Originally Posted by
KW
Only problem is that its not the 1970's any more. Now if the Unions ask for more money, the business simply sacks everyone and moves production to China or other parts of Asia where wages are much lower. So we are trapped in economies where wages are being cut, not increased, in order to keep jobs onshore. And Australia is still one of the highest wage cost countries in the world - they are going to have to come down a lot more in order to be competitive (or the AU$ is going to have to drop a lot more).
And QE did not bring staglation. Which was what the US was hoping for - to inflate away all its debt to make it manageable. We have basically proven that Keynesian economics is bull****. Now if we have deflation, that debt is just going to get harder and harder to pay back.