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Guru of economics does an about-turn on free trade
Indian Express Newspapers (Bombay) ^ | Tuesday, October 19, 2004 | Jay Bhattacharjee

Posted on 11/06/2004 2:45:55 PM PST by Willie Green

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To: Moonman62

Since when do economic superpowers remain content to play second fiddle geopolitically ? Since when will China be content to let the Pacific remain an American lake ? Ever heard of pride and ambition ? They are part of human nature.

It is pure wishful thinking to pretend that a surging China will not demand its place in the sun. People aren't like that.


261 posted on 11/07/2004 4:48:08 PM PST by Sam the Sham
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To: Sam the Sham

Your making the exact same arguements liberals make when they say the U.S. needs free healthcare, daycare etc. Your arguement is one for socialism


262 posted on 11/07/2004 4:48:52 PM PST by Dat
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To: XBob

So one moment your arguing Free trade is putting the US out of business, then your arguing the US is putting others out of business. I guess you just don't like capitalism.


263 posted on 11/07/2004 4:52:29 PM PST by Dat
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To: Dat
Your making the exact same arguements liberals make when they say the U.S. needs free healthcare, daycare etc. Your arguement is one for socialism.

As the baby boom ages and as fewer and fewer jobs provide health coverage, expect the American people to demand national health care. As real incomes drop due to erosion of good jobs, expect workers who are expected to bounce from job to job to demand a social safety net. Real people in the real world care more about their families than they do about free market ideology. Call it what you like, but free traders will be like 1935 Liberty League types preaching bootstrap rugged individualism from their yachts and penthouses to the guys on the bread lines.

264 posted on 11/07/2004 5:00:28 PM PST by Sam the Sham
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To: Dat

263 - "So one moment your arguing Free trade is putting the US out of business, then your arguing the US is putting others out of business. I guess you just don't like capitalism."

Hardly - what I do argue is that free trade is not free, and someone always has to pay.

Free trade is like democracy - pure free trade is pure anarchy, just like pure democracy is anarchy.


265 posted on 11/07/2004 5:02:39 PM PST by XBob (Free-traitors steal our jobs for their profit.)
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To: Sam the Sham
It is pure wishful thinking to pretend that a surging China will not demand its place in the sun.

They have 4000 years history. They are very patient, they can wait 20 years. In 20 years US and EU leaders will be paying homage to China and Taiwan will be begging to be incorporated back.


266 posted on 11/07/2004 5:05:10 PM PST by A. Pole (Putin: "Democrats had no moral right to criticize the Iraq invasion, after what they did to Serbia.")
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To: Sam the Sham
Since when do economic superpowers remain content to play second fiddle geopolitically ?

When it's in their best interest to do so. The greatest challenge to China's leadership is within its own borders.

267 posted on 11/07/2004 5:06:50 PM PST by Moonman62 (Federal Creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it.)
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To: Moonman62

China is already stoking the fires of nationalism to deflect internal dissent, as Germany did. Taiwan is a total no compromise issue.

You have far, far too much confidence in the willingness of China to abide by the rules of others. Why should they have any more regard for American geopolitical rules than they do for copyrights and patents ? If power is there to be grabbed, China will grab it.


268 posted on 11/07/2004 5:12:47 PM PST by Sam the Sham
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To: ninenot
Actually, it's because we have a hell of a lot more DEBT than anyone else. What happens when (not if) the value of housing drops? And it will: net after-tax earnings, CPI-adjusted, continue to decline.

It's true that we have more debt than anyone else, but you can also look at debt as an "investment".

Savings - Investment = Exports - Imports

I suppose that your point is that asset-based saving (housing) has come to be viewed as a substitute for the income-based impetus to consumer demand, which has resulted in a shortfall of domestic saving. Lacking in domestic saving, the US has had to import surplus saving from abroad and run massive current account and trade deficits to attract that capital. The obvious danger being that our assets turn out to be overvalued.

