This page has been archived and commenting is disabled.

Guest Post: We Don't Need No Stinkin' Jobs (In The U.S.)

Tyler Durden's picture


Submitted by Charles Hugh Smith from Of Two Minds

We Don't Need No Stinkin' Jobs (In The U.S.)

Global Corporate America has decoupled from the American middle class; its interests are now international rather than domestic.

Global Corporate America has been decoupling from its country of origin for a long time, and the last weak bonds appear to be snapping.

Longtime correspondent Cheryl A. recently submitted this snippet from a recent The Atlantic article The Rise of the New Global Elite and this summary: "This is disturbing on so many levels."

The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. "His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade," the CEO recalled.

The growing dependence of Global Corporate America on non-U.S. growth and profits, and the concurrent rise of its political power at the expense of the middle class, is displayed in this chart:

Let's look at the number of consumers of global U.S. corporations' goods and services in aggregate. According to the FDIC, about 25% of Americans have little or no access to credit. This is an excellent metric of proverty: in other words, 75 million Americans are too poor to purchase much more than rent (subsidized by Section 8 vouchers, etc.) food (subsidized by SNAP food stamps), minimal healthcare (subsidized by Medicaid), toothpaste, cable TV, mobile phone service and fancy footwear made in Asia. (Every "poor" person above the level of homeless I see on the subway or bus has fancy footwear and a cellphone.)

That leaves about 225 million Americans with enough discretionary income to be more rabid consumers of global corporate America's goods and services.

Alas, the U.S. is a mature consumer economy and the limits of consumer debt and leveraging seem to have been reached. As a result, corporate revenue growth in the domestic market is limited to GDP growth (most of which is generated by Federal borrowing and spending at this point): roughly 2-3%.

You can't "grow profits" 10% a year on this sort of tepid growth. So Corporate America's focus on international markets is not just rational but essential: there is no other way to grow revenues and profits.

The vast majority of new revenues and profits come from non-U.S. sales. Here is a snippet from David Rosenberg:

We scoured the data as best we could and found that almost all the growth in sales is coming from outside the U.S.A. where revenues are growing at barely a 3% annual rate. The pace is around 20% for foreign-derived sources.

Here are some "back of the envelope" estimates for global consumers of U.S.-based corporations' goods and services.

China: 450 million consumers of toothpaste, etc., 225 million consumers of autos, smart phones, "financial services," etc.

India: 450 million consumers of toothpaste, etc., 150 million consumers of autos, smart phones, "financial services," etc.

Greater Europe: 450 million consumers of toothpaste, etc. 350 million consumers of autos, smart phones, "financial services," etc.

East and South Asia: 450 million consumers of toothpaste, etc. 225 million consumers of autos, smart phones, "financial services," etc.

Mideast/Africa: 450 million consumers of toothpaste, etc. 50 million consumers of autos, smart phones, "financial services," etc.

Oceania/Philippines/Australia/New Zealand: 100 million consumers of toothpaste, etc. 50 million consumers of autos, smart phones, "financial services," etc.

That's roughly 2.25 billion potential consumers of toothpaste and 1 billion potential consumers of other goods and services sold by Global Corporate America.

That means the domestic populace is around 15% of all potential consumers of at least some goods, and at best a mere quarter of all consumers of higher-cost goods and services.

One of the more eye-opening elements of global travel is to enter a tiny village store in Japan, Korea, China, Thailand, etc. and find Oreos and Crest toothpaste for sale.

How many more units of toothpaste and Oreos can be sold in the U.S.? Not many. How many more could be sold to 2 billion other people? A lot.

Corporations are operated by people. Their loyalty during their working hours is to the corporation, and the goal of the corporation is to maximize return on investment for the shareholders, owners and senior managers who will profit most from rising revenues and profits.

To expect corporations to extend loyalty to a nation is to misunderstand the entire purpose and directive of the corporation as an enterprise.

Is it merely coincidental that corporate profits from non-U.S. sales were flat during the heyday of the U.S. middle class, and that they have been rising as the middle class loses ground? I think this chart makes a strong case for a direct correlation. Global corporations now have the resources to influence the machinery of governance in their favor, and as noted above, this is the rational and necessary result of their prime directives and loyalties.

To decline to lobby the Federal government could spell disaster for a company's revenues and profits should competitors succeed in wiring the market to their advantage. Thus there is no choice now but to lobby for one's own interests. With corporate profits exceeding $1 trillion, the costs of influencing politics is now trivial.

The middle class is comparatively powerless: it is not a source of campaign funding, and half of its members don't even bother to vote. Most of those who do vote are swayed by easily purchased, expertly contrived propaganda.

The ideal setup for Global Corporate America is domestic stability. The erosion of the American middle class is of little concern for one simple reason: it no longer matters much on the global stage. All that Global Corporate America needs from America is a stable foundation that won't offer up any surprises or spots of bother.

As the discretionary purchasing power of the American middle class erodes, four times as many new potential customers appear elsewhere, hungry to taste the Oreos, become consumed by the iPhone, etc., and ten times as many are potential buyers of toothpaste and other basics.

The concern for domestic jobs is mere political expediency. U.S. corporations are pulling $500 billion in profits from non-U.S. sales, and they hold $1 trillion in stashed overseas profits in various tax havens. All the growth in their revenues and profits are coming from non-U.S. sources. Spending $3-$5 billion on lobbying and campaign contributions is an "investment" with extremely high returns: for that small sum, U.S.-based global corporations make sure the U.S. government and citizenry don't become overly burdensome or obstructive.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 02/09/2011 - 13:07 | 946714 plocequ1
plocequ1's picture

Oh well

Wed, 02/09/2011 - 13:16 | 946761 topcallingtroll
topcallingtroll's picture

Plocequ is our daoist zen philosopher. Sometimes he enlightens us with blank comment fields too.

Wed, 02/09/2011 - 13:09 | 946730 Rogerwilco
Rogerwilco's picture

Hey, the piss-on-'em strategy works quite well in North Korea and China. Besides, where else can you buy a pair of 4XL stretch pants for $9? That's right, nowhere else, USA!, USA!, USA!

Wed, 02/09/2011 - 13:17 | 946765 topcallingtroll
topcallingtroll's picture

Piss harder Ben!

Wed, 02/09/2011 - 13:32 | 946818 jus_lite_reading
jus_lite_reading's picture

4XL nylon stretch pants and 6XXL T shirts with size 14 sneakers all bought with the unempoloyment check/food stamp card. God shave the queen!

Wed, 02/09/2011 - 13:08 | 946731 buzzsaw99
buzzsaw99's picture

By Jove he's got it!

