Krugman hits the nail on the head in re: the recovery

[Dot Com]

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its an older opinion piece but I heard it mentioned on the radio today:

The recovery from the Great Recession- its a recovery for the Rich (in Republi-speak: the *cough* "Job Creators")

http://www.nytimes.com/2013/09/13/opinion/krugman-rich-mans-recovery.html?_r=0

But the rich have come roaring back, to such an extent that 95 percent of the gains from economic recovery since 2009 have gone to the famous 1 percent. In fact, more than 60 percent of the gains went to the top 0.1 percent, people with annual incomes of more than $1.9 million.

ANOTHER reason i will not be voting in national elections anymore.

Discuss...

 

[CrusaderFrank]

Obama raised the Dow past 15,000, right?

 

[percysunshine]

Another hate the rich thread? While the government is raping the middle class on health care. Krugman has always had an odious sense of timing.

 

[Dot Com]

Obama raised the Dow past 15,000, right?

hence, a recovery for the *cough* "job creators".

I will not participate in this false paradigm created by the owners of the two parties in power.

 

[eagle1462010]

The Dow is just another Bubble from hell. They are now borrowing to pay the dang margin calls. Sound familiar?

If you want to see where the jobs went, start from NAFTA and go forward with Free Trade Agreements. Corps took their investment money overseas, to ship it with no tariffs back to the USA.

 

[eagle1462010]

The Rayno Report | Fed Puzzle: The Massive Collapse in Money Velocity

Few people are talking about the complete collapse in money velocity, which is now at a five-decade low.

Money velocity is one of those key metrics on the Fed dashboard. If the trillions in Fed stimulus were really working it's way into the economy or "Main St." as was designed, you would see an increase in rate that money moves through the economic system with lending, monetary transactions, and economic activity -- the measure known as Money Velocity.
When economic activity is high and at risk of overheating, such is in the late 1990s, the velocity of money is high, reflecting the vact that money is changing hands in transactions and banking activity. In fact, the opposite is now happening. As witnessed by chart above, money velocity, as measured by the M1 and M2 measures, has collapsed. This may reflect the econoimc malaise that things are not as good as the financial markets appear to be telling us.

If you want a quick lesson on this, follow this awesome Khan Academy video.

With the velocity of money plummeting, it's clear that something in the fractional reserve banking system is broken -- the money remains trapped in the financial system.

Yet another indicator of this is the Fed's Money Multiplier, or an indicator of how the money injected in the banking system is multiplied by lending and economic activity. That's reached new lows recently too, indicating that the fractional reserve system is not living up to expectations.

All of this is deflationary, not inflationary, and may explain why the trillions in Fed stimulus has not resulted in massive inflation that has been predicted. This also explains why the Fed has remained so accomodative and reluctant to pull the stimulus, because of underlying deflationary forces.

This is great for Wall St., but not necessarily good for Main St. It means that traders with access to large amounts of cheap trading capital can continue to make big bets as the Fed supports their access to capital -- but small businesses can't get the same access to capital.

As Gloom, Doom, and Boom report publisher Marc Faber recently pointed out in Barron's, this means the rich get richer and the middle and lower classes continue to suffer.

"Money-printing boosts the economy of the people closest to the money flow," said Faber in the Barron's interview. "But it doesn't help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins," said Faber in the interview.

 

[eagle1462010]

Money Velocity has been going down since 2000.

Why................Outsourcing, jobs going overseas..................

Free Trade has cost us Millions of jobs. 10's of millions. What do we have now, another bubble from hell ready to collapse.

 

[Dot Com]

all our "stuff" is manufactured overseas EXCEPT bombs & fighter planes which we export. Our one export creates more enemies as well

 

[percysunshine]

Money Velocity has been going down since 2000.

Why................Outsourcing, jobs going overseas..................

Free Trade has cost us Millions of jobs. 10's of millions. What do we have now, another bubble from hell ready to collapse.

CiteSeerX ? Regime Uncertainty: Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War. Independent Review

 

[eagle1462010]

Which ones are now pushing for an end to Free Trade.........................

Poof...............By jobs...............................since 2000 and it still continues today............

 

[eagle1462010]

Money Velocity has been going down since 2000.

Why................Outsourcing, jobs going overseas..................

Free Trade has cost us Millions of jobs. 10's of millions. What do we have now, another bubble from hell ready to collapse.

CiteSeerX ? Regime Uncertainty: Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War. Independent Review

Liquity Trap......................

 

[percysunshine]

all our "stuff" is manufactured overseas EXCEPT bombs & fighter planes which we export. Our one export creates more enemies as well

Well, we grow a lot of wheat, and export natural gas, um...and lawyers...we make lots of those to.

 

[CrusaderFrank]

What recovery?

 

[Dot Com]

exactly. Are you a 1%'er CF? Precisely my point.

 

[Zander]

Krugman has a nail in his head.....

 

[jwoodie]

High school seniors should be required to read Krugman's columns so that they will be aware of logical fallacies. He is the master of this form of propaganda.

 

[Dot Com]

Krugman owns you people!!!

 

[eagle1462010]

Krugman owns you people!!!

He's a fucking idiot...........

So is the feeble attempt to restore our economy. Just keep throwing money at it and WISH HAPPY THOUGHTS..........

All these idiots have done is delayed the inevitable...................

 

[Rshermr]

Krugman owns you people!!!

He's a fucking idiot...........

So is the feeble attempt to restore our economy. Just keep throwing money at it and WISH HAPPY THOUGHTS..........

All these idiots have done is delayed the inevitable...................

Right. We should be smart enough, like you say you are, to do nothing. Just cut taxes. No stimulative spending. Like, oh, say H. Hoover, president when the last and only depression happened. And like he continued to do in 1929, 1930, 1931. 1932, and the first thee months of 1933. Because that stopped that depression.
Uh, just remembered, unemployment went up from 3% to almost 25% during that time. But I am sure it will work this time. Cause you say so.

 

[Dot Com]

Krugman owns you people!!!

He's a fucking idiot...........

So is the feeble attempt to restore our economy. Just keep throwing money at it and WISH HAPPY THOUGHTS..........

All these idiots have done is delayed the inevitable...................

Right. We should be smart enough, like you say you are, to do nothing. Just cut taxes. No stimulative spending. Like, oh, say H. Hoover, president when the last and only depression happened. And like he continued to do in 1929, 1930, 1931. 1932, and the first thee months of 1933. Because that stopped that depression.
Uh, just remembered, unemployment went up from 3% to almost 25% during that time. But I am sure it will work this time. Cause you say so.

^ that