1. CHICAGO: India Inc., which is facing the heat from U.S. Presidential candidates who blamed ‘shipping jobs’ to China and India for rising U.S. unemployment, has launched a counter-offensive here telling Americans that the industry is creating new work opportunities for them and “gifting” thousands of jobs to Americans and not “stealing” them.
A full-page advertisement in the Chicago Tribune on Tuesday, by industry body FICCI (Federation of Indian Chambers of Commerce and Industry), gives an elaborate account of how the legendary Tata Group, along with several others like Ranbaxy, Mahindra USA, Bharat Forge, ITC Kitchens of India and HCL America have created thousands of jobs in America by investing in different sectors of the US economy. According to FICCI, Indian corporate investments in the U.S. were over $10.25 billion in 2007.
2. Watch a video here from India Reuters on India Inc.’s ad.
3. The Chicago Sun-Times and more than 70 sister newspaper titles throughout the metro area have entered into an agreement to outsource most of its print and online ad production. The outsourcing agreement with Elgin-based Affinity Express Inc. is expected to reduce operating costs by $3 million a year at The Sun-Times News Group. Affinity, with production offices in India and the Philippines, was chosen because of its “extensive infrastructure and expertise in the field of advertising production for news companies,” including the Charlotte Observer and the Columbus, Ohio Dispatch.
Comment: Wouldn’t it have been ironic if the production of the FICCI’s full-page ad in the Chicago Tribune had been outsourced to India?
It’s possible the only way that the U.S. newspaper industry can remain profitable and survive in the future is with increased outsourcing to India? In other words, although some ad production might be outsourced to India, those outsourcing efficiencies and cost savings might end up helping to save thousands and thousands of U.S. newspaper jobs.
“The Black Book of Communism: Crimes, Terror, Repression” documents communist crimes against humanity, but also crimes against national and universal culture, from Stalin’s destruction of hundreds of churches in Moscow to Ceausescu’s leveling of the historic heart of Bucharest to the widescale devastation visited on Chinese culture by Mao’s Red Guards.
As the death toll mounts—as many as 25 million in the former Soviet Union, 65 million in China, 1.7 million in Cambodia, and on and on—the authors systematically show how and why, wherever the millenarian ideology of Communism was established, it quickly led to crime, terror, and repression. An extraordinary accounting, this book amply documents the unparalleled position and significance of Communism in the hierarchy of violence that is the history of the twentieth century.
Essentially a body count of communism’s victims in the 20th century, the book draws heavily from recently opened Soviet archives. The verdict: communism was responsible for between 85 million and 100 million deaths in the century.
Stagflation update: the chart above compares the growth of the monetary base during the peak of the stagflation period of the 1970s (the 85 month period from December 1974 to December of 1981) to the growth of the monetary base over the last 85 months, from January 2001 to January 2008. (The monetary base is set to equal an index value of 100 in the beginning month of each sample period.)
Notice that there is a significant difference between the two periods: During the 1970s, the monetary base grew by more than 70%, compared to less than a 40% growth during the last 7 years.
Bottom Line: The money supply data (M1, M2 and monetary base) don’t support the position that we are entering a period of 1970s-like stagflation.
As an update to this CD post on stagflation using M1 money supply, the chart above compares the growth of M2 during the peak of the stagflation period of the 1970s (the 85 month period from December 1974 to December of 1981) to the growth of M2 over the last 85 months, from January 2001 to January 2008. (M2 is set to equal an index value of 100 in the beginning month of each sample period.)
Notice that there is a significant difference between the two periods: During the 1970s, M2 grew by almost 95%, compared to a 50% growth during the last 7 years.
Bottom Line: The money supply data (M1 and M2) don’t support the position that we are entering a period of 1970s-like stagflation.
The topic of stagflation was discussed tonight on CNBC’s “Kudlow and Company,” and guest John Browne, former member of British Parliament and ultra-stagflationist, argued that we are facing a “far, far worse situation than the 1970s,” and further predicted that we are “facing a massive recession.”
Larry Kudlow disagreed, and said “Stagflation is a total canard.”
The money supply data support Larry Kudlow, not John Browne. The chart above compares the growth of M1 during the peak of the stagflation period of the 1970s (the 85 month period from December 1974 to December of 1981) to the growth of M1 over the last 85 months, from January 2001 to January 2008. (M1 is set to equal an index value of 100 in the beginning month of each sample period.)Notice that there is a significant difference between the two periods: During the 1970s, M1 grew by almost 60%, compared to a 24% growth during the last 7 years. And for the last 3.5 years, M1 has been flat, with almost 0% growth!
Like Larry Kudlow, when it comes to stagflation, “I don’t buy it for a nanosecond.” Not gonna happen.
“The medical establishment is opposed to drop-in clinics in Wal-Marts and other retail stores. But self-interested doctors need to get over their archaic ways of doing business,” says Dr. Rahul K. Parikh, a member of the American Academy of Family Practice, and the American Academy of Pediatrics, writing in Salon.com:
The medical community needs a second opinion. Retail clinics are good for American healthcare. By giving doctors a run for their money, they force us to do something we don’t do well: innovate. At their best, retail clinics can make doctors look like smart entrepreneurs instead of a self-interest group futilely trying to protect archaic ways of doing business.
Three Carpe Diem charts from this post were featured on CNBC’s “Kudlow and Company” tonight as part of the segment “Kudlow 101: An Outlook on Commercial, Consumer, Industrial and Real Estate Loans.” Here is the link.