The underlying cause of the problems in Greece and in California are the same...
There has been a long term and massive transfer of wealth from the West to the East...mainly to Japan, India and China.
This was caused by the unwillingness of the West to defend its markets and competitive advantage...
The costs of Social Democracy in the West...with its generous safety net...caused International Capital to seek out cheaper labor and production costs...
Essentially the big unanswered...and unasked....question is ...DOES CHEAP LABOR RULE THE WORLD ECONOMY....
If the answer is yes...then Asia WINS BIG...AND THE WEST DECLINES...
If the answer is to protect local markets and use the local economy as a "social tool"....then we have a BRAVE NEW WORLD...as yet undefined....
The absolute acceptance of Free Trade in the West...as always "good"...
Despite the archaic merchantilist economics of Asia...has put the West in a dismal Lose-Lose situation...
Despite the archaic merchantilist economics of Asia...has put the West in a dismal Lose-Lose situation...
Finally...all of this is coming to a head... Make no mistake...2010 could still be a year much worse than 2008....
The Free Money Forever monetary policies of the West...have only made matters worse...by trying to revive the asset bubbles...while financing even more over-expansion in Asia!!
What is most concerning...is not the lack of answers...
But the ODD inability of the West to even ask the right questions...
But the ODD inability of the West to even ask the right questions...
