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PRC Sovereign Risk Review
For those of you have actually been around for a number of years, and remember some of my posting from years past on things economic, this PDF might be useful for you to read.
Some of my final work at UVA revolved around the myth of the gains from offshoring to cheap labour uner the guise of 'trade' and the wealth transfer- not wealth growth- that occurs, based on orthodox economics.
At the time, some economists were managing to get the word out, but it was largely ignored because it didn't suit the CEOs, who were busily stealing from the shareholder and the American Public.
the article talks about a great deal, most importantly the incredibly dangerous and unstable environment in China now, and how the party appears to be at an end.
One of the results is that is proves the adage: "Slave labour is the most expensive labour you will ever own."
The basis of that idea comes from the loss of productivity with cheap labour, as cheap labour is generally unskilled labour.The result?
China uses five times as much energy as the U.S. to produce a unit of GDP, and is therefore acutely vulnerable to increasing energy costs.
Read and enjoy.
PRC Sovereign Risk Review
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