International Investing

Regardless of their profession, the “cultural elite” are different from you and me. They have brains and status but they have an isolation from real world which prevents them from being affected by the consequences of their own stupidity. Don’t let the fancy degrees fool you, just like gravity, the laws of economics apply to brilliant people as well. This is an excerpt from Gartman:

We say this noting that rather recently Nobel Laureates, Kenneth Arrow, Lawrence Klein, Robert Solow and Joseph Stiglitz all argued that the minimum wage could be increased, modestly, without doing any damage to the US economy or to business. They said, collectively, that “We believe that a modest increase in the minimum wage would improve the well-being of low wage workers and would not have the adverse effects that critics have claimed.” This is of course utter nonsense, for if wages rise, then unless productivity levels rise at least as swiftly, prices must rise or profits must fall.. There is nothing else than can happen, unless all of the rules of conduct economic have been rescinded over the course of the past two weeks. We are open to proof.