“Wage Growth” Is An Oxymoron In Today’s Economy (But No Politician Will Say It)

Wages GraphCanada is now officially in recession. Though unpleasant, that’s honest. The U.S. is officially in politics instead, which isn’t honest. For too many people though, hard to tell the difference.

Eyeball the graph up top, please, It shows the percentage of the U.S. Gross Domestic Product (the total output of the U.S. economy) represented by employee earnings over time. You’ll note that the line declines; that means that employees have been earning less of the economic output. Labor in other words, is being paid less than it once was paid. These records are kept by the U.S. Federal Reserve.

So the public dialogue is all about improving employee earnings, right? But the reality is the opposite. We’re not of course, supposed to notice the discrepancy. Our politicians speak of raising minimum wages while importing cheap illegal laborers. And via H – 1b visas, cheap legal ones. Watch what they do, not what they say.

Wal-Mart recently made headlines with a voluntary recent increase in its minimum wage and it is now engaged in reducing worker hours at some of its stores. HP is reducing its payroll by offering its workers a choice: Layoff, or transfer to work for an HP contractor.  Contract pay is reported at ‘about half’ of HP pay. World wide enterprises, what those erstwhile American corporations have become, want to pay competitive wages, not U.S. wages that can’t compete in the wider world. And such employers are the folk that fund politicians. If we have not noticed that, the politicians have noticed.

You’ll note that the big unions have vanished with the big industries when the latter went to India and China and Mexico. The big unions are now the government workers, which is why they are paid more than the private sector these days. They still receive pensions while private sector folk must make do with 401k plans. Again, we’re not supposed to notice. The taxes needed to keep that up though; those are hard not to notice. We’d notice more if so much of the spending weren’t borrowed and waiting repayment. When that starts, we’ll notice.

Now that technology has morphed the world into a single economy, high wages in one place with low wages in another are unsustainable. The work -jobs- simply move to the lower wage place: basic economics. That means that the previously high wages must fall to the world average. Sorry about that …

American and European politicians know that; they just won’t be reelected saying it. Instead, they fake it and import cheap illegals on the quiet. They have to reduce American wages. And European of course.

There’s an alternative: America and Europe could push ahead providing goods and services that the rest can’t provide yet. That’s how the West got rich in the first place. It invented mass production and sold cars to the world that couldn’t make cars. Yeah. But our leaders have decided that such an approach is unfair exploitation, so they forbid us to pursue it. Instead, we will all be poor together. Resigned poverty somehow beats go get ’em ambition nowadays. Who knew?

But that must be right; we keep reelecting those leaders, do we not? Listening to what they say instead of watching what they do. Another notable thing that they do now, is making themselves all millionaires, too.  Have you noticed?

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Why Does “Black Lives Matter” Obscure “Follow The Money?”

WHO PAID FOR THIS SIGN?

WHO PAID FOR THIS SIGN?

Perhaps Barack Obama’s ‘legacy’ will be that he is the first U.S. President to spend his entire term in office campaigning. Most presidents have entered the White House and grabbed the reins of governance; President Obama has never left the campaign stage. He is on the campaign trail speaking, pressing the flesh, kissing babies and making deals unless he is playing golf or vacationing.

Actually governing isn’t his thing; we’re left to argue about who is doing that – if anyone – while the Prez in on the trail. We know that it isn’t one time Chief Advisor Rham Emanuel; he is back running Chicago insolvent. Someone else is now running America insolvent. It is not the Prez though; he is just running, period.

Let us hasten here to point out that no current Presidential candidate of any stripe including Mr. Trump seems much different. Not one has brought up a substantive proposal to salvage the U.S. economy. None, zero, zilch!

On the other hand, the Prez is lavishing support on a spontaneously and mysteriously appearing political lawn mushroom calling itself: “Black Lives Matter.” It wasn’t there yesterday; today it can produce massive demonstrations nationwide at (carefully selected) black “crisis” events. Such effective spontaneity requires much money and organization that we aren’t supposed to notice. We know that we aren’t supposed to notice because the professionals of the media go to lengths to avoid noticing. Including just now, Bill O’Reilly at Fox News, the anointed Laird of the Democrat’s opposition..

