Oct 292018
 
 October 29, 2018  Posted by at 5:11 pm Primers Tagged with: , , , , , , , , , , ,  


Mestre da Família Artés The Last Judgment and the Mass of Saint Gregory 1500-1520

 

It’s been quite a while since I first wrote that I resented the MSM (New York Times, Washington Post, CNN, MSNBC etc etc) for effectively monopolizing the entire discussion about Donald Trump. Don’t remember exactly when I wrote that, do remember Jim Kunstler sent a mail and thanked me for saying it. Because he felt- and feels- the same way.

The 24/7 daily Trump bashing machine that was unleashed in late 2015/early 2016 meant that people like us had a choice of criticizing Trump where he needed to be criticized, but that would put us in the MSM camp, where we don’t want to be. And we don’t want to not criticize him either, because there’s so much that needs scrutiny.

A third choice would be to not write at all, but hey, we’re writers. And so we’re either Trump-fans, something I’ve been accused of a lot, and I’m sure Jim has too, or we’re Trump haters, depending on what we publish. In reality, of course, we’re neither, but the way the conversation has been built, there’s no neutral ground. You’re either with us or with him.

Today, almost 3 years later, nothing much has changed about this. Other than, as I wrote at a later date, the mass media have become consciously aware that Trump is their money machine. Their financial people started pointing out that posting negative stuff about Trump all the time got them a lot of new readers and viewers and income streams. And so they continued doing it.

Their ‘news’ didn’t have to necessarily be true, or provable, it only had to look as if it could be true, until the next show or article, or the next day. That’s how we got the Russiagate story, which still lacks all evidence. Like a million other narratives, none of which have really gotten anywhere. It doesn’t matter. People who don’t like Trump eat it up. And there’s plenty of those, not in the least because of the picture the MSM has painted. It’s a self-fulfilling prophecy thing.

 

And today, if you take a good look, you can see that the MSM are stuck. Their entire business model over the past 2.5 years has been built on bashing Trump, and now they have to stick with that. This is how they make their money. If their viewers and readers would understand this, then perhaps some of them would wonder: ‘What am I watching here really?’ But they don’t.

There are some who are simply gullible, there are those who fall victim to information overkill and can’t tell black from white anymore, and then there’s still quite a large group who will never like anything Trump does, no matter what. Because.

But that should never be enough for an organization that purports to report only the news, impartial and objective. You can’t publish stuff solely because you know it will be eaten up and make you money. That’s not the news business, that’s entertainment.

Now, I rarely watch TV. When I’m in Greece, where I’ve spent most of my time the past few years, I see none, other than the odd soccer game at a sports bar. But last weekend I flew to Holland, and there I got to see me some CNN. Oh boy. It was when the first dummy bomb package had been reported, and more of them started to spread.

Nobody knew anything about the ‘bombs’ themselves (we still don’t), about motive, about who sent them, none had gone off, they didn’t know if these things could have gone off, nothing at all. But nevertheless CNN labeled the event: ‘Mass Assassination Attempt’. And then, you know, they have all these time slots to fill, so they all yap and yap as if this is something real that they know something about.

 

And then at some point Trump called for civility in the nation. And CNN, sadly and predictably, reacted by agreeing with him. Only to follow that up with: “Trump has to become more civil”. Which may or may not be true, but that was not his point and neither is it mine today.

You see, CNN pulled a perfect bait and switch: While demanding that Trump tone it down in response to his own call for civility, they categorically and emphatically denied that their tone, their ‘news reporting’ must come down too. They didn’t just deny it, they entirely ignore the whole issue. Because according to them, all they do is report the news, you know, objective and neutral, no opinions involved.

After bashing Trump for two years+ they react to his call for a more civil tone by … bashing Trump and ignoring their own role completely. The exact opposite. And then they’re surprised that his reaction to being bashed one more time, again, is to point out that they do, in fact, play a role.

CNN et al paint themselves as victims, as the ones being targeted by Trump (and not even by whoever sent the bombs), completely omitting to what extent they themselves were the ones who targeted Trump. CNN is entirely blind to their own role. They proclaim, and really seem to believe, that they speak for the American people.

But if that were true, Trump would not be president. They may speak for part of the American people, but certainly not ‘the people’. And if they continue in their present ways, they never will. As long as the MSM puts all their chips on making money off of the segment of the American population who despise their president, they only sharpen the divide.

 

Another thing I’ve mentioned before is that with the midterms coming up in a few days, the MSM don’t actually want to impeach Trump, or get rid of him in any other way. They want to continue writing negative stuff about him forever. They want him to maybe lose the midterms, but then to win in 2020. Obama was killing them financially. Now they got their golden goose.

And it’s not Trump who profits from the nation being so divided, or at least not nearly as much as the media does. Trump would like to be appreciated for what he achieves, but when it comes to that, he can’t get a word in edgewise. They can’t risk writing positive stuff about him, it would risk their new business model.

Moreover, after that court ruling that said Trump can’t ban people on Twitter, everyone feels free to call Trump whatever they want, idiot, lunatic, you name it, I even saw Hitler pop up again, and he cannot ban them. Trump is America’s national piñata. While he’s also the President.

