My following comments are twisting “Hard to be easing”. Really since, we’re in to the third round of QE, OMG! I am looking at the crisis ??? from a down-to-earth street view. Roubini and the other greats that are the lead contributors to this site take the high road. I live on a dirt road. So, I am going to use some statistics and comments starting with the ordinary day-to-day transactions of a dollar and dollars. Hopefully, ALL the PRICES that I have selected are what a dollar at that time could purchase at that time, and then I present some questions about the dollar today. And, yes, I think I am doing a more relevant “OPERATION TWIST”, than Bernanke couldn’t even dream about, if I can stay alive at least a year or so past 2014. But, I don’t want to digress too much so, to get back down to earth…….



What is the price of gasoline in 2012, in 2012 dollars in the US?

What was the price of gasoline a few years ago, relatively speaking?



From http://www.consumerenergyreport.com/2012/03/14/charting-the-dramatic-gas-price-rise-of-the-last-decade/



Average cost for a gallon of gas in the U.S. between 1998-2011:

CLINTON YEARS

1998 — $1.03 1999 — $1.14 2000 — $1.49

BUSH YEARS

2001 — $1.43 2002 — $1.34 2003 — $1.56 2004 — $1.85 2005 — $2.27 2006 — $2.58 2007 — $2.81 2008 — $3.26

OBAMA YEARS

2009 — $2.35 2010 — $2.78 2011 — $3.53





So, now lets look at labor over a longer time period beginning from 1970’s through 2006, just to get an idea about wages and the distribution of earnings in the USA. AND what are you earning today in today’s dollar? AND what is the minimum wage today in today’s dollar? Could you buy gas and make a round-trip home on a minimum hourly wage today? Could you ten years ago? How many people have public transportation to go to work and get back home EASILY? Or would it take 3 hours or more roundtrip??? What’s affordable?





From WIKIPEDIA: http://en.wikipedia.org/wiki/Household_income_in_the_United_States



(the whole article has some pretty good information to think about for a while. Even a 10-year-old can read it.)



In 2006, there were approximately 116,011,000 households in the United States. 1.93% of all households had annual incomes exceeding $250,000.[6] 12.3% fell below the federal poverty threshold[7] and the bottom 20% earned less than $19,178.[8] The aggregate income distribution is highly concentrated towards the top, with the top 6.37% earning roughly one third of all income, and those with upper-middle incomes controlling a large, though declining, share of the total earned income.[3][9]

Income inequality in the United States, which had decreased slowly after World War II until 1970, began to increase in the 1970s until reaching a peak in 2006. It declined a little in 2007.[10] Households in the top quintile (i.e., top 20%), 77% of which had two or more income earners, had incomes exceeding $91,705. Households in the mid quintile, with a mean of approximately one income earner per household had incomes between $36,000 and $57,657. Households in the lowest quintile had incomes less than $19,178 and the majority had no income earner.[11]



Are you making more money or less money annually than you were 10 years ago? How many people do you think are making more money annually than they were 10 years ago?



Now, let’s look at the price of milk. Just a snapshot comparision in 1999 and 2009 dollars:



Gallon of milk $2.88 $3.05





There is a great list of other comparisons, from this site:

http://www.dailyfinance.com/2009/12/29/then-vs-now-how-prices-have-changed-since-1999/



How much is a gallon of milk at your grocery store in 2012? Are you experiencing inflation or deflation of the US dollar?

And, now to get a little bit nosy…

Are you still earning a living where any kind of taxes are reported on your earnings? Do you report and actually pay any kind of taxes based on any kind of annual earnings? How about consumption taxes? Who pays the highest relative percentage of consumption taxes based on income, poor people or rich people? What's poor and what's rich?



How has quantitative easing helped you financially in any kind of way? How has quantitative easing helped other human beings in your neighborhood, town, county in any way? If you have any, are any of your investments or real assets worth more than 10 years ago? What can you sell? What can you buy? How EASY is it to buy or sell what you need and what you think you may want?



How many others of approximately 116,011,000 households in the United States can enjoy some fun times together, or are stuck between a rock and a hard place, caught in a real steal? Where are you after working 30 years or so? Where are you just getting out of high school or college?



How many wage earners are really on easy street or any where near to it? How many can even get close to it, or ever find it in 2012?



So, depending on actual numbers, estimated numbers, or general statistics, until more folks really have some extra money, rather than incomes allowing spending for only bottom-line essentials on a daily or whatever statistical basis, GDP is only going to change based on annual birth and death statistics, and the effect of those births and deaths on the GDP and basic consumption. What are the projected birth and death statistics for the US? What is the projected effects to annual GDP?



And to include an effective austerity example to affect any economy:



Is the activity in Syria the new trending, or the new repeat of a really old model of the most effective significant way to affect economic growth?

Isn’t Syria using principles of austerity to the max? It’s not pretty. But, it works.



What’s some practical alternatives at local levels, by local people?



Any body got any practical ideas? And, of course, how and who pays for what, with what, and when, and where?





