers say the increase in expensive rentals is partly an outgrowth of the luxury building boom sweeping through New York City, and partly due to the shifting whims of a global elite that wants luxury digs without the hassle of a long-term commitment.

How does all of this class insanity end? Simple: watch the following documentary on the French Revolution which we first posted over the weekend, for the answer.

 

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Thu, 05/21/2015 - 11:42 | 6117490 Hippocratic Oaf
Hippocratic Oaf's picture

All hail king odumbo!

Thu, 05/21/2015 - 11:47 | 6117510 TeamDepends
TeamDepends's picture

Change you can believe in, serf.

Thu, 05/21/2015 - 11:54 | 6117535 Antifaschistische
Antifaschistische's picture

Close the Discount Window at the Fed....and the trend will start to reverse immediately.

Thu, 05/21/2015 - 12:02 | 6117563 Richard Chesler
Richard Chesler's picture

We GINI'd some folks...

 

Thu, 05/21/2015 - 12:55 | 6117870 Fun Facts
Fun Facts's picture

A proper global serfdom requires extreme income inequality because people with no money have no political voice and no power.

This was a goal established by M. A. Rothschild and the elders of zion over 100 years ago [read the protocols].

Mission Accomplished.

Thu, 05/21/2015 - 13:24 | 6118024 Flakmeister
Flakmeister's picture

It is actually supply-side voodoo bullshit pioneered by St. Ronnie.  The data proves trickle down was an abject failure,  then again ideologues always have had a hard time with empirically rooted reality...

Thu, 05/21/2015 - 13:30 | 6118054 Counterpunch
Counterpunch's picture

except the same trend has happened globally.

It is not because of Reagan, it's because of the debt money/frac reserve system.

But keep unpacking those Leftist memes about how everything would be sunshine, puppy dogs, and free ice cream but for those opposed to statist/Keynesian dogma.

Thu, 05/21/2015 - 13:53 | 6118162 MonetaryApostate
Thu, 05/21/2015 - 16:15 | 6118870 BoredRoom
BoredRoom's picture

Everything the Chosenite media said about Obama has been a lie.

Thu, 05/21/2015 - 15:25 | 6118533 Flakmeister
Flakmeister's picture

Sorry buddy.. just because you say so don't mean squat....

Just about every empirical measure of inequality took off in 1982...

And how would you explain US GINI ratios decreasing for 50 years under a fractional reserve system??

You are just another ideologue in denial about what the data tells you....

PS The correlation/causation is with marginal tax rates...

Thu, 05/21/2015 - 16:18 | 6118878 BoredRoom
BoredRoom's picture

"It is actually supply-side voodoo bullshit pioneered by St. Ronnie.  The data proves trickle down was an abject failure,  then again ideologues always have had a hard time with empirically rooted reality..."

 

Trickle Down Economics = Pure Capitalism

 

 

Leave it to Democowards to attack capitalism but not even have the balls to do it openly.

Thu, 05/21/2015 - 12:03 | 6117568 Oh regional Indian
Oh regional Indian's picture

The trouble is that in a pyramidical system, income equality is impossible. Any equality is a mirage, a facade of fake bonhomie at best.

The real trouble is the scale of the inequity, if you'll pardon the pun. The cream from production labour floats to the top. Flatten it too much and you have the dreaded socialism bogeyman.

The brits left india with a horrendous income inqality situation in 1947...polarized and mind fucked sociaty...till today...

The deeper things need pondering first....

https://aadivaahan.wordpress.com/2010/06/17/death-of-shame-death-of-nobi...

Thu, 05/21/2015 - 12:37 | 6117707 Beam Me Up Scotty
Beam Me Up Scotty's picture

"The real trouble is the scale of the inequity, if you'll pardon the pun."

Exactly.  If you were one of those "rich" people making $1 MILLION dollars PER YEAR, it would take you 71,000 years to reach the net worth of Warren Buffet.  And thats if you didn't pay ANY taxes.  Factor in the taxes and it would take you about 140,000 years to make $71 BILLION.  Hows that for scale of inequality???

Thu, 05/21/2015 - 12:06 | 6117574 Captain Debtcrash
Captain Debtcrash's picture

If we were to believe Thomas Piketty the current toast of Keynesian economics the issue with wealth inequality is simply a flaw in capitalism, r>g.  Maybe, just maybe, they should look at central banks buying the assets of the rich for top dollar.  I have all kinds of stuff in my basement that could use a central bank buyer.

Thu, 05/21/2015 - 13:26 | 6118034 Flakmeister
Flakmeister's picture

Yep, r > g....

Astoundingly simple that even a cave man could get it...

Thu, 05/21/2015 - 14:32 | 6118373 Captain Debtcrash
Captain Debtcrash's picture

Are you implying that you believe r>g is the reason for the increase in wealth inequality?!  I'm not saying you are but I wanted to clarify.

I think we should look at the money that is being handed to the rich through QE before looking at some possible flaw in capitalism. That’s not to say that return on capital may not be at times greater than underlying growth, though I haven’t seen any profound evidence from Piketty.  His findings are so small they could easily be statistical errors, errors from bias, or features of Keynesianism not free market Capitalism.  But before we even think about doing further study into r>g, we need to address how QE directly steals from the poor and middle class and productive rich and hands it to the financial asset owning rich.