And the media say they’re just reporting the news. “Trump calls for civility, but continues his attacks on the media”. Well, the media continue their attacks on him, too. “Trump refuses to acknowledge his rhetoric makes this happen.” So does the MSM rhetoric. “Words Matter”. Indeed, they do. But not only Trump’s words. Everybody’s words.

The MSM have never managed – nor tried- to move beyond the notion that Trump supporters are deplorables. They’re stuck in a time warp. That is what divides the nation. Sarah Sanders was right: the first thing Trump did was to condemn the violence, the first thing CNN did was to blame Trump for it. CNN says that’s not true, they only reported the news. Yeah, 100% objectively.

 

Let’s do a test: when is the last time CNN, or the WaPo, have said anything truly positive about Trump? And I don’t mean three words strung together, but an actual report on for instance jobs and the state of the economy. When is the last time they complimented him, other than perhaps when American rockets landed in some remote and deserted Syrian sandbox?

So you don’t like Trump. And in the MSM you find voices that express your ideas. What you probably don’t realize is that they amplify those ideas as well, and that’s no coincidence. You’re being used by the MSM to prolong their newly-found very profitable anti-Trump rhetoric business model. You’re an easy victim. All they have to do is confirm your thoughts all the time, and tomorrow you’ll tune in for more, and so on.

Or how about this one: There’s so much to blame Trump for, there are so many negative sides to the man, and then the media focus for a long time on a made-up story about collusion with Russians, for which a special counsel with unlimited budget and resources hasn’t found any proof after two whole years. Doesn’t that make you think? Shouldn’t it?

The MSM’s interest is to divide the country, that’s how they make money. If they would write or broadcast positive stories about Trump, which must exist, they would threaten the dividing line that keeps people from talking to each other. Once they do start talking, Trump-bashing will become much less lucrative. They can’t have that.

You don’t need to be a Trump fan to see that, and I’m definitely not, you need to be blind NOT to see it. You’re being played. And what are you going to do when the GOP wins the midterms, despite what you’ve been told would happen, what if there is no blue wave? Are you going to start talking to the other half of the country then, or are you going to dig deeper into the trenches with the MSM? Honest question.

 

 

Apr 012017
 
 April 1, 2017  Posted by at 9:12 am Finance Tagged with: , , , , , , , ,  Comments Off on Debt Rattle April 1 2017


Claude Monet The Pond at Montgeron 1876

 

Boaty McBoatface, or Don’t Listen To The Public -BoE’s Haldane (Tel.)
UK Households’ Savings Fall To Record Low (G.)
Multiple Bubbles Are Going To Bring America To Its Knees (Lang)
Ports In China Have Enough Iron Ore To Build 13,000 Eiffel Towers (R.)
French Banks Posted ‘Multi-Billion Euro Profits’ In Tax Havens (F24)
European Right Hopes Macron Will Save France (EUO)
Racket of Rackets (Jim Kunstler)
The Big Contraction – An Interview With Jim Kunstler
Julian Assange Waits For Ecuador’s Election To Decide His Future (G.)

 

 

Haldane is not the dumbest of central bankers. But this is crazy. See, the question is this: would Brexit have been prevented by not listening to people, or did not listening to them cause Brexit? And what’s wrong with calling a ship Boaty McBoatface? Maybe it’s an idea to listen more to people, not less? What else would you like to decide for people to protect them from their own madness?

Boaty McBoatface, or Don’t Listen To The Public -BoE’s Haldane (Tel)

The public should not have a direct say in setting interest rates because they can show “madness” when making collective decisions – just look at Boaty McBoatface, the Bank of England’s chief economist has warned. Central bankers have come under pressure to be more accountable to the public after the financial crisis and years of ultra-low interest rates, but it could be dangerous to hold a referendum on rates. It would be feasible to canvas the public online, said Andy Haldane, but could be dangerous. He pointed to the example of Boaty McBoatface, the name chosen in a public ballot for a new polar research ship last year, winning 80pc of votes cast. The National Environmental Research Council overruled the public and called the ship “Sir David Attenborough”, instead using the comedy name for a smaller submersible.

“This is an object lesson in the perils of public polling for policy purposes,” Andy Haldane, the chief economist, said in a speech at the Federal Reserve Bank of San Francisco. “Sometimes, there is madness in crowds.” He joked: “For some, it was a shameful example of the perils of populism.” He does propose more regular surveying of the public on the economy so the Bank of England knows what people think and how they are affected by monetary policy, however. Mr Haldane also said that “Marmite-gate” – the public row between Tesco and supplier Unilever over the price of the yeast extract spread – was useful in preparing the public for a bout of price rises. “Arguably, “Marmitegate” raised public awareness of rising inflation much more effectively than any amount of central bank jawboning,” he said. “Stories, like Marmite itself, stick.”

Typically the Bank of England struggles to get its message through to the public, often because officials use long words and technical language rather than using phrases which normal people use. “Simple words can make a dramatic difference to readability. ‘Inflation and employment’ leaves the majority of the public cold. ‘Prices and jobs’ warms them up,” he said. Officials should learn from Facebook and from pop songs to learn how to speak in a way which is more clear for the general public, rather than specialist audiences of financiers, Mr Haldane said. “Facebook posts are more likely to be shared the more frequent nouns and verbs and the less frequent adverbs and adjectives,” he said. “The ratio of nouns and verbs to adverbs and adjectives in an Elvis song is 3.3. In my speeches it is 2.7.”

