Here's why early tomorrow morning, Sydney time, the US Federal Reserve is widely expected to reveal plans to either spend more to try and boost US economic activity, or allow interest rates to remain at their current record lows for another year -- into 2015: US poverty remains endemic, real median income is falling (and is at a 16-year low), consumers continue to delever, and there's little sign of that changing on its own.
The data also makes you wonder if the current high level of US sharemarkets (the highest since 2007) and corporate profits are a house of cards, based as they are on very weak support with millions of Americans unemployed, under-employed or just vanished from the labour force. The US jobless rate was 8.1% in August; more than 12.5 million people were unemployed and 5 million of those were long-term unemployed. As well 10 million other people are either working a few hours a week, or looking for work. Data out earlier this year shows about 46 million Americans are receiving food stamps to help them eat each week.