The Myth of Gay Affluence...? 2

Updated 30 April 2014 for further reading....

5.   What The Average American Didn't Understand

1.  He may indeed have 6 houses.....but the average idiot in the US didn't understand that:

• the house loans were dodgy, but his liability was clear;
• the interest rates were "teasers" i.e. just to get him into taking the loans;
• he was being encouraged to defer repayment "because the interest rates would stay low for a while" - not realizing that his personal liability to repay was increasing at a higher interest rate every 6 months - precisely because he wasn't repaying anything.....;
• he looked around, saw everybody else "flipping" the houses (i.e. selling them to another idiot with or without the same mortgage), walking out with a capital gain and assuming he could do the same......'coz houses are a safe investment and they only go up in price, right...?
• he hadn't realized that he wasn't an "investor", but an amateur speculator;
• by waiting or hoping to flip the houses, he wasn't generating any income from those houses. Therefore 6 mortgages would have to be paid from his salary;
• his partially paid credit cards carried 35% interest plus late payment charges on the unpaid balances;

2.   When the market crashed in 2008, the credit dried up, all the average (white) idiot's loans became repayable immediately, because he hadn't made any repayments and was therefore, technically, in default. He couldn't make any repayments because the houses hadn't generated any income, he only had his salary - and he was now threatened with downsizing at work if he didn't agree to a pay cut. That's how he fucked himself.


6.   Evaporation of "The Wealth Effect"

1.   His "Wealth Effect" evaporated, his homes were foreclosed, the Media Room was only half finished, and he's avoiding his Stock Broker's phone calls, because his stocks crashed and he needs to deposit more Margin with the broker - who already sold his stocks at a loss.

2.   The Fed's Quantitative Easing policies since 2008 - putting it crudely, pumping more cash into the system - inflated the stock market to record highs as at 2014, partially resuscitated the real estate market BUT for the majority of the US population, DID NOT INCREASE REAL DISPOSABLE INCOMES.  - SO THE INCOME FOR THE 90% OF THE POPULATION CONTINUES TO STAGNATE - AND THAT'S HOW THE MIDDLE CLASS MERGES WITH THE POOR.


7.   US Middle Class No Longer The World's Richest

(Underlining and bold print by FuelMix)

The American middle class, long the most affluent in the world, has lost that distinction.  While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.

After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.

The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.

............

The findings are striking because the most commonly cited economic statistics — such as per capita gross domestic product — continue to show that the United States has maintained its lead as the world’s richest large country. But those numbers are averages, which do not capture the distribution of income. With a big share of recent income gains in this country flowing to a relatively small slice of high-earning households, most Americans are not keeping pace with their counterparts around the world.

-----The American Middle Class Is No Longer The World's Richest, New York Times, 22 April 2014

8.   Epidemic of Hunger In The US

A Report by Feeding America, the largest operator of Food Banks in the US estimates that 49 million Americans presently have "food insecurity".  Couple that with the largest number of people on Food Stamps in US history and one begins to get the picture that affluence for a sizeable chunk of the population - gay or straight - is a pipe dream.

Oh.... and did we mention that food inflation in the US is rising at even faster rates than before....? And guess who THAT will hit really hard.....? Yup.....that's right......the Middle Class. That's because for the Middle Class and the Poor, their incomes are not keeping up with inflation.


9.   Real Unemployment Rates in the US.....?

This is one of the biggest - and saddest - jokes going.  How "unemployment" has been defined and redefined over the past 5 years to "massage" the numbers. Politically correct figures put it at 7%.  The detailed work done by John Williams of ShadowStats puts it closer to 20%.

At current official figures, 59% of working age Americans has a job. That means 41% don't.

It's no wonder that Government dependency rates have increased.  So.....where does that put the Middle Class....??


 10.  Somewhere In There Is A Fag - or Two

1.   It's absurd to assume that fags, bisexuals, bi-curious, or Miserably Married Fags in the US are  immune to all of this - or that the power of The Pink Dollar is such that it levitates all fags to the echelons of the Upper Middle Class, the Rich or the Wealthy  - or that most US fags are Investment Bankers with an underwear drawer of Andrew Christian, hefty bonuses, wads of cocaine and runny noses (another gay cloned look by the way).

2.   We have heard anecdotally that fags in investment banking are shitting as banker suicides go up and layoffs are looming, if they haven't already started.  The former is being reported globally, the latter not so much. Is their wealth and income intact? Are their personal debt levels manageable...? Depends on how much they blew on blow..........


Coming Up:
11.   The Rise of the Upper Middle Class and The Rich
12.   Canada and Asia

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