Is decoupling for real this time?

By Peter Boockvar - July 9th, 2010, 7:53AM

Decoupling? That failed thesis of late ’08, early ’09 where problems in the US brought the rest of the world down is now showing some legitimacy in the midst of sluggish growth in the US and parts of Europe. Following Australia’s big upside June jobs report where they created the population adjusted US equivalent of about 650k jobs, Canada’s change in employment today was even more impressive. Canada created the US equivalent of 850k jobs in June with an absolute figure of 93.2k, well above expectations of 20k and the unemployment rate fell to 7.9%, the lowest since Jan ’09. Also to the decoupling theme and following yesterday’s rate hike in Malaysia and last week’s in India, South Korea unexpectedly raised rates today by 25 bps to 2.25% as a BoK Gov said “policy interest rate is very low, compared with our economic growth pace and inflation.”

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Is decoupling for real this time?”

JustinTheSkeptic Says:
July 9th, 2010 at 9:01 am
Do you mean, decoupling with a bang! Or is that, “boom a bubble waiting to burst once all the smoke and mirrors of global stimulus wears off?”
franklin411 Says:
July 10th, 2010 at 10:22 am
Another concern is the type of jobs being created. Retail and other service-sector jobs tend to be more temporary, based on flexible hours, and are often lower-paying, economists said. The goods-producing industries that make many of Canada’s exported products saw a net job loss in June.

http://www.theglobeandmail.com/report-on-business/economy/canadian-job-machine-revs-into-high-gear/article1633942/

So basically, Canada has three kinds of jobs: 1. Extractive industries to feed raw materials to other nations (growing, but the party’s over when the resources run out), 2. manufacturing for export (showed a job loss last month), and 3. crappy service jobs with no pay or benefits (growing).

That comports with what my Canadian friends have told me as well. There’s no jobs if you have a degree, and employment counselors are directing people to two places:

1. Temp and service jobs at slave wages

2. The oil fields, to work as day laborers