"Ed Huntress" wrote in message
...
posting stripped to RCM only

"Too_Many_Tools" wrote in message

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On Mar 27, 9:27 am, reinhardt wrote:
On Mar 24, 5:15 pm, Too_Many_Tools
wrote:

The jury is out on this one....

What do you think?

TMT

Recession is a given. Can we avoid depression?

Why avoid one when that was desired goal to begin with?

Do you know how financially reasonable depression labor is?

Actually your comment does make sense.

No it doesn't.

If one wants to level the world labor market in respect to costs,
one
must lower the United States labor costs to Third World levels.

No one wants to level the world market. They want the low-wage
countries
to
make the goods, and the high-wage countries to buy them. That's how
one
makes the most profit.

--
Ed Huntress

That's good thinking until the "high-wage" countries no longer have
the
money to buy products due to no longer having high wage jobs, which
went
overseas and are now done by low-wage workers. Who also aren't paid
enough
money to buy the products. At that point it's uh oh, who's going to
buy
all
this stuff?

Hawke

Somebody else. The Chinese are looking around as we speak, but I doubt
if
anyone will exceed the size of the US market for at least another
decade.
Except, perhaps, the Chinese themselves. That will be a good thing when
it
happens.

--
Ed Huntress- Hide quoted text -

- Show quoted text -

The Euro is in demand for a reason.

Yup. It's riding high right now.

The United States is the consumer it once was.

You probably mean "isn't the consumer it once was." Unfortunately, that
isn't true, but it would be a good thing if it were.

It likely will not be ever again...we have bills to pay and more coming
due.

Dr. Gloom and Doom, we will get through it.


Yes, we probably will. But we'll never be the same again. The US still
accounts for about a third of the world's economic output. It's down from
the highs and it's on a downward trajectory. The rest of the world is
catching up and we're on our way down to meet them. 30 year old men now make
less than their fathers did. The US is a declining power. That's just the
facts. Take away our military and we're not that big a deal anymore. At this
point all the military is doing for us is costing us money. We have no
global military threat but still are spending half a trillion a year
defending against threats that aren't there. Simultaneously we are engaging
in a war that is estimated by Nobel winning economist Joe Stiglitz to be
costing us three trillion dollars...at least. No wonder we're off our game.

Hawke