Will we ever see anyone caring for our poor asses?

Many people from Wall Street think inflation is now the biggest threat to the U.S. economy. In Brooklyn many more than Wall Steet's rather think the biggest threat is falling into another recession. 

Who is right?

Meanwhile the most significant economic news from the first quarter of 2011 is the decline in real wages. 

In fact, millions of Americans, in order to keep their jobs, are accepting lower wages. 

What do you get like this?

The only thing you get is consumers who can't buy enough to keep the economy going.

Why doesn't Wall Street get it?

How Asia Copes with America’s Zombie Consumers

NEW HAVEN – Asia needs a new model consumer. A post-crisis generation of zombie consumers in the United States is likely to hobble growth in global consumption for years to come. And that means that export-led developing Asia now has no choice but to turn inward and rely on its own 3.5 billion consumers.

Of course, this is not the first time that Asia has had to cope with the walking economic dead. Japan’s corporate zombies were at the epicenter of its first lost decade in the 1990’s. Sclerotic companies were put on life-support credit lines by their zaibatsu – like banking partners – delaying their inevitable failure and perpetuating inefficiencies and disincentives that resulted in a post-bubble collapse in Japanese productivity growth.

Similarly, the crisis of 2008-2009 led to zombie-creating bailouts in the West. From Wall Street to AIG to Detroit, the US was quick to rescue corporate giants that would have failed otherwise. Britain and Europe did the same, throwing lifelines to RBS, HBOS-Lloyds, Fortis, Hypo Real Estate, and others. In the West, the excuse was too big to fail. How different is that from Japan’s mindset nearly 20 years ago?

In the name of Freedom!, Please, don't say it again

I am not surprised that the USA, the UK and France have just chosen to free Libya among many current conflicts in the world.

We must be honest, this is another war for oil. There is not Freedom in Sarkozy's dreams but oil  and a  new mandate which are why he is taking dangerous risks. “Sarkozy has a huge investment in seeing Qadhafi go,” said Justin Vaisse, the director of research for the Center on the United States and Europe at Brookings in Washington. “He’s going to be a constant force in favor of hardening the stance and the action.” Once we’ve eliminated the air defense sites — then what next?.....

Behind World's inflation

U.S. consumption increased by 3.2 % over the fourth quater of 2010. Although Somebody has hailed it as a sign of economic growth, this is nothing more than pure inflation determenated by deficit and monetary stimulus of the Federal Reserve.

Monetary expansion created by the FED has again shown its destructive effects: inflation has begun to be exported overseas. U.S. dollar is enjoying an enviable position of reserve currency that doesn't follow the rules of other currencies and allows the U.S. to borrow, spend and consume with money that the FED simply creates "out of thin air". In this way the U.S. can expropriate resources from the world by buying other's goods and services abroad like a counterfeiter who spends his fake money at a shop. Unfortunately, the excess of dollars return back home to be converted into Treasury bonds whereas U.S.  partners with this same amount of dollars finance their deficits and encourage an irresponsible consumption of resources. In fact they haven't any incentive to use their dollar surplus to buy goods and services as in recent decades American industry completely lost its competitiveness. 

So, What does it happen to U.S. partners currencies? 

The dollars obtained by exchanging for exported goods must be converted to be spent in these countries. 

If markets did freely, the excess of dollars would raise the price of currencies with which U.S. dollar was exchanged. But, actually it doesn't work like that and to prevent worsening of their exporting, U.S. partners have no other choice but to keep their currencies competitive with a new monetary expansion. 

In fact, to maintain a stable exchange rate, they must buy the dollar surplus by resorting to a quantitative easing. Therefore, when the Federal Reserve prints fresh money "out of thin air", other central banks make the same thing. In this way, the amount of dollars sold is parked as Treasury bonds, allowing the U.S. to keep their interest rates low and to continue selling its debt. This whole process is an untold damage to economies in terms of inflation. 

In summary, the  G-20 central banks have flooded the economy with liquidity without any relation to the real global production. All this is the cause of rising food price, speculative investment and ephemeral illusion of prosperity. 

In North Africa, this economic system based on fraud now starts to kill people too.

What's behind the World's growing food-price crisis?

Year by year Humanity has reached Peak oil. So rising oil prices make many people think of bio-ethanol as a possible solution. But ethanol fuels are produced by fermentaion of sugars derived from wheat, corn, sugar beets, sugar cane, molasses etc. Here comes trouble. In fact, data show that developed countries already spend a very high percetage of their domestic cereals supply for livestock production, especially pigs. The European Union e the USA use between 70% and 90% domestic ceral supply for feeding animals and with 470 million of hogs, China has more pigs than the rest of the planet stacked together!!!

Yet from 2007 to 2008 the share of ethanol in global gasoline type fuel use increased from 3.7 % to 5.4 %. In 2009 worldwide ethanol fuel production reached 19.5 billion gallons (73.9 billion liters). Soon very large-scale farming will be necessary to produce agricultural alcohol with substantial amounts of cultivated land. University of Minnesota researchers report that if all corn grown in the USA were used to make ethanol it would displace 12 % of current US gasoline consumption only.

In summary, the growing demand for the energy sector and the most traditional use for feeding animals make millions of people starve. 

Prices on such food as corn and wheat have risen over 180%. Rising food prices that have already caused rebellion in several developing countries will likely push more than 100 millions of people into deep poverty.