Economics for Small Fry

Like always, I will recommend this excellent Post, which has many very vital links to the Issue involved; then begin to talk about something else. What if Government debt in not just an irresponsible Spending pattern, but a substitute for a Futures Market on Inflation. Purchases of Treasuries or other Debt instruments simply constitute a hedge against expected future liabilities associated with a decayed Currency. Why do I ask this Question?–Because the purchase of Debt has long since passed the viability of a balanced Portfolio, even for central banks. Do people really expect the need of fancy Paper to trade in for other reams of Paper issued by the Treasury? It is not really a matter of Investment under these guidelines, but maintenance of a viable Route of Trade. You Kids need to understand that current fiscal policies are getting real shaky, almost as bad as the previous Credit Default Swaps–just played by central banks instead of Investment banks.

Here is where the ground is shaky, but should be really firm. I will get grandiose in Error, and accept the fact that Union members may draw some 30% more in total benefits than does the average Worker. I can then also admit that Union members make around 7% in total Pay Package in their Employment, as is the average benefits and Pay Package of Management. Here is where it gets tricky: Union membership had absolutely nothing to do with the Trillions lost in the Great Recession by Investors; it seems that Banker and Corporate Executive had the closest connection, and made the basic decisions. Union membership has absolutely nothing to do with the Unemployment rate, except for being immune to its impact; now under the force of Change by action of State Chief Executives–whose Pay Packages resemble Management–not Union members. It is also interesting that Management did most of the Downsizing of the Great Recession which caused the Unemployment; for which, by the way, Management generally gave themselves a Pay Raise. I like you may be a little irritated at the ballooning of Employment in Education and Health–with its attendant Cost–over the last three decades. I just don’t feel it is time to ‘Tar and Feather’ Unions and run them out of Town, simply because they want a place at the Table where all the great decisions are made.

Some of Us try to analyze what We are going to need to get Employment back on track. I will make a dire forecast, but one which will likely prove True. This states that We need 4 back-to-back months of Job Creation in excess of 500,000 per month, following with a Job Creation of 300,000 per month in succeeding months; else most Unemployed today should figure on permanent retirement. There is no way these Numbers can possibly be reached with the current political and business leadership. My Vote is to pay for the Debt with Taxation, and continue the Welfare venues as We will need them. I know such a Plan is unpopular with leadership; of course, they are making good Money, while Few others are. lgl