As a note, the fundamental problem with the United States for the past 40 years has been that no problems have been solved, they've merely been worked around by using money to silence people complaining. Johnny can't read? Give the teachers more money. Johnny still can't read. Got a recession? Don't solve the fundamental reason, give money to the victims to shut them up, or to prevent a chain of levered ponzi schemes from collapsing. Got rising crime rates? Give money to the prison system to hide the problem people away.

This argument about wage stagnation preventing prices from rising is false.

1) Government employees are still getting raises, and they are paid from the everflowing breasts of Uncle Sam (ew).

2) The unemployed are given free money, disrupting the cycle of creative destruction that brings about solutions.

3) Special government stimulus programs put money into the system.

4) Federal Reserve low interest rates allow speculators to pump up prices on all types of assets, especially the one that matters to normal people: Commodities, This is done because "wherever there is money, prices rise".

5) Richer foreigners can bid up the prices on things. If the Chinese are willing to pay $20/pound for beef, and Americans only $5, who do you think the cattle rancher is going to do business with? (Fortunately, growing food is damn easy. Get some chickens. You'll have an egg per day from them) and as long as the distribution channels aren't destroyed, I don't think people will starve.

So sit back in your rural bugout location, horde your gold, guns and antibiotics and make sure you have plenty of popcorn and frying oil because things are going to get mega ****ing interesting.

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As a note, the fundamental problem with the United States for the past 40 years has been that no problems have been solved, they've merely been worked around by using money to silence people complaining. Johnny can't read? Give the teachers more money. Johnny still can't read. Got a recession? Don't solve the fundamental reason, give money to the victims to shut them up, or to prevent a chain of levered ponzi schemes from collapsing. Got rising crime rates? Give money to the prison system to hide the problem people away.

Wonderful. So true.

And the results?

1. Too many welfare queens and leech****s dragging society down. They reproduce of course.
2. HUUUUUGE economic imbalances such as a wealth gap that vastly exceeds that of pre-revolution France.
3. Haves - pensioneers, corrupt connected elites, political cabal, Fed cabal and of course Wall Street...vs. the rest of us (have nothings).
4. Two Americas - white trash rural bible-belt America bereft of culture, innovation and any sort of real wealth whatsoever (because they've been stripped of it all by the elites) and the coasts (where the elites abide) which are drowning in debt. Homes in both areas are either depressed or overvalued. Buying into either is foolish.
5. Price volatility in EVERYTHING from oil to gas to food to housing to stocks to bonds etc. These HUGE swings are NOT helpful. No one can count on the future any longer. It is now shrouded in mist.
6. Feelings of helplessness as the workers are no longer in charge of normal supply demand equations. Saving money doesn't bring cost of living down. Spending it is even worse. No win situation.

etc.

Bozonian and Mayorqwimby both of you are bang on.