Wed, 02/09/2011 - 13:10 | 946738 ak_khanna
ak_khanna's picture

The developed countries cannot create jobs in their own country as the major multinatio­­­­­­­nal companies have permanentl­­­­­­­y shipped the manufactur­­­­­­­ing and service jobs to the low cost developing countries to maximize their own profits.

Th­e rich corporatio­­­­ns and the too big to fail bunch of banksters have a lot of influence on the political class, the rule makers and the rule enforcers due to their enormous purchasing power. So irrespecti­­­­­­­­­ve of the position in the government­­­­­­­­­, everyone works for their benefit.

The politician­­­­­s around the world are nothing more than auction items which can be sold to the highest bidder. They will do whatever they can for the lobbyist paying them the maximum amount of money or votes, be it the unions, the banksters, the richest corporatio­­­­­ns or individual­­­­­s. They are in the power seat to extract maximum advantage for themselves in the small time frame they occupy the seat of power.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.


Wed, 02/09/2011 - 13:13 | 946747 Jim in MN
Jim in MN's picture

This has been openly admitted as in the recent cover story in The Atlantic.  The global elite is only loyal to themselves and to the extent that they like to think of themselves as principled, they think that paying Americans too much compared to Chinese is basically evil. 

It's still too dangerous for them to say what they really think, but there are more efforts to get to the "God's Work" model for future rhetorical self-congratulations.... they betray the very people they owe their lousy Communist bailout livelihoods to.

Wed, 02/09/2011 - 15:13 | 947194 lemonobrien
lemonobrien's picture

It is evil, in a capitalist system you maximize profits for the share holders; if Americans are stupid and wanna smoke crack, eat potato chips, major in bidness/marketing and expect to get paid big bucks cause they're entitled by race/nationality to get more than a chinese. Fuck them. The problem with Americans is they're not willing to do the hard work; they all wanna be rich without doing actual work. They're lazy; this is why we import illegals/slaves to scrub our toilets.

Wed, 02/09/2011 - 16:01 | 947341 Jim in MN
Jim in MN's picture

Oh, I thought you meant the bailouts were evil.  And the crack-smoking financial disclosures.

But you are instead a proponent of deflationary collapse, while using what's left of the middle class net worth to stuff banker's bonus envelopes, so that's cool.

Commie.  :*)

Wed, 02/09/2011 - 21:55 | 948130 lemonobrien
lemonobrien's picture

Don't fool yourself; this system will fall; I just plan on making a profit from it.

Wed, 02/09/2011 - 13:12 | 946749 topcallingtroll
topcallingtroll's picture

The usa government and citizenry became overly burdensome and obstructive a long time ago. Even small cap biotech is heading overseas due to the regulatory nighmare that real businesses face.

Wed, 02/09/2011 - 13:18 | 946768 Buckaroo Banzai
Buckaroo Banzai's picture

This is all part of the plan-- making it impossible to do business in the USA via creeping socialism, regulation, taxation, health care inflation, etc. accomplishes the following:

1) Eliminates domestic competition from emerging.

2) Creates a justification for relocating overseas.

3) Creates a permanent domestic underclass that can be manipulated and exploited


Wed, 02/09/2011 - 13:55 | 946916 Ricky Bobby
Ricky Bobby's picture


Wed, 02/09/2011 - 14:20 | 946997 RockyRacoon
RockyRacoon's picture

The middle class is comparatively powerless: it is not a source of campaign funding, and half of its members don't even bother to vote. Most of those who do vote are swayed by easily purchased, expertly contrived propaganda.

Did this situation arise from corporate shenanigans?  Nope.  Pogo said it best: "Yep, son, we have met the enemy and he is us."

Wed, 02/09/2011 - 13:17 | 946762 alien-IQ
alien-IQ's picture

"All centralized power, once restraints and regulations are abolished, once it is no longer accountable to citizens, knows no limit to internal and external plunder. The corporate state, which has emasculated our government, is creating a new form of feudalism, a world of masters and serfs. It speaks to those who remain in a state of self-delusion in the comforting and familiar language of liberty, freedom, prosperity and electoral democracy. It speaks to the poor and the oppressed in the language of naked coercion. But, here too, all will end up in the same place."

Chris Hedges
Recognizing the Language of Tyranny

Wed, 02/09/2011 - 17:02 | 947470 Triggernometry
Triggernometry's picture

Good to know someone else on here reads ICH.

Wed, 02/09/2011 - 13:17 | 946764 I think I need ...
I think I need to buy a gun's picture

its all fun and games until theres a gold revaluation

Wed, 02/09/2011 - 13:20 | 946771 NOTW777
NOTW777's picture

big mistake to under estimate the american middle class.

if you think they will go quietly in the night, be prepared

corruption and greed reign for a time and then they are crushed

God is still in control

Wed, 02/09/2011 - 13:29 | 946804 Internet Tough Guy
Internet Tough Guy's picture

What makes you think God is American?

Wed, 02/09/2011 - 13:54 | 946911 NOTW777
NOTW777's picture

I didnt say God was american.  The earth is the Lord's and everything in it, the world and all who live in it.  Psalm 24:1

Wed, 02/09/2011 - 14:41 | 947067 ATTILA THE WIMP
Wed, 02/09/2011 - 15:53 | 947321 NOTW777
NOTW777's picture

so, you saw it on the internet - it must  be true?

good luck with that

Wed, 02/09/2011 - 15:01 | 947135 MiddleMeThis
MiddleMeThis's picture

Are you kidding?  Religion and God is what those in power use the control their sheep.  Empires use God and Religion to cover up their evils while they feed the people lies. Show me one time in history that an empire has not been ruled in the name of a God. And of those "godly" empires of yore, how many exist today and still hold an elite status?  If you say America, it's only because we are still quite young.  But, don't worry, we're on our way out too as One Nation Under "God."  

Give me an athiest society any day.  I guarantee you we'd be a better people.

Wed, 02/09/2011 - 15:14 | 947180 Buckaroo Banzai
Buckaroo Banzai's picture

Really? Please stop confusing religion with God. Try reading the New Testament sometime. Jesus had His biggest problem with the Pharisees, who were the religious establishment of that place and time.

If you think we'd be better off under atheism, then consider the state-sponsored atheist societies of the Soviet Union and Communist China, and the hundreds of millions they slaughtered in the name of the Atheist State. When there is no God, then man becomes your god. And man makes the shittiest god imaginable.

Wed, 02/09/2011 - 15:31 | 947264 Rogerwilco
Rogerwilco's picture

"When there is no God, then man becomes your god. And man makes the shittiest god imaginable."

+150E6 (Mao + Stalin + Pol Pot)

Wed, 02/09/2011 - 21:14 | 948073 Freddie
Freddie's picture

Add Obama and The Bernank to the list.

