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/
UN Climate Summit blocks Rebel News — again
Sheila Gunn Reid discusses how the United Nations refused to allow Rebel News into its climate change conference in Brazil despite an email claiming Rebel News was accredited.
The United Nations climate conference in Belém, Brazil, is underway — and, in true UN fashion, it took all of ten minutes for the hypocrisy to hit us in the face.
For the first time in nine years, Rebel News was officially accredited to enter the conference grounds. We got the approval emails. We got our work visas. We flew half way around the world. We went to pick up our badges. Then the bureaucrats did what UN bureaucrats always do when a climate heretic gets too close: they found a problem.
Suddenly, our accreditation “didn’t allow” us inside the main venue — the pavilions, media rooms, and meeting halls packed with activists, diplomats, and 55,000 carbon-burning delegates who flew halfway around the world to lecture ordinary people about their energy use.
But somehow, we were ...
