Japanese exports fell 35 percent in December from a year earlier. Industrial production plunged a record 9.6 percent, month on month, in December.With no one to buy the debt, the choice will be between cutting benefits and printing money. California, a microcosm of the Democrats Dream World, points the way.
Chinese exports declined for the third consecutive month in January, falling 17.5 percent from a year earlier, after a 2.8 percent decline in December. Imports plunged even further—43.1 percent, twice as much as December's 21.3 percent year-on-year drop.
More than 20 million Chinese migrant workers have lost their jobs so far, with some analysts warning of 50 million more job losses if the economy deteriorates further.
India exports fell 24 percent in January. According to official data, one million Indian workers in the export sector have lost their jobs since September. Another half a million workers are expected to lose their jobs by March.
There will be no cuts in benefits.
"There will be no cuts in benefits"
ReplyDeleteActually, there will be, but not in the sense of actually reducing the number of dollars spent. But, if the dollars are only worth 50% as much as they used to be, well, that's a 50% actual cut in the benefits, only hidden so it is easier to gloss over.
I'm getting more and more convinced that the governments are not proceeding in blithe ignorance of the likelihood of inflation, but have actually decided that inflation of around 10% is their best bet for getting out from under a lot of obligations. As a bonus, it lets them do it without actually having to do anying as crass as *voting* to do unpopular things that could cause them to get forced out of power. The inflation rate will just cause these unpopular things to sort of "happen".
Of course, there is a real danger that they might overshoot and start flirting with hyperinflation. Plan accordingly. They might pull it off (after all, we managed to avoid hyperinflation even after the outrageous deficit expenditures of the New Deal and World War II), but some caution would be a good idea.
Of course, there is a real danger that they might overshoot and start flirting with hyperinflation. The government are not proceeding of inflation, but have actually decided that inflation of around 10% is their best for getting out from under a lot of obligations. Plan accordingly.
ReplyDelete