Wednesday, June 09, 2010

Massive Global Trend Change!

Massive Global Trend Change!

 

This just in… big news hitting the world economy starting approximately this year… Peak production of cheap goods.  Here forward, stuff gets more expensive.  This will impact the world in a big way. 

 

Could there be a silver lining?  Maybe now countries will have a chance to (be forced to) expand their internal manufacturing again?

 

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Global Trend Change!

 

 

You are about to read one of the single most important pieces of this year. China to be the engine of inflation going forward? From the NY Times, China helped many global companies lower costs and prices. “But this may be the beginning of the end of an era.”

 

 

Also from the Times, “The shift was dramatized Sunday, when Foxconn Technology, one of the world’s largest contract electronics manufacturers and the maker of everything from the Apple iPhone to Dell computer parts, said that within three months it would double the salaries of many of its assembly line workers.”

 

The Times article continues:

 

The announcement follows a spate of suicides at two Foxconn campuses in southern China and criticism of the company’s labor practices.Taiwan-based Foxconn, which has more than 800,000 workers in China, said the salary increases are meant to improve the lives of its workers.

 

The changes are coming about because of the growing clout of workers in China’s sizzling economy, analysts say, and because soaring food and housing prices are eroding the spending power of migrant workers.

 

But there are other reasons. Analysts say Beijing is backing wage increases as a way to spur domestic consumption and make the country less dependent on low-priced exports. The government hopes the move will force some export-oriented companies to invest in more innovative or higher-value goods.

But Chinese policymakers also favor higher wages because they could help ease a widening income gap between the rich and the poor.

 

Last Thursday, the Beijing municipal government said it would raise its minimum wage 20 percent to about $140 a month; several other cities are preparing to implement similar increases.

 

United States and European Union officials have been pressing China to help improve the health of the global economy by consuming more and reducing the country’s massive trade surpluses.

 

Rising labor costs here aren’t the end of cheap production in China, analysts say, but they are likely to help change the country’s manufacturing mix.

This is one of the most important articles of the year and you should pass this blog link around to friends or business associates who have the capacity to understand the significance of this article.

 

To summarize, there is a tremendous change which will occur globally as China exports to the world and the deflation they have exported is coming to an end. On a go forward basis China will export inflation. Although the impact of this event will take a little time to be felt, it will have a long lasting impact and translate into higher prices and inflation.

 

Make sure you are protected by owning hard assets such as gold and silver. That means taking possession of gold and silver not owning paper gold or silver.

 

For the link to the NY Times Article CLICK HERE.

 

Eric King

KingWorldNews.com

 

 

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More…

 

The article below comes with photo illustration of what is being presented from China…

 

http://www.huffingtonpost.com/2010/06/08/why-the-end-of-cheap-chin_n_600330.html

 

This will be very convenient for the bankers in 2 or 3 months when their bailout currency hits the general money supply.

 

“Oh, look at inflation, isn’t it horrible.  It isn’t because we printed trillions out of thin air and gave it to ourselves.  Not at all.  It is those Chinese doing it to us.” – Bernanke paraphrase (prediction).

 

There are a thousand hacking at the branches of evil to one who is striking at the root. -  Henry David Thoreau

 

Round and round we go, media always steering us away from the disease (root) but always the symptoms (leaves).  Why?  Because it is more profitable for us to leave those in power in control of the rigged system as it continues to transfer wealth away from the masses and towards the elite 1% banker class.

 

-         Tate Ulsaker

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