Zodiac Times » recession

AMERICAN ECONOMY S.O.S.

Ella Moss — Tue, 09 Aug 2011 04:35:15 +0000

So it happened.
In my predictions in Financial Crisis – It’s Not Over Until It’s Over I was wrong by pinpointing 8/1/2010 as the crest of our economic troubles. The economic tsunami came exactly 1 year later.
I think it is because I have mistaken Mars for a trigger of the events. As I’ve said in my article The Moon, the trigger was the lunar eclipse that came on the darkest day of last year – the winter solstice. It fell on those sensitive degrees, marked by planetary war on American Venus that I have described in Financial Crisis article.
This lunar eclipse made things darker and bigger. Not only our economy has trembled, but the political debacle over debt-ceiling marked the crisis of our government as well.
Our country is in the free fall, just like financial markets, because our government was found to be absolutely inept.
Here I’d like to cite from an article I found on the internet today:
“Economics professor Bradford Delong, from the University of California-Berkeley, says the damage done through the six months of wrangling over the debt ceiling, which analysts note has been lifted 78 times since 1960 and 49 times under Republican presidents, was a distraction the US could ill afford.
Writing in the Australian Financial Review, Professor Delong decries the neglect of all the “useful policies that might have been debated and enacted, but were not”, citing climate change initiatives, policies to boost employment, education and healthcare financing, plus improvements to America’s “decaying infrastructure”. These policies, he believes, would help improve the economy in the long run and bring down unemployment that, according to the US Bureau of Statistics, is at a high of 9.2 per cent. Looming large also was the loss of standing as “conductor of the international economic orchestra”, Professor Delong wrote, warning that if the US can no longer be relied upon as the arbiter of global governance, then the world needs to develop “other institutions for global management” – and fast.”
Well, Chinese are already issuing warnings of dollar devaluation, acting as the financial cop of the world – the title previously reserved for the U.S. government.
We are sliding from our perch of super-power to the “also has been” super fast, and there are not enough grown-ups on the Capitol Hill to save us. I think I was overly optimistic in all my predictions. I think I should revise them as follows:
a) the U.S. is going to be marred in prolonged depression, with real unemployment (counting those who are no longer eligible for benefits) at about 30%. The wage and property deflation are going to make 90% of the population to be so poor as living hand-to-mouth. Meanwhile, groceries, gas and transit costs are going to grow at 10% – 20% inflation rates.
The economy is going to contract until 2014, when it may begin to show some growth again.
The majority of the population will remain poor for many years to come though, as policies and competition over jobs would wipe out unions and, with them, the remnants of the middle class. In other words, we are no longer going to be the consumer society, with 70% of economy depending on consumption.
b) The crime and civil unrest would become much more evident for many years to come.
c) Politics would continue to make our government more and more disfunctional
d) The good news is we are likely to stop making wars abroad
e) Europe is not likely to be spared either. Once Germany is going to find itself unable to carry the rest of the European states, European Union is likely to disintegrate back into miriad of states, and so will the euro.
f) Chinese economy will faulter as well, as dollar and euro falls, but it will survive and will take the super-power title
g)Russia, Canada, Australia, Brazil and India will fair much better, getting stronger over the next decade, while the U.S. and Europe are going to struggle to survive.
h) Africa, Afghanistan and Middle East are going to continue to be the worst places to live in, maintaining the global terror threat.
In other words, it sucks, and whatever Obama or the next administration is going to do is going to be too little too late.

