Monday, November 15
Memo to the American Middle Class: you're fucked!
From: The Blogging of the President: 2004:
There's a simple number that tells us which side is winning the political economic war: distillates against gasoline.Read the whole damn thing. It's rather depressing. Extremely when you don't have a job, and your job prospects which should be looking good aren't looking so good. Relevant Link Permanent link posted by bytehead @ 11/15/2004 06:31:00 PM
Huh?
Roach joins the "make the poor pay" consensus.
The possible unwindings of the current US account deficit problems are simple:
1. Global financial meltdown, including an unravelling of US dollar position.
2. Unwinding of US overconsumption, requiring a 25% slash in US standard of living.
3. In a generation a global war for oil as unsustainable financial arrangements are rebalanced by military means.
The third is the least destabilizing: the US consumes too much of fundamentally scarce resources, and simply slashing the consumption of these resources down to a sustainable level - the Argentinization of America - would leave the wealthy intact at the top, trade arrangments as they are, and allow a gradual consumerization of more energy efficient economies - such as urbanized China.
Roach now joins the "Memo to the American Middle Class: you're fucked" consensus. That is what "a weaker US dollar rebalancing" means, because a weaker dollar means you have to work more to buy less from others.
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