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Us Gdp And Wages.

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I'm always rabbiting on about how people in the West are growing poorer and in a manner they do not recognise.

I often trace the origin of this phenomina back to 2000-01 where the dotcom boom/bust was leading us in the West into a recession, then 9/11 was sprung on the US and Americans stopped spending. The recession was snowballing quickly out of control, when the Fed nose dived into a cheap credit splurge in order to prop up growth whilst a string of wars were ongoing.

Here is a graph showing how US productivity has continued to expand in the absence of wage inflation.

_42041256_wages_prod_416gr.gif

You can clearly see the seperation point in 2001, the area between the lines is indicative of a society using credit to fuel economic growth through a period of over consumption.

The credit policy in the US has simply delayed a recession, but in doing so the imbalalnces have run longer and deeper.

During this time the Fed has been increasing the volume of dollars in circulation at around 10% pa, thats 60% more dollars changing hands in 2006 than 2001, this makes dollars less valuable.

Of course, this warps FX and in doing so, warps the oil price. So the whole industrial world bears some of the weight of the US economic struggle through oil derived energy inflation.

So I suppose my point is US GDP is rising, Americans are paying more for goods & services, yet wages remain stagnant.

They are growing poorer, through their use of credit. Using their credit to induce inflation they cannot afford.

The same is happening in the UK.

Edited by ?...!

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So I suppose my point is US GDP is rising, Americans are paying more for goods & services, yet wages remain stagnant.

They are growing poorer, through their use of credit. Using their credit to induce inflation they cannot afford.

The same is happening in the UK.

The nominal GDP is rising but its not real, it's a scam, a lot of it is measuring the growth of various bubbles. The US GDP is going to appear to collapse at some point in the future, I say "appear" because it will just be going from a fake figure to a real figure. Thier productivity growth figures are all lies too I think, along with rather a lot of US economic statistics.

And you say "9/11", look at the graph again, 9/11 happened in late 2001, looks to me the rot started at the start of 2001. What happened on the 20th of January 2001?

http://en.wikipedia.org/wiki/George_W._Bush

Edited by Della

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The nominal GDP is rising but its not real, it's a scam, a lot of it is measuring the growth of various bubbles. The US GDP is going to appear to collapse at some point in the future, I say "appear" because it will just be going from a fake figure to a real figure. Thier productivity growth figures are all lies too I think, along with rather a lot of US economic statistics.

And you say "9/11", look at the graph again, 9/11 happened in late 2001, looks to me the rot started at the start of 2001. What happened on the 20th of January 2001?

http://en.wikipedia.org/wiki/George_W._Bush

I think I encompassed that in my post.

And I think the graph is made up of just 1 data point per year, you can see how the lines are not rounded but straight and only change direction on yearly marks.

So the 2001 point would include both events.

However I think, 9/11 had more impact on American life, and American economics than any election they ever had.

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I think I encompassed that in my post.

And I think the graph is made up of just 1 data point per year, you can see how the lines are not rounded but straight and only change direction on yearly marks.

So the 2001 point would include both events.

However I think, 9/11 had more impact on American life, and American economics than any election they ever had.

According to this the pay first stagnated in the Recession of 2001, which was the first 3 quarters of 2001 (after GWB was elected), 9/11 happened in the 4th quarter of 2001.

http://www-tech.mit.edu/V125/N45/collegecosts.html

recession_fig1.gif

Edited by Della

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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