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Low trade = low productivity = low employment = low growth. It's just a chain.
their banks didn't condone extending credit to subprime borrowers or even reduce mortgage requirements
* U.S.A * 13,807,550
* Japan * 4,381,576
* Germany * 3,320,913
* China * 3,280,224
* U.K * 2,804,437
* France * 2,104,666
* Italy * 1,439,983
* Spain * 1,436,086
* Canada * 1,313,590
* Brazil * 379,000
Originally posted by poet1b
reply to post by cognoscente
Exactly how is demand being taken care of? U.S. ports are filling up with vehicles, because no one is buying. Neighborhoods are empty because no one is buying the houses. Companies are laying off people because they can't move product. The wholeproblem is lack of demand, lack of people with money to buy goods and services. Heck, even Vegas is pulling in enough people.
Originally posted by poet1b
It is not about the money supply? Banking is all about the money supply. The money supply is created through banking with the fractional reserve banking system.
Originally posted by poet1b
Um yeah, and what creates the low trade problem? I already told you, lack of money to buy goods and services, in other words, demand. When you arrive at the point where people are paying out everything they earn just to stay alive, then they have no money to buy new things, heck, we are so overloaded with stuff, we don't need more stuff.
Originally posted by poet1b
Um, yeah, yes they did. China extended vast amounts of credit to the U.S. because it drove their economy. Japan has done the same thing, and they both did it using the same technique, fixing their currency exchange rate to the U.S. currency to maintain a trade imbalance.
Originally posted by poet1b
What does this mean? The world has tried to use the U.S. consumer to pull the third world up out of poverty. This doesn't work, it has only lead to massive debt in the U.S. and a collapse of the worlds economy. The solution is to raise wages in third world countries, and to cut working hours around the globe. Increase demand, lower supply, and the markets should start functioning properly again.
Originally posted by poet1b
reply to post by projectvxn
Ah, but is this good news or bad news for U.S. workers? I think it is good news for U.S. workers and bad news for U.S. bankers. The U.S. currency as the global exchange currency is bad for U.S. workers in that it raises the cost of U.S. workers, while it gives an advantage to U.S. based IC's, aiding them in exporting U.S. jobs.
April 9 (Bloomberg) -- China’s passenger car sales rose 10 percent in March from a year earlier after tax cuts and government subsidies boosted demand, narrowing the gap with the U.S. as the world’s largest car market.
Sales of cars, minivans and multi-purpose vehicles rose to a record 772,400 in the month, according to China Association of Automobile Manufacturers. Sales of cars and light trucks in the U.S. plunged 37 percent last month to 857,399 vehicles.
Demand for minivans surged 40 percent last month as the government began giving out 5 billion yuan ($731 million) in subsidies to help rural residents buy vans and light trucks. Sales growth in China for General Motors Corp., Daimler AG and other automakers contrasts with plummeting sales in the U.S., Japan and Europe.
“The sales surge was mainly caused by government policies and China may overtake the U.S. as the world’s biggest auto market this year,” said Yu Bing, an analyst at Ping An Securities Co. in Shanghai. “Still automakers’ profitability is not growing at the same pace as their sales since most growth coming from small vehicles.”
BUENOS AIRES -- Argentine officials are hopeful that a new currency swap deal with China will bolster confidence in the peso while giving the monetary authority greater power to defend the currency.
"This should boost confidence," said an Argentine Central Bank official who asked for anonymity. "Even if none of this money is ever used, its mere existence should serve to boost confidence in the currency."
The two nations agreed to a three-year currency swap totaling 70 billion yuan, ($10 billion).
The monetary system has nothing to do with this recession,