Many experts are saying that plummeting oil prices are a reflection of the true state of the broader underlying economy. From what i've seen 'underlying' doesn't mean on Main St., it means the 'markets', it means the size of quarterly profits, not real stuff of people. All the blather about growth and jobs is just propaganda to mis-direct our attention from the real problem those doing the blathering have: the party could be ending before the assholes have totally cleaned the trough.
As Robert Reich said the other day, "The wealthy and corporations are not the job creators. The people who create jobs actually are the vast middle class and the poor whose spending creates incentives for companies to hire.” We are the demanders, we will create the future our present actions dictate.
Demand is weakening across the board for needless crap because of high debt levels everywhere and an ageing boomer population who've already bought all the crap they need. Deflation means rising real wages for those folks in parts of the Main St. economy involved in stuff folks really need, like food, shelter, health and basic transportation. Deflation means some folks changing jobs - hopefully changing the nature of themselves and the economy newly localized communities.
The folks at the B@B Club are flummoxed, they've learned recently, especially in Japan, they can’t force people to spend no matter how dastardly the fear tactics used and what happens is they wind up scaring people into even less spending. Japanification is both an empty fear tactic of the B2Bers and very instructive.
Recently in another Kami-Kazi like deflation speech the Bank of Japan's Kuroda said the bank was ready to ease even more "to ensure the Japanese public shakes off its "deflationary mindset." What is the deflationary mindset he fears? Is it a frugal, hard working mindset? One where basic empathetic values return to the fore? i have friends who are Japanese , friends who live part of the time here in Canada, part back in Japan. They say life's good there, lottsa prices are lower, wages too but a days pay still put a roof over a family's head and fish on the table.
The Japanese have always been a population that is more frugal and less consumptive. But even here in Canada, if one lives frugally, and especially outside of a major city, life would be normal despite the phantom of deflation roaming the moors. But for those that must consume, that only want the live large lifestyle, disappointment could arrive any day now. An old Zen metaphor is 'to be like water and take the of the container'. Very wise words when considering that adopting a deflationary shape is the best stratedgy both personally and globally in the battle against the B@B Club.
