Posted on 11/27/2004 10:24:13 AM PST by soccer_linux_mozilla
The United States’ trade deficit is soaring and the once high-flying dollar has sunk to record lows against Europe’s common currency.
The dollar’s record low against the euro coincided with the government’s report that the United States was running a trade deficit through September at annual rate of 592 billion dollars. That compares with last year’s record 496 dollars billion. As a result, the country is having to borrow almost 600 billion dollars from overseas this year to pay for the imported cars, televisions and other items Americans are buying.
You're just being argumentative again. That accomplishes nothing, save for showing that you are more interested in somehow scoring "right" points than in correctly analyzing the impact of world events.
The rule is that most of the time we see higher prices as an area grows economically.
Higher prices due to higher demand is different from inflation.
So, do you understand what the Fed does? Do you know what monetary is?
By mixing up deflation and deflationary, you are scoring wrong points. So what's your point?
Surprisingly, that's actually true.
However, in the scope of politics for the masses with regard to the global impact of our current Dollar policy, that sort of truth is beside the point. The masses just want to know if prices are going to go up or down, not which academic reason is responsible (save for placing blame).
This is neither the time nor the place to get bogged down debating nuances in semantics and academic axioms.
So, you gonna humor me and answer my questions?
So, do you understand what the Fed does? Do you know what monetary is?
Check out the response of Poohbah, alias Lord Poo Poo, on this thread.
He cannot take being identified for what he is doing. He initiated hostilities when called on the carpet about how, precisely, the U.S. industrial base can be recovered since the Chinese will not cooperate in his hypothetical industrial reversal [after the U.S. currency crash]. He proceeded to call me names personally. This is about the third time he has done this. Pretty lame.
I am of the opinion he should never be allowed to post on China threads if he can't be civil.
Bingo. The fact is the older obsoleted factories have often been dynamited to avoid taxes on "improved" real estate. Cutting edge industries have typically been relocated, machine tools and all removable fixtures to China. If such industries don't move of their own accord, seduced by the drastically skewed artificial forces of economic gravity to the "low-cost" center of the universe, or the chimera of potential Chinese "orders" (get in on the ground floor of the fabulous Chinese market NOW!), then China doesn't hesitate to use its $500 billion hoard to buy out our technology and industry.
Magnequench's theft is a case in point. I have no doubt that the Xlinton-team was part of a corrupt 'deal' to coerce GMAC into relinquishing a profitable division, then wink as a crucial technology, a vital industrial component of national security was taken. The Xlinton-appointees have perpetuated the theft on into the GWB administration. So far, China has refrained from going after Grumman, Lockheed, or Boeing. But it's only a matter of time. They are getting them piecemeal now, anyways, as 'partners'.
A perfect illustration is how Boeing has been steadily been sucked into increasing its production in China, for essentially no real increase in Chinese purchases. A zero-sum game almost. Meanwhile, the Chinese Press just glosses over why they are getting these high-technology business "investments". Read between the lines of the following article from June:
Chinese to Partner on Boeing Airplanes, 7E7 Dreamliner
BEIJING , June 10, 2004 - Boeing [NYSE: BA] today, with China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II), signed memoranda of understanding to provide parts and assemblies for Boeing airplanes, including the rudder for the Boeing 7E7 Dreamliner. The signing celebration at the Boeing China office marked the first announcement of Chinese suppliers selected for Boeing 7E7 opportunities.
Boeing will work with Chengdu Aircraft Industrial (Group) Co. Ltd. (CAC), an AVIC I affiliated company, for supply of the rudder -- a key component of the vertical fin that provides stability for an airplane's directional control. Boeing is developing additional opportunities for Hafei Aviation Industry Co., Ltd (Hafei), an AVIC II affiliated company, to produce metallic and composite parts and assemblies for various Boeing jetliners, including the 7E7. The total value of China opportunities with Boeing, including the 7E7 rudder and work on other airplanes, could reach several hundred million dollars.
"China has an important role on the 7E7 program," said Jim Morris, senior vice president of Supplier Management for Boeing Commercial Airplanes. "Chengdu Aircraft and Hafei represent the talents, technological capabilities and resources of Chinese aviation industry that Boeing needs to provide the best value to our airline customers."