Thu, 05/21/2015 - 15:16 | 6118594 Flakmeister
Flakmeister's picture

.

Thu, 05/21/2015 - 15:15 | 6118595 Flakmeister
Flakmeister's picture

Yawn....

The cat was let out of the bag along time before QE ever started...QE is only the endgame....

So quit projecting your ideology...

BTW, the solution the problem is not income tax but wealth taxes that become punitive above $200MM or so (4-5% p,a, 1 to 2% otherwise)...

This would combined with a modest income tax above $250,000 or so and consumption based taxes. Payroll taxes would be dropped...

Thu, 05/21/2015 - 12:29 | 6117714 BlowsAgainstthe...
BlowsAgainsttheEmpire's picture

Ummmm . . . no it won't.  You would need to address this:

 

http://research.stlouisfed.org/fred2/graph/?g=1c4p

Thu, 05/21/2015 - 14:40 | 6118414 MFL8240
MFL8240's picture

Get rid of them, screw the discount window!

Thu, 05/21/2015 - 12:07 | 6117557 813kml
813kml's picture

With the price of Kobe beef reaching stratospheric levels there has been some belt-tightening here on the estate.  Fortunately, the last chattel drive was a resounding success.  Our creative chef has paired the new dish with a tossed green salad and taken to calling it "Serf and Turf".

Excellent with some fava beans and a nice chianti...

Thu, 05/21/2015 - 12:12 | 6117614 KnuckleDragger-X
KnuckleDragger-X's picture

You win the internet with that post......

Thu, 05/21/2015 - 12:21 | 6117678 NoVa
NoVa's picture

Income Inequality is the result of Climate Change - DUH, everyone should know that - 

 

/s/

Thu, 05/21/2015 - 12:31 | 6117719 BlowsAgainstthe...
BlowsAgainsttheEmpire's picture

LOL!

 

If you think Obama is THE problem, then you don't understand THE system.

Thu, 05/21/2015 - 16:23 | 6118892 BoredRoom
BoredRoom's picture

Obama's black, so he's only a puppet, but Bush was responsible for everything that happened on his watch, right?

Thu, 05/21/2015 - 12:48 | 6117823 Thick Willy
Thick Willy's picture

Why would you expect income and wealth equality between people who are clearly not equal?  The U.S. has been flooded with tens of millions of illiterate, diseased, criminals that refuse to learn English.  Why should they have anywhere near the income and wealth or highly educated, clean, law abiding whites?

If anything income inequality isn't high enough.  Cut off the welfare payments and watch the filth die off by the millions.

Thu, 05/21/2015 - 11:42 | 6117494 wallstreetapost...
wallstreetaposteriori's picture

Oh thank god, now double the minimum wage so the the mc'd employees could purchase a share or two of $SHAK.  That will fix all the problems.

Thu, 05/21/2015 - 11:50 | 6117522 813kml
813kml's picture

Scoff if you must but Shake Shack is exploring previously unknown frontiers in haute cuisine.

http://www.thestreet.com/story/13159184/1/shake-shack-shak-may-start-ser...

Thu, 05/21/2015 - 11:59 | 6117553 TeamDepends
TeamDepends's picture

The quest to perfect the recipe for the Soylent Shake continues around the clock.

Thu, 05/21/2015 - 12:44 | 6117599 813kml
813kml's picture

Analysts anxiously anticipate announcement of a new fry sauce.

Thu, 05/21/2015 - 11:43 | 6117497 i_call_you_my_base
i_call_you_my_base's picture

100% fed induced. There is no question whatsoever.

Thu, 05/21/2015 - 11:56 | 6117499 Dr. Engali
Dr. Engali's picture

"As this point it is far too late for any change: the wealthy are so engrained in the fabric of official decision-making, that any hope they would willingly cede their wealth, or power, is naive."

 

Ahh, spoken like a true pessimist. All is lost you proles, so we might as well just  accept our fate. There was a time before men were neutered that they thought differently.

 

 

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.

 

~Thomas Jefferson

Thu, 05/21/2015 - 11:58 | 6117552 CompassionateCo...
CompassionateConservative's picture

Thomas Jefferson was a sick slave owning paleo-Nazi therefore his words are meaningless.

Thu, 05/21/2015 - 12:06 | 6117566 Bill of Rights
Bill of Rights's picture

You must be the fuck'en retard in the family everyone talks about behind your back...

 

Educate yourself retard...

http://russp.us/racism.htm

 

Thu, 05/21/2015 - 12:05 | 6117576 LawsofPhysics
LawsofPhysics's picture

Words are always meaningless, ideas and actions are not.  That is the point dipshit.

Thu, 05/21/2015 - 12:38 | 6117760 Thick Willy
Thick Willy's picture

Those time traveling Nazis'll get ya everytime.  What you see here is a product of a steady diet of TV and public education.  "Nazis everywhere!"  Hilarious.

Thu, 05/21/2015 - 16:33 | 6118928 BoredRoom
BoredRoom's picture

"Thomas Jefferson was a sick slave owning paleo-Nazi therefore his words are meaningless."

