Mish's Global Economic Trend Analysis |
Should We Change the Name "Labor Day" to "Robot Day"? Posted: 06 Sep 2015 06:26 PM PDT Happy Labor Day! Here's the question of the day, on this Labor Day weekend: Will a robotic economy do away with human work? That's what Barron's suggests in its pay-walled editorial commentary: The End of Labor? The message is clear, although it's delivered by a voice that sounds almost as mechanical as the process it describes: "Automation is inevitable. It's a tool to produce abundance for little effort. We need to start thinking now about what to do when large sections of the population are unemployable through no fault of their own. What to do in a future where, for most jobs, humans need not apply."That's the only clip non-subscribers see. Reader John pinged me with this inside quote "America will have to change the name of Labor Day to Robot Day — at least until artificial intelligence catches up, and robots become citizens." Doom for Workers? PBS NewsHour asks Do labor-saving robots spell doom for American workers? The onslaught of automation that's replacing human workers -- from golf caddies to bank tellers -- may be putting us on a path to humanitarian crisis, says Jerry Kaplan, author of "Humans Need Not Apply." As technology grows and jobs become obsolete, income inequality and poverty could follow for millions of Americans. Economics correspondent Paul Solman reports.My Take Automation has always been with us. We went from horses to cars. Candles to electricity. Phone operators to wireless. Jobs never vanished. And standards of living rose every step of the way. Is it different now? If so, why? Mike "Mish" Shedlock |
China's Central Bank Says Stock Market Correction "Mostly Over" Posted: 06 Sep 2015 09:20 AM PDT In remarks to the G20 finance ministers, Zhou Xiaochuan, governor of China's central bank says China Stock Market Correction 'Mostly Over'. In remarks at the G20 in Turkey, the People's Bank of China quoted Mr Zhou as saying: "At present, the exchange rate of the renminbi against the dollar is stabilising, the correction in the stock market is already mostly over and the financial markets show hope for stabilising."Words for Us and Words for Them Apparently it's OK for central bank officials to use the word bubble even though others have been forced to make public confessions for using "emotionally charged" words. The media was ordered not to use words such as slump, spike, plunge, and collapse. Analysts were instructed "Do not conduct in-depth analysis, and do not speculate on or assess the direction of the market." Following a witch hunt, one poor soul was forced to make a public confession for saying the wrong things. For more details, see my post Witch Hunt Victim "Confesses": Word Police in China vs. Word Police in US. Shanghai Stock Index Daily Normally the word "correction" means a slide of over 10% but less than 20%. Anything greater is called a "bear market". From 5178.19 to 2850.71 is a plunge of 44.94%. The index is still down 38.97%. Correction Over? Zhou says the correction is "mostly" over? Is that in terms of time or price or both? Regardless, how could Zhou possibly know? A weekly chart provides a better perspective. Shanghai Stock Index Weekly Chartwise, the rise still has that bubble look. And if the market takes off another thousand points or so, it will be back where it started. Since the index is down about 2000 points now, I guess one could say "mostly" over, even if the target is a complete round trip. Mike "Mish" Shedlock |
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