Discussion in 'Economy' started by Truthmatters, Jun 22, 2012.
Impending recession? Bump in road? See the charts - The Week in Charts - MarketWatch
Good info; thanks for the heads-up Truth!
There is a close relation to the price fuel and a lag effect. when fuel prices spike the resulting slowdown of spending does not hit the manufacturing sector for a few months. Likewise when fuel prices drop like they are now (relatively speaking) the rise in manufacturing will occur a few months later. Of course the decrease in the price of fuel is an illusion because the populace has become accustomed to to prices in the high 3 dollar range and a decrease of fifty cents feels like a deal but in reality is more than we used to pay.
Many utilities and manufactures have made significant shifts to cheap natural gas. Wouldn't that counter the effects of high gasoline/diesel/fuel oil/coal prices?
Does anyone remember the first oil crisis in 73. Nothing has changed except politicians have been promising energy independence and it has never happened.
I remember it well. It saved our family from years of poverty and certain ruin. It provided an infusion of capital that allowed us to grow our business and continue with what we've been doing for four generations.
It is the end of the supply line that determines manufacturing. The consumer. You could build all you want but without some entity, whether it be a consumer or business, to purchase the product there will be no production. It is the money that the average consumer spends on fuel prices that determines what they buy. Five to ten dollars a week does not sound like much, but take that times the number of families and it adds up.
But transportation costs in the supply line also have an effect but usually the companies absorb this cost most of the time as they have been doing to a certain extent.
The dropping fuel fuel prices will allow consumers to purchase more and to drop inventory, the companies will be able to recover more of a profit margin or offer products at a reduced price and spurring more sales.
Granted there are other factors involved but the fuel price is the current major mover in the overall production, directly and indirectly.
The Federal Reserve released its Survey of Consumer Finances last week.http://www.federalreserve.gov/pubs/bulletin/2012/PDF/scf12.pdf It’s a fact filled 80 page report they issue every three years to provide a financial snapshot of American households.The impact of the worldwide financial collapse has been catastrophic to most of the households in the U.S. A 39% decline in median net worth over a three year time frame is almost incomprehensible. Even worse, the decline has surely continued for the average American household through 2012 as home prices have continued to fall. Median family income plunged by 7.7% over a three year time frame and has not recovered since the collection of this data 18 months ago. Even more shocking is the fact that median household income was $48,900 in 2001. Families are making 6.3% less today than they were a decade ago. These figures are adjusted for inflation using the BLS massaged CPI figures. Anyone not under the influence of psychotic drugs or engaged as a paid shill for the financial oligarchy knows that inflation is purposely under reported in order to keep the masses sedated and pacified. The real decline in median household income is in excess of 20% since 2001.
The destruction of the blue collar jobs has been underway since the early 1970s. And the relentless decline in real blue collar wages has followed a bumpy downward path for decades. Sadly, the average person doesn’t understand the insidious destruction caused to their lives by the Federal Reserve generated inflation, as they actually believe their wages today are higher than they were in 1973. The reality is the oligarchy has used foreign wage differentials and the perceived benefits of globalization to ship manufacturing and now service jobs to Asia while using their captured mainstream media to convince the average American that this has been beneficial to their lives. Using one of their 15 credit cards to buy cheap foreign goods made by people who took their jobs was never so easy. I wonder if the benefits of being able to buy cheap Chinese electronics, toxic dog food, and slave labor produced igadgets outweighed the $2.3 trillion increase in consumer debt, 27% decline in real wages, 7 million manufacturing jobs lost since the mid-1970s, 46 million people on food stamps, $15 trillion increase in the National Debt since 1978, and a gutted decaying industrial base.
Source link...Who Destroyed The Middle Class Part 1: WHO DESTROYED THE MIDDLE CLASS – PART 1 « The Burning Platform
WHO DESTROYED THE MIDDLE CLASS – PART 2 WHO DESTROYED THE MIDDLE CLASS – PART 2 - Washington's Blog
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