All the Presidents' Bankers by Nomi Prins

Powell, wage workers are the victims of the price hike, not its cause. Wages are not close to catching up to price hikes. That translates to a cut in real wages, of 5.5%, a loss in buying power for the average worker of over $4,000 per year ($4,155). In March 2021, the average working person received $39.01 per hour in wages and benefits, rising last month by just $3.71 or 9.5% over the last two years. According to the Bureau of Labor Statistics, keeper of the stats, what cost $100 in March 2021 cost $113.95 last month, a 14% rise.

Keep in mind that, by “inflation” we mean a general rise in prices. And therefore, if unemployment is too low and wages rising too fast, the cure is simple, according to our betters: throw a few million folks out of work and scare the crap out of the still-employed so they don’t dare ask for higher wages.īut, it’s not true not according to the data. I was told, by a stern voice on NPR, that the “bad economic news” is that employment is rising. The perps? According to the pundits, from The New York Times to NPR, the culprits driving inflation are the working stiffs demanding more pay-who are also selfishly clinging to their jobs. Victims? Perpetrators? But aren’t we told that inflation harms everyone? Well, what else would you expect the perps to say?

So, today the Fed’s Open Market Committee applied another leech, a quarter percent hike in the federal funds rate, bleeding the victims of inflation-wage workers-rather than the perpetrators. Powell, seeing wage workers bleed, is sure he’s curing the patient. In the Dark Ages, doctors who saw a patient improving, gave the credit to the leeches–and applied more. Powell is preening, taking credit for this miracle, care of his leeches-the ever-higher interest rates bleeding wage workers. Saw the leeches? When the Federal Reserve announced another interest rate hike today, did you see the little bloodsuckers crawling out of the pockets of Chairman Jerome Powell? Because his cure for inflation has much too much in common with Medieval bloodletting, and is just as effective. Photograph Source: Federalreserve – Public Domain

All the Presidents' Bankers by Nomi Prins