Posted on 03/20/2008 2:56:09 AM PDT by Fennie
The Bush administration forecasts a $410 billion federal budget deficit for this year, an indication that, as the US saving rate is approximately zero, the US is not only dependent on foreigners to finance its wars but also dependent on foreigners to finance part of the US government's domestic expenditures. Foreign borrowing is paying US government salaries--perhaps that of the president himself--or funding the expenditures of the various cabinet departments. Financially, the US is not an independent country.
A troubled currency and financial system and large budget and trade deficits do not present an attractive face to creditors. Yet Washington in its hubris seems to believe that the US can forever rely on the Chinese, Japanese and Saudis to finance America's life beyond its means. Imagine the shock when the day arrives that a US Treasury auction of new debt instruments is not fully subsribed...
Help us out before you send us on another wild goose chase. These overseas parts that are allegedly boosting these figures? Aren't they being assembled into things "they need from us that they cannot design and build for their own?"
Are you kidding me man? Plastic lawn furniture?...
I am in construction, and just about everything I buy it’s origin is from a foreign country. Gypsum products-canada, Wood-Canada, every fastener and screw-China, the list is HUGE.
Trade deficit? Explain that to a laymen if you will....
It's a complex subject, if you've seen my other threads you'll notice I am very negative about the Fed and the credit bubble. Like this one Why the Fed Should Not Lower Rates which does not mention how the excessive credit distorts the economy and does in fact give the speculators and short term investors major benefits at the expense of long term investors (who get burned by inflation).
My rantings on the topic have been mistaken for class warfare. Your rantings here are class warfare. My suggestion is that the Fed should raise rates and bail out (at taxpayer expense) enough speculators to avert a meltdown. Your suggestion appears to be a vague suggestion to restrict trade and to punish the wealthy. While we should all agree on dismantling federal bureaucracy and regulations, do you have any other specific suggestions?
Parts are big bucks... And you think that they are just manufacturing these parts and selling them only to us. How naive is that?
Now you are losing me. I merely pointed out that, in the space of about twenty minutes, you went from “what do they need from us that they cannot get themselves,” to “they get stuff from us they cannot get elsewhere.”
Ya know what, you are right...
I’m going to do a little home work and look into what you suggest. If I find the mother load somewhere, that is, a supply house that sells American building products, I’ll fill you in on my success.
re: 286... “they get stuff from us they cannot get elsewhere”
Where did I say that?
I remember a Nigerian immigrant who was under arrest and being interviewed stating “it is so EASY to steal in america.”
American-made drywall is easy to find, you just have to find the right distributor, as they all have long-term relationships with the gypsum manufacturers. As for fasteners, I recommend ITW Ramset/Red Head. As of the late 90's they were still mostly produced in the United States, to the point where my engineers would specify them for that reason. I'm out of that business, so I can't tell you if they are still American-made.
You said it when you suggested that our manufacturing output is artificially boosted by imported parts.
Are you saying it is not?
And BTW, that is a lot different that your quoting in 286...
I think the answer to this is that sure, automation has replaced some manufacturing jobs however, offshoring/outsourcing plays a big part in the numbers game - even if a company offshores/outsources most of its production process (jobs)to other countries but they still put together the final product here in the USA (they ship back the parts), the Bureau of Labor Statistics counts the entire operation (from start to finish) as manufacturing output.
And my point is, if you want to have a rational discussion, you need to choose one side or the other.
No no no...
They send us parts so our “industrial output” is met. I never said they send us parts to build things for them. In fact, I have been 180 degrees in the other direction.
Basically, they are making their own widgets for their own demands, plus supplying parts at cheaper prices for our industrial output.
Night and day here rudeboy from what you are assuming I said/meant...
Bingo...
One thing only, it is such a shame that people do not understand the simple concept that the God of Israel and His Christ does not reward wickedness, therefore, all godless people bring the destruction of our once Christian nation on all of us as they will never understand that economic blessing is of God and not of the wicked who love money but hate God.
Morality is and essential component of economic blessing and though the wicked may prosper for a short time, they will suddenly slip down the slippery slope that God puts evil men on for the evil they do.
While that would certainly make things convenient for the people arguing that our manufacturing output is overstated, it has the problem of being completely false. The BLS tabulates output by calculating "real value added." Thus, a part manufactured overseas is not "entirely" added to the total.
Now, people can claim that the BLS output number is inaccurate for any number of reasons, but not the reason you provide.
Industrial output includes exports, $1 trillion (approx.) a year. You cannot be claiming that it's so insignificant that it can be safely ignored.
rudeboy, we are shooting and not hitting anything here...
Industrial output, as you state is one trillion a year... Great!! But there is also no denying that post 293 has a lot of merit here.
This trillion dollars is again, great! But the trade deficit takes away from this, which also cannot be denied...
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