TV News LIES

Dallas Federal Reserve President Richard Fisher said Friday in a Fox News interview that the US economy is threatened by higher wages. His solution is to head this calamity off by raising interest rates so that hiring is cut back. He fears that higher wages are inflationary.

The Fed as a whole has been trying to create inflation in order to stop the rich from hoarding cash. The Fed has set a modest goal of 2% inflation instead of the 4 to 6% we really need to make such a policy work to jump start real investing (real as in creating jobs). Creating jobs is part of the Fed's legal mandate and the results have not been stellar to say the least.

I wrote this about 4 years ago:

We were in a canoe paddling towards the middle of the lake. The sky and water was blue as the blue in a Maxfield Parrish painting. I looked down and it seemed I could see forever into the depths of the lake. And I wondered … What would it be like to lose something … Something of great value … Right here in the middle of the lake? What would it be like if my wedding band slipped off my finger into the lake?

It would be lost the moment it hit the water.

Even if I immediately dove in after the ring it would sink faster and deeper than I could swim. But I would be able to clearly see it as it sank … for a long time. That’s the terrible part. To see it fall away with absolute clarity … sunlight glinting off the gold as it rapidly receded farther and further into the depths … finally passing deeper than light can penetrate … and then … wink out of existence.

Lost.

A friend recently wrote me:

Remember the realization back in the early 70's that the whole country was insane? Could it be true, could a whole country go insane?

Way back when, in the dim distant past, when dinosaurs ruled the Earth and pterodactyls swooped through the skies - You know - the 70s - my friend and I were trying to get a sense of What’s Going On. Here we are, millions of years later, still trying to map out a strange land. The only difference now is he still lives in that strange land, and my family escaped across the border into Beautiful British Columbia. In fact August 22nd, marked our Third Anniversary in Canada.

Federal Reserve Chair Janet Yellen just introduced a new term into Fed Speak', "pent-up wage deflation". This seems to be an effort to explain away the problem of stagnant wages in the US economy that are not allowing the Fed to meet its 2% inflation goal by blaming it on the "inability or unwillingness of US firms to drastically cut wages" after the Bush collapse in 2008.

This, according to the Fed, is making it possible for companies to now expand employment without raising wages. Ms. Yellen did acknowledge that real wages had been declining for some time prior to the crash (real wages have been declining for 33 years, but who's counting).

Will the recent rioting in Ferguson, Missouri, be a tipping point in the struggle against racial injustice, or will it be a minor footnote in some future grad student’s thesis on Civil Unrest in the Early Twenty-First Century?

The answer can be found in May of 1970.

You probably have heard of the Kent State shootings: on May 4, 1970, the Ohio National Guard opened fire on student protesters at Kent State University. During those 13 seconds of gunfire, four students were killed and nine were wounded, one of whom was permanently paralyzed. The shock and outcry resulted in a nationwide strike of 4 million students that closed more than 450 campuses. Five days after the shooting, 100,000 protestors gathered in Washington, D.C. And the nation’s youth was energetically mobilized to end the Vietnam War, racism, sexism, and mindless faith in the political establishment.

Yes:  Lauren Bacall.

A landmark, watershed moment of loss, finality.

End of an era much adored.

End of a storybook, starry-eyed romantic pair.

End of a warm, playful, and sly sort of style, grace, wit, charm.

End of a role model and path-maker for women, for people.

Too many ends.

Too many irrevocable lines drawn in the sand.

More...