Mike Shedlock provides the following quote from an article by Andy Xie, which neatly explains why, after five years of government stimulus spending and money printing, the Western world is still close to deflation, afflicted by mass unemployment and threatened by economic contraction.
Keynes Is Dead
I have argued for many years that this round of globalization has fundamentally changed how an economy works, even for a large one like the United States. While demand is and always has been local, the supply side has become genuinely global. Both manufacturing blue-collar jobs and most white-collar jobs have become global. Today’s information technology allows a multinational company to position research, marketing, finance and managerial jobs to anywhere. Hence, when a country stimulates demand, it’s met by supply from anywhere.
This is obvious if you think the matter through. Which leads one to believe that either Western elites are incredibly stupid, or that stagnation, unemployment and loss of manufacturing to the Third World is unstated policy.
As to which it is, I’m still in two minds. Globalization, however, demands equalization of wages and working conditions across the world and that’s where we are headed, with every Western stimulus package delivering more jobs and greater export demand to the Third World at the expense of the Western nations.
On balance, therefore, one has to accept that the elite are not nearly as stupid as they seem. As to whether that is a good thing, I am also in two minds.
But elites, however stupid, that are committed to the survival of the people they supposedly represent (the West constantly boasts of its democracy, after all) rather than seeking to mongrelize them through mass migration, while destroying their culture and religion by the promotion of multi-culturalism, would seem preferable to the bastards I believe we actually have. At least stupid leaders may be guided by wise advice to effective policy, whereas devious villains can do, and apparently are doing, untold harm.
One of the particularly nauseating things about Western ruling elites is their affected devotion to diversity, especially of the non-human variety, as they trash their own people.