Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Sunday, April 19, 2015

Pandora's Deluge: Third World Deflation

The Fed didn't create first order deflation, as many desperately would have us believe. They certainly financed it, and they facilitated it, but they didn't create it in the first instance. Low interest rates didn't cause outsourcing, outsourcing caused low interest rates. Which subsidized further labour substitution.

Job killing 0% interest rates are compliments of Third World factory slaves:
Net exports and interest rates

First order deflation came from buying cheap junk in one country and selling it in another, brokering the difference with debt. One-way industrial arbitrage, with Third World convergence waiting at the end of it all.

Until that ends, there will be no real jobs. The Titanic has a gaping hole in its side and no amount of Fiscal/Monetary bailing will fix it.

But we are surrounded by dunces, so they get to find out the hard way. There is no free lunch in Walmart world.