“Black Lives Matter” is concerned about dead blacks, especially if a cop is involved. (Well, provided the cop is white, anyway.) Okay, actually as Glenn Beck has countered: “All Lives Matter” (except aborted babies, of course) but that is not acceptable on the Left at present.

We’re not getting into the argument whether whites are worthy of life, a guaranteed loser, what we are curious about is, who’s paying for and organizing these omnipresent and expensive “Black Lives Matter” demonstrations?

Some subsidiary questions occur to us too: Is there any connection to the erstwhile “Occupy Wall Street” demos of a few years ago? To the Ferguson demos? An awful lot of money and professional organizing time and effort is on display and no one seems to want to notice. Including those allegedly opposed to whatever is onstage. Makes us wonder …

It strikes us a lot like the GOP mad rush to repeal Obamacare that they all voted against before they had control of Congress. It only passed when the Democrats had control right? Now, the GOP has control; has Obamcare been repealed as promised? (You might wish to consider that a bit.)

“Black Lives Matter” seems to be more accurately “White Lives Shouldn’t Matter,” seems to us. That figures; the only guy paying any attention to whites is the one being castigated for doing it: Donald Trump. And even he is posturing, avoiding the real issue of living on deficits. Well, he’s against it, but he’s offered no more real solutions than have the rest of them. And they’re against it too, but nevertheless it continues. Yeah.

It’s a show, folks; the reviews stink but we keep on paying for tickets anyway. What does that make us?

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GLEANINGS FROM THE PASSING SCENE … (Politically Uncorrected)

Alfred_E__NeumannA sevenday now a fugitive, we have gathered for you the following granules of news:

Washington State Professors have promised failing grades for students using: “illegal aliens”, “male,” “female” and some other proscribed terms in their classes on culture. (A public school replacing education with brainwashing?) Comedians have dumped campus gigs … (We guess that they can’t compete.)

Chinese first, then Indian Immigrants (total legal and illegal) have overtaken Mexicans as the most numerous entering the United States.  (And folks wonder why wages aren’t growing faster …) And Big Tech firms in the U.S. hire foreigners, exclude citizens since the foreigners will work for less. .

The linked map shows Salaries needed to buy an average home in 17 US cities. ($51,000 to $150,000 should cover it.) Note too that Home Ownership has declined 6 percent, a 50 year low. The young can’t afford homes and say they prefer to rent anyway. (If we are to believe them.)

US and Russian ‘wage growth’ busted: America is stagnant while Russia is declining. (Ukraine will pay.)

Another citizen was arrested while video recording police in action. (Quis custodiet ipsos custodes?)

E.U. megabank HSBC failed to process 275,000 UK payroll checks, citing a ‘computer glitch.’(Well, that sounds better than ‘cash shortage’ would have, right? And might even be true.)

 Fed up investors and frightened ones are yanking cash from almost everything; stocks, bonds and mutual funds. (You don’t suppose that they see something coming, do you?)

Trump vs the Elite Establishment: (What’s to do when the anointed leaders look back and see everybody has left them for a new Pied Piper?) And: Teleprompters should be banned, per Donald Trump. (We’ll vote for that!)

Science: Over half of psychology research reports present results that cannot be duplicated on repetition of the work… (Top quality, genuine fake science? Paid for by taxpayers?)

A Flu breakthrough may lead to a single vaccine that will hold off all types of flu. (Now THAT’s science!)

A newborn baby was killed by rats in the hospital. (Doesn’t sound quite so bad upon realization of the numbers of babies being killed by Moslem rats with gums and bombs.)

Drones with Tasers and tear gas were legalized for cops in ND. (Yeah, and what will the illegal drones be carrying?) With that in mind, a man was indicted for firing shotgun blasts at a hovering drone.

Seattle Children’s Hospital warned thousands to test children for HIV, hepatitis etc. after finding that surgical tools had not been regularly sterilized. (‘Patient recalls’ for hospitals? Why is this not already routine?)

Another US Debt warning from the Congressional Budget Office: “Unsustainable.” (Why does Congress keep a Budget Office to which it won’t listen?)

A man attacked his mother using potato salad.

Britain is worried about Immigrant Invasion via  the Channel Tunnel: A Sudanese walked the 31 miles, dodging trains. (He is now in court on trespass charges.)  Germany expects 800,000 formal, legal asylum  requests by yearend.