Read more …

Hard to believe, this. Brits are scared, they would hoard. It’s just not in their banks accounts that they do. It’s Go To The Mattresses time.

UK Households’ Savings Fall To Record Low (G.)

British households ran down their savings to a record low at the end of 2016 and disposable incomes fell in a warning sign for the economy that a squeeze in living standards is under way. The savings ratio – which estimates the amount of money households have available to save as a%age of their total disposable income – fell sharply in the fourth quarter to 3.3% from 5.3% in the third. It was the lowest since records began in 1963 according to the Office for National Statistics (ONS), and suggested that people are increasingly dipping into their savings to maintain spending. “Today’s figures should set alarm bells ringing. The last thing our economy needs right now is another consumer debt crisis,” said the TUC general secretary, Frances O’Grady.

“People raiding their piggy banks and borrowing more than they can afford is what helped drive the last financial crash.” In a further sign that household finances are coming under increasing strain from rising inflation and falling wage growth, disposable incomes also fell over the quarter. Real household disposable income – which adjusts for the impact of inflation – shrank by 0.4% compared with the previous three months, the steepest drop in nearly three years. UK growth since the financial crisis has been heavily reliant on consumer spending. The ONS confirmed the wider UK economy grew by 0.7% between October and December, but economists said a weaker consumer backdrop could weigh on growth in the coming months. Growth in 2016 was unrevised at 1.8% as the ONS updated its estimates.

Read more …

And the rest of the world.

Multiple Bubbles Are Going To Bring America To Its Knees (Lang)

If you’ve been paying attention to the ongoing degradation of the American economy since the last financial crisis, you’re probably flabbergasted by the fact that our economy has managed to make it this far without imploding. I know I am. I find myself shocked with every year that passes without incident. The warning signs are there for anyone willing to see, and they are flashing red. Even cursory research into the numbers underlying our system will tell you that we’re on an unsustainable financial path. It’s simple math. And yet the system has proven far more durable than most people thought. The only reasonable explanation I can think of, is that the system is being held up by wishful thinking and willful ignorance.

If every single person knew how unsustainable our economy is, it would self-destruct within hours. People would pull their money out of the banks, the bonds, and the stock market, and buy whatever real assets they could while their money is still worth something. It would be the first of many dominoes to fall before the entire financial system collapses. But most people don’t want to think about that possibility. They want the relative peace and prosperity of the current system to continue, so they ignore the facts or try to avoid them as much as possible. They keep their money right where it is and cross their fingers instead. In other words, the only thing propping up the system is undeserved confidence.

Unfortunately, confidence can’t keep an unsustainable system running forever. Nothing can. And our particular system is brimming with economic bubbles that aren’t going to stay inflated for much longer. Most recessions are associated with the bursting of at least one kind of bubble, but there are multiple sectors of our economy that may crash at roughly the same time in the near future. [..] Our economy is awash in cheap money and financial bubbles that threaten to wipe out tens of trillions of dollars worth of savings, investments, and assets. Everyone can close their eyes and hum while they hope that everything is going to be just fine, but it won’t be.

Read more …

But the economy is fine, of course…

Ports In China Have Enough Iron Ore To Build 13,000 Eiffel Towers (R.)

With enough iron ore to construct Paris’s Eiffel Tower nearly 13,000 times over, China’s ports are bursting with stockpiles of the raw material and some of them are demolishing old buildings to create more storage space, trading sources said. China’s domestic iron ore production jumped 15.3% in January-February as a price rally last year extended into 2017, causing imported ore to pile up at the ports of the world’s top buyer. Stockpiles are at their highest in more than a decade and are affecting prices. Inventory of imported iron ore at 46 Chinese ports reached 132.45 million tonnes on March 24, SteelHome consultancy said, the highest since it began tracking the data in 2004. A third of the stocks belongs to traders and the rest is owned by China’s steel mills, SteelHome said.

That volume would make about 95 million tonnes of steel, enough to build 12,960 replicas of the 324-metre (1,063-foot) high Eiffel Tower in Paris. Global iron ore prices are now at just above $80 a tonne from a 30-month peak of $94.86 reached in February, largely due to the growing port inventory. Prices surged 81% last year, bringing relief to miners after a three-year rout. The rally stretched into 2017, inspiring marginal producers to resume business and lifting supply as China’s steel demand waned. Further falls in the price of iron ore risk shuttering Chinese capacity again. That could boost China’s reliance on top-grade exporters Vale, Rio Tinto and BHP Billiton.

Read more …

Not going to stop as long as we don’t stop it.

