[mkleesma]

Great news! Let's hope it lasts.

[trapped_in_LA]

Ha! Only had to devalue our currency by 20% this year to do it. Who cares about the cost of food, oil and clothing! I’m sure everyone here feels richer, right?

[Nachum]

I find this very interesting.

Just today, we learned that:

*675,000 homes in foreclosure have made no payment in over two years

*’Double dip’ in home prices is official, and prices could drop more

*Oil up 2 percent on weaker dollar

*GM Admits that Dealerships are Taking Chevy Volt Tax Credits

*Food Stamp Usage Hits Fresh Record

*Share of Population on Food Stamps Grows in Most States

*QE3 Has Already Started

*Goldman traded $1.3 billion in Libyan funds: report

*Chicago manufacturing gauge nosedives: Largest drop in two-and-a-half years

---

So- ... something smells here.

[pieceofthepuzzle]

These data are predicated on the value of goods exported, in US dollars. I would like to know what these data mean when the fall in the value of the dollar is factored in.

[pterional]

The real question is what type of goods are we sending to China?If we are exporting coal , metal and lumbar to China and they send us finished goods then I don’t see that as a favorable position. China get our raw materials and we get a raw deal.

[Lazlo in PA]

More dramatically, Boston Consulting Group (BCG), a global management consulting firm, discerns “a renaissance” in manufacturing that will, within five years, lure major U.S. corporations to return home from China.

With the corporate tax rates the US saddles business with, there is no way these places are coming home anytime soon. There is also a problem with the claims this piece makes. The value of the dollar matters a great deal in these calculations. I didn't see any compensation for it here.

[SoftwareEngineer]

The US can easily double that number by taking the Corporate tax rate to zero or providing full tax credit for any and all startup costs and providing a 10 year tax credit

Companies WANT to set up in the US. Give them an incentive and they will beat down the doors to open in the US, especially in the Right to Work States.

If I were President, the first thing I would do is make Corporate taxes effectively ZERO by giving a $1MM tax credit per LEGAL US employee.

A company like Microsoft would only need 20,000 LEGAL employees in the US to make its entire income tax free in the United States

The mantra would be “If you make your dough here, using labor from here, then you get to keep your cash”

[blam]

Thanks. I feel a little better. I had just read the below linked article before reading your article.

40 Signs The Chinese Economy Is Beating The Living Daylights Out Of The U.S. Economy

[Iron Munro]

It is the expected result of the intentional weakening of the dollar by Obama and the Fed.

[bigbob]

Obviously there are many factors to be considered when selecting a new manufacturing plant location, but to assume the US is “dead” for manufacturing is silly. Anyone who doubts this should get the facts rather than rely on doom and gloom pundits. The other trend to watch is “backshoring” of jobs from China and India to the US. Again, there are many factors involved and it’s a trickle rather than a torrent, but it is happening. Not because of cost, either - but because of quality and other factors in most cases.

Think how much these trends could be accelerated with a President and Congress who actually understand how business works (and want that to happen).

[TCH]

Just what the hell are we “exporting” ... besides our jobs?

[familyop]

[familyop stand outside of Mistah Dwagnet's window and yell,] "Big, lucky Ping to Mistah Dwagnet!"

I have a great idea. Let's cut through the red tape and have our corporate-government sell all of our US states with oil, shale, iron, uranium, trees, agriculture and water to wonderful, free, conservative, capitalist Chinese companies. That way, we don't have to pretend to be manufacturing all of those things or news stories about them.