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One Idea How To Generate 5.8 Million Jobs | Zero Hedge

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One Idea How To Generate 5.8 Million Jobs

Submitted by Tyler Durden on 02/27/2014 17:46 -0500

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02-27 17:54: Nissan (7201 JT) to raise Micra output at

According to the Economic Policy Institute, a Washington think tank supported by organized labor, the answer to generating up to 6 million more jobs is as simple as ending global currency manipulation. But not in the sense of ramping USDJPY or AUDUSD at key market inflection points which mostly benefits such FX-rigging chatrooms as "the Cartel", no: they are thinking more big picture, in the "central bank manipulation sense." The report says that "several foreign countries devalue their currencies to make their products cheaper, making it difficult for U.S. manufacturers to compete, the report said." In essence what the group suggests is that the US currency is overvalued relative to the rest of the world, and that by "realigning exchange rates, U.S. trade deficits would be reduced by up to $500 billion per year by 2015. Such a move would increase U.S. gross domestic product by up to $720 billion per year and create up to 5.8 million jobs, the report said." Said otherwise: stop foreign currency manipulation, but allow and encourage the US to keep pushing its own currency even lower. This is all wonderful, however it appears the unions or their mouthpiece thinktank have never heard of the Fed, whose job over the past 5 years has been, among other things, to keep the dollar weaker than it would normally be. If anything, the rest of the world is merely mimicking the policies of the Fed, which have been adopted first by the Bank of England, next the Bank of Japan, and soon, maybe, the European Central Bank. We can't wait to see how much screaming and yelling will ensue if and when Mario Draghi does indeed engage in unsterilized QE, and sends the Euro plunging (now that there is supposedly no fear of redenomination) and by implication, the USD soaring making exports of US goods and services to Europe even more prohibitive. And don't tell labor unions about the recent collapse in the Chinese Yuan: that would really put their noses out of joint. Because while superficially they are absolutely correct, a weaker dollar would on paper boost US exports and potentially generate a few million extra jobs (assuming there are no robots who can fill those positions at a fraction of the cost and none of the wages), the flip side is that it would crush all export-reliant emerging economies, resulting in many more millions of job losses in countries that unlike the US, have no welfare-state safety nets, and thus send the risk of global revolutions through the roof, which in turn would jeopardize the most precious thing of all: the global stock markets, currently at all time highs, courtesy of

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02-27 18:11: i'd say hundreds and they (unrulian) 02-27 18:11: Perhaps you did not notice, (jmp esp) 02-27 18:11: i need to study the evidence. (layman_please) 02-27 18:10: I am bullish too... (bullsfx.com) 02-27 18:10: That's the funny thing about (SgtShaftoe) 02-27 18:10: We live in an end stage (Anusocracy) 02-27 18:10: I hate ignorance, that's it. (dufferin) 02-27 18:09: Sounds like the NSA has (lasvegaspersona) 02-27 18:09: And the cost of imports and (Solon the Destroyer) 02-27 18:09: dude, i dont want to continue (Divided States ...) Contact Information: Tips: tips [ at ] zerohedge.com General: info [ at ] zerohedge.com Legal: legal [ at ] zerohedge.com Advertising: ads [ at ] zerohedge.com Abuse/C omplaints: abuse [ at ] zerohedge.com Suggested Reading: Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide

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One Idea How To Generate 5.8 Million Jobs | Zero Hedge

precisely the kind of currency manipulation that all the central banks - not just the Fed - are engaging in. The story, as reported by the LA Times, continues as expected: Realigning exchange rates could also prompt increased tax revenue and reduce federal budget deficits by up to $266 billion in 2015, the EPI said. "Congress and the administration have a new focus on manufacturing because they understand its value to the American economy," said Scott Paul, president of the Alliance for American Manufacturing. "But they are ignoring the most important job-creating opportunity for manufacturing: stopping currency manipulation. The key to an economic recovery, especially in California, is restoring manufacturing job growth. To shore up those jobs, Washington should launch a national manufacturing strategy that starts with passing bipartisan legislation to end currency manipulation." A bipartisan majority in the Senate and the House has signed letters urging the Obama administration to address "foreign currency manipulation" in the talks with Japan and the other nations. And there has been an outcry in congressional and business circles, particularly the auto industry, over Japan's weakened currency. The yen has fallen about 25% against the dollar in the last year, helping boost that country's exports and profits by making its goods cheaper in foreign markets. "Currency manipulation can negate or greatly reduce the benefits of a free-trade agreement and may have a devastating impact on American companies and workers," said the Senate letter, signed by 60 members and led by Lindsey Graham (R-S.C.) and Debbie Stabenow (D-Mich.). What was unsaid is that it was currency manipulation by others that is what is at stake here. As for the Fed: why, give us more. But just pray that the pent up inflation doesn't finally crack the Fed's dam door, and floor all these workers who are demanding more of the same, because then they will really see what the side effects of manipulated, artificial global markets truly is. And finally, who cares about trade anyway? Recall what the latest IMF "forecast" (and its previous iterations) have to say about world trade (hint - not much):
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A far better option for all the disgruntled workers engaging in such an old normal concept as actually creating exportable goods, is to get an E-trade account, request a few grand from Obama (call it populist bailout venture capital), and bet it all on Tesla. After all, there is just one "trickling down" wealth effect left in the room. Average:

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One Idea How To Generate 5.8 Million Jobs | Zero Hedge

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Cognitive Dissonance

Thu, 02/27/2014 -

17:53 | 4486687 The ends always seems to justify the means when you're the big man on campus. When you're at the top of the financial food chain there is only one direction left to go. <Until, that is, it all comes crashing down.>

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DavrosoftheDaleks Go Long GOLD and Silver is what they are saying.