Wed, 02/09/2011 - 16:28 | 947409 MiddleMeThis
MiddleMeThis's picture

I've read the bible, both old and new testament, the koran, the torah and even the Tao Te Ching.  So, it's not that I haven't read those man-made works of fiction, it's just that I have no belief in a divine being. Nor is there any proof that one exists.

And you're confusing atheism with communism.  The atrocities done by Stalin and Mao were done under their communistic and psychotic beliefs, not because of their lack of belief in God.  Every day people kill becasue of their belief or idea in a God.  You rarely (if ever) hear people killing in the name of Atheism.

"When there is no God, then man becomes your god. And man makes the shittiest god imaginable."  Why must there be a god (man-made or supreme being) at all? Because it's easier to control man when they can be lead, "under" a God (and that is done through Religion).

But I digress...


Wed, 02/09/2011 - 19:28 | 947869 Buckaroo Banzai
Buckaroo Banzai's picture

Of course there is no proof that God exists. Do you imagine that your 5 senses can completely circumscribe the entire universe? That would be exceedingly unlikely, and in fact is a fairly absurd premise. But that is what would be required for you to perceive God. What proof can you offer a blind man that the sky is blue? Once you accept that human beings have rather concrete sensory and cognitive limitations, the existence of God can be fairly easily derived from first principles.

Communism is simply the political expression of atheism. Communism begins with the premise that the entire world can be run by the direct conscious efforts of a particular man, or small group of men. By elevating certain men to all-seeing/all-knowing status, communism makes itself the godless form of totalitarianism.

The fact that men can be so easily led (or rather, misled) is a problem with the nature of man, not the nature of God.

Thu, 02/10/2011 - 11:18 | 949243 MiddleMeThis
MiddleMeThis's picture

What you describe here:  "Communism begins with the premise that the entire world can be run by the direct conscious efforts of a particular man, or small group of men. By elevating certain men to all-seeing/all-knowing status..."  Is not atheism, but the ultimate expression of theism.  Belief in a God, even if that God is oneself - in the case of a communistic dictator, is indeed theism; regardless of the name of the God. Running the entire world with a direct consciousness by an all-seeing/all-knowing being describes your God, does it not?

So based on your argument, you have just proven communism to be theistic, not atheistic.

Now with that said, I have absolutely no problem with the common man's belief in a God. For the majority it is a benign belief.  But, sadly in the wrong hands (which happens quite often), coupled with power, that belief becomes quite destructive.  And when our empires use this belief to keep us in line we are lead blindly to our demise and the demise of other peoples.

Wed, 02/09/2011 - 20:40 | 948012 Cathartes Aura
Cathartes Aura's picture

"man makes the shittiest god imaginable"

in his own image no less. . .

Wed, 02/09/2011 - 15:57 | 947331 NOTW777
NOTW777's picture

dont confuse earthly empires of men with God.


"Give me an athiest society any day.  I guarantee you we'd be a better people."

  people without God are guaranteed hell


Wed, 02/09/2011 - 16:06 | 947354 MiddleMeThis
MiddleMeThis's picture

If I believed in hell, I'd say we were already there.

Wed, 02/09/2011 - 21:34 | 948097 Sheepneck
Sheepneck's picture

I've got an atheist society for you.  The Soviet Union.  Boy, times sure were good back then...

Thu, 02/10/2011 - 12:04 | 949446 MiddleMeThis
MiddleMeThis's picture

I think it's rather amusing that the theists who are directed by God to "do unto others as you would have done to you" (in essense treat people with respect, accept others, etc.) are the one's junking me just for having a belief that is not theirs.  Ironic.

Wed, 02/09/2011 - 13:30 | 946806 jus_lite_reading
jus_lite_reading's picture

The middle class is too busy watching Dancing with the Stars and Jersey Whore to notice what is going on... spread thy word.

Wed, 02/09/2011 - 14:09 | 946956 uhb
uhb's picture

are you sure those people *should* be in the middle class?

Wed, 02/09/2011 - 13:58 | 946924 Gordon Freeman
Gordon Freeman's picture

That's completely at odds with the FACTS.  The reason the AMC is getting bitch slapped so hard is they are completely unable to fight back against the authorities--and the authorities damn well know it!

The idea that Americans will somehow rise up and throw off their chains is absurd

Wed, 02/09/2011 - 14:44 | 947077 Pants McPants
Pants McPants's picture

Yeah right - I'm right there with you, after this commercial break.  Did you see Aaron Rogers in the Super Bowls?? 

But you're right.  I have little to no faith in the US population's ability to correctly to grasp (1) the causes of this crisis, (2) correctly prosecute those responsible, and (3) implement a new system based on liberty vice equality.

More likely than not they will run into street when the power goes out, wondering where in hell the low quality starch went.

Wed, 02/09/2011 - 14:54 | 947118 Flakmeister
Flakmeister's picture

Hee, hee, hee....

Wed, 02/09/2011 - 13:21 | 946772 Rainman
Rainman's picture

It will all work well until the knockoff Chinese Oreos and Crest toothpaste hit those markets at a quarter of the price. For developing consumers it kinda  sorta tastes like chicken.....close enough for the price.

Wed, 02/09/2011 - 13:44 | 946871 macholatte
macholatte's picture

What you're missing is that the quality of the foreign products is crap and couldn't be sold in USA or even Mexico. However, the foreign consumers don't know the difference between a fresh Oreo and a stale one. They've never had them before and have nothing to compare them to. It's heaven for the manufacturers.

Wed, 02/09/2011 - 20:52 | 948040 Cathartes Aura
Cathartes Aura's picture


Sugar, wheat flour, vegetable fats (with antioxidants: E-306, E-304), fat-reduced cocoa powder (7%), glucose and fructose syrup, raising agents (sodium and ammonium bicarbonates), whey powder (from milk), cocoa mass, salt, emulsifier (soya lecithin), flavouring (vanillin).

3 lovely "sugar" variants, 2 artificial "E" numbered hidden chemicals, GMO wheat & emulsifiers. . . plus, no doubt the "ingredient experience may vary" from nationstate to nationstate, depending on how paid off the rulers are.

must. export. death.

Wed, 02/09/2011 - 13:21 | 946774 Iam_Silverman
Iam_Silverman's picture

"That's roughly 2.25 billion potential consumers of toothpaste and 1 billion potential consumers of other goods and services sold by Global Corporate America."

The problem is, how much of that toothpaste is counterfeit?  Almost all American brand names in China are fake.  So, who gets the profit then?



Wed, 02/09/2011 - 13:23 | 946779 buzzsaw99
buzzsaw99's picture

As long as a person has clownbux what the hell do they need a job for?

