Wealth Should Trickle Up, Not Down

Discussion in 'Economics' started by Stockolio, Jul 27, 2019.

  1. SunTrader

    SunTrader

    So that is a no. No you can't come up with a SINGLE tRump policy, besides the borrow from the future yuuuuuge tax cut for the rich that shots its wad already.

    Just as I thought, a walking talking Trumper, who swallows all the walking, talking, fake tan, fake hair con-man spews.
     
    #81     Jul 31, 2019
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  2. volpri

    volpri

    ROFLMAO
     
    #82     Jul 31, 2019
    SunTrader likes this.
  3. zdave83

    zdave83

    Ha Ha !

    I'm actually far far from a "Trumper" ... you've got it so wrong ... which is not surprising because you can't see past your TDS and got so much other stuff so wrong. If your writing can ever get past the apparent elitist-knowitall-condescending-stupidsarcastic attitude you might actually be interesting to exchange ideas with. But as it is, your posts just read boorish.
     
    #83     Jul 31, 2019
  4. tommcginnis

    tommcginnis

    Agreed, but a separate set of actors. The FED can't do fiscal policy. They only have
    • Money supply
    • FED-controled interest rates
    • Reserve requirements
    • "Extraordinary vehicles" {Balance sheet utilization, the FED "discount window", etc.}

    When the FED loosen's money supply, or reserve requirements, or lowers interest rates, or sells cheap debt, the effect is to push current consumption over current saving -- threatening inflation, threatening "too many dollars chasing too few goods", and thereby threatening the value of the fiat currency. The intrinsic dollar value then goes down, and U.S. goods/services look better on the global markets, and trade grows: at the expense of being able to draw on U.S. savings in the future. :(
     
    Last edited: Jul 31, 2019
    #84     Jul 31, 2019
  5. tommcginnis

    tommcginnis

    If a picture is worth a thousand words, go to the 10-year view....
    [​IMG]
    https://tradingeconomics.com/united-states/balance-of-trade

    Roughly speaking, from March, 2009--> 2017, ~-$45B.
    From 2017--July, 2019, ~-$52B and trending further down.
     
    Last edited: Jul 31, 2019
    #85     Jul 31, 2019
  6. The US is a High Wage economy, focused on services and banking, which will in turn always have to run a deficit, especially being the Reserve Currency... Reducing the trading deficit through innovation and not wage decrease would be good, but there's bigger issues then that. The only way to be competitive towards Exports in Globalization is to drastically reduce real wages or depreciate currency, the US can't depreciate to a level it needs to have an edge on Exports due to Eurodollar loans being in USD so only other way would be reducing wages, and that would cause a storm...

    Germany and Japan both run trade surpluses, let's see how that works for it's people...
    Germany GDP Per Capita in 08 was 45,700 US, in 2017 was 44,500
    Japan GDP Per Capita in 08 was 39,300 US, in 2017 was 38,400
    US GDP Per Capita in 08 was 48,400 US, in 2017 was 59,500

    You see Tommy G, High wages with a excellent Service economy is better for it's people and GDP then High Surplus focused on exports, who benefit the very rich and reduce wages of the people.
     
    #86     Jul 31, 2019
    ironchef and tommcginnis like this.
  7. bone

    bone

    Powell and the Fed are being forced into a negative interest rate scenario because the ECB is already there. Draghi has made it clear that he wants to continue cutting further into negative territory and the Bank and Currency Desks take this as the EU’s strategy to depreciate the Euro vs the Dollar as a means to compete.

    More elegant and nuanced than the PBC Currency Desk or Trump’s Tariffs - but game on.
     
    #87     Jul 31, 2019
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  8. ironchef

    ironchef

    You actually make sense. :thumbsup:

    However, one minor point: The US GDP average is higher in 2017 because the top 10% got a lot richer. The bottom 50% was actually poorer.
     
    #88     Jul 31, 2019
  9. Yes wages have been stagnating in general... Real inflation is outpacing Wage Growth at a rapid rate I believe
     
    #89     Aug 1, 2019
    SunTrader likes this.
  10. Alexpung

    Alexpung

    Inflation is mostly due to skyrocketing real estate price, you can't really blame it on wages as people bid up the rent themselves.

    You can blame why the good jobs are clustered in a small area.
     
    #90     Aug 2, 2019