In his article today, Paul Krugman said:
The inflation hawks point out that consumers are, for the first time in decades, telling pollsters that they expect a sharp rise in prices over the next year. Fair enough.
But where are the unions demanding 11-percent-a-year wage increases? (Where are the unions, period?) Consumers are worried about inflation, but you have to search far and wide to find workers demanding compensation in the form of higher wages, let alone employers willing to accept those demands. In fact, wage growth actually seems to be slowing, thanks to the weakness of the job market.
Translation: The sign of inflationary spiral is "continuous front running of price increases, which begets more price increases" as I have discussed in my blog 2 weeks ago.
Well, Paul, here's your answer also coming in the same day you placed your article - There is no union because there is no factory and there is no factory because when HUMANS are needed in the factory then the factory is WHERE in the WORLD? There you go boy-o.
Here are the excerpts and links
June 2 (Bloomberg) -- Plummeting currencies did in the
first Asian economic miracle. The second may fall victim to
Central banks from Beijing to Bangkok are losing their bets
that a global slowdown would temper price increases. While
export demand from the U.S. and Europe may have eased, it has
been replaced by rising domestic consumption that has helped
push inflation rates in Asia as high as 26 percent.
The result: In China, Thailand, the Philippines and at
least eight other Asian economies, benchmark borrowing costs are
lower than the rate of inflation, resulting in negative real
interest rates, according to data compiled by Bloomberg. The
risk is that prices will spiral even faster, leading to
overheated economies and an eventual bust.
The right enemy
5 years ago