Category Archive 'Bad News'

04 Jan 2013

Dan Greenfield: America Gave Away the World’s Leading Industrial Economy in Return for Cheaper Goods and No Ugly Industrial Sites

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Dan Greenfield
has another of his intelligent essays full of unpalatable truth.

[T]he West has been headed out of the territory of reason for some time now. Its truths have become ideological beliefs. Its goals have become the self-worship of its own symbols, size for the sake of size, and centralization for the sake of centralization. There is a mingled horror and longing for the savage and the barbaric, as civilization appears to have lost its meaning. The leadership cries “Onward to a united world” on the one hand, and “Back to the caves” on the other. That confused melange boils down to a cultural intelligence which has lost the awareness of its own contradictions. High tech environmentalism, soft wars and valueless money are all symptoms of that same intellectual degeneracy.

The rise of China is directly tied to our own irrationality. The People’s Republic of China has become rich and powerful by serving as the reservoir of our contradictions. We wanted cheap products, no pollution, high wages and generous benefits. All these things are not compatible, so we outsourced our manufacturing to China and pretended that we could have it all. But all we got were cheap products, and the country we outsourced them to got the jobs and the national prosperity. We wanted to spend money without worrying about where it came from. Again we turned to China. And like the grasshopper and the ant, we sang and played all summer, while the ants worked and prepared for the winter.

We used China to escape the limits of reality, but there is no escape. Only temporary vacations from consequences.

He’s perfectly correct, of course.

Read the whole thing.

20 Jul 2012

Red Pill, Blue Pill

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James Delingpole, at the Telegraph, is offering readers an economics red pill.

The red pill – for those who haven’t seen The Matrix – is the one which shows you the world as it really is rather than cosy, fantasy confection of the popular imagination. The red pill is not for the fainthearted because it involves confronting painful, ugly reality rather than living the dream.

Let me give you an example of what taking the red pill entails. It’s a report from last year by the Boston Consulting Group showing that the amount of household, corporate and government debt which needs to be eliminated stands at $21 trillion. The cost of dealing with this “debt overhang” will entail the loss (ie confiscation by the government) of one third of the wealth of the asset-owning classes. Some time in the next few months, weeks or years, we’re all going to be taking a 30 per cent hair cut.


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