Tagged: Africa, astrological predictions, astrology, Capitol Hill, China, civil unrest, crime, dollar, economy, euro, Europe, financial crisis, global economy, government, great depression, India, mars, money, Moon, Obama, Pluto in Capricorn, politics, predictions, recession, terror, unemployment, war, worry

THE ENEMIES IN OUR MIDST OR HOW TO KILL THE WORLD’S LARGEST ECONOMY

Ella Moss — Sun, 12 Jun 2011 03:02:02 +0000

I just heard on the news that the 3rd Al Queda biggie was killed, giving the U.S. the edge on that murky shapeless war on terror we have been officially waging since 2001.
While I am happy to hear these news, I think that even we were to win the 4 wars (1.this “war on terror”; 2. in Afghanistan; 3. in Iraq; 4. in Lybia), we’ve been waging since the fateful 2001 (and I am not counting the “war on drugs”), we are heading to lose our way of life.
It’s not the democracy I am worried about here, but material comfort and relative peace on the streets (outside of occasional shootings and muggings).
It appears that there has been another war waging, and it is on American economy.
It’s beginnings are murky. But I would trace it as far back as Reagan’s Administration, that first began an unofficial war on unions. Unions make labor-intensive manufacturing very expensive and eat into profits of investors.
Well, nobody likes unions (except for unions’ bosses), so what’s the big deal?
The big deal is that everybody likes the middle class.
The middle class is as essential to any economy, as an engine to a car. Without it, economy is dead.
Even if we were to end up with a few thousands of super rich dudes, while the rest of us would struggle to survive (i.e. the middle class would disappear completely), all the many billions of these super rich would not create the job growth a multi-million population requires. They would invest into emerging markets, not the dying ones.
Why would they create a factory of any kind in the U.S., where people are struggling to stretch a dollar to pay rent, bills and buy groceries and their discretional income is so tight that all they can afford is cheap Chinese goods in Walmart, when these super rich investors can build a factory in Brazil, or India, or same China, where people are eager to spend their increasing earnings?
By the way, is not it one of the main reasons, that the numbers of unemployed right now stay where they are despite us giving continuous tax breaks to these super rich?
Yes, the second attack on American economy began during the prosperous 1990s, when Clinton Administration signed away any kind of protection of American labor force, and internet was born (internet makes outsourcing a breeze).
Suddenly, American labor force had to compete with the labor force of other countries, and American people could no longer ask for wage increase, because the majority of the world’s labor force was so much cheaper and just as good.
It took about 10 years for Americans to notice that their incomes were stagnating while their bills grew. They kept waiting for their personal prosperity to come, while changing jobs, professions and investing into 401K and increasingly expensive real estate.
But Clinton Administration also approved the deregulation of financial markets.
Suddenly, the credit was so cheap and so available, that the American people have not noticed that their actual discretional income was dwindling to nothing.
Why worry, if one could still buy a McMansion, and buy even more stuff by turning the McMansion into an ATM machine?
Yes, 1990s were prosperous. The economy was booming as people were eager consumers. The problem was that everything was bought on credit rather then with actual money.
Everyone was expecting the actual income to catch up, as it used to.
But it did not, because so many jobs have either left the country or paid as much as in other (read CHEAPER) countries.
Eventually, the credit bubble had to burst, and it did in 2008.
If the federal government did not pump money into the banks that lost the money by lending it to population so indiscriminately, The economy would have simply collapse like it did in Argentina in 1990s.
Americans were saved, although suddenly they came face to face with their economic reality and realized they were so much poorer than a decade ago.
So many of them have lost their job, that those who did not no longer dared to ask for a wage increase or benefits or union perks. In fact, they started giving up their last benefits and perks just so they could keep a job.
And that is when the final attack on American economy began.
Since it was now the federal government that was pulling the economy down the road as its engine, the middle class, stalled, the enemies in our midst began to attack the federal government.
The ideas Obama put on the table were nothing short of brilliant: invest federal dollars into aging crumbling infrastructure and green economy – labor-intensive enterprises that must hire domestic labor force. Every created job would spur on 10s of other jobs, and the economy would begin humming again.
But the enemies in our midst thought otherwise. Suddenly, federal deficit began to be used as a panic-inspiring weapon of choice.
Of course, the surplus that Clinton Administration left the country with would have been a much better deal. But if credit is sparse everywhere else, how else would you come up with money needed to pump the economy?
The enemies in our midst said, “Let starve the federal government of tax income, let’s keep taxes low so the few super rich would invest their money into economy. The government is too big and lives beyond its means. Its deficit is going to bankrupt our children”.
Americans love their children, so anything threatening the kids works as a great scarecrow.
They are also badly educated (read my American Education Reform ).
So Obama’s proposals were decimated, the government began shedding its work force, unemployment came back to its pick numbers, and unions everywhere lost their power and benefits.
Now there is no one to pull our economy from the brink. Those who are employed, work at REDUCED wages, that are getting closer to the 3rd world range.
Meanwhile, every single life staple, like groceries, rent, cable bills, insurance, etc. doubled or more in price (as compared to 10 yrs ago or less). Even those who work at median salaries have less money to buy desirable but unnecessary things.
This means that businesses producing and selling anything that is not a life staple make less profit so they begin to shed their labor force.
The less there is labor force, the less income the government gets. Since deficit is now a dirty word, the government has no choice but shed its work force and cut services to the impoverished population.
Now the time came to put the final nails into the coffin of what used to be the largest world economy: refuse to raise the ceiling on federal credit.
Once the federal government loses its credit-worthiness, watch American economy collapse into THE GREATER THAN THE GREAT DEPRESSION ditch.
The idiot dream of labor-intensive manufacturers like Koch brothers would come true:
labor in America would become as cheap as in Africa.
Unfortunately, the American workers would no longer be able to afford using the toilet paper they manufacture for Koch brothers. Like their African brethren, they would have to use tree leaves to wipe their asses. So Koch brothers would eventually go broke too.
No, it is not the federal deficit that threatens the future of our children. It is our inability to discern the enemies in our midst.
As for the scary federal deficit, it was Reagan administration that first racked it up into the trillions. Then Bush administration turned the surplus into another multi-trillion dollar debt. No one screamed of deficit while republicans were in power. The congress did not attack neither of the republican presidents for taking us into expensive wars (Reagan’s Panama blitz, Nicaragua fiasco, etc.; Bush’s Afghanistan, Iraq and the amorphous war on terror).
No, I am not happy at all with Lybia war either. I just don’t think it matters much anymore.
Like I predicted in 2008, “FINANCIAL CRISIS – IT’S NOT OVER UNTIL IT’S OVER”

