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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (69852)	9/16/2006 1:18:37 AM
From: GST	Read Replies (3) \| Respond to of 110194

The world population of consumers will continue to grow long after net new births are no longer being added to global population. If you want to talk demographics, then think about where people live and how they live. Global urban growth is exploding, and along with that comes consumerism. Same for your examples of IT outsourcing -- this is stimulating global demand rather for goods and services rather than restraining demand as it is part of the process of brnging more and more people into a global consumer society where all manner of things are bought. As for cheap labor, every place I have ever seen has used cheap labor as an entry tool and then moved up. While China still has massive cheap labor, the cost of living in major cities in China is soaring and so are the incomes and the expenditures. Globalization might piss me off in the short term if my job comes under pricing pressure, but taken as a whole it adds to inflationary pressures and more and more people are competing on the consumption side. This is most true where we have seen inflation recently -- in commodities.