Bill Bonner

Come on everybody!
Clap your hands!
All you looking good!

I’m gonna sing my song
It won’t take long!
We’re gonna do the twist
and it goes like this:

Come on let’s twist again,
like we did last summer!
Yeaaah, let’s twist again,
like we did last year!

Do you remember when,
things were really hummin’,
Yeaaaah, let’s twist again,
twistin’ time is here!

Heeee, and round and round and up and down
we go again!

Well, Société Générale was wrong. No QE. Instead, dear reader, it’s the Chubby Checker monetary strategy.

Reuters is on the case:

(Reuters) — The US Federal Reserve on Wednesday delivered another round of monetary stimulus and said it was ready to do even more to help an increasingly fragile US economic recovery.

The central bank expanded its “Operation Twist” by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year.

Fed Chairman Ben Bernanke, speaking at a news conference after a two-day policy meeting, said the central bank was concerned Europe’s prolonged debt crisis was dampening US economic activity and employment.

“If we are not seeing sustained improvement in the labor market that would require additional action,” he said. “We still do have considerable scope to do more and we are prepared to do more.”

The Fed slashed its estimates for US economic growth this year to a range of 1.9 percent to 2.4 percent, down from an April projection of 2.4 percent to 2.9 percent. It cut forecasts for 2013 and 2014, as well.

Hiring by US employers has slowed sharply, factory output has slipped and consumer confidence has eroded, with Europe’s festering crisis and the prospect of planned US tax hikes and government spending cuts casting a shadow on the recovery.

The economy grew at only a 1.9 percent annual rate in the first quarter — a pace too slow to lower unemployment — and economists expect it to do little better in the second quarter.

C’mon everybody…clap your hands! The Fed is prepared to do more…damage!

But what’s this? You just can’t please some people. The New York Times tells us about the complainers…

Throughout the Great Recession and the not-so-great recovery, the most commonly discussed measure of misery has been unemployment. But many middle-class and working-class people who are fortunate enough to have work are struggling as well…

We won’t keep you in suspense. They’re struggling because real, hourly wages are going down. Back to the TIMES:

These are anxious days for American workers. Many…are underemployed. Others find pay that is simply not keeping up with their expenses: adjusted for inflation, the median hourly wage was lower in 2011 than it was a decade earlier, according to data from a forthcoming book by the Economic Policy Institute, “The State of Working America, 12th Edition.” Good benefits are harder to come by, and people are staying longer in jobs that they want to leave, afraid that they will not be able to find something better. Only 2.1 million people quit their jobs in March, down from the 2.9 million people who quit in December 2007, the first month of the recession.

“Unfortunately, the wage problems brought on by the recession pile on top of a three-decade stagnation of wages for low- and middle-wage workers,” said Lawrence Mishel, the president of the Economic Policy Institute, a research group in Washington that studies the labor market. “In the aftermath of the financial crisis, there has been persistent high unemployment as households reduced debt and scaled back purchases. The consequence for wages has been substantially slower growth across the board, including white-collar and college-educated workers.”

The unease of voters is striking: in a New York Times/CBS News poll in April, half of the respondents said they thought the next generation of Americans would be worse off, while only about a quarter said it would have a better future.

What’s the matter with these people? Can’t they hear the music? Don’t they want to join the party?

Regards,

Bill Bonner
for The Daily Reckoning

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success in numerous industries. His unique writing style, philanthropic undertakings and preservationist activities have been recognized by some of America's most respected authorities. With his friend and colleague Addison Wiggin, he co-founded The Daily Reckoning in 1999, and together they co-wrote the New York Times best-selling books Financial Reckoning Day and Empire of Debt. His other works include Mobs, Messiahs and Markets (with Lila Rajiva), Dice Have No Memory, and most recently, Hormegeddon: How Too Much of a Good Thing Leads to Disaster. His most recent project is The Bill Bonner Letter.

  • Capn Mike

    “What’s the matter with these people? Can’t they hear the music? Don’t they want to join the party?”
    Tone deaf, man, tone deaf…

  • http://www.investorsfriend.com The InvestorsFriend

    LET’s PANIC AGAIN Like It’s 2008…

    Bill has been in a panic every year since about 2000. He waits, impatiently, for society to collapse.

  • 2 funny

    Bill seems fairly calm for being in a supposed panic. I’d say he’s describing societal malaise, not pending collapse.

