Thursday, September 13, 2012

September blues [updated]

Unemployment claims are up, and this has generated much crowing from the right. With the holiday, the hurricane and the typical September slowdown, it doesn't mean anything by itself. It might be enough to push the Fed into QE3 however, or maybe not, there are Fed members dedicated to keeping unemployment high. Don't want that wage inflation, don't you know.

New Census data indicates that the middle class continues to show a steady decline in wages, and the gap with the rich continues to widen. Is anyone surprised? It's the long game for the billionaires, but they are getting a little desperate. Most of them are getting pretty old and they aren't the first generation to undertake the push to oligarchy. The information age wasn't something that they saw coming. Without the internet they would be in a position of absolute power by now, and that has to frost them. Not that they aren't adapting, you have to stay alert or they'll take that away too.

[update] The Federal Reserve announced today that they will undertake an open ended policy of asset purchases and other actions until unemployment comes down or inflation gets out of hand. Republicans will scream that this is to rig the election for Obama, in fact if anything they are doing it to damage Obama. If they had done this a year ago inline with their mandate under the law to control unemployment, we would be far better off today.

Does this fix the economy? Not just no, but Hell no. That being said, it's the only thing the Fed can do, and it will help. Mostly it helps rich people, but unlike Reaganomics there will be some trickle down to the peasants.

2 comments:

Anonymous said...

One happy thought is that most of those billionaires are indeed old and very near the end of their journey and when they go, good riddance to them if it is any consolation to them, all the wealth won't do them any good because they'll just be dead and rotten, no after life, no heaven just dead. Good riddance to the old F$%KS!!
Maybe the QE3 will drive the stock market for a time to get some long-holders (suckers) back in so the wall street can vacuum more assets when it falls again. How's that facebook stock working for ya, ya-hey!!

Anonymous said...

Those god appointed rulers want you to feel like the floor the santorum splat lands upon.
So is the deflation kind of like the natural state of them stodgey old billionaires'es limp old wieners that they need pills and pumps for?
I say get out and vote and ruin the last days of their miserable old lives and start to take back
America. GO OCCUPIERS!!!