French Banks Posted ‘Multi-Billion Euro Profits’ In Tax Havens (F24)

The Eurozone’s 20 biggest banks earned over a quarter of their profits in tax havens in 2015, according to a report released Monday by Oxfam. The report details how, in 2015, top Eurozone banks generated €25 billion in profits in low-tax territories like the Republic of Ireland, Luxembourg, the Cayman Islands and the American state of Delaware. Despite the massive profits, the banks only conducted 12% of their total business and employed 7% of their workers in those countries – a clear sign of the “tricks” that banks are willing use to avoid countries with stricter tax regimes, according to Oxfam’s Manon Aubry, one of the report’s authors. In Europe, banking is now the only sector in which companies must declare country-by-country tax and profit figures, thanks to legislation passed in the wake of the financial crisis.

The anti-poverty NGO Oxfam took advantage of the new data to write its report. Several of France’s biggest banks figure prominently in the report, including BNP Paribas, Crédit Agricole, Société Générale and BPCE (which owns Banque Populaire and Caisse d’Epargne). French banks declared almost €2 billion in profit in Luxembourg, as much as they reported in Germany and Spain combined, despite the fact that Luxembourg’s population is only 1% that of Spain’s. Some of the most telling figures come from discrepancies between profit and other key economic measures. “Société Générale, for instance, reported 22% of its profits in tax havens,” Oxfam’s Aubry told FRANCE 24, “but only 4% of its employee pay was generated there.”

In another example, BNP Paribas declared €134 million of profit in the Cayman Islands in 2015, although it had zero employees there. However, Servane Costrel, Wealth Management Press Officer for BNP Paribas, said that these figures were “obsolete”. “Profits earned in the Cayman Islands were taxed in the United States,” Costrel told FRANCE 24 by email. “But this is a non-issue since that figure [of profits in the Cayman Islands] dropped to zero in 2016.”

Read more …

Save the right from the right. That should work. The French massively hate their own politicial system.

European Right Hopes Macron Will Save France (EUO)

Not long ago, Francois Fillon was considered the most likely winner of the French presidential election in May. But after he was charged for embezzlement over suspicions of fake parliamentary jobs for his wife and children, even his European allies seem to have lost hope. Meanwhile, the fear of seeing far-right candidate Marine Le Pen taking power is growing. “People are worried, they are wondering what is going on in France,” Joseph Daul, president of the European People’s Party (EPP), told EUobserver on the margins of the EPP congress in Malta this week. “And it goes further than that. There are already committees, at the highest level, working on the hypothesis that France leaves the euro and the EU,” he said. He declined to specify whether these working groups were in EU capitals or in the EU institutions.

Officials in Brussels have warned about the consequences for France and the EU if Le Pen were to be elected, but have said so far that that they do not want to envisage a Le Pen scenario. The National Front (FN) leader has said that she wants to “do away with the EU,” and has promised to organise a referendum on the country’s EU membership. Her possible election “has been a risk for some time,” a high level EU source said recently, pointing to the “explosion” of the two main parties, the Socialist Party (PS) of outgoing president Francois Hollande and Fillon’s Republicans. In the most recent poll published on Wednesday (29 March), Socialist Party (PS) candidate Benoit Hamon was credited with only 10% of voting intentions and Fillon with 18%. Both were far behind Le Pen (with 24%) and independent candidate Emmanuel Macron (with 25.5%).

Read more …

Pecora for health care.

Racket of Rackets (Jim Kunstler)

My suggestion for real reform of the medical racket looks to historical precedent: In 1932 (before the election of FDR, by the way), the US Senate formed a commission to look into the causes of the 1929 Wall Street Crash and recommend corrections in banking regulation to obviate future episodes like it. It is known to history as the Pecora Commission, after its chief counsel Ferdinand Pecora, an assistant Manhattan DA, who performed gallantly in his role. The commission ran for two years. Its hearings led to prison terms for many bankers and ultimately to the Glass-Steagall Act of 1932, which kept banking relatively honest and stable until its nefarious repeal in 1999 under President Bill Clinton — which led rapidly to a new age of Wall Street malfeasance, still underway.

The US Senate needs to set up an equivalent of the Pecora Commission to thoroughly expose the cost racketeering in medicine, enable the prosecution of the people driving it, and propose a Single Payer remedy for flushing it away. The Department of Justice can certainly apply the RICO anti-racketeering statutes against the big health care conglomerates and their executives personally. I don’t know why it has not done so already — except for the obvious conclusion that our elected officials have been fully complicit in the medical rackets, which is surely the case of new Secretary of Health and Human Services, Tom Price, a former surgeon and congressman who trafficked in medical stocks during his years representing his suburban Atlanta district. A new commission could bypass this unprincipled clown altogether.

It is getting to the point where we have to ask ourselves if we are even capable of being a serious people anymore. Medicine is now a catastrophe every bit as pernicious as the illnesses it is supposed to treat, and a grave threat to a nation that we’re supposed to care about. What party, extant or waiting to be born, will get behind this cleanup operation?

Read more …

“..it’s unclear whether we will land back in something like the mid-nineteenth century, or go full-bore medieval, or worse.”

The Big Contraction – An Interview With Jim Kunstler

We’ve been sowing the seeds for our predicament since the end of World War II. You might even call this process “The Victory Disease.” In practical terms it represents sets of poor decisions with accelerating bad consequences. For instance, the collective decision to suburbanize the nation. This was not a conspiracy. It was consistent with my new theory of history, which is Things happen because they seem like a good idea at the time. In 1952 we had plenty of oil and the ability to make a lot of cars, which were fun, fun, fun! And we turned our war production expertise into the mass production of single family houses built on cheap land outside the cities. But the result now is that we’re stuck in a living arrangement with no future, the greatest misallocation of resources in the history of the world.

