Hey Powers. The Greater Depression and Stone Soup.
I have talked to some students of economy and professors by phone. I need some information and they needed to do some papers. I asked them to run an analysis on my pay of 10.50 hr to China's factory worker of 2.00 hr. and the cost of living of both country's. The preliminary results are that my pay over there is 1.85 hr. and min wage here is about 1.05 there. Needless to say there are quite a few shook up people. Now how bad is this going to get? The next part of the question was unemployment real figures. Consensus is running at 18% give or take a 1% here in the States. (Adjust the price to earning I say 1/2 of what they are now.) Then I asked them to factor in the Federal Deficit and the 2 wars and congressional spending.In a nut shell the Government is Broke just like the Soviet Union was when they went into Afghanistan what 40 years ago. I could here fear in their voice as they are realizing this. Now they are adjusting their lifestyle even more than before due to this information.My next question to them is how the loss of 40 million factory jobs that went over seas will affect us and 10 million people out of work and 10 million undocumented worker doing those jobs will affect everyone. I thought I heard a sob but I could be mistaken. They will get back to me on those issues. FYI-On the brighter side my customers the middle class use cash and their motto is when its gone no more spending its gone. The upper class is credit card that they pay off at the end of the month. The poor is debit card. Master Card is offering a 40% coupon for 1 item with the use of their credit card. Last year it was 25% for one item. We have adjusted and doing ok. I hope this helps you all on how to look at the market. I hope your thanksgiving was a good one and to the men and women fools and their family's who have served or are serving,Thank you.