The final shoe on American consumerism is about to fall
By
Stanislav Mishin
14/10/08
"Pravda" --
America's
bedraggled,
debt slave
consumers
are about to
reap the
final
whirlwind
which will
finally
unwind what
is left of
their
consumer
materialist
society.
This final
shoe will
come in the
form of the
cheaply made
and cheap
priced and
often
poisonous
Chinese
consumer
goods. It is
these very
goods that
not only
have stuffed
American
households
in a
gluttony of
soulless,
Christless
consumerism
but have
equally
driven those
same
mindless
consumers
out of their
middle class
manufacturing
jobs and
into the
lower class
that make up
the vast
vast masses
of service
sector jobs.
Of course
the fact
that a
service
economy is a
natural by
product of a
manufacturing
economy is
lost on
those whose
education is
now a
deteriorating
3rd world
joke with a
1st world
price tag
and who
listen to
the likes of
the
Communist
News Network
(CNN) or
Faux News,
both
corporately
owned by a
small
powerful and
government
aligned
(both
parties)
oligarchs.Of
course the
fact that a
service
economy is a
natural by
product of a
manufacturing
economy is
lost on
those whose
education is
now a
deteriorating
3rd world
joke with a
1st world
price tag
and who
listen to
the likes of
the
Communist
News Network
(CNN) or
Faux News,
both
corporately
owned by a
small
powerful and
government
aligned
(both
parties)
oligarchs.
But all that aside, and back to the subject. The Chinese are about to raise prices on consumer goods as they have already raised prices on metal industrial inputs. There are three reasons for this. First is the falling dollar. Turns out, all those pseudo calls to release the Yuan did just that and the Yuan, while still ballasted down not to rise to quickly, has risen 6% against the dollar. So that's 6% so far. Then we have the 9% inflation rate of today's China, which equally raises the prices of inputs (raw materials), work (ok, the Chinese slave wage is a joke so 10% more on a 25 cent per hour pay is still a joke at 27.5 cents) and overhead (paper pushers, electricity, energy in general, rent, etc). Finally, in order to combat an overheated economy, which is obvious from the high inflation rate, China has moved to cut back subsidies to it's industry (that's right all you Free Trade zealot fools, you're the only idiots playing that game, everyone else plays mercantilism...defending their economy). Seems that many of those cuts are up to 20% in nature and the suppliers have tacked that 20% right on to their prices.
So all told, so far, that's about a 30-36% rise in price.
Have not felt that yet? Do not worry, they are working their way up the manufacturing chain, as usual starting with basic inputs and propagating upwards. You will feel it soon enough.
What will an economy, the world's biggest debtor, already under strains of a 7-10% actual inflation rate (vs the 3% marked down liar rate of the Fed) and where consumerism alone makes up 70% of the economy, do?
Well the usual Fed policy of making more money sure as hell won't help the situation.
Good luck, you'll need it.
Stanislav Mishin