 

 

So far ony one idiot appears to agree wih you......YOU!

Thu, 05/21/2015 - 12:02 | 6117564 Apocalicious
Apocalicious's picture

Spoken like an equally irrational optimist.

 

You really think 100 million Americans making $45 grand a year - enough to afford on average two cars, cell phones, a flat screen and cable, even if "afford" means run constant revolving credit balances - have it bad enough compared to any relative metric (historical, global, etc.) to actually revolt?

 

I choose realism.

 

Things will get much worse before they can actually start to get better. 

Thu, 05/21/2015 - 13:47 | 6117969 Dr. Engali
Dr. Engali's picture

Oh, I don't for a minute believe there will be a revolution under the current circumstances. You and I are in full agreement. However, I do believe that a day of reckoning will come, but not before some really bad shit happens.

Thu, 05/21/2015 - 11:45 | 6117504 firstdivision
firstdivision's picture

Want to see it reduced, reduce the crony in the capitalism we have here.

Thu, 05/21/2015 - 11:49 | 6117518 falak pema
falak pema's picture

Calling Mr Piketty...

BTW : It looks like the US has decided to let the ISIS carve up Syrac along with support from Turkey; all to bring down Assad.

What a crazy game of hide n seek. This whole ISIS hydra will one day eat that hand that feeds it today ! 

Thu, 05/21/2015 - 12:19 | 6117663 ThroxxOfVron
ThroxxOfVron's picture

" It looks like the US has decided to let the ISIS carve up Syrac along with support from Turkey; all to bring down Assad. "


The Obama Administration with Hillary Clinton at the helm of the State Department was fully aware of and entirely complicit in the plan to 'sack' the US Embassy in Libya.  

The murder of the servicemen and operatives there was sanctioned and allowed by the co-operative and accomadative Obama and Clinton so that they would have a cover story for supplying a cabal of trans-national 'terrorists' with a massive cache of US weapons, munitions, vehicles, Gold, and US dollars.

Obama and Hillary didn't 'let' anything: they planned it or sanctioned and assisited and/or supported in it.

SInce the event in question both Obama and Clinton have done nothing but lie about it and try to cover up their involvement. 

Fast & Furious was just a limited/dry run for a series of very much larger illegal international weapons and funding dirstribution scheme to the trans-national criminal/terrorist organiations Obama and Clinton explicitly authorize, direct and/or suport.

Thu, 05/21/2015 - 11:50 | 6117519 El Vaquero
El Vaquero's picture

70k/mo in rent for a fucking duplex?  That's fuicking retarded.

 

On the brighter side, I have some potatoes that are flowering this year.  That means true potato seed for me.  Potatoes, being tetraploids, do not always breed true, which means that I get some extra cultivar variety next year.  Not bad for using "seed" potatoe that I got by going around to co ops and whatnot and asking for the potatoes with the eyex growing. 

Thu, 05/21/2015 - 11:52 | 6117533 Yen Cross
Yen Cross's picture

   Here's a little more salt to rub in the wound.

  Floridians Are Displaced, Rubio Wants More Foreign Workers | The Daily Caller

Thu, 05/21/2015 - 12:10 | 6117601 TeethVillage88s
TeethVillage88s's picture

Well the might be a direct relationship between wealth extraction & Economic Leakage as our Dollars flight out of US Hands to the Hands of Foreigners or those operating off shore.

For instance I see new highs in 1984, 1986, 1989, 1994, 1997, 2001, 2006, 2011, 2012:

https://research.stlouisfed.org/fred2/series/GINIALLRH

Then look at both Credit to GDP and Debt held by Foreigners and Current Account Balance... and manufacturing employment top in 1981... as this sets off declining velocity of money stock.

Bank Private Credit to GDP for United States
2011: 55.47615 Percent (Data spans from 1961 to 2011)
http://research.stlouisfed.org/fred2/series/DDDI01USA156NWDB

Federal Debt Held by Foreign & International Investors as Percent of Gross Domestic Product, 2014:Q4: 34.75940 Percent of GDP,
http://research.stlouisfed.org/fred2/series/HBFIGDQ188S

http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (wow huge trend, $31 Trillion in Foreign Property in USA vs $24 Trillion)

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,
http://research.stlouisfed.org/fred2/series/BPBLTD01USA637S

https://research.stlouisfed.org/fred2/series/MZMV
https://research.stlouisfed.org/fred2/series/M2V
https://research.stlouisfed.org/fred2/series/M1V
https://research.stlouisfed.org/fred2/series/MULT

Someone is draining the Carcass that is the USA.

Both USA & UK have the highest Current Account Deficits of 193 countries. Amazing. No wonder not all people are benefiting from the Wall Street Surge in Profits.

Thu, 05/21/2015 - 11:54 | 6117537 Bill of Rights
Bill of Rights's picture

Ladies and Gentleman, Mr Frank Sinatra!

