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Old 03-06-2019, 05:05 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,490
Production there,,, consumption here

I planned to write extensively about the article from Jacobin magazine.
I can't seem to access it now.
I read a lot of writers who seem to get so many things wrong. They look at facts, figures and graphs. It seems that the view from the ivory tower or the penthouse or Statehouse misses a lot of components.
Most of the poverty in the world is due to the fact that different nations entered the Industrial Revolution at different times. Everybody wants modern conveniences but, an underdeveloped country must sell natural resources and / or cheap labor to buy manufactured products that it doesn't produce at home.

One of the biggest things that the pundits miss; it is very common to have production in one area AND consumption in another.
Close to 143 million Americans aged 16 and older commute to work each day. That's about 45% of the population that's on the move at any given time.
It takes workers about 25.4 minutes on average to get where they're going
the 10.8 million workers whose trip lasts an hour or more.
Each year, an estimated 3.3 million Americans face a daily one-way commute of 50 miles or longer. Combined, they make the trip roughly 329 million times annually.
Seven percent of workers have a commute of 100 to 124 miles while 6% go anywhere from 125 to 199 miles one-way.

Global shipping costs have fallen
This creates even more mobility for manufacturing. Capital and manufacturing can move easily. George Soros seems to believe that labor should be able to move equally easy. At first view, this is great for the corporatocracy. It can drive labor down to starvation level
China destroyed the wages of their best customers. Now, they want to switch over to domestic consumption. They made attempts to dismount from the credit tiger but, soon gave up. Their working population is shrinking by 1 million a year. Consumption is down worldwide. The CBs try to stimulate the economy by pumping liquidity into the upper loop. The plan is for the banks to loan this new liquidity into the lower loop. This new liquidity has no legitimate takers .
"the current market capitalization of U.S. corporate equities now stands at $40 trillion, twice the level of U.S. Gross Domestic Product – the highest multiple in history"

This monetary inflation of the upper loop bled into the lower loop. The general idea of MMT is to recapitalize the lower loop. There is talk of free college and free Medicare for all.
STRANGE, the biggest crash on the horizon is a crash of pensions. Nobody mentions that. Professor Kotlikoff reckons that the unfunded liabilities in America are $ 213 trillion,,,, more or less.
U.S. GOV debt is growing amazingly fast. It hopes to legitimise MMT and get rid of the FED.

3/05 If central banks are the only game in town, we’ve lost – Bloomberg
3/05 Fed’s “wealth effect” enriches the haves at the expense of the young – CHS
3/05 Retail apocalypse heating up in 2019. the major stores on deathwatch – Money
3/05 The stock market and the economy are telling two different stories – CNBC

Desperation everywhere.
3/05 China to slash taxes, boost lending to prop up slowing economy – Reuters
3/05 States consider asset transfers as way to shore up plan funding – Pensions
3/05 “Every indicator is blinking red” – Aussie PMI plunges to record low – Zero Hedge

3/05 There are more $100 bills in circulation than $1 bills, and it makes no cents – WaPo

Gresham's Law says that people will hold the premier currency as a store-of-value.
3/05 China signals loosening of property curbs as Xi’s mantra omitted – Bloomberg
Xi wants to be in control for several more years. He has had to jump back on the tiger to keep employment from crashing.
The monetary inflation that bled over to the lower loop means that the middle class no longer receives a "living Wage". 51% of Americans receive a check from GOV. GOV needs MMT to keep those checks rolling
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