Thu, 02/27/2014 17:56 | 4486708

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smlbizman

Thu,

02/27/2014 they will create 5.8 - 17:58 | mil 4486722 jobs...they'll need them to feed the 40mil newly created homeless at the soup kitchens
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Flakmeister

Thu,

02/27/2014 You do understand - 18:01 | the 4486729 difference between nominal and real gains, don't you?
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Berspankme Shhhh! Geniuses at work

Thu, 02/27/2014 18:02 | 4486736

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Anusocracy

Thu,

02/27/2014 We live in an end stage 18:10 | government 4486761 created government run economy. Job creation is overwhelmed by job destruction. Take away the reserve currency status and it will create jobs as prolifically as the Soviet Union did.
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maskone909

Thu, 02/27/2014 -

17:53 | 4486688 end corporate offshore tax evasion.

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2/27/2014
boost manufacturing

One Idea How To Generate 5.8 Million Jobs | Zero Hedge

end outsourcing of labor

this will bring us back to a 50's style boom economy edit forgot to reinstate glass steagal
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Flakmeister I only wish it was so simple...

Thu, 02/27/2014 18:06 |

4486745 But one things that could work is to impose a carbon based tax on imports as it takes advantage of lower carbon domestic NG supplies... Coupled with the implementation of a revenue neutral carbon tax phased in while phasing out FICA and payroll taxes... The import tax kicks high carbon chinese imports in the nut sack... Now junk away you troglodytes....
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css1971

Thu, 02/27/2014 -

17:52 | 4486690 Don't worry, Everyone can export their way out of debt!
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Solon the Destroyer And the cost of imports and imported inputs won't change one bit!

Thu, 02/27/2014 18:09 | 4486758

Who the fuck teaches math to Washington Fink Tanks? Krugman? Union leaders? The former mayor of Detroit?
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TheAnswerIs42

Thu, 02/27/2014 -

17:54 | 4486697 And the US TBill rate will go where??

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maskone909

Thu,

02/27/2014 exactly! what happens 18:05 | to incurred 4486725 debts? they will have to "re-allign" currencies a magnitude of times less value than they currently stand. in anycase, this will push yields up dramatically to compensate for the lose in value of t-bills/bonds. bunch of fuckin clowns edit

lets say i have 100 dollars of debt and there is 1000 dollars in existance with a exchange rate of 1usd to 10 yen, now we make the peg rate the same 1:1 usd/yen either the yen gains a shitload of value and american soverign debt becomes amazingly cheaper, or the opposite. i really dont see the system being able to adjust to such a drastic change without massive debt write offs

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One Idea How To Generate 5.8 Million Jobs | Zero Hedge

and some really hurt feelings.
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ZerOhead 42%?

Thu, 02/27/2014 -

18:05 | (After they 4486735 finish buying every scrap of T-paper all the way down to municipal bonds on the market...)
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Timmay

Thu, 02/27/2014 -

17:55 | 4486703 How about we raise rates and then limit banks to just offering savings accounts and lending? Oh, and restore free markets so that the best products and ideas rise to the top (with bad bets/ideas collapsing and falling) with said lending from banks? Simple.
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analyzer_66

Thu,

02/27/2014 Great idea but the banks 18:03 | have already 4486738 lobbies themselves into financial control of gubbmint with the fed as coconspirator of keeping cheap money flowing downstream. Why would they ever want to change this unless the petrodollar is completely destroyed?
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joego1

Thu, 02/27/2014 17:58 | 4486719 They forgot to add the brains when they started up their think tank.
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buzzsaw99

Thu, 02/27/2014 -

17:58 | 4486723 globalist traitors have ruined this country. there's no going back now.
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Spungo

Thu, 02/27/2014 18:09 | 4486757 The dollar needs to be weaker? No problem. End the petrodollar and watch the value crash.
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kito

Thu, 02/27/2014 -

18:11 | 4486766 sadly, and i shudder to think, but nothing short of a decline in population in the u.s. is going to bring about a change for the country. the u.s. population has grown too large and too fat and happy based on 40 years of credit and debt driven growth coupled with a generous welfare state. no "miracle" of balancing the budget or ending currency manipulation is going to fix serious structural problems for this country. there would have to be a major reset and major fallout before any new, real, organic growth can begin. and it will happen, and there is no fix, despite every pundit postulating. it may be quick, or it may be a long slow decline, but its inevitable.......
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