 

" And now the end is near "

Thu, 05/21/2015 - 11:57 | 6117547 CompassionateCo...
CompassionateConservative's picture

White Americans make too much as it is.  I agree with Warren Buffett that income taxes need to be drastically raised on working Americans.  They need to pay their fair share.  I would say raise their taxes to the moon and give them tax breaks if they turn in their guns and open up their homes to untaxed and undocumented workers.  If they refuse we could just put them in camps.  This is what Ronald Reagan, the best conservative ever, would have done if it would have worked in his day.  Sigh, we'll get there one day.  #endwhitepeople

Thu, 05/21/2015 - 12:16 | 6117646 LawsofPhysics
LawsofPhysics's picture

Exactly what Hitler would do if he was black..

Thu, 05/21/2015 - 12:24 | 6117687 ThroxxOfVron
ThroxxOfVron's picture

"White Americans make too much "

 

You are a fool and a racist bullshitter.

Tens of millions more whites live in poverty in the US than there are blacks living in it.

YOU should direct your anger where it rightly belongs: at the corrupt corporatist government and the wealthy politically dominate banking and military industrial complex backers of the crooked captured politicians..

 

Thu, 05/21/2015 - 12:35 | 6117744 El Vaquero
El Vaquero's picture

Psst!

 

(That post was parody)

Thu, 05/21/2015 - 12:29 | 6117713 Mike Honcho
Mike Honcho's picture

Kitty has claws

Thu, 05/21/2015 - 12:39 | 6117767 Thick Willy
Thick Willy's picture

Trololololollolol.

Go back to alternet, reddit, dailykos and the other sites your kind inhabit.

Thu, 05/21/2015 - 11:59 | 6117554 Bangin7GramRocks
Bangin7GramRocks's picture

Fucking unions!

Thu, 05/21/2015 - 12:01 | 6117558 Jim in MN
Jim in MN's picture

Hence the Lost Generation.....just reduce expected GDP growth to 1% per year, and real net asset returns to 0%, and all will be well. 

PS: Don't forget to increase your savings, and reduce your consumption, by 20-30%.

Thu, 05/21/2015 - 12:03 | 6117565 Dre4dwolf
Dre4dwolf's picture

if i am 10x smarter 10x stronger 10x faster and i do 10x the work in the same time,  is it fair for me to get 10x the pay?

Thu, 05/21/2015 - 12:05 | 6117577 Bangin7GramRocks
Bangin7GramRocks's picture

You aren't and you don't.

Thu, 05/21/2015 - 12:25 | 6117692 Dre4dwolf
Dre4dwolf's picture

well lets put it in simpler terms, if someone is 10x slower 10x dumber 10x weaker do they deserve the same pay as a fully capable human being ?

because judging from my perpsective atleast 30% of the population is self diagnosed as crippled 

Thu, 05/21/2015 - 12:42 | 6117786 Thick Willy
Thick Willy's picture

Half the mother fuckers out there won't work and have all kinds of reasons and excuses for it.  Anyone who will show up and put in an honest effort does deserve 10x the pay of some fat sack of shit that won't even get up and leave the house.  100x the pay.

In a "fair" world the lazy fucks faking disability would starve to death and that would be their only reward for their sloth.

Thu, 05/21/2015 - 12:44 | 6117800 Thick Willy
Thick Willy's picture

I'd pay more for the labor (time really) of 10 white or asian scientists/engineers than I would for the entire nation of Kenya if I were trying to do research and development and solve real problems.  Just to put things in perspective.

Thu, 05/21/2015 - 12:55 | 6117869 PTR
PTR's picture

if i am 10x smarter 10x stronger 10x faster and i do 10x the work in the same time,  is it fair for me to get 10x the pay?

Nope.

=D

Thu, 05/21/2015 - 12:03 | 6117567 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

1) How they will fix inequality with moar socialism and taxes: no thanks.

2) Still prefer the 10/1 inequality than 5.5/1 if it meant to live in a socialist hell hole like Sweden or France.

3) The source of the French revolution was not inequality but other factors especially a state with more than 80% debt, a debased currency, taxes who where higher and higher, famine due to bad harvest and finally free-masons who conspired to put their secular republic in place.

Who during the next 250 years done the "good" job of entirely destroying this country little by little, destroying Christianity and European traditional culture (not the shitty modern one) via secularism and progressivism.

5) OECD is an NWO institution who have the mission to push a worldwide socialist agenda.

6) Yeah, I'm French (and not a socialist one: a rare species in this country).

7) So things are more complicated than you think.

Thu, 05/21/2015 - 12:14 | 6117634 Bossuet
Bossuet's picture

Résumons-nous, tout ce qui n'est pas de votre chapelle est socialiste, ça va comme ça ?

Thu, 05/21/2015 - 14:01 | 6118158 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Le Français est un socialiste inné, il est un étatiste, il ne peut vivre sans l'Etat, c'est pour ça qu'il y a une économie qui n'a jamais marché, les impôts les plus forts au monde, les régulations les stupides au monde. (Comme la MILF Duflot qui veut nous sortir une loi nous obligeant a refaire tout nos logements).

Ou deux producteurs se suicident par jour a cause du RSI, ou il vaut mieux être au RSA qu'au RSI.

Ensuite il gueule sur la perte de sa culture, de l'immigration, de l'islamisation alors que tout cela n'est que la conséquence d'un problème qui remonte bien avant.