Wed, 02/09/2011 - 13:26 | 946790 lieutenantjohnchard
lieutenantjohnchard's picture

no brilliant analysis on my part because it's self-evident but i posted this precise point (u.s. citizens/workers thrown under the bus by big bz which happen to have a charter to conduct affairs here) a few months back.

got news for the you-know-whats. i threw them under the bus first after figuring the gig out. so did tens of millions of other u.s. citizens. there's little sympathy for them as expressed by the extreme resistance to the tarp bailouts etc ... these you-know-whats exist (would have gone under) only because of the extreme patience of americans with the political class.

Wed, 02/09/2011 - 13:27 | 946795 Vashta Nerada
Vashta Nerada's picture

This is a bit of a non sequitur.  If the US consumer market is saturated, of course developing countries will be the target of corporations to sell their goods.  I don't see how this relates to American jobs.  American jobs are factored on the production side, and that is influenced by prevailing wages, regulations, and distribution cost.  If the US backed off of the regulatory burden, plenty of jobs producing goods that developing countries want would flow here.

Wed, 02/09/2011 - 13:40 | 946849 lieutenantjohnchard
lieutenantjohnchard's picture

respectfully, you are woefully naive if you believe "If the US backed off of the regulatory burden, plenty of jobs producing goods that developing countries want would flow here."

as ricardo made abundantly clear free trade is designed for commerce between developed nations. there's no way to run an operation in the usa against coolie labor in china, india, vietnam etc even if we had less regulation.

got news for you. this very topic was discussed ad infinitum back in the 1980's when the whole globalism, free trade, offshoring etc got rolling. and many folks laid out exactly what would happen (hollowing out of usa manufacturing etc) as in fact it has.

Wed, 02/09/2011 - 14:20 | 946996 Watauga
Watauga's picture

e.g., Pat Buchanan, who tried to run twice for the Republican nomination for President on a proposed platform that was based largely on what he foresaw, in globalization and purported free trade, as the loss of American jobs, the loss of the American Middle Class, and the loss of America's soul.  Pat always was right.  He just wasn't a real Republican (the RINOs are the real Republicans).  He was an anti-Statist, liberty-loving, Foundationist who was well ahead of the Tea Party and today's pretend conservatives.  But America would rather have GHWB, Bill Clinton, GWB, and Barack Hussein Obama than Pat Buchanan--and look where that got us.

Wed, 02/09/2011 - 14:24 | 947011 RockyRacoon
RockyRacoon's picture

Let's not forget Ross Perot.  And he is still doing it:

Wed, 02/09/2011 - 14:36 | 947050 Eyes on the World
Eyes on the World's picture


Wed, 02/09/2011 - 14:52 | 947111 lieutenantjohnchard
lieutenantjohnchard's picture

100% correct. i gave him money even though it was a lost cause from the beginning.

Wed, 02/09/2011 - 15:17 | 947213 Buckaroo Banzai
Buckaroo Banzai's picture

Pat Buchanan is a great american who was ahead of his time in many ways. I only wish I appreciated him more back in the 90s when he was running for President.

Wed, 02/09/2011 - 17:18 | 947541 TBT or not TBT
TBT or not TBT's picture

85% great american, 15% nut job.   Isolationism doesn't work.    It is a small planet, with lots of bad tyrannies in it that would expand into any vacuum we leave.   The europeans no longer help.  We are basically alone in the job, but shirking the job isn't an option.    Pat Buchanan thinks so, unfortunately, and following that path will lead to much worse things than the occasional local wars, permanent bases, and our large standing armies.      It is worth 4% of GDP to prevent those bad things from happening.

Wed, 02/09/2011 - 19:37 | 947893 Buckaroo Banzai
Buckaroo Banzai's picture

Those "occasional local wars, permanent bases, and large standing armies" are consuming a lot more than 4% GDP. The budgetary figures on defense are nonsense, they undercount short-term costs and don't count long-term costs. Hell, the CIA has been literally printing its own money for decades, and that isn't accounted for anywhere.

Thu, 02/10/2011 - 05:00 | 948724 Johnny Dangereaux
Johnny Dangereaux's picture

"lots of bad tyrannies" got that right, with the USA being A#1-

"will lead to much worse things"...and now you can predict the future, can you? You should play powerball then....oh yeah, 4% is a total bullshit figure tossed about by WARMONGERS

Wed, 02/09/2011 - 21:42 | 948108 Freddie
Freddie's picture


Wed, 02/09/2011 - 13:33 | 946802 jus_lite_reading
jus_lite_reading's picture

CEO's care about everyone... everyone that fills their pockets

Wed, 02/09/2011 - 13:31 | 946816 trav7777
trav7777's picture

CHS is correct.

Anyone who studies corporate law knows why so many corporations have INC in Delaware.

Every corporation is looking for its Delaware.  Might have been Ireland for a while but the US is "lobbyable" and so operations or HQs can be sited here for the benefit of executives, but they have no actual interest in OPERATING here in any real sense.

The notion that CEOs care a fuck about poor Indians or chinks is laughable.

Wed, 02/09/2011 - 13:48 | 946891 Northeaster
Northeaster's picture

"SOL" - The literal legal meaning of "Shit Out of Luck".


Probably isn't even a fucking mailbox or phone either, it's a complete joke. Just put some ass-wipe as the RA and Presto! Instant you can't fucking sue me because you were too dumb to do it earlier.




Wed, 02/09/2011 - 14:23 | 947009 Watauga
Watauga's picture

PFC Jones: "Sarge, we're taking fire.  Need artillery support.  Over."

SGT Smith: "Son, you are Sierra-Oscar-Lima!  Over."

PFC Jones: "What's that mean, Sarge?  Over."

SGT Smith: "You figure it out, Jones.  Over and OUT!"

Wed, 02/09/2011 - 14:18 | 946985 lynnybee
lynnybee's picture

  "CHS is correct."   CHS is always right.   I wish I could analyze & write as well as he does.   ........ am lucky to get to read his articles; they have expanded my thinking for the better !


Wed, 02/09/2011 - 13:33 | 946824 dick cheneys ghost
dick cheneys ghost's picture

boycott corporate america. one by one we can take them down.

Wed, 02/09/2011 - 13:34 | 946825 jus_lite_reading
jus_lite_reading's picture

I'm ready and have been ready. But what percentage of the GDP is my necessary shopping?

Wed, 02/09/2011 - 13:50 | 946895 macholatte
macholatte's picture

boycott corporate america


that's right, dipshit. No French, German, Italian, British, Russian, Indian or Brazillian company would be as evil or nasty as an American company.

