Big Bucks,>The sooner they act the better, IMO. I suspect the US
will institute a trade quota system allowing a specific % of foreign
trade goods into the US consumer markets, with tariffs to maintain
price parity for US products.<
Using your scenario, what happens when Japan then declares the same policy and pull it money out of our banks, businesses, etc. IMO, the US is so global and money moves so fast (a key stroke) that money will flow to the country which will give the best returns. I personally, do not think an isolation position can put the genie back in the box.
US workers, whether we like it or not, are going to have to compete with the rest of the world workers until the wages are similar. This means that wage, if they rise will be very, very slow. It is called supply and demand. Even, now, here in Jefferson City, MO we are seeing a large number of programmers and other computer technician being hired from China and other locations. I expect that it is worse in Silicon Valley and other parts of the West Coast.
I do not know the solution, except that isolationism, IMO, will not work. Our farmers and I am sure others must export or the prices will go through the floor. My expectations, are that, if things drop like your post there will be additional employee termination and perhaps civil disruptions in the US and the rest of the world as people have trouble having the resources for basic needs.
I do agree that the rest of the world will try and export their way out of their financial situations. But, we also, need exports for segments within the US.
IMO, the world wide financial institutions, must mandate strict regulations and then receive the resources much like our S & L's in order for the corporations, world wide, to receive the financial resources to produce the goods and services that the consumer wants and will purchase to again restimulate the economies.
It is not a very pretty picture.
Economist, on this site, what are your take?
Just my opinion.
Paul V. |