  • reeyaz

    Bill knows the reckoning will be sooner rather than later.Societal malaise is a contributing factor to the pending collapse.

  • longnine009

    Maybe Benny and Timmy can sing a duet over their “green
    shoots.” That might help.

    “There’s a light over at the Frankenstein’s place…”
    Rock Horror Picture Show

  • G L Hutch

    Right on reeyaz! Couldn’t agree more. If you are for-warned and prepared you do not “panic”.

    Bill Bonner is perhaps the brightest, wittiest, and most knowledgable writer out there, (and there’s a bunch) and has been way ahead of most everyone. That is why we read him every day. Read his books. His writing style is something else. Homes in several countries and the means to get there and live well. Him panic”? We should all be so lucky. (Sounds like a love fest doesn’t it? Ha!)

    Remember, housing was over 70% of the economy before the housing/financial crash. And there is no “big new thing” coming to take it’s place showing itself anywhere. Over 45 million doing basically nothing useful being supported by those that are, cannot last. What will “they” or can we do about this? The “broken window theory” nonsense comes to mind. Ya,right! Uh huh! People need real purpose in their work, not pretend crap jobs. Non-working people can and will soon become very dangerous. That is my worry.

    I personally do not see a way out of this debacle. He is right-on! It must ALL be “flushed” first, before we can even try to begin again.

  • Bennet Cecil

    There will be less prosperity for Americans until they embrace free market capitalism and reject statism and socialism. They are not ready to do this yet. They think they are above the laws of economics. There will be serious dislocations.

  • John

    Let’s vote The Investors Friend and Gman off the island …lol!

    Wait though, Gman has promised to become a kindler, gentler critic of Bill’s work or something to that effect.

    Bill is brilliant, his timing might not be perfect but the message is right on the mark!

  • Le Petomane

    One agrees with Bill and then one agrees with Gman. Go figure.

  • Little Black Duck

    See Hegels master slave dialectic.

    Bill, you’ve got to keep writing.
    Gman, you’ve got to keep writing too.

    Otherwise you’ll both disappear in a puff of logic.

  • bob

    Obama and the FED are trapped until after the election. If they print, the pubs will claim their loose monetary policies and reckless spending are bad. If they don’t print, the stock market will erode and the pubs will claim his economic policies don’t work.

    If I were Obama, I would print. I think the general electorate cares more about the dow than the FED balance sheet.

  • reeyaz

    Sorry,my mistake,there is no pending collapse rather they demolished the entire system when they shut the gold window and now theyre trying to build castles in the air.

  • mike

    …lately i don’t mind getting up before sunrise, the city is so calm and peaceful…bill bonner is different from most other roosters, his message is too early for sleepy heads…wake-up y’all!…Come on everybody!
    Clap your hands!
    All you looking good!

    I’m gonna sing my song
    It won’t take long!

  • funnkmstr

    great to be here

Recent Articles

Why the Fed Will Launch Another Round of QE

Richard Duncan

Ben Bernanke introduced the world to the concept of "quantitative easing" back in 2002. It was an "unorthodox plan" to save the economy from the horrors of deflation. But the monstrous economy it has actually created is in some ways far worse. And as Richard Duncan explains, it's not going to end any time soon. Read on..


How to Safeguard Your Digital Currency

Dominic Frisby

While the technical details of Bitcoin may intimidate the novice, they shouldn’t keep him from getting in on a digital currency revolution that -- while taking different forms -- isn’t going away. How do you get the simplest, easiest-to-act-on tips about how to invest, safeguard and grow your digital wealth? Dominic Frisby has more…


Solar to Save the World, Ebola to Maim it

Chris Campbell

The duality is stark. In one hand, we have an energy renaissance underway, in the other, a virus is threatening to wreak havoc on the markets and, potentially, your life. Nothing we’re currently doing to fight the Ebola virus will work in 2014, say the researchers. Nothing we’re currently doing will beat it in 2015, either. We need a new game-plan. Read on…


How to Profit From the “Cycle of Hype”

Greg Guenthner

Lose your shirt in 3D printing stocks this year? Don’t kick yourself. You’re not alone. (Okay, kick yourself a little if it’ll make you feel better.) You need to make sure you don’t lose your 3D-printed shirt in the next tech craze. Because there will be a next time. Look, it’s really not your fault if you got taken for a ride on 3D stocks. Greg Guenthner has more...