Mike Shedlock is one of those individuals who can really brighten your morning; can you understand why about 8% of Americans are considered Manic Depressives? A year over year drop of 4.7% in Wages and Salaries almost calls for Champagne, if it were not so early in the morning, and if Anyone could afford it. I have always liked a scale which is not even true, but suits my mood: I equate the loss of purchasing power with a Tax, so our Taxes have been raised by 4.7%. Back in the days of Sanity, such a level was the equal of the Sales Tax, though it has only become a junior partner in disaster today. Ned Phelps say that the American Consumer will only need 15 years to recover, but what does he know; he only a recent Nobel Prize Winner, almost as bad as Paul Krugman. The $13.9 trillion reduction in net American household worth sounds terrible, but Americans are saving more; they could even equal the value of the loss through Savings in about 10 years. No esteemed Economists has estimated the total of expected lost Wages from the Unemployment over the next two years, though I can assure that the previous stated amount will grow drastically with the years.
I have always roared with applause when people speak about emerging markets, ignoring the unkind thought that China has been emerging for 170 years, and still has major distance to go. It is sad that the Traders trust each other no more than they did during the Opium Wars, even sadder that they probably over-value their Trading Partners' reliability. China has promised to stop putting industrial solvent into Toothpaste, and American leadership has assured China that the Dollar will stop melting sometime soon. I await Congressional approval of the sale of the Clunkers to China, because it is a reliable market to recoup the expenditures on the Clunkers in the first place. It would rapidly increase Chinese Imports, both with the Cash for the Clunkers, and the rapid increase in Chinese Oil consumption; could we see $4/gallon Gas again? It is almost time to ask economic leadership to give appraisals of policy response to the Recession. All I have witnessed so far can be contained in the Statement: The Rich got Richer, and the Poor got Poorer.
I decided to end such a boring morning for economic news with another tiresome Post. Donald Marron pulls out more charts from the Treasury Debt Management Office. It is clear with pursual that our political leaders have everything well in hand. I wonder what Our Trading partners will think when they hear that We are planning on two more years of the worst Debt accumulation in our History. They were so particularly enthusiastic about the last five years. It is probably too late to consider that Condo in Mexico, considering the value of the Dollar. We might think about paying more for those clunkers, as the new Autos will be major Energy savers; especially since no one will be able to put Gas in them. Of course, it could also be a good rationale for keeping the old SUV, as it isn’t going anywhere either. I think I have been sufficient lyrically cynical for such a bright morning. lgl