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China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
This is so true. A lot of their own money will be used-up for fundamental purposes and this will take a huge chunk out of their budget over the decades.
When you said China being the leader in capital investments, did you mean buying-up currencies around the world?
The US will always be miles ahead with their military technology.
China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
When you said China being the leader in capital investments, did you mean buying-up currencies around the world?
No. I meant that foreign investors who poured brazzillions of dollars into the US to build factories and businesses for decades are now abandoning the US and pouring far more capital into China.
I started a thread a few days ago with an article from the WSJ that said foreign investment in emerging Asian economies is expected to return 20%/year for at least 5 years.
Whereas foreign investment into the US might break even or net 3%/year.
Foreign investment is the strongest force effecting economic development, and it typically has collateral benefits we observe as a good economy.
But the capital markets are 'controlled' by the west, and predominantly, the US. This is the key, and the US will not give this control up.
We no longer have a manufacturing sector and we rely on China to make the components that support our military hardware.
China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
We no longer have a manufacturing sector and we rely on China to make the components that support our military hardware.
Brutus: that of course is BS. We still make 20% of the worlds manufactured goodsand that is 45% more than China makes. Moreover, our manufacturing is on balance all high tech.
China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
WRONG! Our infrastructure is falling apart. We have not been building or maintaining our roads, sewers, electrical grid, water supply systems and many of our aging factories are not being upgraded but still using outdated production equipment. China on the other hand is creating everything from scratch and they will be in great shape in 20 years. We will not. We do not have the money to reinvest in our future so our decline is guaranteed. The only question is how fast will it be.
Deals and capital raisings in China’s booming financial services sector have outpaced those in the US for the first time since records began in 1995, fuelled by a wave of refinancings by Chinese banks needing to repair their balance sheets.
There have been $36.2bn-worth of deals in China’s financial sector so far this year, compared with $26.2bn in the same sector in the US, according to data from Dealogic.
Bankers said the increase in deal flow was being driven by large refinancings by Chinese banks as they move to shore up their capital this year, rather than full takeovers.
“The Chinese government has been rigorous and disciplined about maintaining strong capital ratios in the banking system and as a result one may see more and more capital allocation and reallocation among financial services companies,” said John Studzinski, head of Blackstone’s global advisory business.
In response to the financial crisis, Beijing ordered a credit-fuelled investment boom in late 2008 to boost flagging growth and in 2009 Chinese banks handed out roughly double the volume of new loans extended the previous year.
No.
Those jobs were going away regardless. I don't have enough information to determine whether the U.S. Chamber was correct in their seminars, but I know that the intent was to keep management and control of the operations based here in the USA.
So that's the answer? Those jobs were leaving anyway?
So far, yes. Mind you, I've only given this some serious consideration just because you have repeated it over and over and over again so I figured it might be another opportunity to find out how flawed you are. Meh, I'm bored.
Times change and I'm not racist.
Now, Republicans have discovered that if you paint the inside walls a bright white and put in a cafeteria, you can work people 50 to 60 hours a week and pay them 51 cents an hour and no one cares. Especially, with collusion of the communist government in charge.
Well then they are pretty fucking incompetent since there are way more than 2.4 million manufacturing jobs in the US.
Sure, a lot of people commit suicide. So they put up "nets" around the buildings to "solve" the problem.
Now, some of those very same Republicans see China as a "business model". Go figure.
Protectionism isn't a solution, no matter how much you and the 6% of your friends think it is.
China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
WRONG! Our infrastructure is falling apart. We have not been building or maintaining our roads, sewers, electrical grid, water supply systems and many of our aging factories are not being upgraded but still using outdated production equipment. China on the other hand is creating everything from scratch and they will be in great shape in 20 years. We will not. We do not have the money to reinvest in our future so our decline is guaranteed. The only question is how fast will it be.
