the dow~richard russell comments, page-10

What is different is globalisation which is a new phenomenon.

However, rather than being a blessing, it will prove to be a curse for western economies. One simple reason, the west spends 350 billion in protecting its markets while spending 50 billion in foreign aid. Labour is cheap and so one solution is to send our manufacturers to these poor countries and import it back eg. Nike, Microsoft, etc, etc. One great outcome is that the economies of many struggling but populous economies will improve such as India, China, Brazil, etc. Their wages should go up. THe price will be that ours will come down.

One band aid solution is to create trading regions such as the Eurozone, the asian, the north American and to a lesser extent the South American. Australia is finding it hard trading in Asia so we are trying to fit into the American. But the result of this is only to delay the inevitable.

Globalisation means that western nations are importing deflation.