I still haven't figure out how hyper inflation will resolve debt, when we have wage stagflation. It's not like the value of your job is going up with the value of a big mac. You're buying far less Bigmacs not more when you're making less wile the cost of Bigmacs are inflating.
Or am I missing something? You Keynesians sure talk funny.
That's called stagflation. What we have been seeing is anything BUT hyperinflation. Hyperinflation is literally a case of:
- $30000 buys you a reasonably nice new sedan today
- $30000 buys you a pair of jeans next week
It is a case where everyone can plainly see that the currency has absolutely no value and it the paper it is printed on is actually more valuable if used for practical purposes like wall-coverings and burning for heat. Our current case of stagflation is very annoying and does not bode well for the middle class, but people still have enough faith in the currency to kill each other over it.
Stagflation has been in USA for 40 years. The term was originally coined in the 70's to describe what the Keynesians told us wasn't possible on their Phillips Curve: both high inflation and economic stagnation.
In a real hyperinflation, the banksters may well get the politicians to re-base loans owed to banksters (but of course not re-basing the loans that banksters owe). Read up the details during Weimar hyperinflation and how the banksters re-based mortgages to a level that was orders of magnitude higher than wage increases.
The average joe6pack should refrain from any fanciful thought of the game being rigged for your benefit. The game is rigged all right, but definitely not for you. It's rigged for someone else, at your expense!
nope... not even close. I guess it is easier to just write crap on the internet, then to say spend 3 minutes on google and find a chart of average hourly wages...
Another genius who doesn't know how to read chart. The CPI-adjusted hourly earning (aka "real wage") in that chart is essentially flat over those 32 years in the chart where the red line is plotted. The CPI adjusted average hourly earnings in that chart only goes back to 1980, at the end of a decade when the term "stagflation" was invented. If the red line had gone back to 1970, it would show a declining line through the 70's, as even that chart shows the trend line before 1994-95
Interesting to note that the turning point in the chart is in 1994-95, exactly when BLS CPI methodology was revised.
Yup. Buying power hasn't changed in decades. This is because increased productivity has been going solely into the hands of already wealthy, with very little "Trickle Down".
Another point is that workers in most fields are now 100% responsible for paying for their own training, whereas before employers expected to pay to train their own employees. Yet another cost shifted onto the middle class.
Decades ago the Sony Walkman was a luxury that most could not afford. It was more a status symbol than an electronic device. Who doesn't own a Pad, Smartphone, laptop, and a flat screen TV. And spite the mess of it all, financing is a hell of a lot easier for the latest model car than in the past. Are we better off, NO, but it does show how far disconnected we are from the fundamentals. So comparing current finances to anything decades ago is a moot point.
Captain, electronics becoming cheaper over time is a function of efficiency in production. But things like food, education, medical care, rent/mortgage have all skyrocketed much faster than the purchasing power of the median person has grown.
These are the "Iron Costs" of Living. It's real hard to get some kind of middle class occupation without a tech school or college education. You have to eat. You have to have a place to live. But, you can delay a new computer or smartphone. A 3G phone or a Pentium III with XP can still surf the net and read emails just like a Galaxy III or Intel i7 with Windows8.
When I compare how much I spend on rent, my wife's college loans, groceries, etc. to how much I spend in a year on consumer electronics and appliances, it's not even close.