Another bad choice was to offshore most of our industry. Seemed like a good idea at the time; now you have a citizenry broadly impoverished, immiserated, and politically inflamed. Of course, one must also consider the possibility that industrial society was a historic interlude with a beginning, middle, and end, and that we are closer to the end of the story than the middle. It was, after all, a pure product of the fossil fuel bonanza, which is also coming to an end (with no plausible replacement in view.) I don’t view all this as the end of the world, or of civilization, per se, but we’re certainly in for a big re-set of the terms for remaining civilized. I’ve tried to outline where this is all going in my four-book series of the “World Made By Hand” novels, set in the near future.

If we’re lucky, we can fall back to sets of less complex social and economic arrangements, but it’s unclear whether we will land back in something like the mid-nineteenth century, or go full-bore medieval, or worse. One thing we can be sure of: the situation we face is one of comprehensive discontinuity — a lot of things just stop, beginning with financial arrangements and long-distance supply lines of resources and finished goods. Then it depends whether we can respond by reorganizing life locally in this nation at a finer scale — if it even remains a unified nation. Anyway, implicit in this kind of discontinuity is the possibility for disorder. We don’t know how that will go, and how we come through it depends on the degree of disorder.

Read more …

At some point I can see this turning into a Free Mandela kind of movement.

Julian Assange Waits For Ecuador’s Election To Decide His Future (G.)

For Ecuador’s 15 million inhabitants, Sunday’s presidential election runoff will pose a fundamental question: whether to continue with a leftwing government that has reduced poverty but also brought environmental destruction and authoritarian censorship, or to take a chance on a pro-business banker who promises economic growth but is accused of siphoning money to offshore accounts. But they are not the only ones for whom the result will be critically important. Thousands of miles away, in the country’s tiny embassy in central London, Julian Assange will be watching closely to see if his four and a half years of cramped asylum could be coming to an abrupt, enforced end. Guillermo Lasso, the businessman and leading opposition candidate, has vowed that if he wins, the WikiLeaks founder’s time in the embassy will be up.

Lasso has said he would “cordially ask Señor Assange to leave within 30 days of assuming a mandate”, because his presence in the Knightsbridge embassy was a burden on Ecuadorian taxpayers. His government opponent, Lenin Moreno, has said Assange would remain welcome, albeit with conditions. “We will always be alert and ask Mr Assange to show respect in his declarations regarding our brotherly and friendly countries,” Moreno said. The most recent polling showed Moreno at least four percentage points ahead of his rival, though earlier polls had Lasso in the lead, and many analysts caution that the results are within the margin of error. Could this weekend really trigger the beginning of the end for Assange’s extraordinary central London refuge? Neither Lasso’s victory, nor precisely what he would do if he won, are certain (he later softened his position to say Assange’s status would be “reviewed”).

Read more …

Nov 252014
 
 November 25, 2014  Posted by at 9:49 pm Finance Tagged with: , , , , , , , ,  


John Vachon Rain. Pittsburgh, Pennsylvania Jun 1941

US Q3 GDP was revised up by the BEA to 3.89%, but that’s no longer what financial markets react to. They sit and wait for more QE somewhere on the planet to be doled out. Will Americans, if they see this at all, take those numbers, add them to the sweet drop in prices at the pump and spend what they save on more holiday purchases? I’m not saying I know, but I do see that US consumer confidence is down, as is global business confidence – the latter at a five year low.

The Case/Shiller index reports a “broad-based slowdown” for US home prices, and that in the rear view mirror that looks at Q3. So that’s not where those 3.89% came from, it wasn’t housing (wonder what it was). The Gallup Christmas survey lost 8% of exuberance in one month. What this adds up to is that Americans may not spend all of that saved gas money, and that means there’s a real danger of deflation coming to America too – as if Japanese and European attempts to export their own were not enough yet.

While the media continue to just about exclusively paint a picture of recovery and an improving economy, certainly in the US – Europe and Japan it’s harder to get away with that rosy image -, in ordinary people’s reality a completely different picture is being painted in sweat, blood, agony and despair. Whatever part of the recovery mirage may have a grain of reality in it, it is paid for by something being taken away from people leading real lives. US unemployment numbers are being massages three ways to Sunday, as is common knowledge, or should be; the amounts of working age people not working, and not being counted as unemployed either, is staggering.

But there’s a very large, and growing, number of people who do work, but find it impossible to sustain either themselves or their families on their wages. That’s how the recovery, fake as it even is, is paid for. And this will have grave consequences for many years, if not decades, to come.

If a government would come clean with its citizens, explain the overwhelming debt situation a nation is in, that everyone will have to do with less at least for a while, and then openly start restructuring the debts, those consequences would be much less damaging. But all governments choose to talk about only recovery and growth, and to let their people suffer the consequences of the policies enacted to achieve these goals, even if after 6-7 years of crisis and dozens of trillions in stimulus, we’re no closer to either. Quite the contrary. We’re not in ‘drive’, we’re stuck in ‘reverse’. We’re backing up. We’re moving backwards.

