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One Idea How To Generate 5.8 Million Jobs
According to the Economic Policy Institute, a Washington think tank supported by organized labor, the answer to generating up to 6 million more jobs is as simple as ending global currency manipulation. But not in the sense of ramping USDJPY or AUDUSD at key market inflection points which mostly benefits such FX-rigging chatrooms as "the Cartel", no: they are thinking more big picture, in the "central bank manipulation sense."
The report says that "several foreign countries devalue their currencies to make their products cheaper, making it difficult for U.S. manufacturers to compete, the report said." In essence what the group suggests is that the US currency is overvalued relative to the rest of the world, and that by "realigning exchange rates, U.S. trade deficits would be reduced by up to $500 billion per year by 2015. Such a move would increase U.S. gross domestic product by up to $720 billion per year and create up to 5.8 million jobs, the report said." Said otherwise: stop foreign currency manipulation, but allow and encourage the US to keep pushing its own currency even lower.
This is all wonderful, however it appears the unions or their mouthpiece thinktank have never heard of the Fed, whose job over the past 5 years has been, among other things, to keep the dollar weaker than it would normally be. If anything, the rest of the world is merely mimicking the policies of the Fed, which have been adopted first by the Bank of England, next the Bank of Japan, and soon, maybe, the European Central Bank. We can't wait to see how much screaming and yelling will ensue if and when Mario Draghi does indeed engage in unsterilized QE, and sends the Euro plunging (now that there is supposedly no fear of redenomination) and by implication, the USD soaring making exports of US goods and services to Europe even more prohibitive. And don't tell labor unions about the recent collapse in the Chinese Yuan: that would really put their noses out of joint.
Because while superficially they are absolutely correct, a weaker dollar would on paper boost US exports and potentially generate a few million extra jobs (assuming there are no robots who can fill those positions at a fraction of the cost and none of the wages), the flip side is that it would crush all export-reliant emerging economies, resulting in many more millions of job losses in countries that unlike the US, have no welfare-state safety nets, and thus send the risk of global revolutions through the roof, which in turn would jeopardize the most precious thing of all: the global stock markets, currently at all time highs, courtesy of precisely the kind of currency manipulation that all the central banks - not just the Fed - are engaging in.
The story, as reported by the LA Times, continues as expected:
Realigning exchange rates could also prompt increased tax revenue and reduce federal budget deficits by up to $266 billion in 2015, the EPI said.
"Congress and the administration have a new focus on manufacturing because they understand its value to the American economy," said Scott Paul, president of the Alliance for American Manufacturing. "But they are ignoring the most important job-creating opportunity for manufacturing: stopping currency manipulation. The key to an economic recovery, especially in California, is restoring manufacturing job growth. To shore up those jobs, Washington should launch a national manufacturing strategy that starts with passing bipartisan legislation to end currency manipulation."
A bipartisan majority in the Senate and the House has signed letters urging the Obama administration to address "foreign currency manipulation" in the talks with Japan and the other nations.
And there has been an outcry in congressional and business circles, particularly the auto industry, over Japan's weakened currency. The yen has fallen about 25% against the dollar in the last year, helping boost that country's exports and profits by making its goods cheaper in foreign markets.
"Currency manipulation can negate or greatly reduce the benefits of a free-trade agreement and may have a devastating impact on American companies and workers," said the Senate letter, signed by 60 members and led by Lindsey Graham (R-S.C.) and Debbie Stabenow (D-Mich.).
What was unsaid is that it was currency manipulation by others that is what is at stake here. As for the Fed: why, give us more. But just pray that the pent up inflation doesn't finally crack the Fed's dam door, and floor all these workers who are demanding more of the same, because then they will really see what the side effects of manipulated, artificial global markets truly is.
And finally, who cares about trade anyway? Recall what the latest IMF "forecast" (and its previous iterations) have to say about world trade (hint - not much):
A far better option for all the disgruntled workers engaging in such an old normal concept as actually creating exportable goods, is to get an E-trade account, request a few grand from Obama (call it populist bailout venture capital), and bet it all on Tesla. After all, there is just one "trickling down" wealth effect left in the room.
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The ends always seems to justify the means when you're the big man on campus. When you're at the top of the financial food chain there is only one direction left to go.
<Until, that is, it all comes crashing down.>
Go Long GOLD and Silver is what they are saying.
they will create 5.8 mil jobs...they'll need them to feed the 40mil newly created homeless at the soup kitchens
"...Such a move would increase U.S. gross domestic product by up to $720 billion per year and create up to 5.8 million jobs, the report said."
$720 billion more of GDP measured in dollars that buy $720 billion less actual stufff... being spent by 5.8 million more workers who have (along with the rest of the 99%) become more employable because the minimum wage has, effectively, been reduced.
I just love these guys.