Est-ce que c'est plus clair maintenant ?

Thu, 05/21/2015 - 12:26 | 6117697 Analyse2
Analyse2's picture

You can add a factor : A part of the debt was due to the previous load to support American independence

Thu, 05/21/2015 - 12:14 | 6117622 Chuck Knoblauch
Chuck Knoblauch's picture

Have you read about the quad murders in DC.

A wealthy family of 4 murdered for a mere $40k.

But continue to believe the FBI's stats on violent crime in America.

Everything is under control.

The murders were a week ago.

Didn't hear a thing about it UNTIL they caught the black guy.

The family of 4 was white of course.

Greek ethnicity I believe.

Thu, 05/21/2015 - 12:14 | 6117630 Quirkel
Quirkel's picture

The Alinsky plan is almost at completion

Thu, 05/21/2015 - 12:16 | 6117639 Kreditanstalt
Kreditanstalt's picture

The masses WILL blame this on "capitalism" (such little as we still have) instead of EXPANSION OF MONEY AND CREDIT.

Thu, 05/21/2015 - 12:19 | 6117665 Lady Jessica
Lady Jessica's picture

Inequality alone is not sufficient for social upheaval.

A broad awareness among the populace is crucial too, and contingent agency.

(Hunger helps things along nicely).

We ain't there yet.

Thu, 05/21/2015 - 12:21 | 6117671 Chuck Knoblauch
Chuck Knoblauch's picture

Some call it deleveraging.

Some argue that the debt to GDP ratio is going down.

Some people believe the inflation deflator is wrong and GDP is negative.

GDP has been negative for a long time.

Some people like to believe in fantasy.

Marry wishful thinking with austerity and rising rates.

What a marriage.

I give it a month.

Thu, 05/21/2015 - 12:23 | 6117684 Kreditanstalt
Kreditanstalt's picture

"GDP has been negative for a long time."

 

I'll buy that...if you take out all the printed credit expansion and all the resultant misallocations of capital, GDP would have been negative for YEARS by now...and many people's "jobs" revealed as malinvestments in themselves, too.

Thu, 05/21/2015 - 12:38 | 6117727 Chuck Knoblauch
Chuck Knoblauch's picture

QE hasn't reduced debt.

Those who argue that it has, like Ray Dalio, are fools.

I don't think HE really believes in the sanctity of the GDP calc.

GDP as stated by the government is wishful thinking.

The Fed isn't going to raise rates.

But I'm prepared if they do, I hope.

Thu, 05/21/2015 - 12:24 | 6117690 Panic Mode
Panic Mode's picture

It's Outcome Inequality. STUPID!

Thu, 05/21/2015 - 12:39 | 6117766 Chuck Knoblauch
Chuck Knoblauch's picture

Stupid is as stupid believes, bubba.

Thu, 05/21/2015 - 12:37 | 6117723 TrustbutVerify
TrustbutVerify's picture

How much of 'income inequality' is the result of lack of education, an unwillingness to work, or an attitude that keeps one at the lowest rung?  

It my life it has become painfully obvious that showing up, being enthusiastic, and simply doing the job well put you above the other 90%.  

Thu, 05/21/2015 - 12:39 | 6117770 rejected
rejected's picture

Education (lol)... Thank you. My humor for the day.

I've seen educated wannabees working the box stores that couldn't figure out proper change without Mr. Digital. I've seen more intelligence emanating from a deer caught in headlights than most college grads.

 

Thu, 05/21/2015 - 12:32 | 6117730 rejected
rejected's picture

Whether its the wealthy, or the FSA scamming the system they all have one thing in common. Steal all you can, while you can and however you can.

Thu, 05/21/2015 - 12:32 | 6117733 Dumgoy
Dumgoy's picture

Unpossible in the JewSA

Thu, 05/21/2015 - 12:33 | 6117737 Exit through th...
Exit through the gift store's picture

It cost money to pay for those politicians. Shit how the fuck else are they going to stay out of rape them in the ass jail for price fixing.

Thu, 05/21/2015 - 12:36 | 6117749 Sandmann
Sandmann's picture

Well it sounds like the world is going to be very different. I do wonder how Washington is going to handle being forced into isolationism and cut off from influence in the big wide world ?

Thu, 05/21/2015 - 12:36 | 6117750 Chuck Knoblauch
Chuck Knoblauch's picture

I have a gut feeling that DOW sees 10k again before year end.

But I'm not willing to bet more than 10% with a gold hedge.

But if I'm right, gold will see better days soon.

Thu, 05/21/2015 - 12:52 | 6117840 rejected
rejected's picture

mmmmmm,,, maybe.. You'd have to talk to the snakes behind the curtain pulling the levers. They print the money and hire the programmers for the Algo's. We're living in a post economic world. Scams, fixing, and stealing are the names of their games. They can probably keep this game going for evah!

Thu, 05/21/2015 - 13:20 | 6117866 Chuck Knoblauch
Chuck Knoblauch's picture

According to Ray Dalio's sharp pencil, you can keep it going and call it a lost decade (about 15 years).

But, Americans don't react well to sharp pencils.

