The world and different worlds

Comments on “The US is only hurting itself”, by Bill Gross, Pimco, 3/12/2010, http://www.businessspectator.com.au/bs.nsf/Article/global-demand-bill-gross-pimco-recession-pd20101202-BQSWL?OpenDocument&src=rot
There is some truth to what is being said here.

A global fundamental realignment in production and income is inevitable and will have to occur sooner than later.

The continuing reliance on cheap labour wages in developing countries to subsidise the living standard in the US and other developed world is unsustainable when large developing countries catch up in industrial production.

You either have high unemployment in the developed world, or have them produce enough industrial goods that can compete with the goods produced in large developing countries. In competition for the same goods, the process of income equalisation between the developed and the developing countries is likely to accelerate.

The recent near death financial and economic crises and the difficulties of the recoveries of the developed economies are a manifestation of the likely more severe tensions between the two world in the years and decades ahead.

The world as a whole has to find a win-win solution to the future for both worlds.

Maybe the G20 is a forum for that solution to be found.