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interestrateripoff

Stagnant Wages Leaves Central Banks Fretting Over Fate Of Workers - Can Hpc Help?

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http://uk.reuters.com/article/2014/07/24/uk-cenbank-wages-analysis-idUKKBN0FT2K620140724

After injecting trillions of dollars into the global financial system over the last six years, the world's central bankers now face a vexing question: why is so little of it showing up in workers' paychecks?

From the U.S. Federal Reserve to the Bank of England, the Bank of Japan and the European Central Bank, slow wage growth is a major concern as central bankers continue to look for signs of a solid recovery.

The standing assumption has been that low interest rates would support growth, growth would translate into jobs, and tighter labour markets would lead to rising pay.

But the tepid pace of wage growth this far into the recovery "makes them very nervous," said Joel Prakken, a senior managing director at the Macroeconomic Advisers consulting firm, because it strikes at one of the foundations of developed world success: solid household incomes and consumer spending.

It is a tricky issue for central banks, which face the fact that monetary policy can do little if anything to directly create a job or raise a wage.

I bet they are nervous there's a good chance they'll end up lynched in any social collapse.

Hmm they can't work out why printing the money and giving it directly to the banker buddies hasn't ended up in the proles wage packets. So any one got any idea's to help out the dumb fecks at our leading central banks.

Edited by interestrateripoff

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Growth leading up to the credit crunch was the result of a massive increase in personal debt, it was an illusion.

Dropping interest rates has meant that people are now worried how they can manage when rates go up.That means they're less like to stick our necks out and ask for a pay rise, and no employer is just going to just offer pay rises with all the uncertainty.

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In other words the centeral bankers took a gamble and have lost. Each and every banker in person must have known that wages will not rise due to the nature of the global economy.

The only thing that will get wages to rise is a good war with BRICS and even that won't be as effective as most would think. We have machines and robots, workers are not required like they were back in the 80's - which by the way is the decade they model today's monetry policy on.

centeral bankers don't give a toss - Carney with his £1m per year pay check. Why the heck would they give a dam? They are just playing the easy route collecting the paychecks the same as 99% of the population would given the same chance.

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Capital vs labour

I think the Capitalists have outflanked labor- they have worked out that by gaming the system they no longer need to make actual things and sell them to create wealth- they just need to breed money with money to create more money and cut out the middleman.

the Ford Motor Company, the quintessential American manufacturing company, has in recent years generated its profits primarily by selling loans to purchase cars rather than through the sale of cars themselves

By the time the U.S. stock market was cresting in 2001, financial sector profits had rocketed up to represent more than 40 percent of total profits in the U.S. economy.

http://aluation.wordpress.com/2011/10/19/we-need-a-better-definition-of-financialization/

Who needs workers to make things to sell when you can just sell debt instead?

The flaw in the plan being that all that lovely debt is just an IOU on productive activity that is no longer taking place, since it has been replaced by the production of IOU's.

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I remember watching a doc about a "currency trader", he had a lovely house posh car and all he done was buy one currecy cheap then sell it when it went up in value. He lived a lifestyle far beyond any normal worker, it didnt take any real skill certainly not the level of skill to warrant the lifestyle.

I really wonder what is about to happen, the entire planet earth seems to be existing on bullsh!tters with pin stripe shirts and cufflinks.

I call them "life winners" they dont produce anything of worth. Aggressive and competitive they dont help people they just shuffle paper, deceive and then spend there ill gotten gains on stupid levels of consumption. They look down there noses at ordinary people because they "own" less. The entire property bullsh!t is just one of there "games". They just bleed real value out of the economy and consume like a tumour. Maybe we will get lucky and have a bit of social unrest? I dunno but i hope for a time when people at least look at this sort of behaviour for what it really is instead of "aspiring" to be in it.

BTW they would call me jealous but I have a good job with very good wages that actually produces things which brings a great deal of money into the economy I just choose not to drive a stupid status car or have big fake tudor house because its vulgar and obnoxious.

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BTW they would call me jealous but I have a good job with very good wages that actually produces things which brings a great deal of money into the economy I just choose not to drive a stupid status car or have big fake tudor house because its vulgar and obnoxious.

You know what you want, 'they' don't, but they think they'll find 'it' if they have more money and possessions. 'It' being status and respect. But unfortunately, no amount of money can buy those, they have to be earned the hard way as they find out, and so they are left feeling empty, ultimately; although by the time they realise, it will be too late to do anything about it, which must lead to an unfulfilled retirement I would imagine..sitting there in the recliner in the mock Tudor mansion and wondering "what was my contribution?", as their grand children apply for HTB.

and, it is 'they' who are jealous of you.

Edited by LiveinHope

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Central Banks don't give a flying fig about the welfare of workers - they are just concerned that lower wages and higher living costs leave them less able to take on and service more and more debt.

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Central Banks don't give a flying fig about the welfare of workers - they are just concerned that lower wages and higher living costs leave them less able to take on and service more and more debt.

+1

There is this basic contradiction between the ideal of 'flexible' labor- that is labor that is cheap and disposable- and a debt based economy that depends on reliable debt slaves with predictable incomes.

People on zero hours contracts fail in their most vital function- to provide a viable receptacle for banker debt, the life blood of the nations economic future. :lol:

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