(SeekingAlpha-MHFT) “Textile workers earn $2.99 an hour in India ($PIN), $1.84 in China ($FXI), and $0.49 in Vietnam ($VNM).”

“This compares to the $8 an hour our much abused illegals get at sweat shops in Los Angeles, and $10 in some of the nicer places. What’s more, the Indian wage is up 17% in a year, meaning that inflation is casting a lengthening shadow over the sub continent’s economic miracle. A series of strikes and a wave of suicides have brought wage settlements with increases as high as 20% in China.”

“This is how the employment drain in the US is going to end. When foreign labor costs reach half of those at home, manufacturers quit exporting jobs because the cost advantages gained are not worth the headaches and risk involved in managing a foreign language work force, the shipping expense, political risk, import duties, and supply disruptions, just to get lower quality goods. Chinese wage growth at this rate takes them up to half our minimum wage in only five years.”

“This has already happened in South Korea ($EWY), where wage costs are 60% of American ones. As a result, Korea’s GDP growth is half that seen in China. These numbers are also a powerful argument for investing in Vietnam, where wages are only 27% of those found in the Middle Kingdom, and where Chinese companies are increasingly doing their own offshoring.”

Full Story: How US Job Losses Will End (SeekingAlpha-MHFT)

Reducing overwhelming regulatory burdens and requirements would also go a long way to help reduce unemployment as well:

(PeterSchiff) “In my own business, securities regulations have prohibited me from hiring brokers for more than three years. I was even fined fifteen thousand dollar expressly for hiring too many brokers in 2008. In the process I incurred more than $500,000 in legal bills to mitigate a more severe regulatory outcome as a result of hiring too many workers. I have also been prohibited from opening up additional offices. I had a major expansion plan that would have resulted in my creating hundreds of additional jobs. Regulations have forced me to put those jobs on hold.”

Full Story: Peter Schiff: Before the Congressional Committee of Oversight & Reform (YouTube)

]]> http://www.vlogolution.com/hot/2011-11-02-how-us-job-losses-and-offshoring-will-start-to-decline/feed/ 0 http://www.vlogolution.com/hot/2011-10-26-crystal-ball-of-economics-complexity-predicts-the-future-growth-of-nations/ http://www.vlogolution.com/hot/2011-10-26-crystal-ball-of-economics-complexity-predicts-the-future-growth-of-nations/#comments Wed, 26 Oct 2011 18:02:28 +0000 http://www.vlogolution.com/hot/?p=1279

(WSJ) “Economists at Harvard University and Massachusetts Institute of Technology have just released what they claim to be the crystal ball of economics: a model for predicting a nation’s future growth more accurately than any other techniques out there.”

” ‘The Atlas of Economic Complexity’ ranks 128 nations based on their ‘productive knowledge’ — the skills, experience and general know-how that a given population acquires in producing certain goods. Countries with a high score in the report’s ‘economic complexity index’ have acquired years of knowledge in making a variety of products and goods and also have lots of room for growth. Essentially, the more collective knowledge a country has in producing goods, the richer it is — or will be.”

” ‘The essential theory … is that countries grow based on the knowledge of making things,’ Mr. Hausmann said in a phone interview. ‘It’s not years of schooling. It’s what are the products that you know how to make. And what drives growth is the difference between how much knowledge you have and how rich you are.’ ”

“Thus, nations with extensive productive knowledge but relatively little wealth haven’t met their potential, and will eventually catch up, Mr. Hausmann said. Those countries will experience the most growth through 2020, according to the report.”

Full story: ‘Complexity’ Predicts Nations’ Future Growth (WSJ)

(p63 of Study) ” The countries in the top ten of this ranking are Japan, Germany, Switzerland Sweden, Austria, Finland, Singapore, Czech Republic, the UK and Slovenia. Immediately after the top 10 we have France, Korea and the US. Of the top 20 countries, half are in Western Europe, 3 are in East Asia, and surprisingly 4 are in Eastern Europe. Israel and Mexico close the list of the top 20. These are countries with productive structures that are able to hold vast amounts of productive knowledge, and that manufacture an export a large number of sophisticated goods. At the bottom the economic complexity ranking we have Papua New Guinea, The Republic of Congo, Sudan, Angola and Mauritania. .. Interestingly the least complex countries in Western Europe are Portugal (35) and Greece (53), two countries who’s high income cannot be explained by either their complexity or their natural resource wealth. We do not think that this unrelated to their present difficulties: their current income has been propped up by massive capital inflows and, as these decline to more sustainable levels, the internal weaknesses come to the fore.”

