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The One Chart You Need to Predict the Future

The One Chart You Need to Predict the Future We are witnessing a profound secular sea-change: the failure of expanding debt and leverage to lift the real economy of wages and household income.   When push comes to shove, you only need one chart to predict the future: debt and wages ( credit and compensation). This […]

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Role of Wages of the Common Worker in Oil Prices, Collapse

Role of Wages of the Common Worker in Oil Prices, Collapse In their book Secular Cycles, Peter Turchin and Surgey Nefedof point out the important role falling wages of the common workers played in early collapses. I got to thinking that this might be an issue with our current situation as well, including the low level […]

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Fears over deflation thwarted Bank of England vote to raise interest rate

Fears over deflation thwarted Bank of England vote to raise interest rate Falling oil prices driving inflation down to 0.5% in January, forced Martin Weale and Ian McCafferty to back down Fears that Britain could sink into a damaging “deflationary spiral” have stayed the hands of Bank of England policymakers who had pushed for an early interest […]

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Something Rotten Is Piling Up in this Economy

Something Rotten Is Piling Up in this Economy Total US business inventories balloon to Lehman-Moment levels “We do have more work to do in the US,” admitted John Bryant, CEO of Kellogg’s which makes Pringles, Pop Tarts, Kashi Cereal, and a million other things that consumers are increasingly reluctant or unable to buy. He was […]

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oftwominds-Charles Hugh Smith: We Just Enjoyed the Last Christmas in America

oftwominds-Charles Hugh Smith: We Just Enjoyed the Last Christmas in America. The end of rising wages = the end of mass affluence: we just enjoyed the Last Christmas in America (TLCIA). As unemployment topped 10%, the January 1975 cover of Ramparts magazine blared: The End of Affluence: The Last Christmas in America. (TLCIA) The government responded to the high […]

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Belgium unions protest against austerity cuts – Europe – Al Jazeera English

Belgium unions protest against austerity cuts – Europe – Al Jazeera English. Labour unions in Belgium have begun a 24-hour nationwide strike against government policies that will extend the pension age, contain wages and cut public services. Angry strikers gathered on Monday to protest against what they called the government’s lack of support for the […]

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oftwominds-Charles Hugh Smith: Central Banks Have Failed Because They Can’t Push Wages Higher

oftwominds-Charles Hugh Smith: Central Banks Have Failed Because They Can’t Push Wages Higher. You can print all the money you want, but it will never boost wages to keep up with prices.   Central banks have been pursuing two goals for the past six years: ignite inflation and an expansion of debt that will supposedly […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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