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From Globalization to Localization [Or Why Globalization Sucks For Developed Countries]
Morgan Stanley ^ | Dec. 14, 2006 | Steven Roach

Posted on 12/15/2006 7:26:05 AM PST by conservativecorner

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1 posted on 12/15/2006 7:26:07 AM PST by conservativecorner
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To: conservativecorner

"...the benefits of the second win have accrued primarily to the owners of capital at the expense of the providers of labor."

Bingo


2 posted on 12/15/2006 7:30:05 AM PST by OpusatFR ( ALEA IACTA EST. We have just crossed the Rubicon.)
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To: OpusatFR
Look at the salaries and bonuses on Wall Street for the missing real wage increases that haven't occurred.
3 posted on 12/15/2006 7:33:41 AM PST by conservativecorner
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To: OpusatFR

And don't let me forget the companies themselves that have made money like the FED was printing it like crazy. [9% - 10% money growth as measured by M3]


4 posted on 12/15/2006 7:35:25 AM PST by conservativecorner
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To: conservativecorner

Funny, my father, a big time Liberal, reads book and articles that tell him the opposite, that Globalism only benefits already developed countries...


5 posted on 12/15/2006 7:35:32 AM PST by Paradox (Let's really defeat Global Warming, build 100 new Nuclear Powerplants! {crickets....})
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To: GodGunsGuts; Toddsterpatriot

Lots to chew on here.


6 posted on 12/15/2006 7:48:09 AM PST by headsonpikes (Genocide is the highest sacrament of socialism.)
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To: Paradox
You are both right. No doubt that globalization has been a boon to developed countries, but the real wage increases have gone to a concentrated group known as the financial sector. In theory it's a wonderful plan, but man lives with two principle instincts...greed or fear. Greed has brought us to this place once again just as it did during the roaring twenties leading to the Great Depression.

Not content to make money hand over fist with the Yen carry trade, derivatives and hedge fund profits, our financial barons threw credit at Americans like no other time in our history. Putting people in homes they couldn't afford knowing full well that the mortgage would fail or default in the future. Ditto for credit cards and credit offers.

We have several asset bubbles deflating at the same time, so this next year should be rather interesting and deflationary.

7 posted on 12/15/2006 7:50:34 AM PST by conservativecorner
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To: headsonpikes; Toddsterpatriot; Mase; Fan of Fiat; expat_panama; remember; finnman69; Pelham; djf; ..
Excellent piece. Thanks for the ping. No wonder the pollyannas in finance think everything in the economy is going along smashingly.
8 posted on 12/15/2006 8:25:02 AM PST by GodGunsGuts
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To: GodGunsGuts
I'm not in the financial industry but things are going smashingly for me. I'm sorry things aren't going as well for you. Maybe if you stopped trying to blame others for your lack of success your luck would change. Or not.
9 posted on 12/15/2006 8:54:56 AM PST by Mase (Save me from the people who would save me from myself!)
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To: Toddsterpatriot; Mase; expat_panama; nopardons

Hey look! Steven Roach is through celebrating the election results!


10 posted on 12/15/2006 8:57:21 AM PST by 1rudeboy
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To: Mase

" Maybe if you stopped trying to blame others for your lack of success your luck would change."

Things are going extremely well for me also, but I have a conscience and believe that my neighbor also should do extremely well.

I do not believe in creating beggers because my bottom line states his bottom line is of no importance.


11 posted on 12/15/2006 8:57:54 AM PST by OpusatFR ( ALEA IACTA EST. We have just crossed the Rubicon.)
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To: Mase
I have been doing quite well thank you. I placed all my bets on a falling dollar due to our massive deficits/debt-ridden economy and they have paid off handsomely. And I highly doubt that your investments are going "smashingly." And if they are, given the dirth of intelligence represented in your robotic posts, I'm sure it's pure luck.
12 posted on 12/15/2006 9:17:31 AM PST by GodGunsGuts
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To: GodGunsGuts

Wait a minute. Are you saying you're making a profit off of globalization? Traitor.


13 posted on 12/15/2006 9:19:32 AM PST by 1rudeboy
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To: 1rudeboy
I'm making a profit off of the economic forces that seek to correct our imbalances....these forces represent the antithesis of globalization, especially as it relates to doing business with our Communist enemies/Red China.
14 posted on 12/15/2006 9:23:11 AM PST by GodGunsGuts
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To: GodGunsGuts

You are prostrating yourself at the Altar of Greed. Hand over your money. The government knows better what to do with it . . . as is argued quite often on these threads.


15 posted on 12/15/2006 9:24:54 AM PST by 1rudeboy
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To: GodGunsGuts; Mase; nopardons; Toddsterpatriot
I placed all my bets on a falling dollar due to our massive deficits/debt-ridden economy and they have paid off handsomely.

Anybody believes that, stand on your head.

16 posted on 12/15/2006 10:00:23 AM PST by Petronski (I just love that woman.)
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To: conservativecorner
This pro-labor political tilt is as much an outgrowth of the hyper-speed of IT-enabled globalization as it is traceable to the competitive pressures bearing down on workers in both manufacturing and services.

And this clearly illustrates why so many opponents of globalization have no clue how complex these economic/technological trends can be, and how impossible it is to "manage" them in any way.

The tech sector in the U.S. enjoyed a period of robust growth when it was being used as a key tool in creating the kind of global networks that we now take for granted. But it makes no sense for us to complain that we are now "losing" because this technology has made it easier for foreigners to compete with us -- any more than we would expect a government to spend billions of dollars on a new highway only to complain when lots of cars started driving on it.

17 posted on 12/15/2006 10:00:37 AM PST by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: Mase
I'm not in the financial industry but things are going smashingly for me.

I'm sure that's because you've used free credit card advance checks that overflow your mailbox to fund a gold margin-trading empire that always buys at--not just near, but at--the bottom and sells at--not just near, but at--the top.

Piece of cake, eh?

18 posted on 12/15/2006 10:03:15 AM PST by Petronski (I just love that woman.)
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To: Petronski

Well, seeing how everything you represent is upside down, it may mark the first (and probably only) time you will ever get to see any of us eye-to-eye.


19 posted on 12/15/2006 10:14:01 AM PST by GodGunsGuts
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To: OpusatFR
but I have a conscience and believe that my neighbor also should do extremely well.

I'm pleased to know you have a conscience. However, my common sense tells me that my neighbor is responsible for his success in life and that personal responsibility/accountability is a conservative principle.

The bottom line that you disparage is the reason for innovation, job creation and rising incomes. If your neighbor's bottom line isn't what he wants it to be then no amount sympathy from you is going to change him. Good intentions are nice but they don't produce much. Like most of the whiners here at FR your neighbor will have two choices. He either accepts responsibility for his place in life and resolves to make the necessary changes to become successful, or he blames it on someone else and demands, like Roach, that someone (government) do something about it.

Whenever the profit motive is missing, the probability that people's wants can be safely ignored is the greatest. Remove or deemphasize the incentive to make a profit and the only thing we'll be creating in this country will be massive numbers of beggars.

20 posted on 12/15/2006 10:19:26 AM PST by Mase (Save me from the people who would save me from myself!)
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