icubud: (Default)
Below is something I found on confinedspace.com
The person who uploaded did not record the source.
Ladies and gentlemen the image below and comments are EXACTLY what I said was happening in the USA and I will say it again - it is a GOOD THING. Depitalism is bad for the households. What is going on in our economy now is we are finding "a new normal".

depitalism-myconfinedspace
icubud: (Default)
Below is something I found on confinedspace.com
The person who uploaded did not record the source.
Ladies and gentlemen the image below and comments are EXACTLY what I said was happening in the USA and I will say it again - it is a GOOD THING. Depitalism is bad for the households. What is going on in our economy now is we are finding "a new normal".

depitalism-myconfinedspace
icubud: (me)

June 1 NYT article Weak Hiring May Force the Fed to Act

The NYT article is peddling information and commentary based on the wrong premise.

The reason why the economy is STILL not recovering is not because the FED has not done enough. The reason is one simple one that has several implications. The SOLE reason is the uncertainty of the November election. Consumers, citizens, corporations, small business owners, employers aren't sure the horrible reign of the CES Obama is going to end. With that uncertainty:

1. consumers/citizens - are not seeing a recovery of the economy and thereby their wage earning capability. Depitalism which is still a factor for most households is weighing on them from previous years of bad fiscal policy in the home. Debt STILL needs to be paid down. Common tactics of the past to remedy debt like a second job are difficult to locate and secure. The "let it ride" has come to fruition. This doesn't even deal with the reality of unemployment or under-employment which is a very real reality of many households. Looking ahead, the skies are gray and citizens don't know what that means.

2. Corporations/small business owners/employers aren't sure about the economy and even the short term status. Hence, no new jobs and continued downsizing and realignment and other positive spin words that has the bottomline of wrenching costs lower and lower. Consumers aren't relying on depitalism to purchase employers' products like they have for at least ten if not twenty years.

As long as all the parties involved in the economy feel their is the slightest chance of CES Obama finagling a second term, we will continue to see and feel the realities of an economy that will not heal, strengthen and improve.

Nauseating

Mar. 27th, 2012 07:44 am
icubud: (Default)

Nauseating

Mar. 27th, 2012 07:44 am
icubud: (Default)

Depitalism

Oct. 3rd, 2011 09:05 am
icubud: (Do I Dare disturb the universe)
This article in today’s USA Today points to what I have been writing about – what I refer to as Depitalism.
Quote from article: "While some progress in consumer debt reduction has been made, the heavy lifting of meaningful deleveraging still lies ahead," the study says. Until consumers repair their balance sheets, they are unlikely to increase spending or take on new debt even with interest rates close to zero. That could continue to hamper the recovery, because consumer demand makes up more than 70% of the U.S. economy.”
 
See it is just a given that our economy requires the individual to be in debt. For the USA to have what the experts call a “healthy economy” requires citizen indebtedness.  That should not be! Capitalism has become mutated and real systemic change needs to occur in the infrastructure of our economic system in order for it to actually become and remain healthy. Contrary to the talking heads out there the desire of the private sector to reduce its indebtedness is a GOOD THING.

Depitalism

Oct. 3rd, 2011 09:05 am
icubud: (Do I Dare disturb the universe)
This article in today’s USA Today points to what I have been writing about – what I refer to as Depitalism.
Quote from article: "While some progress in consumer debt reduction has been made, the heavy lifting of meaningful deleveraging still lies ahead," the study says. Until consumers repair their balance sheets, they are unlikely to increase spending or take on new debt even with interest rates close to zero. That could continue to hamper the recovery, because consumer demand makes up more than 70% of the U.S. economy.”
 
See it is just a given that our economy requires the individual to be in debt. For the USA to have what the experts call a “healthy economy” requires citizen indebtedness.  That should not be! Capitalism has become mutated and real systemic change needs to occur in the infrastructure of our economic system in order for it to actually become and remain healthy. Contrary to the talking heads out there the desire of the private sector to reduce its indebtedness is a GOOD THING.

icubud: (Default)
 In today’s WSJ there is an article titled As Middle Class Shrinks, P&G Aims High and Low. WSJ is now a subscriber access only to full articles so I can’t provide a link to the article because I read it on our internal news site. I can share what I found to be particularly insightful about our economy that is not usually so plainly and clearly stated. The following is direct quotes from the article.

