Posted 7 years ago on Nov. 5, 2012, 12:28 p.m. EST by richardkentgates
This content is user submitted and not an official statement
Forget about left and right for one second. I would like to reintroduces you to the real enemy, Wall Street. I hear a lot about the right and their obstruction but their obstruction is in the realm of politics, not economics. The jobs bill is a good idea but it's a bandaid, not a solution.
The reason the economy hasn't recovered and isn't going to is simpler than you may think. Prices. They are more than a personal inconvenience , they are the reason for the season. Typically, when demand is low, like now, prices fall in order to get people into the stores and keep product moving. That hasn't happened nor is it going to.
The Federal Reserve is now and has been for 5 years pumping money into Wall Street. This is allowing failing banks to stay afloat, this is adding to the national debt and is the reason for the tax argument that dominates the media cycle. The companies not getting a handout directly from the fed are raising prices to compensate for low demand and the failing banks that are getting the handouts purchase stock or other types of investment in these failing companies and the investment is justified by the companies total revenue, not sales volume, which is willfully blind and unsound. Prices are being jacked up and the national debt steadily climbing all to keep failing companies afloat. This is not a recovery, it's a ruse.
This trend has detached Wall Street and all publicly traded companies from the rest of the economy, removing the need for increased demand to justify investment or raising prices. This will continue until we reach a tipping point when the middle-class can no longer support the economy as they are now. At the rate of price increases we are now experiencing, this reality will unfold mid 2013. It's a game to them, to stop profit loss, they are siphoning off the remaining wealth of the country and concentrating it in the hands of the 1%. It hasn't slowed, it's accelerated, including the timeline of consequence.
Go to the website of the St Louis FED, or any financial website that can provide graphs/charts for production and post-production price indexes. There you can see the inflation that all partisan economists are denying, including Paul Krugman. Don't take their word or mine, go see for yourself.