Well, considering we imported $22.25 billion from China in May, I'd say not very much.
It is especially telling that you blow off the actual vectors and growth indicators and their scope,
I love that we manufacture 5 times more than China and that proves to you we are enfeebled.
As an aside, it should be mentioned that you can never have a realistic comparison vis-a-vis China so long as there is no adjustment for the Communist's strategy to deeply understate the value of their labor and hence their product.
So they sell us an $80 product for $60? That's gonna make them rich. LOL!
More likely "rising U.S. manufacturing output" doesn't mean what you think it means.
Right. Because our output is falling?
Gutierrez also said the U.S. has doubled its manufacturing output since 1985 and is significantly outpacing Mexico, Germany, France and Japan in production.
Remember...we used to produce 100 times more than China, and they had no freaking clue how to make semiconductors or cars...or even quality steel. Now that we have handed all the state-of-the-art production technologies to them, squandering our own investment capital to do so, they are poised to do us serious harm.
Well, considering we imported $22.25 billion from China in May, I'd say not very much.
You can't assume that since you don't know what the U.S. cost of indigenous replication of the Chinese content is. Since their labor price is approximately 1/100th of ours, their product's value is understated. And your analysis is deficient in respect to that:
So they sell us an $80 product for $60? That's gonna make them rich. LOL!
Rich isn't the issue. They are going to get the business. And the manufacturing investments and technolgy to keep doing this. It's like the Titannic. The Unsinkable. Tear a long enough hole in it, and pop enough rivets, that sucker is going down.
A simple test: If our manufacturing sector is so healthy, why don't we successfully export more finished goods to them? You look at the total figures...the net exports to the same country. h'mmm?
Remember their exports to us are almost entirely manufactures, whereas ours are mostly raw foodstuffs, unprocessed iron ore and lumber, and yet still we have a gross negative imbalance:
From the Census Bureau
May 2006 U.S. Exports to China=$4,542.0 Million
Imports from China = $22,253.6 MillionBalance= -$17,711.6 Millions.
This $18 billion monthly net deficit is actually a larger total manufacturing net deficit between China and the U.S...masked to the extent of our unprocessed commodities shipped to them.
Bottom line: They are displacing U.S. manufacturing activity, and the more their manufactures are built up by the West, the more Western manufacturing they will eventually displace. If you look at macro numbers, and say, Aha! US mfg is rising, you miss what is happening at the micro levels that are fundamental and crucial to the continuing viability of U.S. manufacturing. Plus, it is likely that Guiterrez's optimistic assertions don't comport with reality, as inflation is so grossly understated, hence overstating real production.
And you also miss the key factor that China represents in the overall trade deficit, as the N.A.M. has noted:
China’s surplus with the U.S. accounted for 70% of the growth in our manufactured goods deficit in 2005.