DEBTOR NATION

VIDEOS

Wolf Richter On The Keiser Report
"Debtonomics and the NSA"

Wolf Richter on the Keiser Report
"Where Is The Fear"

Wolf Richter on Max Keiser's "On The Edge" 
"The Pauperization of America"

Wolf Richter on the Keiser Report
"Where the Money Goes to Die"

Clarke and Dawe: European Debt Crisis
Two favorite Australian Comedians

Clarke and Dawe: Quantitative Easing
Big industrial-strength printers, all facing the window

The Fastest Drive Ever Through San Francisco
Don't try to do this yourself
 

humanERROR - by "Frying Dutchman"
Powerful, lyrical appeal to the Japanese. Slams nuke industry, MSM, bureaucrats, and politicians.

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Tuesday
Oct162012

Pauperization of America - Wolf Richter On Max Keiser's "On The Edge"

Here I am on Max Keiser’s show, “On the Edge,” for a 23-minute hard-edged, tongue-in-cheek discussion about the “pauperization” of America and Europe, and other issues of our surreal times. Note how he corrects me when I call the political system in Greece a “democracy.” No way. Not on his show! It's a "kleptocracy," he said, and calling it a democracy is just.... Classic! And priceless. Enjoy.

Here are some of the articles he refers to:

Greece, Tell Brussels “To Take A Hike” And Let The Troika Bail Out The ECB Instead

Awful as Greece’s GDP has been, it doesn’t do justice to the economic fiasco. Take new vehicle registrations: in August, they plunged 46.7% from prior year. Only 3,886 new vehicles were sold. A collapse of 80% from August 2008 at the cusp of the crisis. For the first eight months of 2012, sales were down 42% from prior year, and 65% from 2008. People have stopped buying new cars. And not just cars. Click to read more ...

The Pauperization Of America

It’s been an unrelenting process. Survey after survey has shown that wages haven’t kept up with inflation since the wage peak in 2000. Families earned less at the end of the decade than at the beginning, a phenomenon not seen since World War II—the process of hollowing out the middle class. But now there is a new phenomenon: the unmentionable class, the class that doesn’t exist in America, is ballooning.  Click to read more....

The “Pauperization of Europe”

“Poverty is returning to Europe,” said Jan Zijderveld, head of Unilever’s European operations. The third largest consumer products company in the world was adjusting its commercial strategy to this new reality, he said, by redeploying to Europe what worked in poor countries of the developing world. Other stars of the industry affirmed it. “The logic of pauperization,” L’Oréal CEO Jean-Paul Agon called it.  Click to read more ...

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Reader Comments (2)

I watched the video and found it interesting! But one thing I had thought was wages never really kept up with inflation. The reason I say this is because of the price of housing, which is your biggest expense. I think my dad paid $15,000 for their first real house back in 1966 (Price may be high. Small 3 BR ranch). Prior to that period it was usual to get a 7 year mortgage on a house (based on the Judeo idea of the year of jubilee). As housing prices rose, it was pretty clear that the mortgage term would have to be extended to what is now a nominal 30 years.

In a way, I was hoping the housing crisis would fix this and allow people to once again afford housing. But banks have kept houses off the market to prop up the value of houses they are selling.

In Texas during the oil bust of the 80s, there was no holding back houses. They ALL went back into the market and prices collapsed. I'll never forget my conversation with an elderly hispanic lady (worked in a small sandwich shop) who with her husband during that time bought a foreclosed house and now have clear title to it. Texas prices since have remained some of the lowest in the nation - and most stable.

I was so hoping this would be repeated nationwide (the only good thing to come out of a horrible situation)...but banks have managed to keep the prices high...and those with little...still have little. What a shame.
October 18, 2012 | Unregistered Commenterjohnnygeneric
I have a similar story to Jonnygeneric above. My father in 1957 as a young man, bought the house that I grew up in, for 5,500 dollars. At that time he had just begun work at a truck manufacturing company and @ rock bottom pay, he earned $3800. /year. It was a two bedroom house that is priced at around $94,000 now and is quite old and run down. He sold that house eleven years later for $6,800 and in that year @ the same job as a journeyman mechanic he earned over $22,000. Enough to buy three of those houses outright and pay cash for a 2 year old beetle for mom to get around in. My father was still fairly young and robust and that earnings figure included over 1000 hrs of overtime. How long has it been since You've seen a mechanic that has made the current equivalent of 279000.00?
If You answered not since the 1970's You get the prize. I went to work in a small independent grocery store in 1969 and worked my way into the night manager slot while I was still in high-school. From Jan. 1971 to Dec. of the same year, I was a junior and senior in high-school. After closing the store, I worked 4 hrs/night 4 nights/wk hauling pianos. I earned $8900. in that year. In 1971 I could have bought with my gross pay, any house on any of thirty blocks in my home town. It was a clean and safe neighborhood at that time unlike today. Those houses are selling for around 80,000. these days because there are crank-labs and drive-by shootings and the houses themselves are very old and shoddy.
What this is stating has nothing to do with "look at poor me". This is only to put some real numbers up for comparison. We started down the path to poverty in the US in 1981. During the Reagan administration, congress was "giving" tax incentives to American manufacturing companies to move their facilities over-seas to any country, friend or foe who could field enough slave-level workers to get these jobs done. The companies that resisted the tax bribes out of a sense of patriotism or an attachment to a geographic area, were slaughtered by their competitors who took the bribe, and were forced by economics to leave or die. The back-drop for this is: Democrat politicians attacked the resource sector continually since 1969 (encouraged by the tri-lateral commission meeting in 1968), the Republicans attacked the manufacturing sector from 1981 on. Physical economics (which is in truth economics 101) hasn't been taught in universities since at least 1969, teaches us that: 1 designing and manufacturing commercial good and products, 2 harvesting and processing natural resources and 3 growing and processing food are the three sectors of the economy that support all others. When your elected officials deliberately attack both of the major producing sectors of a world leading economy, the only thing to believe is that they are frightened of the big financial players. (Tri-laterals = international financiers) The new world order is coming soon. Read your Bible.
August 11, 2013 | Unregistered CommenterWill Larimer

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