Lance Roberts at StreetTalkLive provides stats on how many Americans have been made dependent on some sort of handout:

The Dismal Economy: 148 Million Government Beneficiaries

.. the Federal Reserve has stopped their latest rounds of bond buying and are now starting to discuss the immediacy of increasing interest rates. This, of course, is based on the “hopes” that the economy has started to grow organically as headline unemployment rates have fallen to just 5.9%. If such activity were real then both inflation and wage pressures should be rising – they are not. According to the Congressional Budget Office study that was just released, approximately 60% of all U.S. households get more in transfer payments from the government than they pay in taxes.

Roughly 70% of all government spending now goes toward dependence-creating programs. From 2009 through 2013, the U.S. government spent an astounding 3.7 trillion dollars on welfare programs. In fact, today, the percentage of the U.S. population that gets money from the federal government grew by an astounding 62% between 1988 and 2011. Recent analysis of U.S. government numbers conducted by Terrence P. Jeffrey, shows that there are 86 million full-time private sector workers in the United States paying taxes to support the government, and nearly 148 million Americans that are receiving benefits from the government each month.

Yet Janet Yellen, and most other mainstream economists suggests that employment is booming in the U.S. Okay, if we assume that this is indeed the case then why, according to the Survey of Income and Program Participation conducted by the U.S. Census, are well over 100 million Americans are enrolled in at least one welfare program run by the federal government. Importantly, that figure does not even include Social Security or Medicare. (Here are the numbers for Social Security, Medicaid and Medicare: More than 64 million are receiving Social Security benefits, more than 54 million Americans are enrolled in Medicare and more than 70 million Americans are enrolled in Medicaid.) Furthermore, how do you explain the chart below? With roughly 45% of the working age population sitting outside the labor force, it should not be surprising that the ratio of social welfare as a percentage of real, inflation-adjusted, disposable personal income is at the highest level EVER on record.

Tyler Durden addresses deteriorating wages in America with a great metaphor:

The Mystery Of America’s “Schrodinger” Middle Class, Which Is Either Thriving Or About To Go Extinct

On one hand, the US middle class has rarely if ever had it worse. At least, if one actually dares to venture into this thing called the real world, and/or believes the NYT’s report: “Falling Wages at Factories Squeeze the Middle Class.” Some excerpts:

For nearly 20 years, Darrell Eberhardt worked in an Ohio factory putting together wheelchairs, earning $18.50 an hour, enough to gain a toehold in the middle class and feel respected at work. He is still working with his hands, assembling seats for Chevrolet Cruze cars at the Camaco auto parts factory in Lorain, Ohio, but now he makes $10.50 an hour and is barely hanging on. “I’d like to earn more,” said Mr. Eberhardt, who is 49 and went back to school a few years ago to earn an associate’s degree. “But the chances of finding something like I used to have are slim to none.” Even as the White House and leaders on Capitol Hill and in Fortune 500 boardrooms all agree that expanding the country’s manufacturing base is a key to prosperity, evidence is growing that the pay of many blue-collar jobs is shrinking to the point where they can no longer support a middle-class life.

In short: America’s manufacturing sector is being obliterated: “A new study by the National Employment Law Project, to be released on Friday, reveals that many factory jobs nowadays pay far less than what workers in almost identical positions earned in the past.

Perhaps even more significant, while the typical production job in the manufacturing sector paid more than the private sector average in the 1980s, 1990s and early 2000s, that relationship flipped in 2007, and line work in factories now pays less than the typical private sector job. That gap has been widening — in 2013, production jobs paid an average of $19.29 an hour, compared with $20.13 for all private sector positions. Pressured by temporary hiring practices and a sharp decrease in salaries in the auto parts sector, real wages for manufacturing workers fell by 4.4% from 2003 to 2013, NELP researchers found, nearly three times the decline for workers as a whole.

How is this possible: aren’t post-bankruptcy GM, and Ford, now widely touted as a symbol of the New Normal American manufacturing renaissance? Well yes. But there is a problem: recall what we wrote in December 2010: ‘Charting America’s Transformation To A Part-Time Worker Society:”

.. one of the most important reasons for lower pay is the increased use of temporary workers. Some manufacturers have turned to staffing agencies for hiring rather than employing workers directly on their own payroll. For the first half of 2014, these agencies supplied one out of seven workers employed by auto parts manufacturers. The increased use of these lower-paid workers, particularly on the assembly line, not only eats into the number of industry jobs available, but also has a ripple effect on full-time, regular workers. Even veteran full-time auto parts workers who have managed to work their way up the assembly-line chain of command have eked out only modest gains.

And that’s not some isolated incident, as the Guardian makes clear, it’s the same thing in Britain.:

Record Numbers Of UK Working Families In Poverty Due To Low-Paid Jobs

Insecure, low-paid jobs are leaving record numbers of working families in poverty, with two-thirds of people who found work in the past year taking jobs for less than the living wage, according to the latest annual report from the Joseph Rowntree Foundation. The research shows that over the last decade, increasing numbers of pensioners have become comfortable, but at the same time incomes among the worst-off have dropped almost 10% in real terms. Painting a picture of huge numbers trapped on low wages, the foundation said during the decade only a fifth of low-paid workers managed to move to better paid jobs. The living wage is calculated at £7.85 an hour nationally, or £9.15 in London – much higher than the legally enforceable £6.50 minimum wage.

