Its Not All About Us
Jim Jubak presents some salient points we have touched upon previously: China and India's "populace placation" growth needs, rising inflation concerns, slowing corporate profits, the mirage of a "productivity miracle".
And the central banks misapplication of industrial capitalism economics to the new finance "money shuffler" capitalism and statistical inflation fudging.
Key Quotes: if inflation creeps upward from its current 2% to 3% range, bondholders and lenders would see a steady erosion of their capital. They might demand higher interest rates in that situation, making it tougher and more costly to raise capital, and slowing economic growth.
We're in the midst of a huge global labor glut. One result of integrating economies such as China, India and Vietnam into the global economy is a vast supply of young, cheap workers... which puts significant downward pressure on wages in the developed economies of the world.
In the past five years, productivity as measured by real GDP per hours worked has climbed in the United States by about 14%. But the real wages of non-managerial workers in the manufacturing and service sectors have climbed by just 2%.
Is there any real danger that (workers) will be able to successfully demand the kind of wage hikes that an inflationary wage-price spiral requires?
And the central banks misapplication of industrial capitalism economics to the new finance "money shuffler" capitalism and statistical inflation fudging.
Key Quotes: if inflation creeps upward from its current 2% to 3% range, bondholders and lenders would see a steady erosion of their capital. They might demand higher interest rates in that situation, making it tougher and more costly to raise capital, and slowing economic growth.
We're in the midst of a huge global labor glut. One result of integrating economies such as China, India and Vietnam into the global economy is a vast supply of young, cheap workers... which puts significant downward pressure on wages in the developed economies of the world.
In the past five years, productivity as measured by real GDP per hours worked has climbed in the United States by about 14%. But the real wages of non-managerial workers in the manufacturing and service sectors have climbed by just 2%.
Is there any real danger that (workers) will be able to successfully demand the kind of wage hikes that an inflationary wage-price spiral requires?
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