Tagged: Al Queda, Bush, deficit, economy, financial crisis, global economy, great depression, India, Iraq, money, news, Obama, outsourcing, politics, predictions, Reagan, recession, taxes, unemployment, war, worry

LIBERATION

Ella Moss — Sun, 05 Dec 2010 06:16:14 +0000

The buildings blocks of human life are not DNA (that is just software). The building blocks of our lives are concepts: the concept of oneself, the concept of surrounding reality; the concept of happiness, etc.

When our concepts are wrong, so is the life that we build for ourselves, and we end up unhappy.
We may mask our unhappiness with chocolate, sex, drugs and/ or shopping – buying a temporary fix of serotonin so we don’t notice our true emotional state.
But when we refuse to see that our concepts are wrong, we get sick. Chronic illnesses are the result of chronic unhappiness.
Since most of us barricade ourselves behind the wrong concepts, most of us end up ill, and so pharmaceutical and medical industries are the major industries of the modern world.

Most of our concepts are wrong, because most of us watch TV and read newspapers.
But it is not negative news that kills us, it is the advertisement.
We all are victims of relentless marketing, because advertisement slips in the suggestions to our subconsciousness on what concepts we should acquire.
The beloved American Dream is: a wife / husband + 2.5 kids + dog / cat in a spacious McMansion with formal dining room, family room on top of living room, more bedrooms and bathrooms then one can count; manicured front lawn and a large backyard with a swimming pool, 2+ cars garage; college education and successful careers.
The suburbs are full of such families, and most of them are uniquely unhappy.

