Why the Great Labor Arbitrage is Coming to an End…
Needless to say, with Chinese wages and costs rising rapidly and the arbitrage gap nearly closed, there is not a snowball’s chance in the hot place that the black line in the chart above will take another 40% dump lower. Not in a million years.
And that means, in turn, that the yawning gap in the above chart between goods deflation and services inflation will not recur. As it happens, the underlying services inflation is still in the +5% Y/Y range and will dominate the topline price level going forward far more heavily than it did during the aberrant era of 40% durables deflation.
Accordingly, the "lowflation" excuse for money printing is now deader than a doornail.
The fact is inflation isn’t and won’t be contained even at the Fed’s specious 2.00% target. And the last two decades have proved beyond a shadow of a doubt that aggressive money printing does not spur domestic investment and productivity, and therefore overall economic growth either.
https://internationalman.com/articles/david-stockman-on-why-the-great-labor-arbitrage-is-coming-to-an-end/
Anyone follow Melanie from Saskatchewan…..??
Credit goes to Melanie In Saskatchewan
Dear America,
To President Donald Trump, Vice President JD Vance, U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and the Americans sitting across the negotiating table from our government:
I'm writing this from Canada with a request I never thought I would make of another country.
Please help us.
Not our government. Us. The Canadian people. Please help us understand what is happening to our own country.
Our relationship with the United States is deteriorating. Our economy is hurting. Canadian and American families are worried about jobs, businesses, mortgages and the country we're going to hand our children. Yet through one of the most consequential trade disputes of our lifetime, ordinary Canadians are being left in the dark about what is actually happening.
We hear statements and vague explanations from our government. What we don't get to see or hear is what actually happened at the table.
Increasingly, Canadians are learning more about ...
