Friday, November 02, 2007

Fairy Tales

Seems rosy, doesn’t it? Well, maybe! Revision of the Jobs data has become more erratic over the years, and First Numbers here sound more wistful than real. The GDP Reading for the 3rd Quarter probably could not suffer a Core Reading like Inflation, because volatile Purchases of extreme value must have made up a great share of the Increase. The same ideation could also express extreme duress for Wages, if the high Salaries and Benefits were cut from the calculation. Business Investment is growing at 6% rate, of course, though real care should be utilized here; Prices for such Products are highly reflective of Demand, and there could have actually been a decline in Demand for physical Product. Exports also reflect the cheaper Dollar, and can vary widely greatly from Quarter to Quarter. It is a nice Show, though.

Spencer at Angry Bear provides a Graph which might explain the Problem with our Economy far better than any amount of discussion. There has most definitely been widespread inflation since January of 1989. There exists a definite tendency to suppress Average Hourly Wage rates. There has definitely been a reduction of higher-level Wage rates in Hourly Wages with transfer of such Labor to foreign sources, and an increase in Employment at the Minimum Wage levels which includes a concave reduction in Wages in many Occupations. The major Problem here consists of the fact that the percentage of Population dependent on the Hourly Wage economy lacks documentation by myself, but I do not believe there has been much alteration. Inflation, under these circumstances, becomes a direct decrease in Living Standards.

This Post simply proves that One should read far more carefully before writing anything for the Internet (I read this after having written the two previous paragraphs). I was lucky in that none of the evaluations directly conflicted with my own personal beliefs, though I could have utilized some of the material for quotable reference. I would advise the Reader to note Drew Matus and Morgan Stanley Research–both of which relate to my statements about the use of low Wage rates. Like High Frequency, I believe a loss of 5000 Jobs in the Construction sector is an outright Lie. lgl

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