The Fed has been working pretty hard at devaluing the dollar. The question in my mind is how long will China support the dollar. A major devaluation of the dollar would be devastating to Chinese exports, however continuing to support the dollar seems pretty risky.China has a population five times the size of the US. They need a larger economy than ours.
The US has been building its infrastructure over the last 100 years. China has a lot of catching up to do. The shortcuts they are taking with environmental and labor regulations will also eventually catch up with them
WRONG! Our infrastructure is falling apart. We have not been building or maintaining our roads, sewers, electrical grid, water supply systems and many of our aging factories are not being upgraded but still using outdated production equipment. China on the other hand is creating everything from scratch and they will be in great shape in 20 years. We will not. We do not have the money to reinvest in our future so our decline is guaranteed. The only question is how fast will it be.
The US does have the money, and not necessarily in the physical sense of cash in the hand. The world no longer operates like this at these macro levels. What US citizens are experiencing is the other side, which is devastating at the moment, of the economy. There is an international economy that the US still controls and will continue to control. The US will not allow countries like China to gain control of these 'markets'; I use this term loosely because they don't fall under the normal definition of 'market'. This is what I believe is happening:
The Federal Reserve and 'its' class of banks are forcing the US dollar to drop. The net result of this internationally is commodity prices and inflation is increasing overseas (and US exporters are benefiting from the low USD). This is causing a lot of, mainly developing, nations to revolt. The anger is directed purely to their own governments. This will create change, and the type of change that the US's international arm wants is one that allows US investments on a grand and perhaps unprecedented scale to hit those international markets. You see, when they topple the current leaders and their defunct economic programs, the US (Fed and banks through indirect loans, and companies) will have buying power of an unprecedented scale.
If you think I'm joking just look at how much money a country like Australia gets from the US (in terms of loans that will be paid back), to finance all aspects of its economy; it's around 40 to 50 percent. There is nothing wrong with this as this benefits Australia's fiscal policy and Australia pretty much can't just do it all on their own. It's good for the US and Australia. This is normal everyday economic practices that every country has to promote and practice. This goes on and has, even though the public is not told of this. Once again, there is nothing wrong with this practice.
Those in control of this are, as strange as this sounds now, looking after long-term US interests. If the US doesn't act to control the direction markets around the world will take, then a country like China will! International markets are warfare of a different kind. Any country that thinks 'na, I better play fair' or doesn't use its might and position to regain or gain control, will get crushed in the long run. There a voids to fill and the US is making sure it fills as many as it can before a country like China does.
The low US dollar inversely lifts the Euro and puts upward pressure on the Yuan. This can't work for either as it will decrease exports. The Chinese yuan should be increasing around 5% to 10% a year with China's strong economic growth. By forcing the US dollar down, the Fed in the US is putting additional and unsustainable pressure on China's currency and its long term growth potential. The Fed in the US is making sure that China has a rocky-road ahead of it. But it can't and won't admit to this. It is looking after long-term US interests, although technically it can not admit it is deliberately reinforcing problems in China and other potential US customers.
I honestly believe if it was up to the Fed and those in charge of the US's international interests (and there are only a few of them), they would devalue the US dollar another 30% over the long term. This will kill China's aspirations for world domination of exports and manufacturing. The yuan would have to increase in value or inflation would be at unmanageable and dangerous levels. Their manufacturing sectors and exports would suffer dearly.
The Fed has been working pretty hard at devaluing the dollar. The question in my mind is how long will China support the dollar. A major devaluation of the dollar would be devastating to Chinese exports, however continuing to support the dollar seems pretty risky.
And this is why the US is in a win-win (long-term, of course) position. China has to support the dollar or it is in deep trouble. The Chinese are dependent on supporting the US dollar and it's becoming a really bad dependency habit. Some might think the US should keep printing money as this will cause more headaches for China down the track.
A confronting problem like this could derail or slow down China's economy.
China Has Already Surpassed the USA !!!.
This has already happened. Just because our financial markets measure of US dollars flowing from them does not show it doesn't mean jack.