NP - Germany Won't Budge on Austerity: Economic Suicide is Character Building

[alice malice]

There is a lot of misinformation on wages, and, like inflation, the
reality is usually not what people say but what they live.
Thus far, in 2014, Personal Incomes are up 4.3 while Inflation, that
core, w/o food and energy, is only 1.3. So a positive PI of 3%

If we add in the volatile food and energy component, it looks even
better for Incomes. Gas is down, so is food.

And, while real mean incomes are flat, stagnant since 2000, working
class wages are up 13% from 2000, about even with inflation.

So, yes, wages for working people are just keeping up with prices over
a 15 year cycle, but in that cycle is the great contraction.

Wages have been depressed for a number of reasons, but a good many of
those reasons are no longer depressing wages.

Yes, most of the money is headed rich and the workers are not making
much progress, but this is turning in a positve direction now. Not so
in most of Europe.

The US is a bleeding edge economy, where, you work or starve. Not so
in Europe, so apple and oranges.

Of course, our Big Corporations are tied to Exports and to Europe,
China, India, etc. so, with stronger dollar will feel some pain, but
the domestic economy, the consumer and so on, will continue to recover
and wages will rise.

Buy the S&P on this dip, should hit 2300 in 2015. Short gold.


On Tue, Oct 14, 2014 at 6:03 AM, alice malice <alicewmalice at gmail.com> wrote:
> Well, one could argue that the US recovery is a jobless one, that is,
> a recovery that exposes shrinking labor force, much of it demographic
> baby boomer retirement etc.,  though the jury is still out on the
> cyclical or structural causes of the shrinking labor force, and, wages
> have not budged, but neither has inflation, though the US is not, as
> Europe is, in a dis-inflationary and deflationary cycle...so, to make
> a long story short, one can argue that the US has a weak recovery, one
> that has not done all that much for wage earners, the poor, the
> working classes,  but one can not argue that the US has no recovery.
> We have a major recovery in place. Europe does not. And, the US has
> put the financial crisis behind, has built a new energy policy and
> structure, has positioned itself for additional growth. Not so in
> Europe.  These are not nationalistic claims. Simple economics. Our
> housing crisis is over, our banking crisis is over, our massive QE is
> ending, our economy has recovered and, though it faces headwinds from
> Europe, Japan, the geo-politials, it will, as the IMF says, pull the
> world economy, not China, not the BRICS plus SA.
>
> On Mon, Oct 13, 2014 at 9:45 AM, Otto <ottosell at googlemail.com> wrote:
>> Can't see that "America has recovered". And your "Union" is as split
>> as ours, economically and ethnically.
>>
>> 2014-10-13 15:07 GMT+02:00 David Morris <fqmorris at gmail.com>:
>>> Clearly this response shows the weakness of the Euro: the "Union" is a
>>> farce.
>>>
>>> But Germany won't be able to stand alone for long.  If Europe is screwed, so
>>> is Germany.
>>>
>>>
>>>
>>> On Mon, Oct 13, 2014 at 3:53 AM, Kai Frederik Lorentzen
>>> <lorentzen at hotmail.de> wrote:
>>>>
>>>>
>>>> On 12.10.2014 12:09, alice malice wrote:
>>>>
>>>> Europe is screwed. And Germany is only doing what it needs to do to
>>>> get in a better position to recover over the longer term.
>>>>
>>>>
>>>> Amen!
>>>>
>>>
>> -
>> Pynchon-l / http://www.waste.org/mail/?list=pynchon-l
-
Pynchon-l / http://www.waste.org/mail/?list=pynchon-l