That idea has merit to be sure, and perhaps more than I'm capable of comprehending. I'm far from an economist or expert on these subjects. I don't worry about housing values as much as others do. I would see a drop in housing prices as a temporary correction for overpriced housing, but would then expect values to continue to climb. The housing market does not appear to be driven by expectation of rapid future price appreciation (people HAVE to live somewhere) and the supply is, theoretically, limited. Housing supplies haven't become limited - housing in certain places has. That helps to explain the seemingly absurd prices in some areas.
269 posted on 11/07/2004 5:15:34 PM PST by Jaysun (How many votes did that HUGE A$$ Medicare bill buy us?)
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To: Dat


Their names are Solo, Deer, Leopard, Safe and Sing, and thousands of them are on a boat headed this way.
U.S. car buyers will soon have a new option: very-low-priced Chinese cars, trucks and SUVs.

Four Houston partners will be exclusive dealers for two major manufacturers of Chinese cars for the entire state of Texas, with the first dealership scheduled to open in the city this summer.

China Motors of Texas will import automobiles made by Geely and trucks and SUVs made by Great Wall, China’s leading manufacturer of such vehicles.

Cars will sell in the range of $7,000 to $11,000.

http://www.aiada.org/article.asp?id=13222&cat=Dealers


http://www.alphapatriot.com/home/archives/002771.html

Coming soon to a town near you: Chinese car dealerships are opening in 14 states.
"Most of the other manufacturers have abandoned the low, entry level of the price market," said Rams [CEO of China Motors of Texas], noting: "Chinese car makers are committed to becoming a world force."
With prices between 7 and 11 thousand dollars, becoming a world force may be possible.
The Geely sports sedan, called Solo, will cost $10,888 fully equipped with leather seats, power windows, a remote control entry system, CD player and wood trim. A fully-equipped Solo sedan is $8,888.
Some pickup trucks sell for $7,900, and subcompacts cost $6,900. The prices for the SUVs have not been announced.

Geely offers 3-cylinder and 4-cylinder engines, made in China, as well as a V-6.

The Geely pickup truck has a one liter engine that uses 6.2 liters per 100 kilometers, which is nearly 38 miles to the gallon and a top speed of 98 km/h (60 miles per hour).
Pictured is the "Beauty Leopard" which the website describes with this verbiage:


It is an urban sport car. Its pure ardor appears before you boldly. With perfect and smooth lines, it looks wild and sexy. The decorating tail wing and the integrated crystal headlamp, all match your enthusiasm and ardor. Dancing and exciting air contains your romantic disposition, your wisdom and your elegance.
The infinite vital force and the excellent driving feeling heats up your endless enthusiasm in your blood vessels. It adopts MR479QA inline four-cylinder engine, manual 5-shift transmission, as well as hydraulic power steering unit, letting you enjoy quicker acceleration and accurate steering.

We make every effort to create the fine product, and what you need to do is to feel it with your heart. The double-color luxury instrument panel, adjustable genuine leather power seat, high quality sound system, beautiful dance and wonderful music will accompany you while you are driving on the road.

We integrate the freedom and security in the sport car. The braking system is composed of front braking discs and rear braking drums. It also has ABS system to make brake more quick and stable with good effect. Safety airbag is in front of the driver; the reverse radar and side bumpers let you demonstrate your individuality easily.


270 posted on 11/07/2004 5:16:48 PM PST by XBob (Free-traitors steal our jobs for their profit.)
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To: Sam the Sham
If power is there to be grabbed, China will grab it.

Only if they can do it without significant risk. Otherwise they will wait a few more years until the hegemony will fall into their hands like a ripe fruit. Easy does it.

271 posted on 11/07/2004 5:17:23 PM PST by A. Pole (Putin: "Democrats had no moral right to criticize the Iraq invasion, after what they did to Serbia.")
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To: Sam the Sham

Why do you caracature those who don't believe as you do? YOou think I have a yatch and a penthouse? I'm most likely poorer than you are, but I don't think my situation has anything to do with outsourcing.


272 posted on 11/07/2004 5:17:41 PM PST by Dat
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To: Moonman62
Of course they retain a military option, but it is no match for ours. They can barely match Taiwan. China has done more to help us economically than hurt, and we have done the same to help them. You may call it evisceration, but most know better.