Wed, 02/09/2011 - 14:39 | 947059 Eyes on the World
Eyes on the World's picture

I don't think the comment said "buy foreign" did it, dipshit?  A more clear thinker might realize they were suggesting to buy from local producers.


Wed, 02/09/2011 - 21:07 | 948065 Cathartes Aura
Cathartes Aura's picture

given the massive support here for Costco & WallyWorld, doubtful that's gonna happen. . .

but hey, I agree with you - and would add "banks" to the corporate amrka list. . .

Wed, 02/09/2011 - 13:35 | 946836 Tic tock
Tic tock's picture

$1.5Trn is not even a year's cash-flow for the US transnationals; and what if(?) the rest-of-the-world demand remains dead level?

Earlier on we saw Defense exports from the US rising, not so much the case now. Machine tools gave good results last year, already tapered out...the drivers of investment ARE American multinationals, the dollar depreciation doesn't hurt them either way- but it's still contingent on rising Demand. When that fails to materialize, they have to hope that there is still some US influence left. Which implies a functioning domestic US economy, in it's more basic terms. 

US Corporate behaviour is a short-term element in this game; it doesn't materially influence the swing of hegemony from West to East.

Wed, 02/09/2011 - 13:40 | 946852 Mercury
Mercury's picture

I hate to say it but the best way to align your interests with Global Corporate America if you don't work for Global Corporate America is to buy stock in Global Corporate America.

Wed, 02/09/2011 - 13:42 | 946865 buzzsaw99
buzzsaw99's picture

Yeah, give your money to billionaires, that'll teach 'em! lulz

Wed, 02/09/2011 - 15:35 | 947224 Mercury
Mercury's picture

Either the equity is worth trading inflation-prone fiat currency for or it's not.

Refusing to transact with rich people (or own something that might indirectly support the value of their assets) probably isn't the best policy to adopt if you're looking to improve your station in life.

Wed, 02/09/2011 - 13:40 | 946858 b_thunder
b_thunder's picture

a few corrections:  australia , new zeland and oceania - 100 million "consumers"?  22million population of australia, another 4.5 - new zealand.  all are already DEVELOPED nations.  oh, sorry, i forgot 250 people from Palau...

"Greater Europe: 450 million consumers of toothpaste, etc. 350 million consumers of autos,"  - you mean everyone over 18 has a car in europe?  i have many friends in the wealthiest western europe countries, and they all have 1 car per household...  350mm is an incredible exaggeration.

"China: 450 million consumers of toothpaste" - so, what about the "other" 900 million?

"India: 450 million consumers of toothpaste, etc., 150 million consumers of autos"  -een if there's 150mm ppl who can afford a car, ahev you seen their roads? or congestion in their cities? (same is true for Chinese cities.)   And on top of that cows always have right-of-way in India....


Wed, 02/09/2011 - 15:38 | 947280 eaglefalcon
eaglefalcon's picture

"China: 450 million consumers of toothpaste" - so, what about the "other" 900 million?


tree twigs (toothbrush) and baking soda (tooth paste)

Wed, 02/09/2011 - 21:12 | 948069 Cathartes Aura
Cathartes Aura's picture


no fluoride!

Wed, 02/09/2011 - 13:47 | 946885 Sean7k
Sean7k's picture

This whole piece in centered on a single idea and perhaps fallacy: the control of the American people. What if the people decide to change the rules and not play?

It is further predicated on the idea that a middle class can be developed globally. This is impossible. It requires an excess creation of wealth that can be shared with a working class. Even in America, this phenomenon has proven to be short lived as the wealth transfer of the last 100 years attests.

These countries have increased their incomes by exporting products to the US and Europe. However, the wealth spigot is drying up. Wealth becomes driven by resource wealth and the ability to create finished products and establish markets to sell them in. The US and European middle class may be beginning to hoard their remaining wealth. To reduce spending.

As resources become harder for countries to exploit openly, the only other means is war- either militarily of economically. This is further hampered by the education of the world's population as information is more easily accessed.

Challenges to the police power of the state may become more normal.

I suggest it is not as simple as Mr. Hughes conjectures. We will see. 

Wed, 02/09/2011 - 13:57 | 946925 Flakmeister
Flakmeister's picture

   Fair analysis, I don't have that much faith in the sheeple though. Unless they go hungry, there are plenty of circuses in the mean time. There is a long way to go before the tipping point is reached (at least on the ZH time-scale of discussion)

Wed, 02/09/2011 - 14:11 | 946961 Sean7k
Sean7k's picture

I stopped thinking in terms of set time a long time ago. These bastards are good. Still, as the wealth is drained, people will sit up and take notice. 

You only need 15% for a revolution and the younger generations have not had the benefit of continuously rising markets like the boomers not the high salary levels. I regularly hear the anger. Though occasionally misplaced, if directed properly- it could be the tipping point many of us have seen coming. 

Wed, 02/09/2011 - 14:17 | 946984 Flakmeister
Flakmeister's picture

  No argument.... I worry about what types will "lead" that revolution, unfortunately, the people making the most noise now, or at least pandering to the anger, are the last ones I would want to see emerge on top.

Wed, 02/09/2011 - 15:09 | 947178 Pants McPants
Pants McPants's picture

Sean7k, I always enjoy your comments.  They are well reasoned and I agree with almost everything you say.

My only concern with what you've written is what will happen at the critical juncture, when the 15% or so have coalesced.  If TPTB are good, as you say, who's to say they can't ride it out or, worse, re-direct that anger at the 15%?  

I hesitate to lump people into groups, but the Tea Party is a good example of this.  They were easily compromised, and without so much as a wimper.

Then again, all bets are off when the unit of account defaults.  My contention is that people won't do anything until they are personally affected....and currency default means chaos.  Millions of people will be angry, but in the end they'll look to the same people who made life "prosperous" for them to begin with, the government or some centralized organization.

Wed, 02/09/2011 - 16:16 | 947380 Sean7k
Sean7k's picture

Thanks. It is my biggest worry and historically, has proven to be a negative. Thus the saying, "better the evil you know, then the one you don't". 

The Elites are good, but they are also complacent. They study history as well, and certain strategies have always played well for them. 

This is why I try to focus on education, remaining united against the determined minority, the exposure of the criminality of bankers and the need for money to be taken out of the hands of bankers or any other power group. 

You have every reason to doubt the resolve of people, I know I do. Can groups be coopted? Sure, look at the union movement, the environmental movement, the tea party and every other organization of the "grass roots". All redefined by the elites for their own purposes. 

I admit it's a pipe dream, but it's my pipe dream and I will savor it for as long as I can. 

