As I will continue to say until I am blue in the face, you can’t rather suddenly add 3.5 billion people to the free market (half the world’s population) and not expect the 700 million people in the developed world to remain competitive at dramatically higher wages than those accepted by the new arrivals.
But then on the other hand, also just yesterday, Tyler Durden at Zero Hedge had a justifiable freak-out over the NY Fed asking Primary Dealers for their thoughts on the size of QE2. According to Bloomberg, the NY Fed was asking the dealers how big they thought QE2 would be, and how big they thought it ought be: $250 billion? $500 billion? A trillion? A trillion every six months? (Or as Tyler pointed out, $2 trillion for 2011.) That’s like asking a bunch of junkies how much smack they want for the upcoming year—half a kilo? A full kilo? Two kilos? What the hell you think the junkies are gonna say?
When the world biggest debt investor (PIMCO) calls the world biggest debtor (the US Government) Charles Ponzi, we are up for trouble …
See November investment outlook by Bill Gross: Run Turkey, Run.