NASA/NOAA are reporting political science on ‘global warming’ again. (As our President will be in Alaska promoting global warming prevention this week, we trust the heat won’t unnerve him.) More Global warming: Calgary endures snowstorm …

A SWAT Team  held a naked mom and two toddlers at gunpoint while raiding the wrong house …

The Ashley Madison cheater’s dating site hack has produced blackmail and suicides (a mirror held up to us)

On Monday, Household wealth fell by $1.8 trillion. (On paper, anyway.)

China will increase bank liquidity to boost lending. Cash Analysis (for the determined). Definition: China will now try what the U.S. Federal Reserve is in the process of giving up.

U.S. Crooked Cronyism; The  Bank of New York Mellon imported Middle Eastern corruption. (Well paid jobs for useless relatives of good clients.)

A woman was cited for breastfeeding while driving.

A man was arrested after dragging a naked woman out of a house. (Doesn’t he have to marry her now>)

And thus we begin a new week, hoping for but not really expecting better …

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What Will We Do With A Yard Full Of Starving Strangers?

Moslem Refugees

Moslem Refugees

History says that the Jews were enslaved in Egypt, released and led to their promised land. The Bible explains that the arriving Jews took the already inhabited area with fire and sword, taking Jericho for instance, by killing every living soul that they could catch. Early genocide, right? And not so rare, either.

Massive migrations of people are not uncommon in history ad have often enough been accompanied by massive changes if not total replacement of societies. The massive migration of European whites into North America certainly made some changes. So did the arrival of Moslems and Mongols in Europe. That’s inevitable, we suppose, because large masses of concentrated power lead folk to demand what they want from the locals.

The current residents of Europe and North America are descended from the throngs of migrants, now sedentary and rich compared to the rest of he planet. That ‘rest of the planet’ is considerably distressed by comparison. And in the Middle East and Africa, ungovernable societies thrashing in civil wars are forcing millions to flee their homes and origins for simple food, shelter and relative safety now unavailable at home.

The fleeing multitudes are destitute and desperate and many die fleeing and their children with them. And as the numbers expand, no place that they seek will have resources enough to add them easily to the locals already there.

Another problem is a composite of our human fear of the different and the also very human desire to continue to act in familiar ways — ways that may seem strange and threatening to established locals. And when refugees are numerous enough and desperate enough, they may suddenly become an invasion. Ask those who inhabited what is now the Navajo Nation before the Navajos arrived.

Two floods of migrants are massively threatening at least potentially in both Europe and North America. For Europe, it is largely Moslems displaced fron Arabia and Africa; North America receives ‘Hispanic’ Latin Americans. The numbers are growing and government policies have been largely welcoming.

But the economies in Europe and North America are in decline, resources are fewer. Locals see their own needs alongside those of the migrants. Local attitudes are shifting against open charity for the floods of the desperate.

Signs of reaction are proliferating: The Netherlands has rescinded its once vaunted policy of multiculturalism; in the United States, presidential candidate and political outsider Donald Trump is shooting up the ratings scale with proposals of mass illegal alien deportations. And Spanish has become another U.S. language while European police decline to enter Moslem neighborhoods when they can avoid it.

The most significant part of this seems to us is the fact that the refugee masses seem likely to increase while the resources of their intended refuges are in line to decrease, all shortly to be stirred by a failing financial system. A demographic witches’ brew putting it mildly.

It appears that the United States (augmented by France, Britain et al) pulled the keystone out of the Middle Eastern arch in the Gulf War that destabilized Iraq. The endless meddling there and in Afghanistan since has added oil to the fire. From that view, Europe’s problem may seem to have some justice in it.

In the U.S. another sort of rough justice is open to consider: The two political parties want respectively, new Democrat voters and more cheap labor, the last beingsomething that cannot describe American citizens now. Given that those citizens have voted themselves more than their efforts can draw from a free market, some may see some justice in North America’s situation.

No matter how one sees it though, we are watching irresistible forces battering immovable objects in a political and an economic sense. That’s a fair paraphrase for the triggering of a nuclear bomb, right?

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Ukraine Isn’t News, But It’s Still There … And So Is Russia

UkraineRussians think of Ukraine as theirs by right; Ukrainians see Russians as conquering thugs. When the Nazis first invaded Ukraine in WWII, the soldiers were greeted as deliverers. Hitler made a mistake in treating them as conquered subjects of the master race.