Wed, 02/09/2011 - 13:49 | 946893 Flakmeister
Flakmeister's picture

 This is the essence of free market capitalism in its Social Darwinistic glory. Smith and Ricardo would not be surprised. Just deal with it.  

Wed, 02/09/2011 - 14:41 | 947066 Flakmeister
Flakmeister's picture

 Wow, where did all the economic libertarians go? This is your just dessert, I only hope that you are on the right end of the economic scale...

Wed, 02/09/2011 - 15:11 | 947188 Pants McPants
Pants McPants's picture

No, this is crony capitalism/fascism/coporatism.  Take your pick, but calling it free market capitalism perverts the term.

Unless you were being sarcastic (?)  If that's that case, my apologies.

Wed, 02/09/2011 - 15:19 | 947216 Flakmeister
Flakmeister's picture

Ahh... how do you keep the sociopaths from corrupting an ideology to their own ends.

I don't pretend the know the answer, but I think the onus is on those that rally under the banner.  

Wed, 02/09/2011 - 17:26 | 947555 Flakmeister
Flakmeister's picture

  No responses... easy to figure out why. The libertarian free marketers that reside here don't have an answer; easier to spew hateful labels than to objectively analyze the problem and come up with a real solution. This discussion is not about what I believe in, that doesn't matter, it is about what they believe in. Hell, the Cato Institute recommended outsourcing as a means of improving corporate margins.

Yeah, once upon a time I used to believe in Santa Claus.

Wed, 02/09/2011 - 17:52 | 947638 Sean7k
Sean7k's picture

By eliminating the power structures they use to maintain their position. Government, Education, Media, Finance and Police Powers of the State. It is easy to say free markets and minimum government- even individual sovereignty, but the willingness to live in a world the world has little experience with can be like the whisper of commitment- lost on the winds of reality.

Free markets are easy. Free gold could control finance. Education could be made local with universities higher level. Media is difficult as it is subject to control and is an opiate for the people. Police powers must remain local. Law must be private. Emphasis on community governance and the wisdom of leaders whom rule through respect, not violence. 

Protection from outside forces- this becomes a bigger problem. Smaller the better, geographically decentralized with organization localized and specific. 

Problem? In just this short description, you see the potential for problems and the building of power. Of course, like all great challenges, with the minds of many- solutions abound...

Wed, 02/09/2011 - 18:12 | 947707 Flakmeister
Flakmeister's picture

  A good first step. Now before we embark on this experiment, where is the guarentee that whatever fills the vacuum that is created is not worse than what we have. History suggests that vacuum is filled by even worse sociopaths. The reason the US experiment "worked" was that there was a high degree of self sufficiency. That is no longer the case. 

 Short of all out collapse where a few political philosophers manage to convince the local masses of the right and true way, I don't see how it comes to be.  

  In any event, there will be blood.

Wed, 02/09/2011 - 18:26 | 947730 Sean7k
Sean7k's picture

There are no guarantees in life. There is the status quo- do you anticipate it getting better? More freedom? More opportunity? Better standard of living? Honest government? Sound money? Less Taxes and debt? Less regulation? Better candidates?

There were no guarantees for the signers of the Declaration of Independence beyond being drawn and quartered if caught. I would suggest we would get similar opportunities.

Wed, 02/09/2011 - 18:39 | 947758 Flakmeister
Flakmeister's picture

 Yeah, I knew you would hone in on the "guarentee", it was a hasty choice of words on my part. 

 The days of the founding fathers is gone, forever. Remember, they were the liberal intelligensia of their day. A term that is held to scorn in todays society. I still stand by my statement that the only in a complete and utter collapse, where self sufficiency becomes equivalent to having a say in the matter, will any form minarchism evolve.

 The French and Russian revolutions didn't work out too well, did they?

Wed, 02/09/2011 - 20:41 | 948015 Sean7k
Sean7k's picture

Unfortunately, you are probably right on the money. Even worse, things may not break down at all, but continue...

Wed, 02/09/2011 - 20:48 | 948026 Flakmeister
Flakmeister's picture

Good exchange... till next time.

Wed, 02/09/2011 - 17:56 | 947651 AnAnonymous
AnAnonymous's picture

Smith and Ricardo would not be surprised. Just deal with it.  


Clearly, the result of smithian economics.

Wed, 02/09/2011 - 13:50 | 946898 Thunder Dome
Thunder Dome's picture

Middle class suburbs rapidly turning into shitholes.  Have fun idiots!

Wed, 02/09/2011 - 14:12 | 946967 Revolution_star...
Revolution_starts_now's picture

"Middle class suburbs rapidly turning into shitholes"


those are future terrorist training grounds. Bomb the shit out of them, it's a two fer. Takes care of those pesky middle class and solves the housing problem.

Wed, 02/09/2011 - 13:51 | 946901 profoundlogic
profoundlogic's picture

But Taco Bell starts with 100% pure beef.  Never mind how the resultant end-product is only 35% real meat.  Kinda sums up our situation with the overall economy.  If you don't mind real facts, everything will be perfectly fine.

Wed, 02/09/2011 - 13:52 | 946909 lynnybee
lynnybee's picture

 "  Global Corporate America has decoupled from the American middle class; its interests are now international rather than domestic. "   ....

yes, & they used AMERICAN taxpayer money to make the transition .........

Thu, 02/10/2011 - 10:07 | 949020 Bicycle Repairman
Bicycle Repairman's picture

and American blood.

Wed, 02/09/2011 - 13:55 | 946914 MoneyMcbags
MoneyMcbags's picture

Mr. Smith,

Money McBags loves the headline, in fact he loves it so much he used it four months ago

That said, Money McBags has been hinting at what your analysis points to for several months now so well done on fleshing it out (Money McBags unfortunately has been fleshing this out, so didn't have the time).


Bottoms up,

Money McBags

Wed, 02/09/2011 - 14:13 | 946972 Sean7k
Sean7k's picture

Plagurism or a common community of thought? Love your stuff McBaggs- keep up the good work.

Wed, 02/09/2011 - 13:58 | 946927 lynnybee
lynnybee's picture

with no jobs how are people going to be making those mortgage payments & afford that food & gasoline ........ this isn't going to end well ....... it's all deliberate, this entire things has been manufactured by WALL ST. & the U.S. GOV'T.

1.) jobs collapse   2.) bank collapse   3.) currency collapse  (yet to come)   4. country collapse.

Wed, 02/09/2011 - 14:04 | 946947 aerial view
aerial view's picture

right on the mark-should be required reading for all the unemployed and our youth; however, what's the best solution to this dilemma???

Wed, 02/09/2011 - 21:29 | 948092 Cathartes Aura
Cathartes Aura's picture

unplug from corporate amrkn dependency, align with aware others community style (however that looks to you, it does and should vary), stop feeding the corporations (food, toys, whatever), divest of the corporate fiat, invest in precious metals, educate as many as are capable of "hearing" so as to minimise the future drama around you. . .

