STOCK MARKET WATCH -- Friday, 1 November 2013

[Warpy]

58. 100% of the economic policy decisions from the 70s until now

have been geared to stopping the inflation built into any fiat currency by depressing wages.

It worked as jobs were sent offshore to make consumer goods but anything that was produced here like health care and education and food continued to inflate in price no matter what.

It has to be obvious to all but the dimwitted and rock headed Greenspan that starving labor has killed the goose that laid all the golden eggs in the 50s and 60s.

The social cost has been horrendous, mostly paid by the Boomers that the far right are trying defraud of their Social Security.

Starting any inflationary period with the Fed as leader is a very bad idea and one which will further stifle a depressed economy. The place to start is with wages and the place to start there is the minimum wage. It needs to be doubled. Interest rates need to be kept low in the short term to allow business to expand to meet the new demand from a wage that isn't insanely low.

These silly academics discount labor as anything but an unfortunate cost of doing business and something that must be controlled and paid as little as possible. They just haven't yet realized that not only does labor produce goods and services, they provide the demand for them. And without demand, there are few profits to be made.

Without profits, institutional investors are lured into entering the derivatives casino. We saw where that led in 2008. It will happen again because they opposed all legislation to make sure it didn't happen again.

Maybe when it does, they'll finally get the point about labor saving their asses.