PV,
RE:
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.
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.
Good points, but how are Japanese banks/financial institutions going
to make any return on their capital, certainly not in Japan or Asia.
US securities are the only safe haven for them to invest in where
there is safety as the world monetary system/deflation continues
reducing the intrinsic value of their capital assets.
The US worker will not be labor cost competitive compared to Asian
workers for many years to come. Our economic structure depends on
taxation from well paid workers to support our infrastructure. The
Fed and politicians will want domestic peace and relative tranquility
in industry and the labor force. In any case, there are tough decisions to be made and acted upon and I don't think any politician
worth his salt will do anything to aggrevate US workers/voters. If a
choice has to be made it will be for the overall benefit of US
economic/political interests, even if it is at the expense of foreign
concerns/agenda.
Just my opinion,
BB
to be made |
