Everything falling...sinking....declining...dying downwards – deflation...deflation...deflation...
What is happening?
We explain that the great boom of the last quarter century was a bust for Americans. And we see it this way:
1. Because Americans made a critical mistake – misled by their own financial authorities...by the reckless saving of Asians (in dollars!)...and by their own misguided belief in capitalism. Result: they spent too much, borrowed too much, and saved too little.
2. Because Asians (and other foreigners) entered the world economy. Aided by modern communications and government policies designed to encourage globalized commerce, this huge new supply of cheap labor lowered wage rates in the United States.
What is happening?
We explain that the great boom of the last quarter century was a bust for Americans. And we see it this way:
1. Because Americans made a critical mistake – misled by their own financial authorities...by the reckless saving of Asians (in dollars!)...and by their own misguided belief in capitalism. Result: they spent too much, borrowed too much, and saved too little.
2. Because Asians (and other foreigners) entered the world economy. Aided by modern communications and government policies designed to encourage globalized commerce, this huge new supply of cheap labor lowered wage rates in the United States.
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