Ukraine grabbed its freedom when the Soviets collapsed; President Putin’s truncated and economically constricted Russia is reconstructing the old Russian Empire as a means for distracting the Russians from their economic decay. Russia has already swallowed the Crimea and now pursues Donbas, eastern Ukraine via unadmitted invasion. Another unadmitted feature was the shooting down of an Malaysian Airlines civilian flight over Ukraine by means of a Russian missile. That semi-clandestine war is re-heating at the moment, though it is somehow not newsworthy. (Funny these days, what is and isn’t, news … )

Ukrainians speak Ukrainian, not Russian. Both are Slavic languages but not interchangeable. Ukraine was long the a major wheat source; it industrialized under the Russian Communists, particularly in the area now sought by Russia. Situated on the border between Russian and European civilizations, it has long had aspirations toward closer linkage with Europe, historically denied it by Russia. Further difficulty lies in Western European interest in keeping it as a buffer against Russia.

Just now, Ukraine tries to cozy up to NATO as a counterbalance for Russia but NATO is not reciprocating. European military is not up to backing such a move if the Europeans wanted it. Economic sanctions are used against Russia instead, but as heating gas in Europe is largely bought from Russia these days, the sanctions do not go too far. The U.S. portion of sanctions does more damage felt in Moscow. Again, not too much.

Like Russia, Ukraine is weakened by its chronic corruption and infighting encouraged from both East and West. Some two fifths of the population in Eastern Ukraine is Russian speakers moved in by the Soviets. Significant numbers of these might be happy returning to Russian government but the majority are Ukrainian speakers who may not really care who runs things so long as they are left alone. A significant minority does care and wants no Russian overlord.

Russia seems determined to reconstitute its old Empire; neighbors such as Finland, the Baltics, Sweden and Poland are in various stages of beefing up their military in response. Russia and much of Europe is rearming in the face of economic decline, not a historically optimistic pattern.

While this proceeds, Russia rattles its nukes to discourage opposition to its re-expansion and Europe tries to reduce U.S. dudgeon over Russian expansionism. A lot of bluff is involved, leaving the parties to guess what is real and what is only a feint. A dangerous game!

Ukraine is a predictive symbol of what shape European reality may follow as economies continue to decline. But Ukraine is now no longer news for us to hear. It may be the part of wisdom to pay attention on our own; most everything hits the internet sooner or later, even when the media ignore it. It can be handy to see things coming …

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We Have Great Gadgets … But How Sapient Are Humans, Really?

MonkeyIt’s noticeable that large scale social changes often include a lot of social dislocation. In America, the Industrial Revolution drew many from the land into the cities, stranding them there when financial systems broke down. The plight of such numbers of voters seems to have resulted in U.S. ‘Progressive’ politics, when politicians saw opportunity in promising to use government to alleviate the dislocation — provided only that the voters put them into power. That was reinforced after the Civil War left even more displaced.

The entire premise has always bemused us. America’s Founders found it necessary to bind government with a Constitution to guarantee its limitations could not be easily removed. And their government was indeed limited. The Founders were convinced that powerful  government guaranteed tyranny.

Somehow, we have evolved to the opposite of that belief; we expect government to solve our problems for us and gladly offer whatever power it demands to that end. Obviously then, either the Founders or we are wrong.

We have been considering which, given that we and our progeny must live by that decision. You may differ; this is what we see:

Our strong, human sense of self-preservation often enough leads us into patterns destructive for the larger society. We’re made so; we likely wouldn’t survive else. The same pattern of values seems to underlie our society; wars reflect it at the societal level. Apparently, that’s how we’re made.

We seem to need government in order to help control our more destructive selfish tendencies so that the larger society can exist. Without government, too many selfish individuals would disrupt society too much. Government protects the survival of the group. We need the group because it is more productive than individuals alone. The long time it takes to raise a generation of human children depends upon maximizing resources to overcome; as individuals without society, we could not manage our reproduction, as we see it.

But — any government that we depend upon to help us bridge that economic gap is necessarily composed of self-interested humans much more concerned with their own self-preservation than with ours. So how can we count upon them to solve our problems? Will the wolf give up is dinner in hard times so that we can eat?