This is why the buyers of our debt want the guns confiscated.

It's not our debt!

Americans are not like the Japs or the EU.

Americans still believe they are a free people.

All the above sums up the fears of elitist pigs.

They really, really, really want the guns taken away before they foreclose.

The Chinese and Saudis want good title to American neighborhoods.

Thu, 05/21/2015 - 12:37 | 6117754 Thisisbullishright
Thisisbullishright's picture

Drag them out of their penthouses and have the mob beat the living shit out of them?!?

Start with wall street banksters and work our way down?

 

Thu, 05/21/2015 - 12:38 | 6117759 PTR
PTR's picture

Inequality is reflected in home prices, too.

 

I said this earlier today...

Who the hell is buying these places?

 

Thu, 05/21/2015 - 13:21 | 6118006 sirik
sirik's picture

Whats the problem with that ?

Thu, 05/21/2015 - 12:50 | 6117772 dizzyfingers
dizzyfingers's picture

 

..."34 countries in the Organisation for Economic Cooperation and Development''... (have) income gap ... at its highest level in three decades. So.... economic cooperation and development results in (i.e. causes) income gap... ?

Reading more, https://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Development , this seems like the UN; costs lots of money, has lots of pressure-power big-wigs patting each other on their backs that don't do a thing for anyone else.

Considering the state of the world today, why is the OECOD needed? Wouln't the world maybe be better off if everyone did what they do best, like buying and selling from each other and banded with like-minded folks to get economies going again...and told the armies of monkeys (who seriously foul up working economies) to kiss off? Just a thought.

http://www.starvingthemonkeys.com/

 

Thu, 05/21/2015 - 12:40 | 6117773 random999
random999's picture

My assets look more like the bottom 20-80%, however my dept/income ratio exceeds the 1%ers..

What am I? A terrorist?

Thu, 05/21/2015 - 12:46 | 6117817 Thick Willy
Thick Willy's picture

As the country became less white and was flooded with tens of millions of illiterate, diseased, criminal 3rd world people, the disparity in incomes and wealth between educated, clean, law abiding white people and the criminal invaders grew ever sharper.

Shocking.

There can be no equality between a lion and a rat.  If you have any semblance of fair competition the superior man will always rise above the inferior masses.  They flooded America with tens of millions of people illiterate in their native tongue, Spanish.  How could you expect there to be any semblance of equality between them and educated whites?

Thu, 05/21/2015 - 12:49 | 6117831 LawsofPhysics
LawsofPhysics's picture

Is that "superior man" actually doing real work or simply printing money and pushing paper?

Define "lion" motherfucker.

Thu, 05/21/2015 - 12:48 | 6117822 sschu
sschu's picture

If you want capitalism, there will always be income differences.  The issue is the method that results in the income difference which is crony capitalism, the Fed and political connections.  These are the problems, income disparity is the result.

The world is hierarchical, get over it.  The idea that we are "all the same" is an absurdity.  This means those with more are expected to "care for" those with less.  This is a clear Biblical command. 

 

Philippians 2:3 Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, 4 not looking to your own interests but each of you to the interests of the others.

 

sschu

 

Thu, 05/21/2015 - 12:51 | 6117844 LawsofPhysics
LawsofPhysics's picture

In the absence of enforcement/accountability biblical commands and laws are pretty fucking useless.

Thu, 05/21/2015 - 13:22 | 6118014 sschu
sschu's picture

You will be ultimately judged by your worldly actions, but it takes a while.  The price will be higher then than now.

And yes, it does help when we have good rulers who understand these principles and enforce them.  

But freedom requires a moral populace, Franklin said that I think.  There is no substitute for people doing the right thing.

sschu 

 

Thu, 05/21/2015 - 14:04 | 6118185 Boxed Merlot
Boxed Merlot's picture

it does help when we have good rulers who understand these principles and enforce them...

 

As a Christian myself, I do not favor the unification of Christianity and government.  Separation of state and church is imperative and in fact a biblical tenet.  Government’s role is in the administration of the power of the sword and history has shown when the church is empowered with that particular aspect of behavioral modification, terror results and disregard for the higher forms of the divine aspects of Deity, i.e. mercy and grace are left wanting.

The apostle Paul said as much with his advice to Christians living in Nero’s Rome:  

“…Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God.

Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation.

For rulers are not a terror to good works, but to the evil. Wilt thou then not be afraid of the power? do that which is good, and thou shalt have praise of the same:

For he is the minister of God to thee for good. But if thou do that which is evil, be afraid; for he beareth not the sword in vain: for he is the minister of God, a revenger to execute wrath upon him that doeth evil.

Wherefore ye must needs be subject, not only for wrath, but also for conscience sake.

For for this cause pay ye tribute also: for they are God's ministers, attending continually upon this very thing…”     Romans 13:1-6

And yes, I know it’s a King James rendition, but it has a certain eloquence and simplicity, but bear in mind too, this is written specifically to and for Christians.  It is folly to try to apply any of this to anyone else.

 

Jmo.

