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Chasing The Dragon

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the real problem with western economies is even worse than most can imagine.

The assumed scenario is that china will boom until there economy and standard of living gets on a par with the worlds other industrialised nations.

But i think the opposite is about to happen.To compete the west will have to start getting on a par with china instead.

I think of it like this

say the world is a high street, there is the usa and japan with there shops open, over the otherside is germany and france ect ect.and we are all carrying out our buisness.

Till one day a giant superstore opens up in the high street, for some reason there rent is a quarter of what the rest are paying, and people are flocking to work hard for it , queues of people waiting outside hoping to sign up to work 60 hour weeks.The wages are 1/10 what the others are paying but who cares there the only shop in the street hiring.

So to buisness it goes and it starts selling the same goods as the others but at 1/4 the price, after a few years it has to up the wages a little but this is small beans compared to whats happening to the other shops.

USA looks across everyone of its customers have disapeared there all at the china store, they aint coming back why should they there getting the same quality goods cheaper.So the other shops have to start cutting costs, wages dont rise infact they start to fall, to survive they have to match china.

They hoped that eventually china would have to start paying the same wages and have the same costs but it never happens, the only way to survive is to deflate, theve been making so much losses and have huge debts, that there is now no choice but to compete on price or go bankrupt.

Hence the west wages ect will plummet to match china not the other way around as everyone seems to think.

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the real problem with western economies is even worse than most can imagine.

The assumed scenario is that china will boom until there economy and standard of living gets on a par with the worlds other industrialised nations.

But i think the opposite is about to happen.To compete the west will have to start getting on a par with china instead.

I think of it like this

say the world is a high street, there is the usa and japan with there shops open, over the otherside is germany and france ect ect.and we are all carrying out our buisness.

Till one day a giant superstore opens up in the high street, for some reason there rent is a quarter of what the rest are paying, and people are flocking to work hard for it , queues of people waiting outside hoping to sign up to work 60 hour weeks.The wages are 1/10 what the others are paying but who cares there the only shop in the street hiring.

So to buisness it goes and it starts selling the same goods as the others but at 1/4 the price, after a few years it has to up the wages a little but this is small beans compared to whats happening to the other shops.

USA looks across everyone of its customers have disapeared there all at the china store, they aint coming back why should they there getting the same quality goods cheaper.So the other shops have to start cutting costs, wages dont rise infact they start to fall, to survive they have to match china.

They hoped that eventually china would have to start paying the same wages and have the same costs but it never happens, the only way to survive is to deflate, theve been making so much losses and have huge debts, that there is now no choice but to compete on price or go bankrupt.

Hence the west wages ect will plummet to match china not the other way around as everyone seems to think.

How old are you ?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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