Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Looks very grave to me....


We had fewer farmers because farm's ACTUALLY increased output in the US with fewer hands. We are still numero uno in agriculture. In mfg we are producing less here in the USA as hands are released. The mfg sector has collapsed in the last three years. This is a huge difference. The mfg and now tech jobs are being exported, and the loss of wages and good incomes will take its toll. The trade deficit is soaring. Government revenue is falling. Replacing a good job in manufacturing or tech paying solid benefits and wages with a clerks job at Wal-Mart or a temp job processing REFI paper that pays no benefits and a wage below the Federal Poverty level is not a good deal for America.

Average Wages are now falling the USA, the first time since 1989, even as debt loads rise. Consumers are now outspending falling incomes by quite a margin. US labor rates are bound to fall even further. Once housing prices start to fall, the jig is up.

I'm thinking US deflation is now assured. The outsourcing wave is too big to stop.

The CRB is bound to top and turn soon.

Already, the fake BLS labor numbers are causing the FED to get improper signals and they are draining reserves and reducing money supply growth.

I think the stock market is poised for a crash in the next couple of months, once folks realize that bankruptcy is the eventual logical end of current policy run by intellectual dishonest idiots.