Diagram

Some readers seem to have missed my point about the trend to move stuff offshore. Yes, I understand that capitalism is all about exploitation of resources - and the last cheap resource left is third world labor. But it is really good for us?

Imports subtract from the GDP equation. So what happens if the exporters decide to suddenly jack up prices without warning? Will salries in the USA instantly rise to match the increase in prices? And if this happens, will that not trigger run away inflation? And if wages do not match sudden jumps in price from forigen suppliers, who will buy all the consumer goods needed to keep the bull market full of....uhhhh...bull?

And what happens if the next war between the east and west is not fought with bombs? What if the next war is fought along economic lines? Who can hold out longer, the USA or China? And say we just nuke em. Is that really a good idea if we depend on their factories for all out stuff?

All these are questions that economic theory does not really take into consideration, because the theory assumes that everyone just wants to make a whole lot of money. Right now that is what China is doing. But sooner or later they might want power to match that wealth. And who will they take on? Not Scotland. Not The Netherlands. Not France. They will lock horns with the USA. There is no economic theory that takes into account an irrational power grab. but knowing human nature, is it unreasonable to think that such a power move might happen?

These are just some concerns I have. People are too busy doing the rat race thing to get out of the hamster running wheel and look around. Or maybe they just do not want to think about it.