Loading ...And nobody says a word about it. The Fed even admits it on TV. “We are mandated to maintain price stability and full employment”? Even with full employment, *(3.5%?) if the tax paying workers are living paycheck to paycheck, it is not fair to call it full employment.
If we have 10% unemployment, but the employed tax payers are earning 100% MORE than they need? Double? So happy they don’t care about paying taxes? So happy they don’t care about the 10% on welfare?
That figures into a real unemployment rate of 125%. Like the old “real” interest rates they used to talk about. Like 6% interest at the bank, on a CD, with 4% inflation, you get a “real” 2% interest rate, but pay taxes on the 6%. All this crap will fix itself. Wait until the happy gleeful people who locked in a 3.5% mortgage, and their house drops 10% a year. They’ll be losing 6.5% a year on top of insurance and maintenance. Negative equity.
I’ve seen a similar thing happen here, 1972 to 1982.A $40 k house in 1972 was still $40k in 1982. As rates went 6% to 18%. And heating oil went .18 cents to $1.30, gasoline same thing. Dow? Same thing. 1972 to 1982 it could NOT stay above 1000, the “Graveyard in the sky above 1000″ Jim Dines called it. In June 1982 he recommended the Dow at 796,in June ’82. A very good call.
This is what a dollar could buy through the years” Link won’t work on internet explorer.