By now, it must be completely obvious to anyone paying even the slightest bit of attention that the so-called “recovery” we have supposedly been witnessing for the past several years is nothing more than a wealth transfer to a handful of oligarchs and their political minions. While I am intimately familiar with the process in the U.S., it appears to be a global phenomenon as well.
Domestically, this process has been driven by the complete corruption and insanity of those calling the public policy shots in Washington D.C. At the heart of that process, resides a group of unelected economic Central Planners known as the Federal Reserve, or the lender of last resort for oligarchs and cronies who make bad business decisions.
Before I get to the title of this post, I want to highlight a very important article published last week that demonstrates how college graduates are forcing their lesser educated peers out of the workforce by taking jobs that do not require secondary education. If you read this and still can’t be honest that this economy is a total distorted shitshow, I don’t know what to tell you.
From Bloomberg:
Recent college graduates are ending up in more low-wage and part-time positions as it’s become harder to find education-level appropriate jobs, according to a January study by the Federal Reserve Bank of New York.
The share of Americans ages 22 to 27 with at least a bachelor’s degree in jobs that don’t require that level of education was 44 percent in 2012, up from 34 percent in 2001, the study found.
The New York Fed researchers said it isn’t clear whether two decades of increasing underemployment for recent graduates “represent a structural change in the labor market, or if they are a consequence of the two recessions and jobless recoveries in the first decade of the 2000s.”
Two “jobless recoveries.” I’m still trying to figure our how you can have a “jobless recovery.” Perhaps they aren’t recoveries in the first place. Bear in mind that these are the unelected people running the economy.
The share of young adults 20 to 24 years old neither in school nor working climbed to 19.4 percent in 2010 from 17.2 percent in 2006. For those ages 25 to 29, it rose to 21.3 percent from 20 percent in that period, according to a Federal Reserve Bank of Boston report in December.
Thanks for the study Federal Reserve, now get back to funneling interest free loans to financial oligarchs.
A year-long survey ending in July 2012 of 500,000 Americans ages 19 to 29 showed that 63 percent of those fully employed had a bachelor’s degree, and their most common jobs were merchandise displayers, clothing-store and cellular phone sales representatives, according to Seattle-based PayScale Inc., which provides compensation information.
The share of recent college graduates in “good non-college jobs,” those with higher wage-growth potential, such as dental hygienists, has declined since 2000, according to the New York Fed study. Meanwhile, the portion has grown for those in low-wage jobs paying an average wage of below $25,000, including food servers and bartenders.
“We would rather have somebody who is passionate, knowledgeable about their craft and really hospitable than somebody who walks in and says ’hey I have a master’s degree,’” Galban said. “But the funny thing is, the majority of our servers, bartenders and people who work in the corporate office do carry either a master’s or Ph.D.”
Recall my article from back on 2012 titled: Number Of PhD Recipients Using Food Stamps Soars.
Twenty-two percent of those ages 25 to 32 with only a high school diploma live in poverty, compared with 6 percent of today’s college-educated young adults, according to the Pew study. Only 7 percent of those in that age group with just a high school diploma lived in poverty in 1979, compared with 3 percent of college graduates.
22% today versus 7% in 1979. Wow…
Now read the following heartbreaking article from the Wall Street Journal titled: Unemployed Workers Stage Craigslist Fire Sale.
With all that in mind, make sure to watch the disturbing video below about a California woman who specializes in providing caviar to the super rich. She boasts about how many of them don’t even eat the caviar, but rather just spread it all over their faces for “caviar facials.” As my friend calls it, “billionaire porn.”
Bull market in oligarch decadence.
In Liberty,
Michael Krieger
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Dmitry Orlov recently dropped the phrase describing the current economy as “globalized production ABSENT globalized consumption” or some such.
The same stigma that Americans now generally applies to smokers we should now apply to the super-wealthy oligarchs: they stink up the place. Note that it’s not jealousy nor envy; after all, what nonsmoker envies a smoker?
I’m deadly serious.
We elect the president who elects the central planners in charge. So in a way they are elected officials. A vote for Ron Paul would have been a vote against the Fed. A vote for Romney/Obama or the red or the blue team is a vote for Fed policy. Isn’t that why you kept saying during the entire election that the two main parties essentially agree on all the same things that are destroying the U.S.?
And yes, in the Hunger Games too, Washington D.C. and all their owners are indeed living in oligarch decadence. It’s one of the things that REALLY bothers me about Buffett nowadays.
Buffett made out like a bandit on his Index puts on the S + P, Japan Index, Europe etc. because of the central planners–he made 4-6 billion on index puts thanks to them–that he would had lost otherwise . Plus the 10s of billions for his bailed out holding companies. All the connected KNEW stocks were going to rip higher and it echoes in my ear like yesterday when Fink was saying, “Everyone should be 100% in equities.” These guys knew the markets were taken over.
Yet Buffett and some of these guys are still and perhaps more cherished than ever. Until all the sheep wake up to the illusion we are living in, until people finally understand there s no difference between the red or blue team…..it is only going to get worse. Much worse. Right now it is Goldilocks time–low inflation and high asset prices and low interest rates.
So many people I know have made fortunes in the stock market…..and they are buying houses, cars, and everything else under the sun. It looks like to me the transfer of wealth toward those holding PM’s may have to wait a lot lot longer because the transfer continues toward the stock market.
Heck, inflation might run at 10% and PM’s will still get smacked down into oblivion. There is no where safe to put your money. There is no where to hide. We are simply doomed and I’ve decided just to be part of the game until there is a true alternative: which there isn’t right now. I believe the NWO is coming: I believe Russia is working with the U.S. I believe China is full of it and doesn’t want the status quo to end. We are simply alll beyond fucked.
Signed,
The Doomed