New Data Shows Federal Reserve Is Causing More Inequality

12-10-18 01:13:00,

Authored by Ryan McMaken via The Mises Institute,

Back in August, Bloomberg interviewed Karen Petrou about her research on quantitative easing and the Fed’s policies since the 2008 financial crisis. What she has discovered has not been encouraging for people who aren’t already high-income, and in recent research presented to the New York Fed, she concluded Post-crisis monetary and regulatory policy had an unintended but nonetheless dramatic impact on the income and wealth divides.”

This assessment is based on her own work, but also on a 2018 report released by the Minneapolis Fed.  The report showed that both income and wealth growth in the US have been much better for higher-income households in recent decades

Notably, when indexed to 1971 (the year Nixon ended the last link between gold and the dollar) we can see the disparity between the top wealth groups and other groups:

Petrou continues:

What did we learn [from the Minneapolis Fed report]? This new dataset shows clearly that U.S. wealth inequality is the worst it has been throughout the entire U.S. post-war period. We also know now that the U.S. middle class is even more“hollowed out” than we thought in terms of income, with any gains made by the lower-middle class sharply reversed after 2007.

Indeed, the report concludes: “…half of all American households have less wealth today in real terms than the median household had in 1970.”

A closer look at income data also suggests that income growth has been especially anemic since 2007. Using data from the Census Bureau’s 2017 report on income and poverty, we find that incomes for the 90th percentile are increasingly pulling away from both the median (50th percentile) income and from the 20th-percentile income.

The household income for the 20th percentile increased 70 percent since 1971, while it has only increased 20 percent at the 20th percentile.

Of course, we might think, “we should be happy that the 20th-percentile income went up by 20 percent!”

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New Data Shows Yellowstone Supervolcano “Strained” – Magma Chamber Under Immense Pressure

15-02-18 10:30:00,

Authored by Mac Slavo via,

According to a group of seismologists who are monitoring the potentially catastrophic supervolcano, Yellowstone is “under strain.” This new report has reignited fears that the caldera could erupt at any moment.

Experts were alerted to the volcano’s strain after noticing deformation. This process, where subsurface rocks subtly change shapes, is occurring beneath the surface of Yellowstone right now. Researchers state deformation occurs when there is a change in the amount of pressure in the magma chamber and experts are keeping an eye on the development.

Seismologists from UNAVCO, a non-profit university-governed consortium, are using “Global Positioning System (GPS), borehole tiltmeters, and borehole strainmeters” to measure minute changes in deformation at Yellowstone. In an article for the Billings Gazette, David Mencin and Glen Mattioli, geodesists with UNAVCO, say “the strain signal is larger than would be expected if the crust under Yellowstone were completely solid.”

“What that means, at least in their eyes, is that there’s lava flowing that’s allowing pressure to build in the chamber,” says Joe Joseph of The Daily Sheeple.  “I don’t know if this is good or bad!”

These independent observations agree with other instruments at Yellowstone, like seismometers, that indicate a zone of semi-molten rock starting about 3 miles beneath the surface. The term “semi-molten” is used because the entire zone contains only between 5 and 15 percent liquid rock that occupies small pockets of space between the solid rock.

But the scientists want to assure the public that these observations are no cause for alarm. “Of course, they’re always gonna say that,” says Joseph. “It’s about 700,000 years ago they say when it erupted and it’s long overdue. So here we are, Yellowstone, yet again, thrust into the news because of some of this new data coming out…,” Joseph said.

If the Yellowstone volcano nestled mostly in  Wyoming were to erupt, an estimated 87,000 people would be killed immediately and two-thirds of the USA would instantly be made uninhabitable.  The large spew of ash into the atmosphere would block out sunlight and directly affect life beneath it creating a “nuclear winter.”

Is this a cause for alarm?

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