Baby, The Rain must fall

I sit at my Computer and review what the Night produced as potential source material for my daily message. I ran across this article, which presents a good evaluation as to the ability of the renminbi–called Pricing power–to deal as a Currency in foreign trade. I have some doubts that the Yuan will be much more successful than the Yen, and feel that the Dollar will regain much of its Pricing power lost because of flagrant borrowing practices of Americans. The real importance here lies in the openness of the American economy, where everything can be researched and with little being hidden. Nowhere else can information be gained on the general working structure of domestic production, and this element may be the greatest weight in accepting a Currency as a Trading value.

Cactus tries to explain why Layoffs often lose the better Help, keeping the bad Seed. He tries to do this in a manner which is relatively obscure. A functionality in this process lies in the combination of Training Costs and Position level. Incompetent Help have already been delegated to the scrapheap of endeavor, doing the Jobs with the least chance of mistakes. Training Costs, though, can remain as expensive as for any Employee. Qualified personnel quickly learn the lack of potential of this labor, and will rapidly opt out of such Jobs if assigned to them. Managers often find themselves still saddled with the same level of incompetence to fill such positions, and seek to avoid the high Training Costs of searching for greater qualification. Managers finally descend to utilizing Plug-Ins who are expected to spend a full lifetime in the niche position, while the more transitory good Help are let go.

Here is the Post which may tie the two previous paragraphs together. Both Currency and Skilled Labor is threatened by long-term Unemployment and Recessionary conditions. There will always be a degradation of Job Skills under lengthy unemployment, and the loss of such Skills will reflect in the quality of product in Trade, and the resultant value of Currency. The real problem comes in the fact that such Job Skill losses most impact heavy Producer economies, so Japan and China both suffer increased effects of Unemployment. The Dollar as international Currency may not be under great threat, but the United States gets to suffer all the defects of such denomination; while losing most of the benefits of such system under recessionary times. lgl