Stacy Summary: Seems the timeline on eco-eco holocaust is shrinking on all fronts. The wage gap between China and US wasn’t supposed to close for another 20 or 30 years. There are signs, however, that this gap is closing much faster than predicted. What’s your prediction? How soon will it close? How soon will Chinese workers earn more than American workers? Or do you think the entire globally economy and markets will collapse faster than either??
The US industrial giant General Electric raised eyebrows in May with plans to shift production of its hybrid water heater from China back to Kentucky next year after securing lower wages from US workers. The company cited the narrowing pay gap, lower transport costs, and shorter delivery times.
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Good morning Stacy.
@Beard – good morning, indeed!
Good morning all!
Mike
My boss ain’t gonna like this…
@Mike/Liverpool – isn’t anything crashing?!?!? how about oil@!?!?!?!
@Tamir – like what? uppity Chinese peasants?
Good morning all =) Can not wait for the next Keiser report!
@Stacy,
I wish the Chinese all the best. But my boss was counting on low production costs in China for quite some time now, and physical preparation are under ways to start it – hopefully is was not a bad decision. Thanks for the link by the way.
@stacyherbert
Both parties supported the WTO, NAFTA, GATT and so on. Some people stood up but not enough. Ironically Jesse Helms the hardcore rightwinger opposed all three. Many so called urban liberals supported these deals which have really damaged the middle class in the US.
@stacyherbert
Rupert Murdoch just gave a million to the Republican Governor’s Association. O’reilly attacked that abortion doctor Tiller for years and then he was shot to death. Whatever your view on abortion I personally oppose it, O’reilly in my view incited hatred against that man. That is very dangerous indeed! They love to incite Fox News.
.. Of course, I expect most of the developed economies to race to the bottom and attempt to equilibrate on their way down.
.. At the risk of perhaps changing the subject, I am lately intrigued by the recent renewal of discussions in the US and Canada to eliminate their pennies. This, to my mind, is a `tell`of coming worsening finance difficulties in both these economies. Both countries have been content up to now to merely reduce the copper content of their pennies, yet the coins continue to be valued below their cost of production. This would presumably be the consequence of perceiving the loss as the price we willing bear to avoid discussing the rate of deflation in our currencies.
.. The penny remains as the last vestige of real coinage. Perhaps one may see copper as the poor man’s silver. Australia and New Zealand of course abandoned their pennies around 1990 when the global and domestic economies did not appear so vulnerable. Canada and the US appear to have waited for the poorest opportunity to do so.
.. Interestingly, the corporate media in Canada present the issue rather disingenuously as one of annoyance, uselessness, and the difficulty in maintaining pennies in circulation. As an aside, they may venture to reveal that even the current copper-zinc penny costs 1.5 cents to produce. Informally I have asked a wide range of people their opinion in the matter and not a single one of them appreciated that the underlying issue was of inflation or that any enterprising individual could merely buy pennies to realize a spot profit of 50%. If anyone needed proof, we are revealed here as truly the most ignorant peasants on this planet.
Maybe these cheap labor Kentucky workers will live in “no pay the mortgages” houses…
http://www.rense.com/general91/could.htm
This is too cool: a fraud shell created by the scamsters: fannie, freddie, Mozila and Bof A blows up in their faces….bwhahahaha
Personally, I do not think these people should just be “given” quiet title.
They should have their mortgage evaluated for it’s underlying value today, then pay off the new lower balance, interest-free, into a charity fund, Like the S.S. Trust Fund ;<)
Illinois Brandon: “Many so called urban liberals supported these deals which have really damaged the middle class in the US.”
Correct: SO-CALLED.
By nitwits and nincompoops who swallow the labels msm places on us.
True Leiberals OPOOSED it.
Virtually EVERY “Conservatitive” supported it. So ONE, Jesse Helms, the rascist/ black babymaker didn’t: BFD.
Nice try to misdirect: no cigar.
Facebook taken over by the military industrial complex?
http://edition.cnn.com/2010/TECH/social.media/08/18/facebook.location/index.html?hpt=C1#fbid=cXhGcQCf5Xo&wom=false
!
Bill Fleckenstein @ KWN :
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/8/18_Bill_Fleckenstein.html
Expect Asian mean salaries to surpass US salaries at the point of meltdown.
However, there are phase delays to consider — so this must be seen as allowing the events to be simultaneous if they occur within 3 months of each other.
The US ‘point of maximal meltdown’ is also another interception point.
