The Real Reason Behind The Surge In Populist Anger: Central Banks
by Tyler Durden
ZeroHedge.com
Jul 31, 2016
In the din of the relentless theatrics of the US presidential election, and the soaring wave of global populist discontent blamed on a “us” versus “them” narrative, it is easy to lose track of what is not only important, but is the critical catalyst behind much of the build up in world anger over recent years.
Courtesy of Bloomberg’s Chris Maloney, a market strategist and former portfolio manager, here is a much needed reminder of what is truly going on behind the scenes, an explanation for the rising sentment that something is now simply “broken.”
Populism Surfs a Wave of Inflation
By Chris Maloney of Bloomberg
The Keynesian belief outlined in the “General Theory” (p.17), that “an increase in employment can only occur to the accompaniment of a decline in the rate of real wages,” appears to be bearing bitter fruit this election cycle.
The rise of populism in America is a byproduct of inflationary policies that have helped trigger a dramatic increase in consumer debt, declining real wages and rising prices for food and housing since 1999.
From 2000-2014, housing prices have risen 73% and rents were up 45%; the cost of putting food on the table rose 47%, and college costs increased 137%
Over the same period nominal real household mean incomes rose just 38% while declining 3% in real terms.
The Rest…HERE