Thu, 05/21/2015 - 14:46 | 6118441 sschu
sschu's picture

Agreed.  But having leaders that rule based upon Biblical principles like fairness and service is perfectly valid.

sschu

Thu, 05/21/2015 - 15:21 | 6118622 Boxed Merlot
Boxed Merlot's picture

Having Christians in positions of authority is valid.  I get worked up when Christianity is assigned to any entity with a greater membership than one. 

There is no such thing as a "Christian" nation.  It is a fallacy to assign that title to any body other than an individual.  Only individuals can be held to account for their conduct, which is where and why the current joke of the 5 banks "admitting" criminal conduct, yet no individual accountability occurs is so odious.

Even their fines are paid by shareholders and the leaders retain their positions and likely advance further in their careers / industries.

jmo.

Thu, 05/21/2015 - 13:07 | 6117945 TheABaum
TheABaum's picture

"OECD Secretary-General Angel Gurria."

I'm sure that this guy is one of the contributers to this inequality. Now consider the fact that he extracts his income without perfoming any socially useful function.

Thu, 05/21/2015 - 13:19 | 6117981 sirik
sirik's picture

"

In most of the 34 countries in the Organisation for Economic Cooperation and Development the income gap is at its highest level in three decades, with the richest 10 percent of the population earning 9.6 times the income of the poorest 10 percent.

In the 1980s this ratio stood at 7 to 1, the OECD said in a report...."

Whats the problem ?

If a rich guy has a lot of money what does he do with it ?

1 consumes... that generates jobs ..yes ?

2 save some money.... thats helping investors/consumers who want to consume of make an investment for a new production line.

How do some one get rich ?

1 by stealing... well thats not an economic problem but a problem for the judges, except for politicians.

2 by working hard.  A prove of being worthfull to the company one gets a high salary. Whats wrong with that ? Apparently the high paid worker is highly productive... or else his boss will go broke.

So whats the problem ?

Nothing wrong with rich people.

Maybe one should punish poor people.... They don't contribute to society. They don't generate wealth.

And where are those  high differences of income..... not only in capitalist countries but sure in communist or socialist countries.

People of North corea really do starve.

Never read  "the animal farm "by G Orwell ?

So what is the problem ?

And where is the evidence that high differences in income bring the economy to its knees ?

 

 

Thu, 05/21/2015 - 15:37 | 6118703 Silver Bullet
Silver Bullet's picture

Most people couldn't give a rat's as about rich people. Stop taking an indignant line. Every country has rich people. It's just in this country the 1% own more wealth than the bottom 90% and are accumulating 99% of all new income gains. 

 

System is an absolute mockery. 

Thu, 05/21/2015 - 13:26 | 6118031 Shizzmoney
Shizzmoney's picture

No wonder the "martial law" and "stop protesting" subliminal messages are getting in gear.

https://www.youtube.com/watch?v=6IP6gexi1Js

Thu, 05/21/2015 - 13:35 | 6118079 Counterpunch
Counterpunch's picture

U.S. and Israel have worst inequality in the developed world
http://money.cnn.com/2015/05/21/news/economy/worst-inequality-countries-...

Cute, given:

“Since the October War in 1973, Washington has provided Israel with a level of support dwarfing the amounts provided to any other state. It has been the largest annual recipient of direct U.S. economic and military assistance since 1976 and the largest total recipient since World War ll. Total direct U.S. aid to Israel amounts to well over $140 billion in 2003 dollars. Israel receives about $3 billion in direct foreign assistance each year, which is roughly one-fifth of America's entire foreign aid budget. In per capita terms, the United States gives each Israeli a direct subsidy worth about $500 per year. This largesse is especially striking when one realizes that Israel is now a wealthy industrial state with a per capita income roughly equal to South Korea or Spain.”

- John J. Mearsheimer and Stephen M. Walt
"The Israel Lobby and U.S. Foreign Policy"

http://www.ifamericansknew.org/stat/usaid.html

But for the rape of the US taxpayer, Israel's income inequality would likely be the worst in the world.

A reminder that Average Joes the world over keep getting fucked by private central banking and governments of wolves.

Thu, 05/21/2015 - 13:37 | 6118087 I Write Code
I Write Code's picture

This is misleading, it's a little better and a lot worse than this suggests.

It's the top 1%, actually the top 0.01%, that is the real outlier.  But the "saving" grace is that the bottom 1% or maybe 10% is actually much better off today than in previous decades, due to generous (and virtually unmonitored) benefits programs.

The sum total of this is that the middle class is royally screwed.

Thu, 05/21/2015 - 13:41 | 6118110 stonehands
stonehands's picture

The solution is global .gov to address income inequality and climate change. /s

The pope will spearhead the transition when he goes to D.C., then the U.N., in Sept. no/s.

Thu, 05/21/2015 - 13:48 | 6118145 GRDguy
GRDguy's picture

Madoff and Corzine sent monthly statements telling their "muppets" how rich they were, too. That's the only reason to manipulate ANY paper promise.  Those receiving the statements think they're more well-off, and thus let the liars, cheaters and thieves continue. Illusions and delusions.

Thu, 05/21/2015 - 13:54 | 6118166 Prober
Prober's picture

Proof that there are far too many grossly over-populating hyper-breeding proletariat vermin.

