Tuesday, September 04, 2012
Fed Fail Part XXIV (or opportunistic disinflation)
63 to 58 percent of the civilian population.
The Fed hasn't devalued too much so creditors retain the value of their claims. Deleveraging is done on the backs of the poor and working class, not split fairly between creditors and debtors.
Employers get a more pliant workforce with high unemployment and employees afraid to lose their jobs. However there has been downward nominal wage rigidity which probably has helped keep deflation at bay.
But news articles often report that people are taking new jobs at much lower pay levels.
Labels:
austerians,
conservatism,
Heartless Bastards,
Mellonheads,
The Dark Ages
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