3 ms·
Exactly. Cheaper goods have been the only saving grace for American middle class in the past 30 years, where wages have stagnated and vast majority of fruits of
by pcurve 10y ago
Exactly. Cheaper goods have been the only saving grace for American middle class in the past 30 years, where wages have stagnated and vast majority of fruits of labor went to the top 1%.
You take away those $19 jeans, $49 blue ray player, $79 ikea bookcase, $299 laptop and there is going to be hell to pay.
- HillaryBriss 10y agomy prediction is a bit different. consumers would be disappointed, but i'm not as confident that people would become super angry about it. they'd buy less disposable low quality merchandise. for other, high quality goods, people would repair more often and replace less often. also, property theft would rise.
- matt_wulfeck 10y agoMore specifically, there's going to be inflation to pay. Not necessarily a bad thing if you owe $1T in fixed rate loans.
- pcurve 10y ago"Not necessarily a bad thing if you owe $1T in fixed rate loans." It's fixed rate loans, but it's also fungible assets that can sold before maturity. I don't think China will sit idly and watch their tbill ands forex reserves turn into paper.
- arcanus 10y ago> I don't think China will sit idly and watch their tbill ands forex reserves turn into paper. What will they do? Unloading them will flood the market, collapsing the price.
- pcurve 10y agoIt has already begun. $1 trillion is already down from $1.25 trillion just couple years ago. That's a sizable dumping. https://www.ft.com/content/714117d0-ddd1-11e6-86ac-f253db7791c6 https://www.ft.com/content/714117d0-ddd1-11e6-86ac-f253db779...