World Prepares to Dump the Dollar

reply to post by Rigel Kent


That doesn't change the fact that that's exactly how things have been done and will continue to be done. The US pays out every year from past sales.

This is exactly the problem some people just become AWARE of the situation and all of sudden they are experts on how things should be done.

reply to post by Rigel Kent


Actually T- Bonds have been some of the best paying instruments in play if you bought 30 years ago.. not a bad return considering the ups and downs of the market, especially if you have 1 billion dollars on the line

China buys our T-Bills we use that money to stimulate our economy then as it rebounds we pay it back. 800 billion or even 1.2 Trillion is not that huge when you consider that when the US economy is humming along we generate over 14 Trillion in business a year. That puts it back into perspective.

If China turns the corner to a consumer nation in the next 30 years that will be a market for American goods. All signs point to that happening way before 30 years more like 2 or 3. Big money selling the Chinese our products. Contrary to POP culture Fear mongering and gloom and Doom the USD is still the big dog.

America still bending over for China

Economic Talks with China Not Likely to Accomplish Much, The idea behind admitting China into the WTO was that it would expand trade based on comparative advantage—both China and the United States would grow exports of what they do most efficiently. That simply has not happened.

China systematically undervalues its currency to boost exports of low wage products and products it should be importing. Hence, its exports exceed imports with the United States more than four to one, and it enjoys a $268 billion annual trade surplus with the United States.

What US does to keep China from been fair, well it just bend a littler be more and US are now Chinas beggars.

The huge trade deficit with China pulls down demand for U.S. goods and services—in particular manufactured products—much more than the lift provided by the stimulus package, because it is permanent and encourages U.S. manufacturers to relocate to China or shutdown completely. Yet the president has boxed in U.S. negotiators with idealistic and ideological stances on trade and the environment.

China maintains its huge currency advantage by systematically buying dollars with yuan—increasing its hoard of U.S. Treasuries in the process—instead of letting market forces determine its value, which would be much higher than its current pegged rate.

China obviously have the American bear by the horns and they know how to keep it tame.

www.economyincrisis.org...

reply to post by marg6043


That's true but...

China's growth in "production" will not help the world's economy out of it's present situation. Countries need a market for their products so they can put their people back to work. That's where the US and EU come into the picture. We are both producers and consumers.

All this gloom and doom does is prolong the crises.

China is a producer nation right now. If they want to maintain their growth they will have to turn inward and create a consumer market for their own trinkets the US and EU will no longer be able to support that level of growth and the Chinese are learning those very cold hard facts.


The consumer confidence fake out

Consumers have been reluctant to pull out their wallets. According to figures from the government, consumer spending was flat in April and up just 0.3% in May -- despite the fact that personal income rose 0.7% and 1.4% respectively during those months.

At the same time, people are squirreling away cash. The personal savings rate rose to 6.9% in May, its highest level in 15 years.

[edit on 28-7-2009 by SLAYER69]

reply to post by SLAYER69


You know that the IMF wants China to have a more active role in helping the global economy by creating more stimulus on their own nation.

Still China with all their trade surplus and US holdings are very careful with their reserves.

They rather keep playing isolationism while demanding nations like US no to do the same.

Right now every time US complains to the WTO about unfair trade practices US get nothing in return, but whenever any other countries does against the US, US get penalized.

Guess what I guess we as a nation most have been doing some bad things in the past that now we get to pay for it.

reply to post by marg6043


So...?

You admit that China is artificially holding down the Yuan?

reply to post by SLAYER69


It only proves one thing, no body tells China what to do and how to do it.

While our nation has to bend over to please the rest of the world.

Originally posted by SLAYER69
China buys our T-Bills we use that money to stimulate our economy then as it rebounds we pay it back. 800 billion or even 1.2 Trillion is not that huge when you consider that when the US economy is humming along we generate over 14 Trillion in business a year. That puts it back into perspective.

If China turns the corner to a consumer nation in the next 30 years that will be a market for American goods. All signs point to that happening way before 30 years more like 2 or 3. Big money selling the Chinese our products. Contrary to POP culture Fear mongering and gloom and Doom the USD is still the big dog.

Having spent all of 2008 working in China I would say that they are already big consumers. For those with real money, the Beijing and Shanghai dealerships of Bentley were the worlds busiest.

For your average Joe, they buy chinese copy I Phones or Nokia N95's at a fraction of the price. As soon as a new phone is released onto the world market, it is copied and on the shelves within weeks.

You can buy any software you want for a dollar .... Primavera, Autocad.... anything, why are they going to start paying US prices for US goods when they can just copy them and sell them at a fraction of the price?

Most consumer goods in China are counterfiet and that is what makes them affordable to the general public. Why would they want to buy American goods at (as they see) vastly inflated prices?

I am guessing that you have never been to China or perhaps you would know that the cultural differences are so vast and that you can not apply the same consumer models that you apply in US unless you think that a culture that is barely a few hundred yrs old can change one that is many thousands. Unless of course you think that they want to be just like Americans.

This year I have been working in Angola where China is busy spending lots of US dollars building refineries, roads, hospitals, power stations etc (just like GE, Bechtel and Halliburton used to do in developing countries). Deals have been done throughout Africa to build infrastructure in exchange for securing resources for decades to come.

The American Empire is built on borrowing and foreign military bases unlike any other empire which had tax systems in place to finance their expansion and existence. The US Empire is fast in decline and history has shown that as far as Empires go, you only get one bite of the cherry.

I visited a shipyard in Guangdong that had 23, 000 permanent employees, think about that for just one moment before you start ramping up the US in your next reply.

