Inflation Gone Wild. (Sorry guys no video) Real global wages decline for the first time this century

According to the UN-related “International Labor Organization”
real global wages declined this year for the first time this century.

The report might be a step in the right direction but, unfortunately the ILO report shows

“The decomposition of the total wage bill, and its evolution, is shown for all wage employees and distinguishes between women and men. . . .”

IOW it breaks the matter down into wages among women and wages among men. Since that is how they think, the problem will likely continue. It should break the matter down into inflation among countries that print a lot of money and inflation in countries that don’t.

What can I say? The problem runs deep and must be corrected at the level of econ classes,

Oops my bad.
The report can be found here:

Where’s that one group of chicken little libs who were crying Recession! between 2016 and 2020?

This is their chance to finally shine, but they (D)isappeared for some reason.

What happene(D)?


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I’m sure with a man as accomplished and as brilliant as John Fetterman in power all the problems in the US and even the world will readily be solved!

Understand the scale of the problem

  • this did not happen the year of COVID shutdowns
  • this did not happen during the “Global Financial Crisis” (aka “the mortgage crisis”)
  • this did not happen during the War in Iraq
  • this did not happen post 9-11

Measured in terms of wages vs. inflation what’s going on now is worse than any of those things.
(And it’s not even a recession yet.)

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I find it ironic that the European Central Bank is facing a strike from staffers who are seeing their raises more than offset by inflation.

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Here’s a question, how much has individual debt increased and/or a decline in savings over the past few years? That could explain the reason for the consistent job creation.

Chart below is for US only.

The blue line is consumer loans and credit card debt.
Last July it crossed over the red line which is personal savings
That’s bad.
That should not happen.

It is an indicator of inflation. It is also what causes inflation. (vicious cycle)

Then logically there will be a decrease in consumer spending, likely after the holidays, followed by job cuts. Is that how you see it?

Basically this chart demonstrates that the economy is still being propped up by debt, right?

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I would just like to give a :+1: to the thread title

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Yes it means that. And that is one of the most important things that it means.

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As consumers can take on only so much debt before they can no longer service it.


Consumers do reach such a bottom.
Eventually savings are gone, credit line is gone and the only thing left to do is buy less.

Sometimes banks (including those who issue credit cards) also tighten consumer credit.

I remember, in distant past recessions, young poor folks complaining that they need money but they can’t get a loan because they need money.

Hey one of the guys (or guests) on CNBC was actually referencing your chart this morning. Credit card debt and defaults have gone up considerably for the bottom 50%, while personal savings have gone down. Not good!

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Well this ain’t good!

Where’s that damm utopia that was promised?

Yeah . . . I was on the wrong side of that trade this morning.
I normally don’t bet on the news. I usually content myself with waiting until I see which way the news will send the market and then invest in the time-tested hypothesis that “the market will continue that way. You missed the best part, but you can still catch the tail end of the momentum.”

Got greedy and lost.

Reports coming out that hardship withdraws from 401ks and IRAs are way up. We are just in the early stages of this thing.

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