I too had a concept of happiness similar to that, except that I hate suburbs and prefer to live in a city but would love a house in a country as well.
This dream fell apart 3 years ago when I found myself physically ill because I no longer could stomach my marriage. So we’ve separated.
In fact, my concept of happiness began to destruct 5 years ago, when my husband said, “Let’s make a girl you’ve always wanted”. It’s true: since I was a little girl, I always wanted to have 2 children: first, a boy, and then a girl.
When my son was born, I wanted to wait at least 5 years before another pregnancy as he was a difficult baby and I always favored a larger age separation between children.
The timing of my husband’s offer was perfect. Yet I felt physically nauseated at the thought and knew the minute he said it that I really don’t want another child.
I underlined “really”, because that is when I began to realize that my concept of happiness did not suit me in my reality.

My life got only tougher in 2007, when, 2 months after I separated from my husband, I lost my major client and The Great Financial Crisis walked into my door.
Three years later, I am a single mom working 60+ hours / wk and on the verge of losing $300/ month of my child support and the babysitter (who is my estranged husband), because his unemployment benefits are set to expire in January. The only job he may get at this point would only cover his rent and food, so he would not be able to spare a dollar for his son. Once working, he would also be unable to pick his son from school twice a week for guitar lessons and choir practice.
That means, life for my son and I is going to get so much tougher.

As I was contemplating this while doing my X-Mass shopping, suddenly my thoughts went into completely different direction:
I started thinking of what REALLY makes me happy, and here’s list:
1) Watching TV with my son, while laying next to him on the couch
2) Dancing with my friends at my annual New Year’s Eve party (the only time I get to dance lately)
3) Talking with my friends in the park, while we watch our kids play and enjoy the beauty of the park
4) doing yoga by the lake in the summer

And then I started thinking back, collecting the very best moments in my life in my memory:
1) I was about 13 y.o. in a summer camp, when I discovered laying in the boat watching the sky. The boat would lull softly under me to the swishing of light waves, and the ever changing beauty of the sky would engross me completely
2) I was about 14 y.o. when I looked out of the window and was caught by the beauty of the falling snow so much that I ran outside and was dancing in the night with the snowflakes
3) I was 17 y.o., laying in the sweetly smelling summer field and feeling THE ONENESS with the earth, the grass, the sky….
4) I was 19 y.o., homeless, living in someone’s basement when THE LIGHT came over me and I SAW AND SPOKE TO GOD.
5) I was in my early twenties, galloping on the naked horse up the hill, when I suddenly thought, “This moment makes the whole life worth living”
6) The same thought occurred to me when in 1993 I was skiing down a sunny slope on Mount Snow, the day after I witnessed the first WTC bombing and quit my job.
7) In 1997, in the jungles of Nepal, I have encountered such a breath-taking peacefulness and beauty that, as I was sliding in the canoe next to man-eating crocodiles sunning by the shore, I could almost pet them, while Himalayan picks were hovering in the distance and the yellow flowers all around me went so well with the blue shades of the sky and the mountains….
8) The kiss I shared with my husband when our son was born
9) The first time my son was skiing the green slope
10) My son singing Santa Lucia at a concert, and strangers screaming “Bravo”, because he sang so beautifully…
Please, don’t get me wrong. I had many, many wonderful moments in my life, and many exciting adventures.
Still, if I die today, these 10 moments would be the crown glory of my life.

Meanwhile, I am killing myself making a buck so I could spend it on some thing I am told would make me or my son happy, worrying about his education, because he would need a good job in order to have his McMansion, 2.5 kids, a wife and a pet.
And no time to watch the sky, dance with the snow flakes, smell the roses…..
I was rich, and I was poor, I had 2 husbands and 3 weddings, and many, many interesting happenings in my life, but only 10 moments of pure and absolute joyful happiness.

Interestingly, most of these moments came to me when I’ve liberated myself from some concept of happiness so I could be one with naked reality.