Meanwhie, the only way to reduce the value of USD is to produce more of it... and who gets those new dollars? It ain't the 99%, that's for sure.
With all the high-tech capabilities of the US, you'd think they could devalue faster than anybody else. Some Fed Ph.Ds aren't piling it high enough.
So easy a caveman would go extinct doing it
5.8 million FEMA guards sounds about right...
You do understand the difference between nominal and real gains, don't you?
The authors of the report clearly don't.
Well yes, with enough manipulation, every useless eater can have a 'job' doing nothing that is productive. They can all make a thousand dollars a day. The problem which arises, is that a loaf of bread will shortly cost $500.
I'm far from an elitist, Flak. I suspect LoP and Oldwood are in a similar situation as me. We compete with others like us- and it's brutal at times.
I don't assume that my qualifications entitle me to a higher wage than a competitor halfway around the world by virtue of my accidental birth in the US. It's clear that this is not true.
It is also crystal clear that useless eaters are very real. Maybe a more descriptive phrase is 'free shit army', or 'the willfully ignorant'. (Yes, I know you would apply that last one to me vis-a-vis AGW).
I've said this before, but I'm not your enemy. More than likely, people like LoP, Oldwood, and me are the basis (collateral) that keeps your heroes liquid with debt money. If you manage to kill us off, you will die shortly thereafter.
What the fuck do you mean "my heros"?
Richard Feynman is behind all this mess?
OK, so you're still mad. I'll give a you a minute. Feynman is your hero? I thought it was Al Gore, please forgive me..
That motherfucker Feynman was queer as a three dollar bill and just as wrong about physics as he was about sexuality.
Nature is a bitch, Flak. Learn it.
Yawn....
You say the hill's too steep climb,
Chiding,
You say you'd like to see me try,
Bye, bye,
You choose the place and I'll choose the time,
And I'll climb that hill in my own way,
Just wait awhile for the right day,
And as I rise above the treeline and the clouds,
I'll look down, hear the sounds of the things you said today.
Are you drunk?
An obscure reference to early Pink Floyd. I didn't think you'd get it.
Obscured by Clouds...IIRC, excellent tune....
but the question still stands....
No. 'Fearless' from the album Meddle. Pay special attention to the opening verse-
Fearlessly the idiot faced the crowd
Smiling
That could be either one of us, no? I think it's you, though.
Shhhh! Geniuses at work
We live in an end stage government created government run economy. Job creation is overwhelmed by job destruction.
Take away the reserve currency status and it will create jobs as prolifically as the Soviet Union did.
Banning farm equipment would result in 100% employment.
How about stopping the continued offshoring of jobs. An endless pursuit of the cheapest possible labor costs (on an uneven playing field where some countyries allow their citizens to be employed in slave like conditions) has destroyed the West. 'Free Trade' hasbeen a disaster. Some - like Perot - warned about the consequences. Yet BOTH political parties in the US ocntinue to support these massive job losses. How about requiring banks that received TARP money to BRING BACK all the DP and Systems jobs they offshored? How about all the callcenter jobs they sent to India? Instead they're now sending accounting jobs overseas as well.
We gutted manufacturing and now we're killing off office jobs.
Doesn't matter how cheaply Walmart sells crap from China if nobody is making any money to buy it. Government can't support 99% of the population just so 0.01% can be multimillionaires.
http://www.youtube.com/watch?v=4PQrz8F0dBI
end corporate offshore tax evasion.
end outsourcing of labor
boost manufacturing
this will bring us back to a 50's style boom economy
edit
forgot to reinstate glass steagal
I only wish it was so simple...
But one things that could work is to impose a carbon based tax on imports as it takes advantage of lower carbon domestic NG supplies...
Coupled with the implementation of a revenue neutral carbon tax phased in while phasing out FICA and payroll taxes...
The import tax kicks high carbon chinese imports in the nut sack...
Now junk away you troglodytes....
So, a kind of carbon-based Smoot-Hawley? Girlfriend, that is just soooo clever.
Pray tell, what is that different between what he said and a different version of Smoot-Hawley?
Besides, I have been told here many times that S-H made no differerence to the GD?
Pray tell, what is that different between what he said and a different version of Smoot-Hawley?
SH was all about import tarifs. Maskone909 didn't say anything about tarriffs, YOU did. But I agree what 'he said' would be the same a 'different' version of Smoot Hawley, one that was enacted on another planet, the planet Non-sequitor, the one you appear to hail from.
Besides, I have been told here many times that S-H made no differerence to the GD?
Have you indeed? By whom, 'pray tell'?
Go troll someone else...
That could actually have a chance. How can the left not support something that really enforces their warming war?
Damn straight it has a chance of working....
Fold in an end for give away tax breaks for FF companies and use those funds to pay for a 21st century infrastructure and you might very well create a few millions quality jobs....