(p69 of Study) “Here countries are sorted according to their per capita growth potential , which is estimated from the mismatch between a country’s current level of aggregate output (GDP per capita) and their level of economic complexity. China, India and Thailand are at the top of this ranking, since they are countries with economies that are remarkably complex, given their current level of income, and are expected to catch up faster than other developing nations. Next come Belarus, Moldova, Zimbabwe, Ukraine and Bosnia-Herzegovina, five countries where the current level of income is dramatically lower than what one would expect given their productive capabilities. This ranking shows that the two regions of the world where the potential of per capita growth is higher are East Asia and Eastern Europe. At the bottom of this ranking we have Sudan, Angola and Mauritania. These are developing countries where the complexity of their economies does not provide a basis for future economic growth, and, where changes in income are dominated by fluctuations in the price and volume of natural resource activities.”

Site for the Atlas Study: The Atlas of Economic Complexity (Mapping Paths to Prosperity)

Chinese government officials showed no love for Love Land. Investors are now at a loss from their "sexcapaid" venture.

If you were hoping to take a fun ride on the “tunnel of love” during your next quickie visit to Chongqing, China you’re plum out of luck. The newly erected sex theme park, Love Land, was demolished by Chinese government officials this past weekend after racy photos of the park were released.

The park’s screwed investor, Lu Xiaoqing, claimed that the sex park was meant to boost libidos and improve people’s sex lives.  The park featured “giant-sized” statues of male and female naughty bits and exhibitions about human sexuality from around the globe.  Rumor has it that the amusement displays gave government honchos major hard-ons, which is only permissible by officials’ concubines and long-term mistresses.

Presumably in China, it’s a problematic eyesore to gaze upon raunchy, phallic statuary.  Yet, the delightful delicacy to munch on bovine penis and donkey dong remains.  Watch this highly professional and informative HotRoast news video about Chinese gonad cuisine.

For those of you desperately seeking  a classy sex ed exhibit , check out the Museum of Sex located in New York City.

With the constant stream of unprecedented Federal bailouts of “AAA-rated” Wall Street companies, this parody of a recent AIG commercial featuring worry-free butterfly watching seems most fitting given the collapsing house-of-cards of one “rock-solid” institution after another… Watch at your own risk, or more prescient, risk your money in these institutional Behemoths at your own peril… When all’s said and done, who’ll be left to bail out the United States of America and its people? Who’s for REAL CHANGE?

Music: “Twinkle” by VannWestfold
]]> http://www.vlogolution.com/hot/2008-09-22-aig-butterflies-commercial-parody-hope-to-still-be-here/feed/ 78 http://www.vlogolution.com/hot/2007-10-25-global-perspectives-on-the-decline-and-fall-of-the-us-dollar/ http://www.vlogolution.com/hot/2007-10-25-global-perspectives-on-the-decline-and-fall-of-the-us-dollar/#comments Wed, 24 Oct 2007 22:00:00 +0000 http://www.vlogolution.com/hot/?page_id=139

An interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21), discussing how foreign markets such as China have fared since the Fed’s last rate cut, along with the potential global repercussions to come.
]]> http://www.vlogolution.com/hot/2007-10-25-global-perspectives-on-the-decline-and-fall-of-the-us-dollar/feed/ 0 http://www.vlogolution.com/hot/2007-02-27-learn-the-reasons-why-the-dow-dropped-250-points-in-one-minute/ http://www.vlogolution.com/hot/2007-02-27-learn-the-reasons-why-the-dow-dropped-250-points-in-one-minute/#comments Mon, 26 Feb 2007 22:00:00 +0000 http://www.vlogolution.com/hot/?page_id=66

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