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Old 02-26-2014, 10:27 PM
 
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Much of the conversation here reflects the labor arbitrage in the global economy. The whole debate about rich vs poor and 1% vs 99% is the result of labor arbitrage.

Labor arbitrage has two components. One, opportunities go from the developed world to some developing countries. Two, people go from the developing world to developed nations. As a result, companies profit tremendously while labor in developed nations face stagnant wages. Workers I'm developing nations eventually see their income go up. The migration of workers also help lower labor cost in developed nations that had economic borders. The migration of high skill labor to developed nations enable some job creation, employment flexibility and successful innovation.

Much consumption now occurs in countries like India and China. Off shoring in the future makes more sense because it's made where it's used and consumed. This is a deeper stage of globalization. The biggest markets are overseas. Most goods probably don't ship back to the US. Furthermore, if China becomes the main market it seems to make sense to have engineering and innovation in China where all the action is. China produces lots of STEM professionals.

It looks like our elite wants this global free trade system to define American economy. It'll be interesting to see what happens.
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Old 02-28-2014, 01:34 AM
 
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Quote:
Originally Posted by Costaexpress View Post
It looks like our elite wants this global free trade system to define American economy. It'll be interesting to see what happens.
The ultimate goal is a single world government dictatorship which will initially be disguised as a democracy (along the lines of the European Union) to get people to go along.

The other goals include a single world currency which will be facilitated by orchestrated financial crises like the one we had in 2008. (It always follows the same pattern. Problem - Reaction - Solution...People are all too willing to give up their rights/sovereignty when there is a crisis).

Economically, they'll organize cartels based on the ones we already have: An energy cartel, a health care cartel, etc. Kind of along the lines of what they already have in China...It'll just be on a global scale. It's all being planned and the plan to centralize power at the top has been in effect for over 200 years.
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Old 02-28-2014, 02:18 AM
 
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Wow, the forefathers sure had a lot of foresight!

On a side note, I went to this year's halloween party disguised as a democracy! On the outside it was an Uncle Sam suit and underneath, The Koch Brothers!
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Old 02-28-2014, 05:56 PM
 
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Originally Posted by mysticaltyger View Post
The ultimate goal is a single world government dictatorship which will initially be disguised as a democracy (along the lines of the European Union) to get people to go along.

The other goals include a single world currency which will be facilitated by orchestrated financial crises like the one we had in 2008. (It always follows the same pattern. Problem - Reaction - Solution...People are all too willing to give up their rights/sovereignty when there is a crisis).

Economically, they'll organize cartels based on the ones we already have: An energy cartel, a health care cartel, etc. Kind of along the lines of what they already have in China...It'll just be on a global scale. It's all being planned and the plan to centralize power at the top has been in effect for over 200 years.
I'm not sure about that. The powerful players in the world will be multinational corporations, which not only have mass employment, but are the main engines of technological innovation. Their influence can be seen in all kinds of free trade agreements among nations. They can freely re-locate and allocate jobs across the world. To fit in, people have to migrate. This global economy is particularly bad for those who expect to be taken care of without having to acquire skills and upgrade them. But it is particularly good for those who are entrepreneurial and innovative. We have gotten to an economy where you have to help yourself, better yourself, make yourself valuable. The economic boundaries between nations are mostly gone. The West faces long-term poverty. But those who are smart and focused can potentially better themselves. But you can't sit and wait around.
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Old 03-01-2014, 01:25 AM
 
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I'm not sure about that. The powerful players in the world will be multinational corporations, which not only have mass employment, but are the main engines of technological innovation
Corporations are merely a vehicle used to acquire power. They are not the only vehicle to that end. Government, organized religion, and other institutions are also used as vehicles.

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Quote:
Originally Posted by Costaexpress View Post
Their influence can be seen in all kinds of free trade agreements among nations. They can freely re-locate and allocate jobs across the world. To fit in, people have to migrate. This global economy is particularly bad for those who expect to be taken care of without having to acquire skills and upgrade them. But it is particularly good for those who are entrepreneurial and innovative. We have gotten to an economy where you have to help yourself, better yourself, make yourself valuable. The economic boundaries between nations are mostly gone. The West faces long-term poverty. But those who are smart and focused can potentially better themselves. But you can't sit and wait around.
I think much of this is true....but when you put it in a longer term and larger context, it doesn't conflict with what I've said.
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Old 03-02-2014, 04:40 PM
 
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Arbitrage eventually corrects itself. Japan, believe it or not, was once a low wage country that made low end radios and even children's clothing. It wasn't till the 80's that it became a leader in advanced technology with labor costs equal to those in the US. And China is no longer the cheapest labor market. Of course if the multinationals drag the US down too far, there will be hell to pay, even with the politicians they own.
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Old 03-02-2014, 07:16 PM
 
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Originally Posted by pvande55 View Post
Arbitrage eventually corrects itself. Japan, believe it or not, was once a low wage country that made low end radios and even children's clothing. It wasn't till the 80's that it became a leader in advanced technology with labor costs equal to those in the US. And China is no longer the cheapest labor market. Of course if the multinationals drag the US down too far, there will be hell to pay, even with the politicians they own.
Of course labor arbitrage changes, like all things economic. China has become much more affluent than it once was thirty years ago. This has been largely to due global economics.

What do you mean by "there will be hell to pay"? Multinationals have already dragged the U.S. down quite far, and they don't seem to have a plan to stop.
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Old 03-02-2014, 08:57 PM
 
Location: Minnesota
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The global trading system is supposed to "make America richer". But NO one ever said it would make YOU richer. No, it merely expands the GDP. If the lion's share of that goes to an elite that already was more than rich enough, it does not refute the belief that the GDP benefitted. Trouble is, a lot of working people were hornswoggled to believe somehow it would improve their lifestyle. And the only way that has happened is through towering personal debt. Debt standards were lowered and lowered. Then the bought Congress made sure any debt taken on would haunt you for your lifetime. Had people awakened at that moment and zeroed out their debt, believe me, the whole house of cards would be on the ground. its all a self-delusion. Frankly, if Asian dictatorships had just refused to buy US bonds, that would have blown the cover off the deception. So capitalism is deeply indebted to the crushers of freedom in China. I'll bet they are intensely proud of that.
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