So I am not going to stress myself of what is going to come in January once my ex’ unemployment benefits run out. I am going “to smell the roses”, making a point of noticing the beauty of each day around me, snuggling next to my son every evening and NOTICING MY HAPPINESS, instead of struggling to fit a concept of happiness and cry about what’s missing from it or MAY GO MISSING.
In fact, it is our fears of not getting something or losing something that make us miserable and cheap away at happiness that is our true Divine nature and so is always there, if only we could take time to notice… Everything else is but a concept.
I am liberating myself from concepts and fears created by them – that’s my New Year resolution.

Tagged: advertisement, American dream, economy, fears, financial crisis, God, HAPPINESS, health care, Himalaya, illness, jobs, liberation, life, Love, marriage, money, mother, New Year resolution, parenthood, real estate, recession, relationships, smelling the roses, spirituality, unemployment, worry, X-Mass, X-Mass shopping

GOING CRAZY IN JUNE

Ella Moss — Wed, 21 Apr 2010 02:55:44 +0000

I found this little poem of mine, written on 06/09/04 but still quite relevant, and decided to publish it as a tribute to the upcoming Poetry Cafe edition:

1.
It is only beginning of June,
But it feels like the end of the world
That is certainly coming up soon,
As the weather turns hot
And the souls turn cold.

My money is gone, and so is love
And everything else disappears…
But my heart has been so light –
I’ve lost everything, even fear.

Or, maybe, my body’s been shed
With the very last tear drop.
God has caught me in His blue net,
And I am slowly going up.

I am dancing and dancing with God –
After all, it’s the end of the world –
And my heart has been just so light:
It no longer has something to hold.

There are drops of the warm summer rain
Licking nakedness of my soul,
And I deem myself finally sane,
Flying into the sky’s blue hole.

2.
Wait, God, wait! Can’t You see, are You blind?
There is my little boy left behind!
I have not lost him just yet,
But he’s losing me fast, can’t you wait?!
I can bear my losses, not his
I can bear my crosses, not his
Can’t You hear him crying at all?
Let me fall back in June, let me fall!

3.
There are towers falling with me,
and spilled blood smells a lot like the oil,
And young boy in Iraq whispers scream,
His red life sipping into the soil,
His dark skin slowly turning white…
That’s my son, only older somehow…
Did I sent him into the fight?
Am I responsible now?

No, my son is a three-years-old,
Starving and all alone,
Licking an empty bowl
That’s been empty for so long…

I am lost. Are we in China?
Texas? Afghanistan? Uruguay?

I cannot help him. I switch TV channel,
Eat my potato chips and cry.

I’m sorry, my baby, we’ve fallen
To the very bottom of June,
And the rivers of prayers are swollen..
But the end of the world’s coming soon.

I am walking my son to day care.
He is holding my hand so tight!
“When you need me, I’m always there” –
That’s what God has told me last night.

5.
At the bottom of June, I am dancing with God.
I am asking Him questions, ‘cause I am His child:
“Am I dying, my Lord, or just changing my skin?
On what day have You thought of the concept of sin?”

“My child, I am only the Maker of Dreams.
Each soul wakes up, when it actually screams.
Still, I am your closest friend,
‘cause I am always there.
Right now, I’m holding your hand,
As you’re walking me to the day care”

Tagged: crisis, God, hunger, Iraq, life, loss, Love, money, mother, prayer, recession, relationships, spirituality, the end of the world, war, women, WTC

MY KINDER UNIVERSE

Ella Moss — Tue, 21 Jul 2009 22:08:48 +0000

When my son was 1.5 y.o., I joined the majority of Russian community in NYC and rented a “dacha” in Catskills for a summer.

“Dachas” are cottages in a small community of summer residents, located in rural areas, often by a lake.

The cottages offer minimal amenities. “Dachniki” must bring with them bedding, pans and pens, and everything else that would sustain them for 2 months of mostly outdoor living.

Summers in NYC tend to be hot and humid. Working parents must either send their kids to camps or hire babysitters (could be more expensive). When kids are too young for camps, it could be especially hard on parents, as I quickly found out.

