Sunday, January 01, 2006

Market Analysts Want American Jobs Sent Overseas to Drop Interest Rates


By Elaine Meinel Supkis

Wall Street pundits celebrate loss of American jobs. They say, getting cheap loans is most important and to do this, we need to export jobs, thus reducing inflation. This vicious cycle is what is killing America.

From Yahoo:
After a volatile 2005 and meager returns to show for it, investors are hoping 2006 will bring better fortunes. And if there's good news next week, the new year could get off to a good start.

Last January, stocks tumbled after an impressive December rally. Word that the Federal Reserve would continue hiking interest rates, combined with mediocre jobs figures, worried investors considerably. The Standard & Poor's 500 dropped 2 percent in the first two trading days of 2005.

Yet this year could be far different. First of all, there was no real December rally, so it's safe to say stocks aren't overbought. Second, the Fed has signaled that it's closer to ending its regime of rate hikes. That could be reinforced Tuesday as the Fed releases the minutes of its Dec. 13 meeting.
Good news is, stocks were flat last year so this year has to be better? How's that possible? Assuming that years alternate in good and bad isn't a smart way to think. Markets can go and do go sour for multiple years at a time!

Friday's jobs data from the Labor Department will be the key to determining whether January 2006 is anything like January 2005. Economists estimate the economy will have created 200,000 jobs in December, down slightly from 215,000 in November. A lower-than-expected number, if not sharply lower, could actually boost stocks, since fewer new jobs would mean fewer wages and less of a chance for inflation to take hold.
Read that carefully. What it means is, if we export high paying jobs to other countries with lower cost of living/cheaper wages/ worse working conditions, we can end inflation here since no one can strike for better wages or demand higher pay! If anyone does strike, the factory closes and moves to China!

So the entire force of energy inflation will be beaten out of the American worker's hide! Too many workers unemployed means the economy goes south for the winter, too, so the calibration Greenspan and his spawn, Bernarke, have to make is "how many jobs dare we send to China and India before it hurts us directly?"

You see, if it hurts you and me, this is OK. Hurts them and their rich buddies, nope. Has to be dealt with, pronto!

Why a democracy has rigged up such a traitorous system baffles me. But then, American workers, trained in a lifetime of propaganda, can't figure out the obvious: they have been betrayed. The new immigration laws Congress is trying to pass penalizes anyone who gives legal or medical help to illegal aliens by putting them in prison for five years, a harsh penalty.

But there is no prison for businesses like Walmart, for hiring these people. For they are another important inflation sink. They compress all the price hikes downwards, both by undercutting the bidding for jobs by legal Americans and by flooding the market with excess labor.
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