Big Dog? No my friend, the sun is setting on the US empire and very soon the Big Dog will be asleep.

PEACE,
RK

Originally posted by marg6043
reply to post by SLAYER69

 

It only proves one thing, no body tells China what to do and how to do it.

Wal-Mart: Making Its Suppliers Go Green

The mega-retailer is pushing its Chinese suppliers to conserve resources and cut energy use. Its campaign will affect a vast swath of China's manufacturing secto

Because of Wal-Mart's size and scale, Scott's pledge rippled across a vast swath of China's manufacturing sector. The company buys some $9 billion worth of goods every year from some 20,000 vendors.

The scope of Wal-Mart's green goals is also without parallel. The mandate requires Chinese factories to track great volumes of data on energy use and to make it available for audits. Wal-Mart's top 200 factories have to become 20% more energy-efficient by 2012. "Many Western companies can't track their own energy consumption," says Andrew Winston, consultant and author of the book Green to Gold, who attended the meeting. "Getting Chinese companies to track these kinds of operations data takes [Wal-Mart] many steps forward."

reply to post by Rigel Kent


Thanks for bringing that topic, I forgot that China is one of the biggest counterfeiters in the world, still nobody tells them to stop doing it and neither are wining any complains with the WTO.

reply to post by SLAYER69


If you are talking about the crap and trade bill guess what, only US is going to be the loser as usual including the tax payer and middle class.

On cap and trade, limiting U.S. CO2 emissions would do little to solve the global warming problem if CO2 emitting are not similarly limited in China. Yet, China refuses to match the legislation President Obama is pushing through Congress.

Cap and trade, should it pass the Senate, will finish the job China’s currency intervention began—decimating U.S. manufacturing and a good deal of the American middle class.

www.economyincrisis.org...



They may be able to track Walmart in the US but when it comes to China territory and what they do the government will do what they do best, laugh at the American government at usual.

Remeber our government needs China at the aution block.

Originally posted by Rigel Kent


Most consumer goods in China are counterfiet and that is what makes them affordable to the general public. Why would they want to buy American goods at (as they see) vastly inflated prices?

True but most of our exports are not the low quality trinkets that China has nickle and Dime us with. I'm not boasting I'm just trying to keep all the gloom and doom on an even keel is all.

Originally posted by marg6043
reply to post by SLAYER69

 

If you are talking about the crap and trade bill guess what, only US is going to be the loser as usual including the tax payer and middle class.

No.

But thanks for your input.

reply to post by SLAYER69


That is why our nation can not compete with developing nations, because their crap is not better but is cheaper.

America made is quite expensive, I know because believe it or not I try very hard to buy American only.

reply to post by marg6043


True but again our exports you wont find on the shelves in Walmart nor Beijing. You know if you look at the FACTS Why hasn't anybody said that Germany will be the dominant global power or the EU. Keep in mind while looking at those figures that inspite of that we consume most of our own production and still maintain the #4 spot.

World Exports
1 European Union
$ 1,952,000,000,000

2007
2 Germany
$ 1,530,000,000,000

2008 est.
3 China
$ 1,465,000,000,000

2008 est.
4 United States
$ 1,377,000,000,000

2008 est.
5 Japan
$ 776,800,000,000




[edit on 28-7-2009 by SLAYER69]

reply to post by SLAYER69


All the exports are they on what categories, do you have anything on what type of production is included, you know like perishables, durables etc.

reply to post by marg6043


I'll do some digging here is a snippet.


Most of what the US does produce are higher end higher technology that the average consumer would not see or is even aware of they would not find them on the shelves at Walmart. Heres the kicker they are not all defense related either.
Source

World’s largest manufacturer
Published 6/23/09
Filed under: Miscellaneous, Politics

What country is the world’s largest manufacturer by a huge margin? If you have a kid, you would think it must be China — I don’t know the last time I saw I toy (or anything else, really) that wasn’t made there.

Wrong.

Accounting for more than 20% of the world’s total manufacturing output is the United States.

Japan is a distant second at just over 13%. Then China (12%), and Germany (8.2%). Then, well, everyone else. (Data come from the Dept. of Labor and the United Nations.)

Revenue Leaders by Nation
Country/Province Number of Companies Revenue Total (Millions) Average Company Revenue Growth (%)*
United States 290 $5,386,377 10.50
Japan 233 $3,624,074 6.74
Germany 40 $1,269,963 11.97
France 48 $1,103,959 4.23
United Kingdom 36 $882,521 17.30
China 36 $606,892 19.74
Netherlands 13 $599,939 7.97
South Korea 37 $574,252 27.46
Switzerland 21 $364,031 2.90
Italy 15 $356,603 5.75
Russia 8 $338,870 32.37
Canada 27 $335,500 24.20
Taiwan 29 $328,564 5.47
India 12 $206,903 48.20
Finland 16 $189,505 0.56
Brazil 10 $184,523 23.04
Sweden 14 $161,619 6.29
Spain 6 $149,468 7.73
Luxembourg 3 $145,569 14.33
Australia 12 $143,580 38.52
*Manufacturers that did not appear on the 2008 IW 1000 list were not included in revenue growth averages.

reply to post by SLAYER69


Yes I am aware that in technology we may still have an edge, but that is been compromised with American industries going into developing countries, remember the scandal of how China got their hands on some US technology that was developing because many of the manufacturing parts for the project was in China?

So I wonder when it comes to more day to day items like the ones we Americans are so fond of how much does America still produced in the US.

reply to post by marg6043


list of sectors