Joe Galuski of 106.9 WYSR, Syracuse, NY anchors a top morning show and we’re always delighted to share-the-air with him. Curtis Greco will go OnPoint with Joe this morning at 8:15 a.m. (EST) covering a few of the Day’s HOT TOPICS so be sure and Tune-In! Catch the show in-market or streaming “Live” online at www.wysr.com.
For those who listened in:
The point we were attempting to get across, and I confess my effort was thwarted by the challenge of attempting to compress detailed components – on the fly – into small bites without sounding like a machine, was simply this:
The Fed is facing a serious challenge; how to bleed-off Market Dependency on FED-Cheap-Money-Policy without a market free-fall.
Here are the facts:
Inflation, real inflation, is showing spiraling tendencies. Real wage rates are depressing and in fact are (inflation adjusted), in terms of purchasing power, in a near free-fall. A $20/hour wage, in real terms, is actually $8.50/hour and if we use the year 2000 as a baseline then that shows a 57% decline!
Now I’m clear of the risk that some might challenge me on the grounds that my calculations may be specious given that they are counter to the generosity of genuine Government’s claims and they would be correct. The Government’s numbers our decidedly generous and to a serious fault. This 57% number means something and what that “meaning” is, is the effects of inflation and specifically given that the baseline is the year 2000, just before the FED’s flood-gates were opened.
Yes indeed, Ms. Yellen and the financial markets are in a serious fix. The economy has been built on Government spending, manipulation of Government reporting and wholesale fiscal recklessness on the part of the FED. The FED, desperate to supplant the loss of real domestic economic output with cheap money meanwhile allowing banking and market-makers to become nothing more than poachers.
The net effect is this:
The financial markets are so unstable that they no longer respond to true market-forces but to something far worse: the perception of what market-forces might be which in flaccid mentality of the day could be just about anything. Anything, any issue and nuance can be explained as a market-threat and if we pay close attention to the patrons of FED policy it is easily observed in their statements.
What is needed? Simple:
A return to stable, proven and rhythmic fiscal/monetary policy with a stronger emphasis on domestic economic capacity. Yes, the FED is a potential part of the solution but it is definitely NOT the source of the cure. That component lays directly at the steps of the U.S. Congress who, presently, is far more interested in investing the U.S. economic future in acts of war!
Curtis C. Greco, Founder
