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View Diary: Nicholas Kristof is a must-read today (21 comments)

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  •  Strange anomalies in the international foreign (0+ / 0-)

    exchange markets are worth consideration.

    -- A 35-year old high school graduate here makes roughly $15 an hour. A skosh more.

    -- In China the same person makes $1.50 an hour.

    Two factors apply: China has several hundred million citizens in the hustings who are essentially outside the international financial system. These people have been converted to "commuters" who work as manufacturing slaves -- often hundreds of miles from home and living in P.O.W.-style barracks. Labor costs are very low.

    The market for foreign good is more closed than not. They sell anything and everything. They buy next to nothing.

    Sound familiar ???

    China and Germany are doing mercantilism. It works.

    The effects on other economies range from heightened unemployment to loan-based intimidation.

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