So it seems to us that government is a blind alley in any long run. Progressive promises of feeding the poor must depend upon taking food from others and there are a limited number of such others.Indeed, all such cases have collapsed; the Soviets most recently and now, China is underway. America seems likely to follow for the same reasons; robbing Peter to pay Paul leaves both impecunious.

Government will never be the solution to human problems while it is composed of said humans. We cannot lift ourselves by our bootstraps as the saying went back when we used bootstraps. We suppose that the Founders were well aware of all that. Today’s politicians prefer that our students don’t learn it. We can understand that, too.

Summing up, reliance upon government to ameliorate the human condition imposed by reality is relying upon a horse thief to guard the herd. Yet after some five or six thousand years of human civilization (or is it seven now?) we still haven’t figured it out to apply when we vote. Makes one wonder how sapient are we humans?

(Duh ..!)

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How Long Will Republicans and Democrats Outlast Soviet and Chinsese Communists?

Democrats RepublicansThe steady oozing of faux value from the world’s stock markets now under way (at least for the moment) triggered the following thoughts, to which you should add the fact that we don’t KNOW what we’re talking about. It’s just opinion. Yours is no doubt as valid.

The trigger of current events seems to be the declining purchases of Chinese goods by increasingly impecunious customers around the world. Get rich quick investors are pulling their money out of China and the stock market there is falling to reflect that. Pretty basic, right?

But the ‘Mandate of Heaven’ enjoyed by the leftover Communists depends upon a steady, rapid pace of wealth creations visible to all. No room there for market contractions. The once unified ex-Communist party is splintering in a rush to the lifeboats.  The Chinese Communist Party is about to follow the Soviet exemplars down the drain, seems to us. Of course, we know nothing.

China being what it has always been, we assume that the new losers will simply be replaced by new winners and over time, little will actually change. A lot of folks will die, but how much of a change is that? There will be new names and faces. And it will take a while.

That’s two of three monoliths down and if not out, at least h’ors de combat for the moment. Still surviving remains the U.S. ‘two party’ system that is also now proven unable to govern without destroying its own finances over time. And said time has come as American financial markets, strained beyond any reasonable shape by politicians, are beginning to fail under the strain of collating political promises with reality. (Current measures of that: debt and deficits.)

It is beyond argument that the U.S. two party system has fallen to the same vicious illusion as has Russia and now, China; that government can replace a free market, substituting political decisions for millions of economic ones. That idea is laughable on its face but is too popular for laughter to be permitted.

The reality under the illusion has sunk the Soviets, is sinking ex-Communist but still totalitarian China and hovers over the remaining survivor of the socialist era, the United States, the sole surviving, no longer so super, power. Surviving in that it must be said, via deficits, a terminal solution.

In today’s Russia, the Communists are hardly missed; their by no means novel empire is being reconstructed under one of their leftover functionaries. Russia, less the CCCP is no less Russia than it ever was; even some of the faces have not changed.

China replaced its traditional rulers with Chairman Mao but its pattern of rule changed less than its cast of rulers. Now another ruler is tipping over the edge but the pattern that is China seems likely to continue, if under new names and faces. Such changes in China past have been bloody. But technology has improved travel and communication; that may permit reorganization on a more civil basis. We will see. Russia did it well, by historical standards.

The U.S. has no history of such substantive changes; — or does it? Analysis of the transmogrification of political parties in U.S. history is interesting. The country did not begin with Democrats vs. Republicans; they are the result of an evolutionary trend. Their time may have an end.

Today’s GOP is writhing between the grips of liberal Republicans at one end and the conservative Tea Party base at the other. It has one foot in the present and one in the past. Democrats are stuck between the present and a desired heavily socialist future. And the voters are looking at destructive immigration levels, a falling economy and no one willing to address them honestly

That political cowardice has created Donald Trump. The most successful of demagogs to date, he has raised the issues avoided elsewhere to popular applause. But he he has not addressed the oncoming financial Armegeddon. The needed financial adjustments will antagonize too many voters. Nevertheless, they will come. Whoever happens to be in charge then will take blame actually due decades of politicians.

Social as well as political and financial policies are no longer generally accepted; a unified country cannot exist until those divides are largely amended. Whether the American ‘two party’ system has more staying power than that shown by the Communists is to be decided. It has failed every bit as much as its competitors …

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