Luckily, someone suggested a “dacha”. I packed half of my apartment and the kid, and off to the woods I went.

Of course, I could not afford to spend the whole summer here, so we have arranged 2-weeks shifts with all the relatives we could find.

On dachas, kids and parents enjoy the company and freedom (there is no need to watch them every second, as they play in the meadows of an enclosed community, with plenty of friendly adults seeing their every move).

I fell in love with the lazy summer days by the lake, and could no longer contemplate a summer without dacha.

Of course, once my son was old enough for summer camp, we cut the season to a month (arranging shifts with relatives was too complicated), and for 3 weeks in August our son would shuttle daily to Nyak from NYC, where his day camp was located.

We could afford this kind of summer kid-care thanks to tax returns on my husband’s w-2 income. My business has been too tiny to afford anything like that.

Even though my husband and I separated 2 yrs ago, we kept filing jointly specifically for this purpose.

But as of this January, he has been laid off, and there are not going to be any tax returns for us next year.

I was coming this July to my little heaven in Catskills, knowing that this was to be the last time.

As my stay here began nearing the end (this Sunday we are leaving), I began to be more and more upset.

I was trying to imagine a summer with no dacha or summer camp:

My son would have to tag along to my work (and I work all over the city) every day. Of course, he would practice reading in Russian on the subway, and then quietly play his DS while I work, and then we would visit our park in the evening.

On weekends, we could go to beaches on Brighton Beach, Long Island or Staten Island. It would be hot, and the water would be cold and dirty…

It would be a very lonely summer for him (all his friends are going to be away on dachas and in camps, but life is life, right?

I thought about getting a dog to brighten his days, but how would we take a puppy to my work? – Scratch that…

Last night, thinking of all that, I could not sleep, so I went out on my porch to have a cigarette.

The lake at dawn was simmering, birds were having a big breakfast, while chirping away, and the beauty of all that was breath-taking.

“I cannot give this up”, I thought. “In fact, for years now my brain has been working over-time to find a way for me to live like that a year round.

This dacha is taylor-made for me by God: I’ve got the best view of the lake from my porch. I have a deck to do my yoga on. I can go for a swim without taking even a towel with me – my cottage is 25 feet from the incredible pristine spring water of this lake. People are great. My friends from NYC live on dachas a walking distance away. If I need company, it’s here; if I need solitude, I have it. I can work here. I have internet, and my cell is working here, so I can network and take orders.

And only $3,000 stand between this, and a 2-months torture for me and my son. This is not a big money. $3,000 can buy 10 days on Bagamas, 1 week of skiing in Catskills, or 1 month here. I am certain that just like God found this perfect place for me, He can find this money for me too.”

I prayed, and peace came upon me. That minute I knew, that I should leave a deposit for the next year. My Universe is kind. It knows no recessions, and is always ready to supply all my needs. This is what I beleve, and this is what I shall have.

Tagged: Catskills, child-care, economy, Faith, God, kids, kind Universe, laid off, money, recession, spirituality, summer, tax returns, taxes, unemployment, vacation, worry

New Economy, or Buy American, Stupid!

Ella Moss — Sat, 21 Feb 2009 03:21:45 +0000

So, the new stimulus package is passed, hopes are up, markets are down, and recession deepens. Everyone is blaming the housing market, unscrupulous bankers and inept previous administration.
But very few seem to understand the true roots of our woes, and how deep our economic problems go.
Believe me, the trillion dollar stimulus is but a bandaid on a very deep wound!
Everyone is stuck with the 20th century economic model:
an entrepreneur discovers a need->manufactures solution->gets rich->creates demands->someone else fulfills those demands->gets rich->creates more demands->those who supply solutions get rich too->created jobs create more jobs->society gets richer and richer

This is the 21st century global economics model:
manufacturers/suppliers find cheaper workforce in a poor country->enrich that country->the workforce gets more expensive->the suppliers go to another cheaper country->previous producing countries get poorer, their workforce immigrates to a new labor market->wages stagnate or get lower->more labor markets get poorer->no one can afford the supplies anymore->manufacturers go bust->everyone gets even poorer.