Your posts would be more credible if you stopped by Earth once in a while to check on conditions.

The PRChina Red Army could march men into the Taiwan Strait, drown them all, and keep marching men on top of the drownees until they build a body-bridge to Taiwan, at which point they could march enough men into Taiwan to cover the island completely with red flags.

NO ONE has ever won a war without infantry occupation, and China has infantry.

Your comment about "helping" the US is not even deserving of riposte.

273 posted on 11/07/2004 5:24:01 PM PST by ninenot (Minister of Membership, TomasTorquemadaGentlemen'sClub)
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To: iconoclast
Uhh.. what about electronics, autos, computers ... ad nauseum. What's your real name, Rip Van Winkle?

His warning was that we'd lose our productive edge in such fields because of free trade. Are you asserting that our union workers are more productive than the japs in those fields? If not, can you blame free trade?
274 posted on 11/07/2004 5:31:59 PM PST by Jaysun (How many votes did that HUGE A$$ Medicare bill buy us?)
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To: Jaysun
but you can also look at debt as an "investment"

Nope.

Debt taken for the purposes of investment is one thing.

Debt taken for the purposes of expenditures (large screen TV's, second homes, additional vehicles) ain't necessarily "investment."

Demand for housing is a factor of population, no more, no less (except at the very extreme margins--second homes.)

But the population must be able to PAY for the housing. Thus, income becomes important.

And as housing prices inflate, (while incomes do NOT inflate, after COL) demand will be reduced.

275 posted on 11/07/2004 5:32:25 PM PST by ninenot (Minister of Membership, TomasTorquemadaGentlemen'sClub)
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To: iconoclast
Uhh.. what about electronics, autos, computers ... ad nauseum. What's your real name, Rip Van Winkle?

His warning was that we'd lose our productive edge in such fields because of free trade. Are you asserting that our union workers are more productive than the japs in those fields? If not, can you blame free trade? Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
276 posted on 11/07/2004 5:32:25 PM PST by Jaysun (How many votes did that HUGE A$$ Medicare bill buy us?)
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To: Sam the Sham
China is already stoking the fires of nationalism to deflect internal dissent, as Germany did. Taiwan is a total no compromise issue.

That's kind of ironic considering that Taiwan is the haven for Chinese nationalists. Germany went under extreme economic hardship because of WWI and the french. Hitler never would have come to power otherwise. Like Clinton, Hitler came to power without 50% of the vote. Germany's only quick way to recovery was with a dictatorial command economy. We've given China the opportunity to grow its economy by peaceful means. I like that strategy.

Why should they have any more regard for American geopolitical rules than they do for copyrights and patents ?

If they want to keep making progress and raising their standard of living, they'll align themselves more with the rule of law. We need to make sure that is their path of least resistance. If want them to become belligerent, then we should cut them off economically. Communism as an ideology is the enemy, not the Chinese people.

277 posted on 11/07/2004 5:33:20 PM PST by Moonman62 (Federal Creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it.)
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To: Austin Willard Wright

I was wondering how much of a "free trader" Paul Samuelson was. Now I know.


278 posted on 11/07/2004 5:34:42 PM PST by AmishDude (Maureen Dowd is our window into a cocktail party none of us want to attend.)
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To: Jaysun

You'd be very hard-pressed to show us the union-shops in electronics and computer manufacturing.

Most electronic "internals" were made in union-free environments--and PC's (outside of IBM, initially) were not union-made.


279 posted on 11/07/2004 5:37:28 PM PST by ninenot (Minister of Membership, TomasTorquemadaGentlemen'sClub)
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To: ninenot
Debt taken for the purposes of expenditures (large screen TV's, second homes, additional vehicles) ain't necessarily "investment."

Most of our debt can be attributed to such expenditures and not housing?
280 posted on 11/07/2004 5:37:48 PM PST by Jaysun (How many votes did that HUGE A$$ Medicare bill buy us?)
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