Debt Rattle July 6 2018
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Henri Matisse Reading woman in violet dress 1898 • China Imposes Tariffs, Says US Launching ‘Largest Trade War In History’ (CNBC) • Trump Says
[See the full post at: Debt Rattle July 6 2018]Sycophant Sajid Javid, must be auditioning for Boris Johnson’s position as the court jester or Harlequin.
Briton is livid at Putin’s masterful PR job at the World Cup; not to mention getting back the entire $10 billion dollars invested and then some. The infrastructure investment will pay returns for decades.
So, like the wounded beast it is; Briton drags out Novichock yet again; how tragic for May; bleating out wah, wah, wah…
Vladamir Vladamirovich Putin, well done you…If there is a labour shortage in the US and, they say, a labour shortage in New Zealand and god knows where else, then immigration is the answer. And if employers have to start paying people more, which, in my view, is a good thing, then interest rates are likely to go up. Won’t that solve a lot of problems?
Patricia
Won’t that solve a lot of problems?Logic would dictate yes; but no, because goverments (most but not all) run on debt based economies. Russia does not follow that debt based formula.
Rising interest rates will cause many problems for the uber wealthy who depend on zero (or close to it) interest loans for their junk economics.
That’s probably not quite good enough an explaination for understanding.
Read Bill Black, Michael Hudson, or Steve Keen for a thorough explaination.
Richard Wolf is another good source; they all have websites and videos for teaching/understanding.I am not concerned about the rich but if the rest of the people start getting more they will spend which gets things going again. If consumption is the goal that is, but that is another story. I agree that debt is a problem for the rest of us but more money in pay packets means debt can be reduced. A government debt in its own currency is not a problem if the country can create its own currency. It is can be problem if a government borrows in a foreign currency though.
You see V Arnold, I am a great fan of Bill Mitchell. To me he is the only economist, along with those you have mentioned, who makes any sense at all.
Patricia
I am not concerned about the rich but if the rest of the people start getting more they will spend which gets things going again.I’d of guessed that (not concerned about the rich), but, growth, must be understood to be finite, on a finite planet.
The sentence: A government debt in its own currency is not a problem if the country can create its own currency.
Now, think about that; is it true? In our world, is that true? This is a crucial question; is that true?
No, it is not true. No matter what, somebody has to pay the piper; in the U.S. it’s the citizens who pay, who are robbed of their benefits, social programs, and pensions.
Nothing is free; somebody always pays; the disenfranchized, the poor!
It’s called neo-liberal economics pioneered by Milton Friedman and the beginning of the rape of the third world; going on as I type these letters.
Okay, enough for now.Revealing from Brad Setser: Despite tax cuts, US companies still book their profits in offshore tax havens.
https://www.cfr.org/blog/tax-reform-q1-2018-bop-data
Raúl Ilargi Meijer
I’m shocked, shocked I say!
Sorry Ilargi, not the least surprised; SNAFU. (Situation Normal, All Fucked Up)May’s plan to scuttle Brexit is going swimmingly. No one seems to be blaming her for the obvious, and far better, the EU’s villainy and stonewalling is completely eclipsed by her stellar sabotage. Well played!
The U.S. has anything but a labor shortage. We have 100 million people out of work and the whole place is collapsing for lack of maintenance. Worse, we have an intractable social problem in that it’s no longer possible to get people to show up, or to work in even a marginal fashion when they do. And that’s beyond opioids. Clearly poverty is not a motivator, as they are in fact desperately poor, and our social services are dismal. So that side truly passeth all understanding.
However, I can say that what they have is a labor shortage at the wages they wish to pay. You want to do say, health care service with biohazards, people biting you, no legal support and the likelihood of being sued and/or injured while wiping butts every day for $11/hr? Have we got the job for you! But only on a gig basis with no vacations and we mixed up your paycheck. How about standing on a roof with no safety equipment in 140f (60c) for $12? Sound like something worth getting up for? What? You’d need $17/hr to afford rent and a working car? I guess you’re just lazy.
You see, Americans can’t go back to their citizenship in a low-cost nation and live like a king. It’s not inspiring. And wages haven’t risen in 50 years(!!), so they don’t motivate. Why bother? But that’s just the long way of saying “if you import illegal immigrants who don’t follow labor rules, you’ll destroy the wages of the vulnerable lower and middle class, while helping the rich.” Which is what we’ve been saying since That Giant Sucking Sound started. Now that labor habits themselves have metastasized though, there really is no solution: another generation will have to come up who get rewarded or punished according to their merits and not randomly, as presently under our mixed-up (non)socialism.
Shortage? Sort of. Wages have needed to rise for 50 years but it’s not allowed and being stopped by the combined forces of Congress, the Fed, Wall St., and Industry. …And yet it will happen, because math wins.
“What is a ‘Red’?” “A Red is any son-of-a-bitch that wants thirty cents-an-hour when we’re paying twenty-five!” –Steinbeck
Meritocracy and constant changes of employment details for the poor: corruption/nepotism and the same old stressless rentier game for the rich.
When the crunch comes, virtually all of the financial bloggers will be able to say,
“You should have followed my advice!”Increased wages without higher interest rates will kill retirees on fixed income’
Milking cows for a living is a glorious gift! Currently, our price for milk is $1.73 per gallon, a ruinous amount; yet the local supermarket sells milk for less than I am paid. There will be a reckoning.
news for tomorrow.
https://www.zerohedge.com/news/2018-07-06/syria-rebels-played-russian-roulette-and-lost
“Since the Syrian Army offensive in the southwest, many thousands of weapons have been recovered, including advanced anti-tank and shoulder fired rockets — a significant bulk of them originally supplied via the US, UK, Saudi Arabia, and other western allies”
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