The moral is :
Follow the money flows, and money is fleeing the US and USD parts of the global finance system.
EVERYTHING GETTING KILLED !
Afternoon Stacy
Wheres Max, out singing?
Mike
“And just as a quick plug, we’re currently undertaking a financial sector assessment program in China. We just did one for the U.S., as you know. We’re now halfway through one with China, and in the next year’s Article IV consultation, we’ll bring that assessment to the Board. As part of that assessment we’ll be looking at these issues about how you change the cost of capital in China, how you develop the financial system, how you undertake monetary operations in a way that relies less on direct limits on credit and more on some traditional policy instruments like open market operations, changes in interest rates, and changes in reserve departments.”
http://www.imf.org/external/np/tr/2010/tr072910c.htm
Dude, that legal advisor was excellent! Check out my progress..
http://www.piratemyfilm.com/blogs/producer
ConDems setting up the UK to be the next slave labour camp.
Hope those pesky Greeks don’t beat us to it.
The wage gap is just a proxy for living standards, a.k.a. energy consumption. China pays lower wages because their working class consumes far less energy to support them performing an equivalent days work.
Modern Rigged Market Capitalism is forced to resort to Labor cost arbitrage, as there is no major labor saving innovations these days.
In a way this is Capitalism’s last gift to the world: A race to the bottom for the masses, whilst a handful try to siphon off the profits.
So – let’s all buy more Chinese goods so the Chinese workers will have to work harder for less, faster. Then the Chinese workers will Unionize and demand all the same rights as most Western workers enjoyed. Wage rates will go up in China, manufacturing will be redistributed to other poor countries, and the whole game starts over again. These globalists are playing stupid economic pet tricks. They need to get a clue before there is no ecology left. They have no solutions and are just greedy bastards helping no one. Where’s the Tobin tax when you need it:
http://www.youtube.com/watch?v=ZzZIRMXcxRc&feature=related
http://www.youtube.com/watch?v=SOM0BVxMQyU
@frances snoot: well said…the point is that China has an advancing economy and the USA is in decline..a wage is commensorate with the general worker attitude of the populous…as more folks are reaching out to the unemployment office here week after week, the Chinese have all the cards as they can offshore work here or elsewhere when wages falter….thereby as the major manufacturing base worldwide they control the game..and even as they develop their domestic economy to be independent more or less from the globalism that has made them great, they too will become an imperialist nation at some point
This reminds me of the paper released by GS a few years back…. How do we do a China? I guess you cause wages to fall in the west…
I am not sure of the US but UK house-prices need to go down a lot more
before wages can compete with China or India.
Same goes for (West) Europe.
I hope things will level out, you can’t move factories around that quick.
A lot of jobs require some amount of ‘skilled’ labour.
What if the Mexican wages go up more than the US?
Would they remove the ‘Berlin wall’ in between the US and Mexico?
How do we do a China? I guess you cause wages to fall in the west… chalcedonite
Who wants to do China? Remember, they have adopted a fascist economic model. The key to out-competing the world is to adapt a true capitalist model which would unite our country rather than divide it.
@F Bread Who wants to do a China?
I don’t… but GS does… according to their research.
I don’t… but GS does… according to their research. chalcedonite
Yeah, OK. I did not think you were in favor of it.
Potash’s Doyle Would Get $445 Million From BHP Offer
August 19, 2010, 5:51 PM EDT
By Christopher Donville and Laura Marcinek
(Updates with researcher’s comment in third paragraph.)
Aug. 19 (Bloomberg) — Potash Corp. of Saskatchewan Inc. Chief Executive Officer Bill Doyle stands to receive $445.4 million for his stock and options if BHP Billiton Ltd. succeeds with its hostile takeover offer.
http://www.businessweek.com/news/2010-08-19/potash-s-doyle-would-get-445-million-from-bhp-offer.html
100% wage increases at Foxconn, the Apple i-pod manufacturer.
http://www.lefigaro.fr/societes/2010/08/19/04015-20100819ARTFIG00483-foxconn-tente-de-redorer-son-image-aupres-de-ses-employes.php
http://www.dailymotion.com/video/x879rl_pub-parodie-iphone-version-courte_fun
The Chinese may soon experience the exported jobs phenomena as employers find more fiscally rational new labour markets to exploit in Thailand or Cambodia, this combined with a property bubble collapse will mean the lithium in Afghanistan will be in high demand to sooth frayed nerves…