Other officials joining Morris at the partner signing event were Yang Yuzhong, executive vice president, AVIC 1; Luo Rong Huai, chairman and president, CAC; Xu Zhangbin, vice president, AVIC II; Wang Ning, Hafei; and David Wang, president of Boeing China. Also on hand was Mary Armstrong, vice president and general manager of the Boeing Fabrication Division, representing the Composite Manufacturing Center , through which the rudder contract is managed.
"We are honored to be one of the first supplier partners in China to be named to such an important role supporting the Boeing 7E7 Dreamliner," said Luo. "We want to add our strengths to make Boeing's Dreamliner dream come true."
Commercial aviation is crucial to the advancements that will sustain continued economic growth and development in China . Boeing has worked together with China 's aviation industry for more than 30 years. To date, Boeing has procured more than $500 million of aviation hardware from China.
Today, more than 3,400 Boeing airplanes -- one third of Boeing's world fleet -- have major parts and assemblies built in China. Examples of major parts and assemblies built for Boeing by Chinese industry include the 737 horizontal stabilizer from Shanghai Aircraft Corp., 737 vertical fin from Xian Aircraft Corp., 737 tail section modules from Shenyang Aircraft Corp., and 757 empennage and aft fuselage section from Chengdu Aircraft Corp. All are AVIC I affiliates.
Boeing is China 's largest commercial aviation partner. Over the next 20 years, Boeing forecasts China will need 2,400 jetliners, becoming the world's second largest airplane market.
COMMENT: China does not intend to give orders for 2,400 aircraft to foreigners. They will expect, after the first hundred or so, to be fully Chinese planes. Patience, and the West will surrender all, for mere promises.
A weaker dollar helps those whose only debt is a small, fixed rate mortgage, especially a 15 year fixed, with monthly payments far below local monthly rents for similar homes and harms those who have large consumer credit card debts and large, adjustable home mortgages with monthly payments at or greater than locally prevalent rents.
Pay off adjustable mortgages aggressively, e.g. additional payments on principle, etc. Eliminate all credit card debt. Buy or buy into property with innate cash flow, such as rentals, high output farms, 7-11s, land with mineral rights and oil wells on it, etc. Rich dad poor dad 101 ....
My own income grew substantially during the flat times and lower legs (both coming up and going down) on those peaks. But the peaks themselves, ouch! I say, let it fall man! It's almost there, don't stop it now! :=)
There I disagree with you. Peaks in dollar value have been bad for my pay. I think impacts on pay depend on what one does for a living.
RE: Foreigners aren't like us. They have a hard time sleeping when their credit cards are maxed out
In fact, many of them do not even have credit cards. Of course, you will never hear that from the MSM. No one touts this fact, because currently we are far too dependent on retail for our economy. The one thing Bush could do to do the most good, would be to get Greenspan to SLOWLY crank down on credit availability while working with Congress to make it easier to go after credit absconders. There is a lot of bad debt to be purged and the sooner it is purged the better. Learn from Japan and learn from our own self induced Great (unnecessarily prolonged) Depression - intervention to save debtors does more harm than good. They will whine, some will jump, but we cannot obsess on the fate of those who have made poor decisions or have lacked discipline. Had to have to big screen TV? Sell it on Ebay and call me in the morning. Grow a garden, learn to fix stuff, learn to build stuff, learn how to make money helping other people, especially Baby Boomers with lots of money who have no one to take care of them as they age. Etc .... there are solutions, albeit painful, but there are solutions.
When the real war starts it will. And it will be painful.
God Bless You!
They would be trying to get me to add on using a new loan - and many other pathetic attempts ... but to no avail. Nearly paid off anyhoo ....
How can this be? We were just told a few weeks ago, before the election, that the economy was doing great! Even booming.
Stay out of debt, is about the only advise I can give.
Poobah always ends up calling others names, and throwing a fit. I find it rather humorous.
I estimate that in a war emergency, I could set up an injection molding plant in one quarter, a PCBA assembly plant in two quarters and a steel mill in 4 quarters. My biggest challenges would be mobilizing my professional workforce. I also assume I would be able to get equipment from foreign, non Communist, pro Western sources and would have an active venture capital community to draw from. Remove either assumption and your talking a time multiplier of anywhere from 5 to 10 X.
| And IMHO that was the case for most people. The connection between currency rates and economic expansion is a bit foggy, but in general a lower stable rate is better. This whole bit about a so-called dollar crisis is crazy. |
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Yep, does all look like it's by design. Makes me wonder what they have planned for when we refuse to go quietly.
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