Social security average wage index...incomes have been falling

[dkf]

http://www.zerohedge.com/news/visualizing-unfudged-truth-about-american-income-and-some-trivia-uber-wealthy


When it comes to manipulating income and wealth data, the government and the BLS are second to none (well, maybe only second to China but we digress): after all there is nothing that gets Americans to spend more than thinking Joe Blow down the street may outspend them. And at 70% of GDP, Americans have to consume. And what better way to do that, than to fill the airwaves with propaganda that spending is going up, up, up (even if said surge is nowhere to be seen). So far so good. Yet one place where nominal and real income data can absolutely not be fudged is the Social Security Average Wage Index based on withholding data reported by employers, particularly the median wage, whose nominal change can then be extrapolated in real terms using CPI to create a chained series. And here is where things get messy: as John Lohman demonstrates in the chart below, real income based on median wages, dropped (in real terms) by 1.2% - the biggest year over year slide in over 20 years of data, which is surely news to Joe Blow, whose impetus to spend, spend, spend would be substantially less, if the awareness was there that everyone is making and thus spending less, which in turn would lead to even more accelerated deleveraging, which would ultimately lead to a faster return to the mean for the overall economy: a mean which is sustainable without constant monetary and fiscal intervention. And yes, there will be lots of pain in the transition from the current Frankenstein state to a true equilibrium state - something that Ron Paul has been pounding the table on for years, and is the reason why unfortunately he is unelectable - Americans can not stand to hear the truth. For this and more factual trivia, see the chart below.

[Systematic Chaos]

1. I was with him until the mention of the homophobic, Right-Libertarian nutbag.

I'd hate to think that only Ron Paul could navigate us out of this nightmare.

[dkf]

2. It's zerohedge...

Good info but with a political twist.

[Name removed]

3. Deleted message

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