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To: FJB who wrote (50574)	1/2/2011 10:22:27 PM
From: Jacob Snyder	1 Recommendation Read Replies (2) \| Respond to of 95572

<Full job recovery is years away> And wage recovery is even further away. When unemployed people find a job, they often have to accept much lower wages than their previous job. That's because China graduates more engineers each year than the U.S., and Chinese engineers are happy to work for 100$/month. They also speak English, and are just as smart and productive as Americans. Many interesting graphs here: theoildrum.com The one labeled "A history of world GDP" (about the 10th graph) is fascinating. It shows that, for 18 of the last 20 centuries, China and India combined have produced 1/2 the world's GDP. The last 2 centuries are an outlier, a bizarre deviation....and we are in the process of returning to the LT norm. Our grandchildren are going to live in a world where the U.S. doesn't matter, and the center of the world (economically, politically, militarily, socially, culturally, in every way you can think of) is in Asia. One of the implications, is that today's unemployment rates in the U.S. are part of a secular trend, not a short-term cyclical problem.

To: FJB who wrote (50574)	1/7/2011 11:44:28 AM
From: FJB	Read Replies (1) \| Respond to of 95572

Bernanke: Recovery on Track But Not Enough to Create Jobs Published: Friday, 7 Jan 2011 \| 10:32 AM ET Excerpts: "We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold," the central bank chief said in his first testimony to Congress since the Fed launched a controversial plan to buy an additional $600 billion in government bonds. His remarks were made public just an hour after the Labor Department reported the economy generated a disappointing 103,000 additional jobs in December. ... "Persistently high unemployment, by damping household income and confidence, could threaten the strength and sustainability of the recovery," Bernanke said. "Very low inflation increases the risk that new adverse shocks could push the economy into deflation. Deflation induced by economic slack can lead to extended periods of poor economic performance." cnbc.com