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Wednesday, August 12, 2015

One Step Forward...Two Steps Back..

Before we get to the heart or meat of today's posting, we felt it important to tie up a couple loose ends of sorts from yesterday's post.

We believe our current political system where politicians with very few exceptions are pretty much bought and paid for by corporations has been the biggest reason for the continual decline of the US post-WWII

Many would agree but there still are a few who would argue corporations are great entities-- they create jobs, expand the economy, advance progress into our present century and beyond..

Maybe..
One must not also ever lose sight that the corporation has no legal or moral obligation to pay its workers a living wage or give back to the community to which they take-take from in the form of continual tax breaks, free land, building of new roads and other local or state government perks to assist their growing business.

The only obligation a corporation has is to its shareholders.

Now you may feel good about that as you think about those 50 shares you may own in McDonalds or Disney worth between $3k - $5k but trust us, you're not the specific shareholders that matter to a corporation.

A super wealthy person may own 50,000 shares.. or 500k..

That is the shareholder who has a voice and who is to be appeased.
So if you support corporations and their nefarious tentacle-grip on US politics, you're supporting a nation where powerful corporations focused only on making as much profit as possible to please the 1% with strong dividend returns run the show..

In other words, you're happy with the status quo.

That would also mean you believe the economy has either recovered or is so close to full recovery you can just taste it.. Just gotta...  be...  patient..

And that would of course make you a Complete Idiot  (sorry, subtlety was never our strong suit)
Not only has a true, sustainable recovery Not begun, but statistics recently reported care of CNBC show its not only meandering in circles but that the economy will probably get worse especially for everyday people..

" The U.S. has an economic crisis on its hands that one economist thinks is worse than the Great Recession.

Over the past year, productivity has increased just 0.3% and a mere 0.5% over the past five years, during which the economy has struggled to escape the clutches of the financial crisis and the recession that supposedly ended in mid-2009.
The result has been growth in job creation but little corresponding rise in wages and, subsequently, living standards. It's essentially been the economy's dirty little secret even as Wall Street forecasters continue to project breakout growth that never seems to come..."

Take low wages (compared to pre-2008), add stagnant wage growth, a steady rise in expenses & interest (the Fed purposely did it) and depleted savings/nest egg and well, 'Hide that frown Charlie Brown cuz' only a dope gives up Hope'..  Right?    Right?

Continued..
"This topic is still getting almost no attention—particularly among presidential candidates—but there is a case to be made that the stagnation in productivity has been more damaging to the real living standards of Americans than the Great Recession," Paul Ashworth, chief U.S. economist at Capital Economics said...

Indeed, wage growth has been stuck around 2% or lower for pretty much all of the post-recessionary period. So while stock market investors enjoy the fruits of never-before-seen easy monetary policy—with the S&P 500 up about 210% since March 2009—it's been a different story for much of the labor force. "

So in spite of all this, everything has been going on swimmingly due to spending
Consumers spending money they really didn't have on things they really didn't need thanks to credit cards...

The government spending on an on-going endless war that looks like it could go on another couple decades (Just as Nostradamus predicted for those who believe such things-- a 30+ year war between West and East before the Third Anti-Christ as he described it {Napoleon & Hitler were #1 & 2} was finally defeated)

And of course all that Fed spending ($85 Billion a month) to pump up that rotten stock market to 17,400...  Well actually at 17,200 since its dropped 200pts as of this writing at noontime...

And now the Fed has finally stopped for the time being..
And the consumer is finally tapping out..

The latest New York Fed Survey of Consumer Expectations released yesterday showed that households reported that they expected to increase their spending by just 3.5% in the next year, a major drop from the 4.3% the month before. This was the lowest reading in series history.

Of course 3.5% is delusional based on what we wrote earlier..

Eventually the candidates will have to be talking on economic realities, assuming people push and demand them to do it..
No politician ever gives negative news about a bleak future voluntarily, even the ones trying to show how things are bad now..  The goal is always to get the gullible to believe tomorrow will be a brighter, better day (especially if you vote for them)

And as long as you have nitwits and egotistical Bitch debate moderators asking 'gotcha' type questions, you won't even have to see candidates squirm to avoid talking financial truths.

There's a lot in this country every day people can not control and its so damned frustrating..

But you can control your personal finances..  Don't assume things are better even if your personal situation is good.. Things can alter in a finger snap..  Just be smart with what you got because its always easier to spend than to make it back.