Wed, 02/09/2011 - 14:09 | 946957 Revolution_star...
Revolution_starts_now's picture

I got a job creating policy, it's called "END THE FED". it will create millions of new jobs and restore wealth to america. What's not to like?

Wed, 02/09/2011 - 14:16 | 946980 Drunken Ecnonomist
Drunken Ecnonomist's picture


Wed, 02/09/2011 - 14:25 | 947018 Watauga
Watauga's picture

So, what's a boy to do?  Maybe take his little bit of cash, get some land, grow some vegetables and fruits, raise some rabbits or chickens or goats, burn his wood, pump his water out of the ground. . .  Maybe we all become Luddites?

Wed, 02/09/2011 - 14:33 | 947044 lindaamick
lindaamick's picture

It is encouraging to hear that US students now owe $830 Billion dollars in student loans.  It is even more encouraging to hear how draconian the terms and conditions for payback of these loans are. 

There is no way out for young people in the US and increasingly no way to pay these debts for young americans.  The youth will lead the revolt and revolution out of desperation as they will be squeezed hard enough to figure out what is really going on.

Viva Revolution!!

Wed, 02/09/2011 - 16:01 | 947344 calltoaccount
calltoaccount's picture

 "As long as the economy and government are rigged in favor of the top economic 0.1%, we will all lose. It's time to unite and fight back!"

Wed, 02/09/2011 - 14:47 | 947086 no cnbc cretin
no cnbc cretin's picture

The system is broken, and is coming to an end.

Wed, 02/09/2011 - 18:10 | 947565 born2bmild
born2bmild's picture

The transition does and will blow but the world is awash in opportunity. A few years back I was trying to get my head around which alternative energy tech might ferry us to the future. Why not all of them? Solar is power is changing so fast I can barely keep up, non-silicon based pv... Energy storage  is changing nearly as fast, ultracapacitors are carbon not rare earth based, they almost never wear out and they are lighter than Li batteries. Hydrogen is still in the game as storage methods get better and on demand systems become more viable. Wind power still has a lot of potential with frictionless bearings (air bearings-youtube it) and better electrical energy storage methods. Geothermal (air and water). Natural gas (including all biogas methods). Algae has an absurdly bright future as a fossil fuel replacement (near or total):

The American Chemical Society is liking cold fusion again:

There are literally hundreds of other alternative technologies being developed rapidly daily.

We need food and big corporate ag' isn't providing much you really want to eat while small, alternative farms are winning in the yield, methodology and quality departments:

Permaculture is a leading tech for making once useless land fertile and productive even in extreme conditions:

Almost all of these technologies are under funded, but many are low tech enough almost anyone could either diy or start up a small biz doing installation (just one of many examples):

The internet and youtube in particular are literally the best thing that has ever happened in the worlds of tech' / idea sharing. It really is the golden age for gearheads. All of these technologies need participants on every level from developers and techs to end users, smells like jobs. 

Wed, 02/09/2011 - 18:39 | 947761 Confuchius
Confuchius's picture

@ no cnbc cretin;


The criminal elements of the "governing" classes are doing what they are told to do. But not by you.

The sheep have no say, and will never have.

Unless they turn off the tv and say farewell to their juvenile fantasies.

Then they must obey the principles of Chairman Mao:

Political Power grows out of the barrel of a gun.

And nowhere else.

Wed, 02/09/2011 - 14:54 | 947116 Trimmed Hedge
Trimmed Hedge's picture

American "middle class"?


Here's a clue: *Everybody* who isn't part of the wealthy elite thinks they are "middle class." And media & politicians love to perpetuate the myth.

Here's another clue: The overwhelming majority of those "middle class" are actually lower/working class.


I freely and publicly admit that I am lower/working class -- yet I have a lot more education and wealth and "status" than many of these so-called "middle class" people.

Go figure that one out....

Wed, 02/09/2011 - 15:05 | 947155 DosZap
DosZap's picture

Pls forgive the source, I respect Schoon, and he has ZH's one and only TYLER D quote on his blog(over here).

Wed, 02/09/2011 - 15:16 | 947201 Caviar Emptor
Caviar Emptor's picture

Been sayin' for quite some time. Biflation is the knife being used to gut the US middle class. They'll all, including all the politicians in Congress, claim that things are fine because CPI is neither too hot nor too cold. That's because even if you had double digit inflation on necessities combined with double digit drops in res real estate prices it would all cancel to zero.

Biflation is a reflection of growth in the developing world, hungry for raw materials and a better standard of living, and also a reflection of the decline of the US middle class, with declining real incomes, net worths, retirement benefits and structurally high unemployment. 

McDonald's Corp's earnings report this week reflected this state of affairs perfectly: comp store sales increased IN EVERY REGION OF THE WORLD EXCEPT NORTH AMERICA! Look for more of the same. It is now a matter of national security that all US large cap corporations do good business abroad. And that in turn means more loss of US jobs through cost cutting and offshoring. 

It's "The Downsizing of America", a theme I've been all over for a while. Even health insurance companies that charge Americans $1,250 a month have moved their claims processing and payment centers off shore. So a portion of your healthcare dollars go to support the standard of living abroad.

Cyberpunk writers saw this coming 20 years ago: a dystopian future landscape of urban sprawl with no national identity anywhere in the world, where huge multinational corporations dominate the economy and control the very appearance of cities. And a sinister dark side emerges where subtle mind control (like advertising) morphs into overt mind control through the food you eat and water you drink and eventually with microchips and electrodes planted in your brain.  

Will they make you fight for the glory of the big multinational corporations? You bet they will. To crush countries with natural resources into submission now that those resources are getting more expensive and supply is limited. 

Wed, 02/09/2011 - 15:49 | 947310 linrom
linrom's picture

This is one possibility. I see yet another--the death of large transnational corporations. There is another more likely possibility than that advanced by C H Smith, that is the view advanced by peak oil crowd, specifically Kunstler who is predicting a different view of economics than what we have witnessed since the Industrial Revolution--that is, "small and local is beautiful" will become the norm.



Wed, 02/09/2011 - 16:10 | 947362 newworldorder
newworldorder's picture

Caviar Emptor may be closer to the truth, unless there is a world economic collapse. For the foreseeable future however and barring any large black swans, corporatism and globalism are synonymous.

Wed, 02/09/2011 - 15:22 | 947230 deepsouthdoug
deepsouthdoug's picture

Just wait till ponzi China implodes.

