"That is why the USA will continue to be the leading economic force and technological power for the forseeable future. Just because we lose some of the lower value manufacturing industries does not mean we are losing our position of leadership *or* mortgaging our future, as some of the other doom & gloom posters like to wring their hands about."
Yes, that's all true...but it's only true because the low-cost, simple industries were the first to fall to Chinese dumping. The longer that China under-values its Yuan, the more U.S. industries will fall.
Likewise, because China is losing so much money to under-value their Yuan in order to conquer American industries, the more that China is suffering.
Which is to say, the longer this currency manipulation goes on, the MORE damage it will do to the global economy when it all unravels.
China's banks are in trouble. Various U.S. industries are in trouble. Continue with the cause of those troubles and you will exacerbate the eventual pain.
Which is to say, the longer this currency manipulation goes on, the MORE damage it will do to the global economy when it all unravels. I agree with you, and I do agree with the Bush admins actions, although I would categorize them as 'appropriate', not 'required'. Don't mix up my comments about China's actions around their currency (where I mostly agree with your position) and the future of the USA industry/economy versus China, where I TOTALLY disagree with the doom-and-gloomers on here who are parroting the same message we heard 20 years ago, and 20 years before that, etc.
Continue with the cause of those troubles and you will exacerbate the eventual pain
Again, I primarily agree and believe we should address those. One way is to call for a real valuation of the yuan. But the other way is to continue to innovate and stay ahead in the high value businesses. As you stated, we have lost some 'low end' industries, which we would have seen go somewhere anyway. It's OK, as long as we keep feeding the funnel from the top.
Until China produces equivalents to Microsoft, Oracle, Cisco, Boeing, ADM, P&G, Intel, Merck, Coca Cola, International Paper, HP, Xerox, etc etc etc by the hundreds, I am not overly concerned about our leadership.