Sunday, March 14, 2010

ALL IS GOOD..OR IS IT?

As we debate the war to re inflate the world's war with deflation by printing endless miles of dollars and putting them into the world's central banks to hold the ponzi up in rarefied atmosphere I continue to look for the strains on nature's law. As noted in previous post the ramp to the 61.8 fib will be met with increasing strains on commodity prices and costs of many essentials. After all these "third world countries" just aren't going to roll over and give these precious items away for freshly minted fiat currencies. Its gonna cost ya bud. Ran across some nice thoughts on China's building dilemna that you might like to read.

This is a global macroeconomic issue, but for China it is a domestic issue: There is a labor shortage in China, and those workers want to be paid. “Migrant workers are a lot more fussy than before,” He Suwei, chairman of Hangzhou Weibang Airflow Spinning Co in Zhejiang province, told China Daily. “They don’t just talk money; they talk about working environments, holidays and other fringe benefits we have not even heard of before. Workers have more say than us now because they have a wider choice.” Workers at the factory are now being paid about $270 per month, up 40% from the beginning of the global recession. At a nearby textile mill, the owner came back from the Lunar New Year holidays to find that many of his skilled workers didn’t return to work. He reluctantly had to raise wages. “I had no choice but to raise the salaries of my less experienced workers from 750 yuan a month to 960 yuan,” said the owner, Cao Yakun. “Also, to make sure the workers who did return stayed, I boosted my skilled workers’ pay by 10 to 15 percent.

http://seekingalpha.com/article/193461-china-s-yuan-dollar-peg-untenable-unsustainable-indefensible-unsound?source=hp_wc

http://www.scribd.com/doc/22606253/Hugh-Hendry-Eclectica-Nov09

Of course we have a bit of a "chinese standoff"..........
March 15 (Bloomberg) -- Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate, risking a further downturn in relations with the U.S. where lawmakers and economists say his stance is hampering a global recovery.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUXZHvMSSoWA&pos=1

3 comments:

  1. Interesting read on China workers...I wonder over the next decade as they push for higher wages, how long will "we" get cheap goods from them? Hmmmmm, let's see we sent those factory jobs over there. I'm willing to bet at some point later down the road, we won't be getting all that "stuff' so cheap. Is it possible we may once again produce clothing, furniture, toys, eletronics, and all the products we used make? My guess is yes! Bring the jobs back home, China won't have to worry about a labor shortage and we won't have 10% unemployment! Just my 2 cents anyway...Boycott Walmart, buy American when you can and if you can't find it American made, do without it if at all possible! The American dream is lost for many forever...ever wonder what happened? CHINA, Mexico, and all of the other countries that gladly took the jobs we thought we did not want! I'll give an example...when I was growing up, I did not have 20 pairs of jeans and neither did my friends. We did not go shopping at the mall every other week-end. We shopped for clothes at the beginning of each school year and shopped for summer clothes in the spring. Kids today and their parents are in a never ending shopping mode! But why not with 20$ jeans and 15$ shirts from Chinie Walmarty...get my drift? Every time Apple comes out with a new gadget, seems as though you're not cool unless you have it...just a few small examples of how in a backdoor way we f'ed ourselves...that me me me gotta have it all and NOW. We are getting what we deserve! Oh and anyone who thinks those workers won't push for unions...better think again! All in good time! TexasBlondie

    ReplyDelete
  2. Interesting read on TexasBlondie...hehe. Aint it da truth girl.

    ReplyDelete
  3. Perhaps the best video I have seen yet on these critical issues to our country. PLEASE send this on to as many as you can...TexasBlondie
    A New Video Concerning America

    Click & Watch
    http://www.youtube.com/watch?v=JVAhr4hZDJE

    ReplyDelete