The solution is simple, mandatory sterilizations and abortions for the proletariat vermin excess.

Thu, 05/21/2015 - 14:41 | 6118422 Tursas
Tursas's picture

Don't worry, GMO does it in two generations! Just be careful what you eat!

Thu, 05/21/2015 - 13:59 | 6118200 two hoots
two hoots's picture

Obama can't raise the lower class so he will lower/eliminate the middle class to reach equality.    Even Hillary elimates the middle class and calls eveyone (below her status) "everday Americans".  It is happening and will escalate with TPP passing (same as NAFTA but on a Pacific scale). 

Thu, 05/21/2015 - 14:27 | 6118363 Jack Burton
Jack Burton's picture

Since 2008, the Federal Reserve has begun earth's largest wealth transfer program. Okay, deny it if you like, but then explain to me how and why the above data is what it is! The FED began a process of destroying savers and pension fund holders. That done, they began massive liquidity injections to boost assets prices of the very assets held most often by the 1% and not by the 99%. Stock and bond bubble, high end RE bubbles. A 1%'er who sat on his ass and did nothing but watch teh stock ticker on his computer, could have watched FED money fly into his hands via manipulation of all his juicy assets. The worker, whose company demands lower wages, less benefits, and part time contracts, all in order to Save His Job, he has had any savings or retirment saving looted.

There is no way a person looking a data and facts can deny the Wealth Transfer. What is worse, is it was a Weath Transfer Without Work! No work need be done, just sit and watch the FED power your net worth forward. Facts are facts. Where is the outrage? Nowhere, the media and public education have America dumbed down to toddler like mentality.

Thu, 05/21/2015 - 15:31 | 6118672 Silver Bullet
Silver Bullet's picture

To quote from Dickens on why the economy is so bad, "It's because the people are so poor."

Different era, generation, century, but same fucking concept. Not really hard to figure out. When 60% of people are too broke to buy anything your economy is only going to get worse. Add in the fact that 99% of all new income gains go to the 1% and it becomes laughable that people cant discern why the economy only works for a select few. 

 

Bernie 2016. 

Thu, 05/21/2015 - 16:14 | 6118868 q99x2
q99x2's picture

Is it greater than the French Revolution yet?

Thu, 05/21/2015 - 16:26 | 6118908 robnume
robnume's picture

TPTB r robnume!!

Thu, 05/21/2015 - 16:35 | 6118937 PGR88
PGR88's picture

Thank you Federal Reserve!

Thu, 05/21/2015 - 16:40 | 6118952 Batman11
Batman11's picture

Capitalism benefits those with Capital.

It benefits the rich rather than the poor and the old rather than the young.

Capitalism works best with competition.

It used to have that from Communism and those at the top feared Communism and revolution and so had to show Capitalism worked for everyone.

Now the competition is gone and the 0.1% can funnel everything up to themselves.

The older generation grew up with a more benign form of Capitalism and everyone was allowed to acquire some Capital.

But now Capitalism has no competition the younger generation are screwed.

 

The inherent trickle up effect of Capitalism:

a) Those with excess capital invest it and collect interest, dividends and rent.

b) Those with insufficient capital borrow money and pay interest and rent.

 

 The inequality of the 1920s was due to lowering taxes for the wealthy, much like today.

When inequality is growing taxes are at an insufficient level to balance the natural trickle up effect within Capitalism.

(The trickledown effect was an invention of US billionaires looking to lower their tax bills).

 

Thu, 05/21/2015 - 16:54 | 6119008 moneybots
moneybots's picture
"Income Inequality Is Highest Since Records Began"

 

That would indicate that the bubble is about to burst.

Thu, 05/21/2015 - 17:10 | 6119055 Anunnaki
Anunnaki's picture

Pres. Peace Prize's "Mission Accomplished" moment

Thu, 05/21/2015 - 18:21 | 6119276 DutchBoy2015
DutchBoy2015's picture

yes but at least you aren't commies like those people protesting .  as per lots of commenters here.   LOL

The knuckle dragging shitheads who enjoy being dead last on this list.   

They suffer from Stockholm syndrome.  The GMO food they injest and the flouridated water got to their brains real quick.

 

https://www.cia.gov/library/publications/the-world-factbook/rankorder/21...

Thu, 05/21/2015 - 20:00 | 6119518 jameswvu99
jameswvu99's picture

Not sure I believe the charts here,  they have top 10% household income at about 18 times bottom 10% for 2011.  Per NY Times

http://www.nytimes.com/interactive/2012/01/15/business/one-percent-map.h...

top 10% was at 140k, and bottom 10% was at 12k,  thats close to 12 fold not 18.   The real problem is the .01%, they need to change the tax brackets back to when the top was 91%.  Any income over $5 million taxed at 75% with a progressive rate up to 91%. 

Fri, 05/22/2015 - 10:35 | 6121386 rbblum
rbblum's picture

Abandoning the free market place with a sound currency has consequences . . . Politicians and their cronies believing they are omniscient (to mother nature and the natural laws of economics) has consequences . . . Failure to pursue due diligence and defending righteous positions has consequences.

Do NOT follow this link or you will be banned from the site!