If you don’t believe me, here’s a news bit on Ireland. Ireland was in great demand as a labor market, because people spoke English, were educated, yet asked for much lower wages than UK or American workers. The labor market there was so hot, that Polish and other poorer EU brethren immigrated to Ireland.
But the workers grew too expensive in Ireland as economy there heated up, so the companies left for cheaper labor markets like Poland. Now Irish workers immigrate to Poland. But they no longer get the same wages. Living expenses are cheaper in Poland for now, so it makes some sense. Once Polish economy booms, however, and living expense there goes, accordingly, up, Poland would face the same economic bust, as now does Ireland.
India was also a popular labor market. But they started asking for too much money, so China became a place to be for manufacturers.
Lately, however, the “smart” manufacturers have been migrating to Africa.

Where does it leave the U.S. – the original place of labor migration?
I found an article in one of the New York’s free newspapers (Metro is it?) that the U.S. stills manufactures 65% of its products domestically (down from the 20th century’s 80%).
But it does not say, that the domestic wages went up. Because for the past 7 – 8 years they have not. Domestic salaries have not increased either. In fact, many went down. Because our labor force now competes for wages with Irish, Polish, Indian, Chinese, Mexican and other labor forces of the world.
The only market that saw increase in the U.S. in the past 8 years was the housing market, as speculators (flippers, real estate and mortgage brokers) kept pushing the prices up to the point of unaffordability by the impoverished middle class (the domestic labor force).
The feeling of prosperity that bubble has created had no base in reality. That feeling was based on the ease of credit (future income of financial sector ->future prosperity), which was given on a funny assumption that housing prices would continue to rise as wages have historically done so, affording better prices.
But our wages could no longer support our consumption on easy credit, hence prices and credit crunch.
No matter where our income was coming from, its sources were disappearing or getting smaller at best.
Not only manufacturing was leaving America, services were too.
Web design, translations, document processing, customer service – all were becoming outsourced. When was the last time you have heard a customer service representative on the other end of the phone that did not speak with an Indian accent?
People in this country that specialized in the services that were now easily outsourced could no longer ask for wage increase, if they were to be kept employed.

In the 21st century, the labor market is global. That means, the wages for the same services performed would eventually average out. If a Russian translator in the U.S. asks now for $.14/word, and a Russian translator in Siberia asks now for $.05/wd for the same job, eventually they will all go down to $.05/wd. If a worker at a Chrysler plant in Detroit asks for $35/hr, and a worker at a Chrysler plant in Mexico asks for $5/hr, eventually they will all ask for $5/hr – because it is natural for any company to seek out a cheaper labor.
Since the impoverished global workforce is not going to be able to afford $30,000 cars and $300,000 homes, those prices will go down too -unless they are artificially held high by governments’ bailouts. But bailouts cannot continue indefinitely. So the prices will continue to deflate in accordance with deflated average incomes. Middle class is going to disappear (it may take a few decades), unless the governments would wake up and set up some protection.

No, not trade protection – that is passe. It is the labor markets that must be protected, if we don’t want to go back to the economy we used to have throughout 10th – 19th centuries – the economy of a few very rich, and the rest being very poor indeed.

But I am not stupid enough to expect our government (or any other for that matter) to step in with labor force protection. Besides, the ease and cheapness of global communication and travel would create serious obstacles to any attempt to create such protection.
The only thing that may protect our domestic labor force is the consumer movement. Just as our demand for green products has eventually created green industries, our demand for products made in America may protect domestic work force..to some extent.
Incidently, when was the last time you saw something made in America in a store?

Tagged: credit crunch, economy, global economy, global work force, made in America, payroll tax, predictions, recession, trickle-down economics, unemployment