Wed, 02/09/2011 - 15:29 | 947253 Browncoat79
Browncoat79's picture

Heh. For what it's worth, in Ireland at least, nobody in their right mind would ever buy Oreos. Or indeed any American sweets or junk food, because it's horrendously disgusting. Try some Tayto's crisps (Irish made, from real potato).

Or some Cadbury's chocolate, made in Ireland, I've had the Cadbury's made in Australia, and it tastes like paste. I would stick a needle in my eye before I'd eat a Reese's piece or whatever the heck people do when they want chocolate in the US.


Point is, there are some places where some American companies won't be making any massive overseas profits. Well, unless they make way, way better shit.


Wed, 02/09/2011 - 15:33 | 947270 linrom
linrom's picture

U.S. corporations are pulling $500 billion in profits from non-U.S. sales


Fact check. I don't think this is accurate.

Wed, 02/09/2011 - 15:44 | 947303 Dburn
Dburn's picture

I thought there was some good logic as to why Businessweek made the claim that Lobbying dollars outperform marketing dollars 12:1 and that was before the crash. It's probably up to 30:1 now. Never has so little bought so much.

The best small story I ran across comes to us from the state of Washington where 4 enterprising partners of a T-shirt making company contributed $2,300 each to the congressman in their district. In return they got a large earmark to be sole supplier to the military for logo type t-shirts all 100% flammable too. Congress has always been for sale, we know that, but I don't think people realize how cheap it really is. Millions of dollar of T-Shirts sold for $15.00 each is around $14.00 in profit per shirt. COGS almost drops to software or hey...banking margins.

Why not have them made overseas? Yeah! Oh man, $9200 and 10s of millions in profits. Go out and get ya some today.

Wed, 02/09/2011 - 16:16 | 947381 Sophist Economicus
Sophist Economicus's picture

Sorry, but I don't get the 'so what' to this article. American companies run out of market growth opportunities in the US and start expanding their operations overseas. Duh.

Junk away!

Wed, 02/09/2011 - 16:32 | 947420 sethstorm
sethstorm's picture

They're not doing expansion, but relocation.


Wed, 02/09/2011 - 17:39 | 947595 Sophist Economicus
Sophist Economicus's picture

They do both.   When companies do 'relocation', one has to ask why.   Just pulling on the 'relocation spagetti' in the intertwined bowl isn't intellectually honest.    What are the US government's policies, why does a company feel compelled to lobby - hardly a core competency in running a business and probably not a lot of fun. What is the legal environment like for that industry, does the company have the complete right to hire and fire (God forbid!!!), what are the state and local fees, taxes and other assorted shakedowns.  

This article didn't answer any of the above, and it couldn't without a lot more data and analysis

Wed, 02/09/2011 - 22:58 | 948295 Cathartes Aura
Cathartes Aura's picture

there used to be an argument made, decades ago, that amrkn corporations got "incentives" to locate their business/manufacturing in particular states, districts, etc. - tax incentives, etc. - because they were doing it for the "citizens" - you know, "made in the USA" rhetoric - and in return for the taxpayer largesse, there would be "brand loyalty" and jobs, a sort of circular arrangement based on "patriotism". . .

so weird that those corporations would just take the money and run, eh.

Wed, 02/09/2011 - 16:30 | 947417 sethstorm
sethstorm's picture

It'll be all fun and games until someone in the WH is willing to go all FDR in frustration.  I'd not mind seeing that happen, such that there is no safe territory for those who relocate jobs overseas.

Hate it?  Well, if they want to contribute to the unemployment rate - they deserve no place to hide. 






Wed, 02/09/2011 - 16:40 | 947440 Geoff-UK
Geoff-UK's picture

Someone please get back the key to ZH from CHS.

Wed, 02/09/2011 - 17:11 | 947518 Trimmed Hedge
Trimmed Hedge's picture

Here's another part of the equation that's been over-looked...


Americans are tired of supporting large corporations who are screwing them over.

Instead, they spend money at smaller local businesses.

Wed, 02/09/2011 - 17:20 | 947547 Flakmeister
Flakmeister's picture

Like Walmart and Amazon??

Wed, 02/09/2011 - 17:36 | 947585 Trimmed Hedge
Trimmed Hedge's picture


I mean smaller (and possibly local) businesses.


For example: McDonald's is now only slightly cheaper than a mom&pop restaurant (with take-out) down the street -- and yet the mom&pop has much better quality & service.


I think it's safe to assume that at least *some* Americans have wisened up during the past 2-3 years....

Wed, 02/09/2011 - 20:29 | 947999 thefatasswilly
thefatasswilly's picture

"I think it's safe to assume that at least *some* Americans have wisened up during the past 2-3 years...."


Wed, 02/09/2011 - 23:05 | 948311 Cathartes Aura
Cathartes Aura's picture

too little too late - most are still shopping WallyWorld - even "here" at ZH they compare prices! - still eating nasty corporate fast fud, sporting their Star*ucks "latte" - still buying crap with fiat.

while I agree, supporting local business is better, small business is contracting, to be replaced by community "barter" - if you're lucky.

Wed, 02/09/2011 - 20:35 | 948006 JustACitizen
JustACitizen's picture

Uh huh - I wonder how many multinationals have lost amazing amounts of money or influence when the formerly cooperative government (sic) changed its mind on the alignment of interests? I mean it is not apparent that China has not given up on nationalism in any way - political, economic or militarily. They sign deals with multinationals - the companies take on local partners - they bring in knowledge and create whole industries in return for access. However, if the foreign government changes its mind - what then? I think that regulatory/legal/labor arbitrage works - until it doesn't. I believe that we are living in what some folks used to call "interesting times".

Wed, 02/09/2011 - 21:57 | 948135 Buck Johnson
Buck Johnson's picture

Which means that the US will be a safe harbor of a third world nation for US corporations.  Islands of wealth with millions of bodies to choose from for the rich to use and abuse in their wars and other things.  Just look at the new jobs that are part of the new America cops, prison guards, govt. employees, soldiers and entertainment of some form or fashion.  In the future people will have to emigrate to other countries in order for a good life. 

Thu, 02/10/2011 - 00:55 | 948538 vainamoinen
vainamoinen's picture

week before last - 3 (more) installers laid off

last week - 1 installer and 1 service tech laid off - all other service techs on 32 hour weeks

last 2 installers, 20+ years with the company on part time

Bobby was goin psycho on Mark last Monday - he can see it coming and figures he's got 10 months out of work before he hits "0" net worth and has a $1,400/month mortgage payment

Trish is seeking help from her credit union on financial survival - she's broke and working part-time

Harry Wanger! - "it's" coming like an out of control diesel locomotive on a cold moonless night - - -

Do NOT follow this link or you will be banned from the site!