Monday, June 6, 2016

The Grapes of Wrath 2016: Globalization Is Bankrupt

Morally, intellectually, and financially...
It's musical chairs with (good) jobs, and we're just waiting for the last entitled uber-dunces to realize they're next. At which point the underwear shall be mighty stained...

The Globalized *Free* Trade fantasy is now supported solely by non-stop talking and bullshit. Imbalanced trade could NEVER lead to a sustainable global economy. Overnight we got further proof of that obvious fact, as if we really needed it...

Along with GDP, no other Chinese economic figure is viewed as suspiciously as the official unemployment rate, which hasn’t moved from 4% in years despite stock market upheavals, real estate boomlets and busts, and a dramatically slowing economy.

Fathom says its underemployment rate measures joblessness at 12.9% in China, triple its reading in 2012.

Why? Because $.80 per hour is now too high...

It's a race to the bottom:
BBG: June 6, 2016:

"More than half of the members of the American Chamber of Commerce in China said the increase in costs was the biggest challenge to their businesses in the country, according to a 2016 Business Climate Survey. About a quarter of respondents said they have either already moved capacity out of China or are planning to do so."

Dongguan replaced 43,684 workers with robots in 2015, cutting costs at those factories by nearly 10 percent, according to the local government.

Lu Miao, a vice general manager of Lyric Robot in Guangdong’s Huizhou city, said the government pays as much as 50,000 yuan to Lyric’s customers for each robot they use to replace workers.

“The government at all levels in Guangdong has been encouraging companies to replace human workers as rapidly as possible,” said Lu. “I can see our business increasing more than 50 percent this year.”

Henry Ford II: Walter, how are you going to get those robots to pay your union dues?

Walter Reuther: Henry, how are you going to get them to buy your cars?

The stock buyback ETF
Choose the delusion...because it's the last one:

Free to be bankrupt: