China’s migrants thrive in Spain’s financial crisis – FT.com

English: Banks Furious As Shares Tumble, Eveni...

English: Banks Furious As Shares Tumble, Evening Standard, London, UK, 7 October 2008 (Photo credit: Wikipedia)


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Read the story of Mr. Chen, top of the most recommended list by FT editor, Lionel Barber. Check this out!

via China’s migrants thrive in Spain’s financial crisis – FT.com.

What’s amazing about the Mr. Chen’s story is that, as an immigrant from China, he has managed to succeed and prosper in Spain during the terrible recession caused by excessive austerity, where youth unemployment is nearly 60%.

Mr. Chen provides a benchmark for immigrants everywhere. He also shows the way for millennials around the world. The great American dream of unlimited opportunity seems to be dead, since the financial crisis of 2008 – this is on President Obama’s watch! Students everywhere are wary of the cost benefit analysis of running up huge debts to finance their education, when quality jobs are hard to find.

Look at the modern trend in jobs. In Germany, the powerhouse of Europe, according to China’s media, it is common for people to have multiple jobs to survive. This is the modern trend in Germany and this is how Germany recovered from the crisis of integrating East Germany. When Germany looks to France and Italy to reform their economies, they are bench-marking against trends in Germany’s job market.

Let’s take a second example from the UK. This week, the Office of National Statistics (ONS), is expected to announce record job growth in the UK. The UK has the strongest economic growth in Europe at the moment, on the back of a government sponsored property bubble, created by government guarantees for first time home buyers. As many unemployed graduates in the UK will testify, quality jobs are still increasingly hard to find. Most of the job growth is in part-time work, like stacking shelves in the local Tesco supermarket, with wages barely above the statutory minimum. The UK seems to be adopting Germany’s example.

I am sure that there are increasing examples of job degradation in other countries, like the US? Where are the quality jobs for graduates? Where are the jobs for skilled workers to replace those long since outsourced overseas?

Of course, unions, in countries like France and Italy, will resist the liberalization of the job markets. They will bring their countries to the brink of economic collapse but ultimately unregulated labor will prevail.

As an alternative to Germany’s example of job degradation, surely it is better for millennials to follow the example of Mr. Chen and become an entrepreneur? I can assure you, from my own first-hand experience in China, that there are literally millions of Mr. Chens….

Thoughts?

Dam breaks in Europe as deflation fears wash over ECB rhetoric – Ambrose Evans-Pritchard – Telegraph

This is an excellent article from Ambrose Evans-Pritchard, published in the Telegraph. Check it out!

via Dam breaks in Europe as deflation fears wash over ECB rhetoric – Telegraph.

The article, once again, highlights that austerity will not be enough to reverse the Eurozone’s debt crisis. Now the focus is on big players, like France and Italy, where the outlook is increasingly bleak. Because of Germany, the ECB is unable to act like a proper central bank (like the Fed, BoE, BoJ, or even the BoI).

Personally, I would expect to see speculators returning in a big way, probably leading to another Euro crisis. The leaves two residual scenarios:

  1. German reflates; Germany agrees to fiscal flexibility for the likes of France, in exchange for hard reforms; and the ECB introduces full scale QE (quantitative easing); or
  2. Break-up of the Euro, with risk of deep economic depression in many European countries, before recovery after several years of enormous pain.

Either way, politically, the EU must change.

Thoughts?

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