As many people from working families are now in poverty as from workless ones, partly due to a vast increase in insecure work on zero-hours contracts, or in part-time or low-paid self-employment. Nearly 1.4 million people are on the controversial contracts that do not guarantee minimum hours, most of them in catering, accommodation, retail and administrative jobs. Meanwhile, the self-employed earn on average 13% less than they did five years ago, the foundation said. Average wages for men working full time have dropped from £13.90 to £12.90 an hour in real terms between 2008 and 2013 and for women from £10.80 to £10.30.

Poverty wages have been exacerbated by the number of people reliant on private rented accommodation and unable to get social housing, the report said. Evictions of tenants by private landlords outstrip mortgage repossessions and are the most common cause of homelessness. The report noted that price rises for food, energy and transport have far outstripped the accepted CPI inflation of 30% in the last decade. Julia Unwin, chief executive of the foundation, said the report showed a real change in UK society over a relatively short period of time. “We are concerned that the economic recovery we face will still have so many people living in poverty. It is a risk, waste and cost we cannot afford: we will never reach our full economic potential with so many people struggling to make ends meet.

And it’s even worse in Greece and Spain and Italy, all so northern Europe and the Brussels politicos can keep alive the idea that Germany and Holland are doing well, and overall growth is almost at hand. That southern Europe must suffer for that idea has been justified away for years now, and it’s not even an issue deemed worth discussing anymore.

And that attitude will blow up in their faces, it’s inevitable that it will. Very few people understand how dangerous the games are that our governments and central banks play. And when the effects do play out, they will be blamed on other causes. Debt and propaganda rule our world supreme.

Excellent writer and great friend Jim Kunstler shows how simple the entire facade is to fathom, and how the next step away from the mess we’re in is so painfully obvious: downscale.

Buy the All Time High

Wall Street is only one of several financial roach motels in what has become a giant slum of a global economy. Notional “money” scuttles in for safety and nourishment, but may never get out alive. Tom Friedman of The New York Times really put one over on the soft-headed American public when he declared in a string of books that the global economy was a permanent installation in the human condition. What we’re seeing “out there” these days is the basic operating system of that economy trying to shake itself to pieces. The reason it has to try so hard is that the various players in the global economy game have constructed an armature of falsehood to hold it in place — for instance the pipeline of central bank “liquidity” creation that pretends to be capital propping up markets.

It would be most accurate to call it fake wealth. It is not liquid at all but rather gaseous, and that is why it tends to blow “bubbles” in the places to which it flows. When the bubbles pop, the gas will tend to escape quickly and dramatically, and the ground will be littered with the pathetic broken balloons of so many hopes and dreams. All of this mighty, tragic effort to prop up a matrix of lies might have gone into a set of activities aimed at preserving the project of remaining civilized. But that would have required the dismantling of rackets such as agri-business, big-box commerce, the medical-hostage game, the Happy Motoring channel-stuffing scam, the suburban sprawl “industry,” and the higher ed loan swindle.

All of these evil systems have to go and must be replaced by more straightforward and honest endeavors aimed at growing food, doing trade, healing people, traveling, building places worth living in, and learning useful things.

All of those endeavors have to become smaller, less complex, more local, and reality-based rather than based, as now, on overgrown and sinister intermediaries creaming off layers of value, leaving nothing behind but a thin entropic gruel of waste. All of this inescapable reform is being held up by the intransigence of a banking system that can’t admit that it has entered the stage of criticality. It sustains itself on its sheer faith in perpetual levitation. It is reasonable to believe that upsetting that faith might lead to war.

But that’s not yet where we are, though Ferguson sure looks close to that war Jim talks about. Our leading classes will not let us downscale, no matter how much sense that makes for the ‘lower’ 95% of the population, because that would risk their leading positions. And so we’ll have to deal with a lot more misery before the whole edifice finally blows up, and we’ll end up with huge swaths of traumatized people. In a great article, Lynn Stuart Parramore describes how that works:

So Many People Are Badly Traumatized by Life in America: It’s Time We Admit It

Recently Don Hazen, the executive editor of AlterNet, asked me to think about trauma in the context of America’s political system. As I sifted through my thoughts on this topic, I began to sense an enormous weight in my body and a paralysis in my brain. What could I say? What could I possibly offer to my fellow citizens? Or to myself? After six years writing about the financial crisis and its gruesome aftermath, I feel weariness and fear. When I close my eyes, I see a great ogre with gold coins spilling from his pockets and pollution spewing from his maw lurching toward me with increasing speed. I don’t know how to stop him. Do you feel this way, too?

All along the watchtower, America’s alarms are sounding loudly. Voter turnout this last go-round was the worst in 72 years, as if we needed another sign that faith in democracy is waning. Is it really any wonder? When your choices range from the corrupt to the demented, how can you not feel that citizenship is a sham? Research by Martin Gilens and Benjamin I. Page clearly shows that our lawmakers create policy based on the desires of monied elites while “mass-based interest groups and average citizens have little or no independent influence.” Our voices are not heard.

