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Ugly End of Globalism
#1
I extracted part of a longer article here.

https://economicprism.com/the-ugly-end-o...alization/


The Ugly End of Globalization


"The capital defect of America’s contrived economy is the capital itself.  Namely, it’s fake.  The importance of this defect cannot be overstated.

After Nixon removed the discipline of gold from the world monetary system the money supply could be inflated without limits.  For U.S. consumers, this translated into consumer price inflation.  Things got ugly quick.

By 1980, the CPI was at 13.5 percent and the yield on the 30 Year Treasury hit 15 percent.  Fed Chairman Paul Volcker had to jack the federal funds rate up over 20 percent to keep prices from coming completely uncorked.  Indeed, things got ugly.

About this time, something even more historic happened.  Roughly one billion Chinese workers, who were willing to work for less than peanuts, joined the global workforce.  As a result, the U.S. was able to export its inflation – and jobs – to China and other emerging economies over the next three decades.

At the same time, the prices of goods and services that couldn’t be exported – like health care and college tuition – inflated with the money supply.  In addition, the gap from stagnant U.S. wages, due to the flood of cheap labor abroad, was made up with an endless supply of credit.  Financial assets, like stocks, bonds, and real estate, also inflated beyond comprehension.

At the end of the cycle, however, the Dow came up short of 27,000.  Massive public and private debts, runaway deficits, trade tariffs, and the end of globalization have set the table for the return of consumer price inflation to the U.S economy.

Make what you want of Trump’s trade policies.  You may like them.  You may not.  But there’s little he or anyone else can do to stop the ugliness that’s coming."


Sincerely,
MN Gordon
for Economic Prism
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#2
Good article.
International trade went from being a great idea to being an ideology: a reset is/was needed.

The article ignores the effect of Japan- what came before China.

Played correctly, China can be dealt with in a similar manner to how Japan’s trade cheating was sorted out.
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#3
(06-01-2019, 12:21 PM)aqua Wrote: I extracted part of a longer article here.

https://economicprism.com/the-ugly-end-o...alization/


The Ugly End of Globalization


"The capital defect of America’s contrived economy is the capital itself.  Namely, it’s fake.  The importance of this defect cannot be overstated.

After Nixon removed the discipline of gold from the world monetary system the money supply could be inflated without limits.  For U.S. consumers, this translated into consumer price inflation.  Things got ugly quick.

By 1980, the CPI was at 13.5 percent and the yield on the 30 Year Treasury hit 15 percent.  Fed Chairman Paul Volcker had to jack the federal funds rate up over 20 percent to keep prices from coming completely uncorked.  Indeed, things got ugly.

About this time, something even more historic happened.  Roughly one billion Chinese workers, who were willing to work for less than peanuts, joined the global workforce.  As a result, the U.S. was able to export its inflation – and jobs – to China and other emerging economies over the next three decades.

At the same time, the prices of goods and services that couldn’t be exported – like health care and college tuition – inflated with the money supply.  In addition, the gap from stagnant U.S. wages, due to the flood of cheap labor abroad, was made up with an endless supply of credit.  Financial assets, like stocks, bonds, and real estate, also inflated beyond comprehension.

At the end of the cycle, however, the Dow came up short of 27,000.  Massive public and private debts, runaway deficits, trade tariffs, and the end of globalization have set the table for the return of consumer price inflation to the U.S economy.

Make what you want of Trump’s trade policies.  You may like them.  You may not.  But there’s little he or anyone else can do to stop the ugliness that’s coming."


Sincerely,
MN Gordon
for Economic Prism
Totally agree! And that is what I said in the pass.. stagflation is coming  . . Parking ur money in hard assets instead of paper assets.. .
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#4
COMMUNISM-SOSCALISM-PROGRESSIVE-GLOBALISM ALL 3 ARE THE SAME DAMN THING, AND ONLY THE NAME HAS CHANGED.
REALITY... IT DON'T GIVE A DAMN ABOUT YOUR "TENDER FEELINS"
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