Tuesday, February 08, 2005

Money talks

It makes no sense to purchase dollar assets such as Treasury bonds when they are falling in value. As foreigners continue to move out of dollars, US interest rates will rise, terminating the housing boom and wrecking family finances.

America's growing dependence on imports reflects the outsourcing of manufacturing jobs and knowledge services. Every time a US firm outsources goods or services, it turns domestic production into imports.

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Average weekly pay in the US is declining in real terms. Obviously, if outsourcing is creating jobs, they are less good jobs than the ones being outsourced. Trading better jobs for worse ones is the road to poverty, not the road to wealth.

Bob has more from Paul Craig Roberts...

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