We are troglodytes, but you are still pushing the old Empire should do this mantra. FFS you are a damn relic of Absolutist Europe circa 1800's. Tariffs restrict trade both ways, it's called Jingoism you retarded fly.
So you are claiming that you now a free trading globalist?
I'll give you a hint, that is what us got in this mess we are in now...
You guys may disagree with what I say, at least I am consistent and don't flipflop as the need arises like many here...
\facepalm....
End corporate taxes.
End income taxes.
Manufacturing will boost itself.
Reinstate the intent of the Constitution.
Your comment is about as insightful and useful as:
Thought you might find this interesting, with your obsession for 'peer reviewed' climate science Argumentum ab auctoritate:
http://www.cnet.com.au/publishers-remove-gibberish-computer-generated-re...
There is an important aspect of peer review publications that completely eludes you. It is all about how many times you are cited...
There are lots of bullshit papers that never get cited, i.e. they are resigned to the dust bin of academic history...
Whereas serious papers become part of the foundation of the field, e.g.
http://iopscience.iop.org/1748-9326/6/4/044022/cites
So quit with the lame strawmen...
It would be nice to see sound money somewhere on that list...
Don't worry, Everyone can export their way out of debt!
And the cost of imports and imported inputs won't change one bit!
Who the fuck teaches math to Washington Fink Tanks? Krugman? Union leaders? The former mayor of Detroit?
I think Rickards was correct with what he said in Currency Wars, but that is only part of the global mess currently festering.
And the US TBill rate will go where??
exactly! what happens to incurred debts? they will have to "re-allign" currencies a magnitude of times less value than they currently stand. in anycase, this will push yields up dramatically to compensate for the lose in value of t-bills/bonds. bunch of fuckin clowns
edit
lets say i have 100 dollars of debt and there is 1000 dollars in existance with a exchange rate of 1usd to 10 yen,
now we make the peg rate the same 1:1 usd/yen
either the yen gains a shitload of value and american soverign debt becomes amazingly cheaper, or the opposite. i really dont see the system being able to adjust to such a drastic change without massive debt write offs and some really hurt feelings.
geez, there you go with that critical thinking again. Come on man it's easy
42%?
(After they finish buying every scrap of T-paper all the way down to municipal bonds on the market...)
How about we raise rates and then limit banks to just offering savings accounts and lending? Oh, and restore free markets so that the best products and ideas rise to the top (with bad bets/ideas collapsing and falling) with said lending from banks? Simple.
Great idea but the banks have already lobbies themselves into financial control of gubbmint with the fed as co-conspirator of keeping cheap money flowing downstream. Why would they ever want to change this unless the petrodollar is completely destroyed?
They forgot to add the brains when they started up their think tank.
globalist traitors have ruined this country. there's no going back now.
The dollar needs to be weaker? No problem. End the petrodollar and watch the value crash.
sadly, and i shudder to think, but nothing short of a decline in population in the u.s. is going to bring about a change for the country. the u.s. population has grown too large and too fat and happy based on 40 years of credit and debt driven growth coupled with a generous welfare state. no "miracle" of balancing the budget or ending currency manipulation is going to fix serious structural problems for this country. there would have to be a major reset and major fallout before any new, real, organic growth can begin. and it will happen, and there is no fix, despite every pundit postulating. it may be quick, or it may be a long slow decline, but its inevitable.......
Did anyone on this thread hear a very loud "snapping noise" (in your brain) like a very large Sequoia tree toppling over once you finished reading this?
That's been happening alot lately.
Best part is you no longer have to provide a list to keep track!
End politics and
this ends "terrorism".
Submit "economics" to scientific proceedures.
Introduce "Public Service" and dismiss all bureaucracy.
Reduce "Law" to right and wrong.
Educate to educate and erradicate meal-ticket idiocy.
Bring back morality and ethics, respect and integrity.
Dump all "ideologies" and replace with Philosophy.
"Leadership" should be drawn from those who don't want the job.
All "collectives" are to be returned to be accountable to the Law.
Corporations are to stripped of their "Humanity" classification.
Full overhaul of Banking system is imperative.
Return to individualism profit centres
Religion must be de-institutionalized and be returned to the inherent human right of the individual alone and which can never be violated.
Forbid the State: Make Society imperative.
Embrace risk as a life necessity. All individuals are unique and as such as natures must be a priori repected; Life is of duality and of gender; recognise that duality and gender are not the same functionalities.
The demand for the continuous blood sacrifices must be ignored and rejected.
I will not hold my breathe for there are those amongst us that wish to control and to live on the productivities of all the rest, and are willing to kill for it. There are also those that love to control and despise humanity.
But, above all, very, very few of us only, acknowledge our humanity; this tide must be turned. Then the rest will take care of itself.
Ho hum
Nice job Aquarius, but you left out the part about the guillotines in front of every Washington office to make all those recommendations a success.
