Debt Rattle Jul 6 2014: How Things Look And What They are

[Raúl Ilargi Meijer]

DPC REO Mountaineer, New York to San Francisco and back, 10 months June 1906 We hugely underestimate what it means not to have a functioning financial
[See the full post at: Debt Rattle Jul 6 2014: How Things Look And What They are]

[rapier]

I am still puzzling over why increased withholding taxes from jobs, meaning gross wages are rising even if it’s all part time jobs, can coincide with falling GDP. Admittedly I shamefully have no clue how GDP is calculated but still,,,,,,,how is that possible?

Knowing nothing allows me to think that wages themselves are now a negative for GDP calculation. If this is not quite quantitatively correct it seems to be correct in a real politic sort of way. Hell, maybe it is right quantitatively. I’m old enough to remember when businessmen thought that any wage above some bare subsistence was theft and perhaps the Commerce Department, maker and keeper of the GDP numbers, has finally codified that.

[jpfi]

I wonder if it might not be useful to try to establish some metrics for a sustainable society? There is much agreement at TAE about the severe problems at hand, but not much on offer for an alternative to the current “economics”.

For example as “economic” measures of sustainability:
1) the per capita yearly energy consumption
2) the per capita yearly kilograms of waste
3) the per capita purchase of new tangible goods

Notably a DECLINE in all these measures not an increase indicate economic “success”. Since they can not decline below zero, economic “bubbles” can not occur. Debt issuance can not masquerade as economic success via the magic of limitless “growth”.

These measures are all of the consumption of immutable physical properties that can not, unlike money, be impossible to “value”. Also, sustainability implies limits to consumption. The less consumption, the more sustainable seems axiomatic.

The switch to measures where a decrease rather than increase is an economic “good” would completely change how societies view “success”.

[Professorlocknload]

Spot the long term trend in this chart;

https://stockcharts.com/freecharts/historical/djia1900.html

Still want to short the Fed?

OK, maybe it’s currency!

It ain’t right, but it is what it is. This chart is as much about devaluation as it is enablement. Prolly one in the same?

What I see here is, there can be default and a relinquishment of power, or there can be a slow, steady devaluation, increasing nominal “wealth” (A necessary ingredient to maintaining the illusion) and dilution of debt, or at least postponement of it’s eventual maturity.

Remember, it’s their currency (Money?) we are dealing with now, not the peoples, so it is worth whatever they say it is. That said, one can fight the Fed, or find ways to survive within it’s realm until, maybe tomorrow, maybe 70 years from now, it makes a fatal mistake and self destructs.

Of course, in light of any substantial questioning of the Wizards competence , there is always the possibility of an Executive Order originating from the Fed’s Oval Office subsidiary, requiring the surrender of all street clothes for Mao Pajamas,

[Author]

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