Friday, June 12, 2015

Globalization: Save Money. Live Jobless

It was never going to work. It took history's largest grab bag of dumbfucks to even try.

By forklifting production (jobs and industries) from wealthy nations to poor nations, Globalization simultaneously increased supply while decreasing demand. The difference is brokered by debt aka. corporate profits. Until it's not. Below, deflation visualized via Global supply and demand, now artificially separated. When the debt goes away, so does the consumption oriented lifestyle:

The Walmart pseudo-"Economy":

Jobless "consumers" in one locale, and poverty-stricken factory slaves in the another:

In a world with an unlimited supply of labour where 3+ billion people live on $2.50/day, the marginal cost of labour is $2.50 per day. Meaning the demand curve is permanently shifted to the left, until trade policy changes:

U.S. trade deficit versus U.S. Debt.
The adults left the building in 1980 when Bonzo went to Washington:

Forward deflation expectations via long-term Treasury yields

Corporate country club fucktards still haven't figured out that they will be laying themselves off next.

And then, everyone will be on the same page. Finally.