WE ARE EXPERIENCING A MASSIVE SHIFT OF CAPITAL, PLANT AND EQUIPMENT FROM THE OLD INDUSTRIAL WEST...TO THE NEW INDUSTIRAL EAST...
IN FACT THAT TRANSITION HAS ALREADY HAPPEN...WHAT IS HAPPENING NOW IS THE ECONOMIC EARTHQUAKES THAT FOLLOW SUCH A MASSIVE SHIFT...
THE SCARY PART IS THAT IT MAY BE TOO LATE TO DO ANYTHING ABOUT IT...
THE ONLY SOLUTION FOR THE WEST...THE US AND THE EU...IS TO IMPOSE TARIFFS ON CHEAP LABOR ECONOMIES...TO "LEVEL THE PLAYING FIELD"....
BUT THAT WOULD BE A MAJOR DISRUPTION TO THE GLOBAL TRADING SYSTEM...AND NO ONE WHATS TO GO THERE AS YET...
WHAT BERNANKE AND THE FED ARE REALLY DOING IS PRINTING MONEY TO FILL IN THE GAP IN THE US BALANCE OF PAYMENTS...IE TRADE DEFICIT...
AND OMINOUSLY...THE FED CAN PRINT MONEY FOR THE GLOBAL ECONOMY BECAUSE OF THE DOLLARS STATUS AS RESERVE CURRENCY OF CHOICE...NEXT TO GOLD...
THE FED IS REALLY FINANCING ITS OWN DEMISE...AND THE DEMISE OF THE US ECONOMY...WHICH IS THE MAIN DRIVER GLOBALLY OF THE SHIFT FROM WEST TO EAST...
NONE OF THIS REALLY MATTERS TO INTERNATIONAL CAPITAL...WHICH UNDER FREE TRADE REGIMES CAN "GO ANYWHERE"....
WHERE IT DOES MATTER IS IN PLACES LIKE CYPRUS....AND THE US AND EU WILL NOT BE ABLE TO AVOID THE "CYPRUS DISEASE"....!
ITS ONLY THAT THE WEAKER ECONOMIC LINKS...LIKE SOUTHERN EUROPE... SHOW THE SYMPTOMS FIRST...
THE US AND EU SIMPLY CAN NOT AVOID THEIR FATES...AS LONG AS INTERNATIONAL CAPITAL RULES ... THAT WILL ONLY CHANGE WHEN THE PUBLIC IN THOSE AREAS REALIZE THAT :
IN FACT THAT TRANSITION HAS ALREADY HAPPEN...WHAT IS HAPPENING NOW IS THE ECONOMIC EARTHQUAKES THAT FOLLOW SUCH A MASSIVE SHIFT...
THE SCARY PART IS THAT IT MAY BE TOO LATE TO DO ANYTHING ABOUT IT...
THE ONLY SOLUTION FOR THE WEST...THE US AND THE EU...IS TO IMPOSE TARIFFS ON CHEAP LABOR ECONOMIES...TO "LEVEL THE PLAYING FIELD"....
BUT THAT WOULD BE A MAJOR DISRUPTION TO THE GLOBAL TRADING SYSTEM...AND NO ONE WHATS TO GO THERE AS YET...
WHAT BERNANKE AND THE FED ARE REALLY DOING IS PRINTING MONEY TO FILL IN THE GAP IN THE US BALANCE OF PAYMENTS...IE TRADE DEFICIT...
AND OMINOUSLY...THE FED CAN PRINT MONEY FOR THE GLOBAL ECONOMY BECAUSE OF THE DOLLARS STATUS AS RESERVE CURRENCY OF CHOICE...NEXT TO GOLD...
THE FED IS REALLY FINANCING ITS OWN DEMISE...AND THE DEMISE OF THE US ECONOMY...WHICH IS THE MAIN DRIVER GLOBALLY OF THE SHIFT FROM WEST TO EAST...
NONE OF THIS REALLY MATTERS TO INTERNATIONAL CAPITAL...WHICH UNDER FREE TRADE REGIMES CAN "GO ANYWHERE"....
WHERE IT DOES MATTER IS IN PLACES LIKE CYPRUS....AND THE US AND EU WILL NOT BE ABLE TO AVOID THE "CYPRUS DISEASE"....!
ITS ONLY THAT THE WEAKER ECONOMIC LINKS...LIKE SOUTHERN EUROPE... SHOW THE SYMPTOMS FIRST...
THE US AND EU SIMPLY CAN NOT AVOID THEIR FATES...AS LONG AS INTERNATIONAL CAPITAL RULES ... THAT WILL ONLY CHANGE WHEN THE PUBLIC IN THOSE AREAS REALIZE THAT :
ALL ECONOMIES ARE LOCAL!
