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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (45050)	11/8/2005 12:26:51 PM
From: orkrious	Read Replies (1) \| Respond to of 110194

do you think J6P wage problems are due to interest rates? i see J6P getting smoked by China as well as secular loss of labor power and rise of the kleptoplutocracy in the US, and there is probably nothing that any currency can do about it. those are all very good points and true. at the same time china has helped disguise rising prices so everyone, J6P included, hasn't noticed that cost of everything else going up. the asian CBs have further helped disguise rising inflation by indirectly boosting asset prices by buying our bonds which keeps interest rates low. my only point is that had you invested $100 in a money market fund 75 years ago (had they existed), I think the $100 wouldn't buy as much today is it did then, and it would buy far less after taxes. In effect, people are worse off because of inflation. many items today are much cheaper in real terms than they were 20 years ago--basically everything made by Chinese slave labor instead of US unions back in the "good old days". I suspect most of the Chinese slaves don't consider themselves slaves...they are happy to have what they have. Either way, on average for food, clothing, shelter, transportation, and other necessities, money (after the gov't is done taking its share) doesn't go as far as it used to.