Real Household income . . .
e With even two wage earners, families simply have less to spend on discretionary items. I would argue that even the above is a gross exaggeration because the price deflator underestimates inflation. The fallacy of Obamacare is that its supporters imagine a world (i.e., U.S. economy) that no longer exists. To make ends meet the average American is again taking on leverage.
This is unsustainable and could already be seen in weak Christmas retail sales.
But really, this is the sort of nonsense that occurred at the end of classical feudalism to fund wars. Feudal lords lacking much economic acumen simply applied increasing amounts of extra-economic coercion upon the peasants, stealing ever more of their output through taxation. Today, the stealth tax of inflation is employed. The old saw being: peasants are like watermelon seeds the more that you squeeze, the more that comes out.
That is, until the peasants are pushed below the levels of subsistence, and then extra-economic coercion to fund wars resulted in peasant revolts in the early period of the 16th century. Today’s Pitch-Fork Revolt happens to be taking place in Italy, if one needed a present day example of the growing resistance to bankster exploitation.
It is not much different today. Continual squeezing of the debt serfs through monetary debasement are forcing the people to the margins of subsistence (e.g., record numbers of people on food stamps). Yes the peasants can re-leverage themselves using credit, but this is unsustainable. It will implode in 2014. So the Know Nothing Federal Reserve is likely to be exposed for what it is this coming year. More specifically, the quantity theory of money, that failed by the way in 16th century Spain, will also fail this time around leading to total war.
Total wars are the means by which intellectually bankrupt politicians and central bankers finesse the failure of bad policies based upon discredited theory. So while 2013 was the 100th anniversary of Woodrow Wilson’s greatest mistake, i.e., the Federal Reserve; 2014 will be the 100th anniversary of the Great War or a war to end all wars.
And that my friend and dear reader is the means by which the sociopaths of the Bilderberg Group will be able to cull the world’s population from around 7 billion to 3 billion souls. Useless Eaters be forewarned. Revolt now or forever hold your peace. You have nothing to lose but the chains of your promissory notes.