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Friday, June 02, 2023
Rethinking Globalization
This past week, the Central Bank of Argentina raised its key interest rate by six percentage points to 97 percent—for reference, the U.S. recently raised its key interest rate by 0.25 percentage points from 5 percent to 5.25 percent. This was to combat Argentina’s inflation rate which “soared above 100 percent last month.” Experts are doubtful whether this will tame inflation or boost foreign investment in the Argentinian economy; this nationalized usury will certainly make it even harder for businesses in the country to take out loans, retain their employees, and operate.
I'm pretty convinced globalization is over. Right now China is suffereing from increased labor costs due to their own "one child" policy which has created a demographic collapse and an aging population. Increased energy costs mean the only profit margin left in sending manufacturing to China is in the sunk cost of building manufacturing facilities which wear out and there will be no business case to rebuild. I'm currently reading "The End of the World is Just the Beginning - mapping the collapse of globalization" by Peter Zeihan. I don't agree with all of his predictions but it sure is interesting.
ReplyDeleteIf you can read, you're one up on the rest of us.....
DeleteDoes the book come with crayons? If so, are the crayons edible? Asking for a friend.
Delete(((Central Banking)))
ReplyDeleteMight be a good time to invest in the Argentine helicopter tour industry.
ReplyDelete