In the wake of the worst recession in 50 years, there's little doubt that the American middle class -- the 40% of households with annual incomes between $50,000 and $140,000 a year -- is in distress. Even before the recession, incomes of American middle-class families weren't keeping up with inflation, especially with the rising costs of what are considered the essential ingredients of middle-class life -- college education, health care and housing. In 2009, the income of the median family, the one smack in the middle of the middle, was lower, adjusted for inflation, than in 1998, the Census Bureau says.
The slumping stock market and collapse in housing prices have also hit middle-class Americans. At the end of March,
Americans had $6.1 trillion in equity in their houses -- the value of the house minus mortgages -- half the 2006 level, according to the Federal Reserve. Economist Edward Wolff of New York University estimates that the net worth -- household assets minus debts -- of the middle fifth of American households grew by 2.4% a year between 2001 and 2007 and plunged by 26.2% in the following two years.
 
To monitor the evolving American consumer market, P&G executives study the Gini index, a widely accepted measure of income inequality that ranges from zero, when everyone earns the same amount, to one, when all income goes to only one person. In 2009, the most recent calculation available, the Gini coefficient totaled 0.468, a 20% rise in income disparity over the past 40 years, according to the U.S. Census Bureau. "We now have a Gini index similar to the Philippines and Mexico -- you'd never have imagined that," says Phyllis Jackson, P&G's vice president of consumer market knowledge for North America. "I don't think we've typically thought about America as a country with big income gaps to this extent."
 
"This has been the most humbling aspect of our jobs," says Ms. Jackson. "The numbers of Middle America have been shrinking because people have been getting hurt so badly economically that they've been falling into lower income."

2 cents:
This information confirms what I have been saying, we never got out of the recession and it is pointing to the reality that depitalism of the past is gone – at least for the foreseeable future. I put the qualifying remark on there because we all know that typically we learn nothing from history so we often repeat the same mistakes etc. That “said” the average citizen in our country has been impacted significantly by the practice of depitalism and its inevitable fracture. We will continue to see high unemployment numbers and little if any economic growth. This is the new reality – the new norm. Households have to identify and come to terms with this and make the necessary changes so that they can begin thriving – not in a # of purchases way but a well-being way.
icubud: (Default)
 In today’s WSJ there is an article titled As Middle Class Shrinks, P&G Aims High and Low. WSJ is now a subscriber access only to full articles so I can’t provide a link to the article because I read it on our internal news site. I can share what I found to be particularly insightful about our economy that is not usually so plainly and clearly stated. The following is direct quotes from the article.

In the wake of the worst recession in 50 years, there's little doubt that the American middle class -- the 40% of households with annual incomes between $50,000 and $140,000 a year -- is in distress. Even before the recession, incomes of American middle-class families weren't keeping up with inflation, especially with the rising costs of what are considered the essential ingredients of middle-class life -- college education, health care and housing. In 2009, the income of the median family, the one smack in the middle of the middle, was lower, adjusted for inflation, than in 1998, the Census Bureau says.
The slumping stock market and collapse in housing prices have also hit middle-class Americans. At the end of March,
Americans had $6.1 trillion in equity in their houses -- the value of the house minus mortgages -- half the 2006 level, according to the Federal Reserve. Economist Edward Wolff of New York University estimates that the net worth -- household assets minus debts -- of the middle fifth of American households grew by 2.4% a year between 2001 and 2007 and plunged by 26.2% in the following two years.
 
To monitor the evolving American consumer market, P&G executives study the Gini index, a widely accepted measure of income inequality that ranges from zero, when everyone earns the same amount, to one, when all income goes to only one person. In 2009, the most recent calculation available, the Gini coefficient totaled 0.468, a 20% rise in income disparity over the past 40 years, according to the U.S. Census Bureau. "We now have a Gini index similar to the Philippines and Mexico -- you'd never have imagined that," says Phyllis Jackson, P&G's vice president of consumer market knowledge for North America. "I don't think we've typically thought about America as a country with big income gaps to this extent."
 
"This has been the most humbling aspect of our jobs," says Ms. Jackson. "The numbers of Middle America have been shrinking because people have been getting hurt so badly economically that they've been falling into lower income."

2 cents:
This information confirms what I have been saying, we never got out of the recession and it is pointing to the reality that depitalism of the past is gone – at least for the foreseeable future. I put the qualifying remark on there because we all know that typically we learn nothing from history so we often repeat the same mistakes etc. That “said” the average citizen in our country has been impacted significantly by the practice of depitalism and its inevitable fracture. We will continue to see high unemployment numbers and little if any economic growth. This is the new reality – the new norm. Households have to identify and come to terms with this and make the necessary changes so that they can begin thriving – not in a # of purchases way but a well-being way.

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