Now How do I pay my Bills

Mark Thoma gives Us an argument by Ken Rogoff, who suggests that Capitalism may be doomed by the rising Cost of Health Care, under the condition of Universal Care. I believe the later is doomed by the increased likelihood of Pandemics spawned by Population congestion. These epidemics, though, will also doom Capitalism as We know it; Free Trade replaced with localized Cottage industries of high technology. A major Outbreak of one of the deadlier little critters will turn Trade into the transfer of electrical impulses. Read Rogoff, he will tell you what will happen if People actually don’t get Sick anymore, simply wear out.

Mike Shedlock has written a fine article on the status of Employment, with proper discount of the BLS report. Employment is likely not rising, but I do not possess the fear of Unemployment which Mish does. Of course, I also do not fear the Mortgage Wash which will come from
overleveraged Homeowners. I estimate it will require about a 6% Mortgage failure (with actual foreclosures) to dump the excess House Pricing since 2004. This may not be a bad thing, if Employment numbers stay relatively steady as I predict.

This NYTimes article by Peter Bernstein should finish a blase attempt to energize myself on this sleepy Sunday. Almost Everyone in the economic profession will state that the Indexes are off big time, and that Inflation is severely undercounted. The Reader must recognize that this is as much Politics as Economics; Pray do not exclaim that Economists do not engage in Politics. The only true Index on Inflation would consist of a Test pattern of American Households, establishing their total Value of Consumption purchases year over year; requiring a minimum of 10,000 Test Households, and only testing their actual Purchase prices on new Production items. It would also be valuable as Tool to mathematically list the volumes of their Used Item purchases in the Secondary markets; this to evaluate their varied use of these Combination markets (New and Used) to stretch the value of their Purchasing Dollar. Now to get a $20 million Funding allotment for the Program. lgl