Siffo: Massive Debt, Joblessness, and earning
The labor arbitrage is about to hit the skids. Global markets indicate the coutries the US outsources it's labor to are about to enter a severe recession or even a depression. When neither the US consumers or the rest of the world wants to buy anything, the earnings will slide quickly.
Europe is experiencing worse jobless conditions than the US, and has a debt problem. So that market is quickly drying. Now if US companies try to sell asian built product to asians, the profits will drop too. Asian consumers have a hangover from the Japanese Miracle (Bubble) of 1989. China's economy is overheated and there are structural problems with bad loans Chinese banks hold.
India is about to go through a dramatic social upheaval. The Caste System showed more cracks as common people gained technical training and eventual generated substantial wealth. Salary wars for Indian engineers eat away at the benefits of the outsourcing arbitrage.
The next group of 3rd world countries are so far behind in terms of technical training that the next round of labor arbitrage would not be profitable. The time lag for training new engineers will eat into profits. But if the rest of the world has become so reluctant to buy anything, outsourcing won't matter.
