Posted on 06/29/2004 6:20:23 PM PDT by neutrino
DOBBS: Still ahead here tonight -- the investment rush to China has hit a new level tonight. We'll have that story for you. China's latest gain coming at the expense of, guess what, the United States. We'll have that special report next.
(COMMERCIAL BREAK)
DOBBS: Stocks today barely moved on Wall Street: the Dow down 15; the NASDAQ down almost 6; the S&P fell a point.
Startling new numbers tonight on a changing trend in foreign investment affecting this country and you and me. Christine Romans with the story -- Christine?
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, companies rushed to invest in China last year, and China overtook the U.S. in foreign direct investment.
China attracted $53 billion in foreign direct investment last year according to the OECD; $40 billion came to the U.S., dramatically lower than the 72 billion the year before. Exclude tax haven Luxembourg, and China now tops the list of foreign direct investment.
Analysts say companies are simply eager to cash in on China's cheaper labor and raw materials. And companies are cutting back their investments in the U.S., Japan, Britain, and Germany, Lou.
DOBBS: More good news on the Chinese/U.S. relationship. Christine, thank you. Christine Romans.
Still ahead -- the results of our poll tonight. And a reminder to check our Web site of the complete list of more than 800 companies that we've now confirmed to be exporting American jobs. CNN.COM/LOU.
(Excerpt) Read more at cnn.com ...
There is budgetary debt, and there is trade debt. Less of both would be better. Alas, the folks in D.C. aren't willing to do what I tell them.
That's more of a threat to America than Chinese manufacturing. Other than that, your fears are unfounded.
Riiight. And we didn't need to concern ourselves with Japan prior to December 7, 1941.
China is quite nationalistic. The Chinese, to their credit, believe that there are things more important than buying more cheap junk from Wally World.
I thought the Nationalists were in Taiwan
The Chinese, to their credit, believe that there are things more important than buying more cheap junk from Wally World.
You sound like you'd be happier living there, plus you'd have a trade surplus. Adios.
Says China:
The Five Principles of Peaceful Coexistence are mutual respect for sovereignty and territorial integrity,mutual non-aggression,non-interference in each other's internal affairs,equality and mutual benefit,and peaceful coexistence.
***
Memorize for tomorrow's test.
If America invests in America its not counted as foreign investment. If America invests in China it is foreign investment. You can do the math from there.
Should read: China American company's preffered location of contract labor.
You really ought to educate yourself on this matter before posting. Such statements detract from your reputation.
Watch the dollar.
BUMP
If your manufacturing is a means to an end, then who the customer is doesn't matter to the end. If you can get your enemy to fund his own demise...
Now you've done it. Don't you know that a rising dollar = more imports = higher trade deficit = bad, while a falling dollar is simply bad? Think like a protectionist.
I noticed that you made a number of contributions to a thread here in which a lawyer used a rather old law to force his neighbors to pay part of the cost of fencing the lawyer's property.
You were quite vigorous in your defense.
As for me, I'm in favor of nice new laws that implement good, strong tariffs to protect American jobs and industry.
And since you clearly favor letting neighbors pay for a fence, you must surely favor letting tariffs pay for the protection of American jobs and manufacturing infrastructure!
And, responding to your post, the problem most certainly IS free trade. Investors can see that the U.S. is bankrupt, and has divested herself of the ability to earn income. We've given it away to China. So, naturally, those investors don't want to risk their money here.
The free traitors have cut America's throat. We're only beginning to see the consequences.
And thanks again for all your contributions to that property thread - you may be assured that I will remind you of your position in making others pay for the lawyer's fence.
Absolutely. And as the dollar declines, we're going to see lots of inflation. I think the next decade or so will not be pretty.
So what of France's $47B FDI? It's not like France is flooding us with cheap imports, or under-cutting our manufacturing with low wages. Is France the new bogeyman?
Perhaps they don't want collapse of the U.S.; perhaps they would prefer to supplant the U.S.
To accomplish that, they could simply quit extending credit to us, and maybe sell some of the debt on the open market. This would tend to drive the dollar down and interest rates up - it would, therefore, damage the U.S. economy.
We've given them a variety of weapons. They can choose the time and method most advantageous to them. Maybe that will be during a face-off over Taiwan.
That's also how you can get a multiple entry visa - really fast! :-)
Only if you are able to make the argument that the fence in question must also be subsidized by others whose property does not adjoin the fence. Be my guest.
Aha, but we don't send them hard currency or actual hard assets for those VCRs! We send them ownership of accounts which yield at massive APR! Oh and also, we then, in order to be able to buy even more VCRs, refi our houses, and guess who buys the paper on that debt, which, although not yielding massive APR, has wicked pricipal levels. Guess who's got us by the shorties....
"To accomplish that, they could simply quit extending credit to us, and maybe sell some of the debt on the open market. This would tend to drive the dollar down and interest rates up - it would, therefore, damage the U.S. economy."
??? so they sell the debt on the open market - dosen't that presume that they would find a willing buyer ?
... and the dollar going down hurts their own, as it it tied to the dollar - If they cut loose from the dollar and it sinks, their products become more expensive for us. Their VCR factories become idle, and no more green pieces of paper for them - unless they come back here and buy something we produce, they simply have green pieces of paper.
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