Sounds great for Gold .......Let's do it !!!!
Obama saved or created a cum stain on Jay Carney's lapel.
So I was correct at 8 years old when I told my parents the banks should just print more money so everyone can be rich..
What are the idoits planning to do, run all the world's currencies down to zero? Because that is the only end to this stupid devaluation game.
The problem is that the dollar is so weak right now that the people who live here can no longer afford to buy anything except junk made in China. We need a strong dollar along with tariffs to level the playing field of currency and wage manipulation.
Fuck the global elite and their trade, the country one lives in and its people should come way ahead of multinational corporate profits.
Tariffs are defintely the way to go. Let the importers pay for the welfare cost of those who don't have jobs because of this practice. Not to mention the hidden tax of higher oil due to theseimportin activities. Protectonism is the way to go.
http://www.youtube.com/watch?v=4PQrz8F0dBI
Oblabla obviously needs to raise the minumum wage to $70 an hour.
Oh...wait...
"sadly, and i shudder to think, but nothing short of a decline in population in the u.s. is going to bring about a change for the country. the u.s. population has grown too large and too fat and happy based on 40 years of credit and debt driven growth coupled with a generous welfare state."
Not to worry, we'll just import more human offal.
Like it's really that complicated. Take the trillion dollars or so that is being fed into Wall Street (and freeze cap/means test all welfare), and spend the monies on a massive public works program that fixes the crumbling infrastructure and provides for mental health, rehab and homeless facilties. The cities that were prudent with their finances can allocate their share of the monies on fiber speed internet, and parks. We'll have a happier and healthier populace, and millions will be put to work. But alas such is the pide dream of cutting off the markets hopium or cutting back on the fsa's moar.
when food on table manny prroblems. when no food on table only one problem. round eye
Another great idea from an ex-banker to go along with the "realigning exchange rates" idea. This should certainly help to give USPS the shot in the arm it needs.
And now for something completely different... A man with three buttocks!
Here is novel concept fuckeheads. Instead of using global monetary policy try exerting your fucking sovereignty as a nation and use things like tariffs and excise taxes on imports instead of fucking every single person in the country by eroding purchasing power of the miminal wages they earn now as is.
WE DO NOT NEED EMPLOYMENT OR MANUFACTURING.... The STOCK MARKET can now provide wealth for our everyone in our nation. We simply need everyone to stop seeking work and instead place a portion of their unemployment as a stock market wager.... all bets pay. The House is currently very loose. "The more that bet, the better the return" states Mr. Chas. Ponzi
The stock market is THE solution to provide for our entire nation. "But you gotta be in it, to win it bitchez" adds Mr. Ponzi.
/sarc off
Deporting the millions of illegals, and even most of the H-1Bs would create millions of jobs without sacrificing the currency.
Analyze the situation and you might see that the H-1Bs and whatever other designations for importing "talent" have been a much bigger problem for us than the working poor illegals (the FSA illegal movement has really taken off fairly recently - they are horrid). You see, the educated ones often came from places where socialism and communism were or are the diet of choice. They brought lots of bad ideas and propaganda with them about how the state should just fix this or that. They all have to go but the lawn care and constuction workers were not the biggest problem.
I want to hear from the Ebonics think tank and shit.
DEvalue USD in 70% than you will have one of the cheaper labor force in the world.. that is why China is buying a lot of factories and sites in Detroit / USA ...
americans will be working for the chinese. maybe you can get 10m jobs .. lolol
one currency and the free movement of labor and all is well. people will be free to be poor working stiffs in any place in the world....but there will not be any currency or labor arbitrage.
I'm a pro-labor guy in the private sector and an economist by trade but this is pure f@cking nonsense. Yeah if all of the other exporting countries would just let their currencies rise and unemployment and poverty with it, the US would be much better off! I won't read the study because it is a complete waste of time.
And as the us is no longer the top exporter or manufacturer and has been little more than a paper tiger militarily for decades... why exactly should anyone give a shit what the us demands? Any attempt at attacking a nation for currency manipulation is easily countered and thrown right back in the face of the most blatant manipulator of them all.
oh wait, I got an even moar geniuser idea!!
5.8 million jobs PER COUNTRY by simply printing enough money to 're-balance'!
Genios, genios, genios!
The games central bankers are playing in supporting their and other currencies has reached a dangerous level, we may be in the "red zone". Currencies are important chips in the commerce of government and the business of running a country. History has shown that in the past both leaders and governments have fallen with the demise of their coin.
The volume of trades, the sheer magnitude of monies flowing back and forth across borders has become staggering. This area of finance has become the worlds largest casino, where players have the potential to quickly suffer staggering losses. More about these dangerous games in the post below,
http://brucewilds.blogspot.com/2013/01/currencies-games-in-danger-zone.html