Barry, My Liege :
The continuing decline in wage income in the USA will make any recovery more difficult. As noted before in this space, our current problem is that Aggregate Demand is too low to spark a recovery.
On top of that, the Government of the United States is poised to create a fiscal and financial crisis due to the likely inability to make any compromises on the Federal Budget.
The question arises - Should or should not the FED create another monetary stimulus? It should not since there already exist oceans of cash that are idle. More will not help.
In the immortal words of the Jack Nicholson movie, '....maybe this is as good as it gets.....'
My Liege, if that is true, then we are in a new normal of declining incomes, declining living standards, high unemployment and decreasing Economic National Security.
Here's what Bloomberg says about our wages : 'American incomes declined more in the three-year expansion that started in June 2009 than during the longest recession since the Great Depression, according an analysis of U.S. Census Bureau data by Sentier Research LLC.'
Read the whole article here :
Here's a new article on 'HOW TO FIX THE ECONOMY' by Henry Blodgett :
It is not rocket science, My Liege, even magazine writers get it.
Evem more on shrinking middle class :
Your faithful servant,