Global Serfdom For The Masses

[babesagainstmachines]

The huge new business class in China buy half or most domestic goods, and the rest of them (middle and working class) still spend a good amount on consumerism.

Like I've noticed even working class guys will waste 2-3 pounds each for bottles of beer in a restuarant or club, THAT is definitely consumerism. Chinese people will consume as much as we did, if not much more.

I exaggerated a bit, but you get my point. The production/extraction economies are saving far too much which has enabled the debt bubble in the western world. This is why our trade deficit is so important to watch. There will be no genuine recovery until this turns positive, only short termism and more debt. The powers that be will do all they can to ensure we are repaying in devalued pounds, so we are on the plus side of this trade.

[VeryMeanReversion]

You've missed the point.

The reason it's cheaper to make stuff in india is because rent/land/housing costs are lower.

A nice point. The UK workers cannot be competitive when servicing a £200K mortgage.

To avoid (delay?) mass wealth transfer out of the UK(US), I see default in some form as the only path. Better keep Trident going and the weapons locker full.

As a recent article on Iceland pointer out: Can't pay => Won't pay. This applies for individuals and governments.

VMR.