When our government does pay attention to us, the focus seems to be more on intimidation and control than addressing our needs. We are surveilled through our phones and laptops. As the New York Times recently reported, a surge in undercover operations from a bewildering array of agencies has unleashed an army of unsupervised rogues poised to spy upon and victimize ordinary people rather than challenge the real predators who pillage at will. Aggressive and militarized police seem more likely to harm us than to protect us, even to mow us down if necessary.

Our policies amplify the harm. The mentally ill are locked away in solitary confinement, and even left there to die. Pregnant women in need of medical treatment are arrested and criminalized. Young people simply trying to get an education are crippled with debt. The elderly are left to wander the country in RVs in search of temporary jobs. If you’ve seen yourself as part of the middle class, you may have noticed cries of agony ripping through your ranks in ways that once seemed to belong to worlds far away.

[..] A 2012 study of hospital patients in Atlanta’s inner-city communities showed that rates of post-traumatic stress are now on par with those of veterans returning from war zones. At least 1 out of 3 surveyed said they had experienced stress responses like flashbacks, persistent fear, a sense of alienation, and aggressive behavior. All across the country, in Detroit, New Orleans, and in what historian Louis Ferleger describes as economic “dead zones” — places where people have simply given up and sunk into “involuntary idleness” — the pain is written on slumped bodies and faces that have become masks of despair. We are starting to break down.

When our alarm systems are set off too often, they start to malfunction, and we can end up in a state of hyper-vigilance, unable to properly assess the threats. It’s easy for the powerful to manipulate this tense condition and present an array of bogeymen to distract our attention, from immigrants to the unemployed, so that we focus our energy on the wrong enemy. Guns give a false sense of control, and hatred of those who do not look like us channels our impotent rage. Meanwhile, dietary supplements and prescription painkillers lure us into thinking that if we just find the right pill, we can shut off the sound of the sirens. Popular culture brings us movies with loud explosions that deafen us to what’s crashing all around us.

The 21st century, forged in the images of flames and bodies falling from the Twin Towers, has sputtered on with wars, financial ruin and crushing public policies that have left us ever more shaken, angry and afraid. At each crisis, people at the top have seized the opportunity to secure their positions and push the rest of us further down. They are not finished, not by a long shot.

Trauma is not just about experiencing wars and sexual violence, though there is plenty of that. Psychology researchers have discussed trauma as something intense that happens in your life that you can’t adequately respond to, and which causes you long-lasting negative effects. [..] trauma comes with a very high rate of interest. The children of traumatized people carry the legacy of pain forward in their brains and bodies, becoming more vulnerable to disease, mental breakdown, addiction, and violence. Psychiatrist Bessel van der Kolk, an expert on trauma, emphasizes that it’s not just personal.

Trauma occupies a space much bigger than our individual neurons: it’s political. If your parents lost their jobs, their home or their sense of security in the wake of the financial crisis, you will carry those wounds with you, even if conditions improve. Budget cuts to education and the social safety net produce trauma. Falling income produces trauma. Job insecurity produces trauma.

There’s much more at the link, and every word is worth reading. The mental consequences of the gutting of our societies by governments and the financial industry does not get nearly enough scrutiny. We act, or politicians and media do, as if millions of people losing their jobs, and over half of young people in certain nations never having had a chance of a job, is just a matter of numbers, of mere statistics.

And then all sorts of ‘experts’ claim it’s all just the price to pay for technological progress, that will make everything so much better for everyone some sunny day soon. But that sunny say will never come, the techno happy ideal version of the future has already died with the debt incurred to facilitate it. We need to take a step backwards, or we’ll continue to drive backwards. Or be driven, to be more precise, since we’ve handed over the steering wheel to people who have no intention of taking us where we want to, and should, go. They are only intent on taking us where they can squeeze us most.

Thing is, there’s precious little left to squeeze. And they know that much better than most of us do. That’s why it’s imperative that we should get rid of these clowns, or there’ll be a whole lot more trauma. We can organize our societies, and we can even organize ways to downscale them peacefully . But not with those at the helm who see us only as mere entities to draw blood from.

We need to be a whole lot more assertive about this; we shouldn’t want to be surrounded by traumatized friends and family members and neighbors There’s nothing good for us in that. It’ll be used against us in increased surveillance and clampdowns and all that comes with it.

We can have good jobs for everyone, all it takes is to have what we need, produced in our own communities and societies, instead of having it shipped over from China. It’s not rocket science. It’s just that there’s a certain segment in society, which unfortunately happens to be the most powerful one, that doesn’t want us to do that. They want more and bigger, not smaller and better.

Until we solve that issue, things will keep getting worse. And not just a little bit. We need to find leaders that actually represent us, our needs and desires and ideas, and we need to find ways to elect them. If we don’t, we face a very bleak future in which there won’t be much left for us to choose. Or enjoy. We live in a pivotal moment in time, but we don’t recognize it for what it is. We seem to think it’s all some minor hiccup. We are dead wrong.