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Old 01-02-2013, 03:21 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,678
wage competition

Monsieur M. The article said that the females upped their sexual activity to 3.5 times an hour. Those males must be pretty stout fellas to keep up with that.

As each new country passes into the industrial revolution, it's productive capacity grows enormously. This adds to the total global-production capacity.

After WW II, America had 3% of the world's population and 50 % of the manufacturing capacity. We built up a great standard of living. By about 1970, the ROW,,,Rest of the world had rebuilt their own manufacturing capacity. Europe and Japan managed to keep a wage standard close to America. Just the same, America lost part of market share. This caused wages to stagnate.

In an effort to reclaim part of our lost market share, America went off the gold standard.

This allowed a big increase in money printing. The resulting internal inflation was in reality, a wage cut.

The money-printing continued unabated. This was seen as higher prices rather than as a wage reduction.

Fast-forward about 20 years and there was even more competition from newer producer countries. This necessitated even more money printing to lower wages and maintain market share. This was only implemented to a certain point. To maintain our standard of living in the face of ever-increasing competition from low-wage producers, we borrowed our way to prosperity. We borrowed 80% of savings worldwide.

Our standard of living should have reverted close to a global mean. We borrowed to keep the party going.

A few more years down the road and we hit an enormous roadblock.
The perfection of containerized shipping threw ALL of our manufacturing into international competition. The Indians and Chinese moved UP to [ $15] a day. Americans and Westerners in general could never survive at that rate.

As billions of new people moved into manufacturing, global productive capacity grew enormously. As global wages fell towards a mean average Western consumptive power declined considerably. Our current, Western wage-and-cost structure can not be compatible with $15 a day wages. We stupidly bought Chinese stuff, not even thinking that we pushed ourselves out of jobs.

Our current financial system can NOT work unless there is a growing credit and money supply. With wages and trade shrinking, the bankers had to extend credit always farther out. We constantly dipped into future-earnings to pay for our lifestyle today. We lived on money that we HOPED to earn. This, at the same time that we sent our money and jobs out of the country.

GOV continues to print more money,,, to lower wages,,, to keep market share. This is referred to as a "race to the bottom". Every step of the race, they lower wages and wipe out consumptive power. It's like racing barefoot through a field of broken glass.

The people who are tossed out of the job market are the collateral damage from the race.

All countries are printing in unison because nobody wants to be priced out of the labor / manufacturing market. High unemployment will be ever-increasing.

Currently, 100 million Americans are out of work.
100 Million Poor People In America And 39 Other Facts About Poverty That Will Blow Your Mind Alex Jones' Infowars: There's a war on for your mind!
So, everybody prints to maintain market share. The fewer resources that a country has, the more it has to depress labor rates. Bangladesh.

The poverty level is going way up. As we morph nearer to a global mean wage, the cost-and-price structure in America will fall apart. There is plenty of blame and stupidity to go around. But, at the same time, A lot of this is due to market forces.

The West has been great at producing lots of money but, very little wealth. Credit and money grew at 6 times the rate that GDP grew. Like an over-stretched rubber bank, it's all going to snap back.

The reason that I focus on manufacturing is because it is of primary importance as one of only 3 main enterprises that add value. Mining, Farming and Manufacturing are all value-added enterprises. The rest just shuffle around the money.

If you look at a graph of lost industries and a graph of money printing, there is a clear correlation. The West can't very well operate with Eastern wages so, we print. We print to reduce wages and keep market share. Then we borrow to maintain our standard of living.

Printing to reduce wages is not something that CBs talk about. They say that they are "going to stimulate the economy". They never get around to explaining how they can cause spending in a society that is debt-saturated.
Helicopter Ben said that he could drop money from a helicopter. He forgot to mention that these money drops would only go to his friends.
0% for his friends and 4--5% for the consumer. He's trying to inflate away the debt. Someone forgot to tell him that inflation is mostly driven by wages;
Inflation Isn't About The Price Of Corn. It's About Wages. : Planet Money : NPR
Aggregate employment is falling. Wages are falling. Money velocity is falling.
We have inflation in a few areas like food and energy. But, with aggregate income falling, people keep buying essentials and cut out more and more discretionary spending. Any price inflation in essentials results in decreased spending for non-essentials. Even energy consumption is falling.

The CBs have finally started to notice that increased printing isn't helping.
Jobs and wages are the key, NOT money. The Central Bankers are a bunch of IDIOTS.
They drive down bonds and think that people will stay in the market.
They drive up stocks that have no P/E and think that people will stay in stocks.
They have ZIRP and a printing press. That's like giving a teenager an axe and a flamethrower.

The CBs drive down wages to keep market share. With lower wages, consumption and the economy slow down.

ALL this "money" and credit that is floating around can be compared to Voldemort's ghost. Voldemort was looking for some "vessel" to give him tangible reality. He circled the globe like all the paper wealth looking for something to give him substance. There are reportedly 10 quadrillion worth of contracts denominated just in DOLLARS.
Banks print to save their currencies but, all that printing endangers these same currencies.
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