Roberts never disappoints. Today he masterfully interweaves the various, total failures of post-American society into a narrative even the denizens of the Cave might be able to follow.
There is no sign that American leadership in any area is actually capable of thought. Consider Wall Street and corporate leadership. To boost share prices Wall Street forced all corporations to desert their home country and move the production of goods and services sold to Americans offshore to where labor and regulatory costs were lower. The lower costs raised profits and share prices. Wall Street threatened resistant corporations with takeovers of the companies if they refused to move abroad in order to increase their profits.
Neither Wall Street nor corporate boards and CEOs were smart enough to understand that moving jobs offshore also moved US consumer incomes and purchasing power offshore. In other words, the financial and business leadership were too stupid to comprehend that without the incomes from high value-added, high productivity US jobs, the American consumer would not have the discretionary income to continue in his role as the economy’s driver.
The Federal Reserve caught on to Wall Street’s mistake. To rectify the mistake, the Fed expanded credit, allowing a buildup in consumer debt to keep the economy going on credit purchases. However, once consumer debt is high relative to income, the ability to buy more stuff departs. In other words, credit expansion is not a permanent fix for the lack of consumer income growth.
A country whose financial and business leadership is too stupid to understand that a population increasingly employed in part-time minimum wage jobs is not a big spending population is a country whose leadership has failed.
It is strictly impossible to boost profits by offshoring jobs without also offshoring US consumer incomes. Therefore, the profits from offshoring are temporary. Once enough jobs have been moved offshore that aggregate demand is stymied, the domestic market stagnates and then declines.
As I have demonstrated so many times for so many years, as has John Williams (shadowstats.com), the jobs reports from the US Bureau of Labor Statistics are nonsense. The jobs in the alleged recovery from June 2009 are largely low-income domestic service jobs and the product of the theoretical birth/death model. The alleged recovery from the 2007-08 financial crisis is the first recovery in history in which the labor force participation rate declined. Labor force participation rates decline when the economy offers scant job opportunities, not when employment opportunities are rising.
What we know about US jobs is that the jobs are increasingly part-time minimum wage jobs. According to a presstitute news report that might or might not be true, there are only 12 counties in the entirety of the United States in which a person can rent a one-bedroom home on a minimum wage income.
Roberts knows, I know, you know, that these idiots will never learn from their overwhelming mistakes. They have completely abandoned reality, you and yours with it. The answer to any of it, from the fools, is always more of the same.
Must we all have a Charlton Heston moment? Is That Baloney.
One wonders how long this charade will go on. The experts seem to think, at a maximum, another 16 to 23 years. Let’s call it 20, with an inside safety margin of 15: you have 15 years left to prepare for something not seen since 476 AD.
You should probably get to work on that today.