China Announces It Is About To Blast America Into Zimbabwe

reply to post by mnemeth1
Funny how these things never seem to play out the way the doomsayers say they will.

reply to post by donatellanator


Right and Wrong.

It does still make a lot of Tax Payer Funded cars, but the rest of the World doesn't buy that many of them.

It makes Planes, Bombs, Guns, Tanks and every type of Killing Machine..and bought by all Dictators and countries in the Axis of Evil I might add.

It also makes House Bricks, but what's the point when every country will buy China's instread.

But when you go to any Department store all you see is Wall to Wall......

If the value of the dollar goes down, so will prices. Does anybody understand supply and demand? If everyone is priced out of the market, and you have a huge supply of product, the price of said product will drop. Why would china price their consumers out of the market? If nobody is buyin your product, your cheap labor is pretty worthless, which is how china turns a profit.

I know, I know, plenty of people will argue against this premise. I say prove me wrong. Explain to me how supply and demand works. There are only two markets that I'm aware of that don't work on this premise, oil and diamonds.

reply to post by donatellanator


quote by donatellanator,

"Everyone is so fearful of China and most have no confidence in America even though we do manufacture a great deal of goods here! They are of higher quality and because of that more expensive, BUT SAVE YOUR MONEY and this means nothing. We also are one of the biggest countries landwise (horizontally)... Since we have more horizontal space instead of vertical we can produce an abundance of crops in mass quantities in many states. China also has this advantage, but is nowhere near the producer we are in big ag."

What do you mean by higher quality and what goods are you talking about? if you mean a same article like a B&S lawnmower motor, there is most likely little difference in quality and durability, the American product however is more costly to make because of regulation and higher labour cost, not on a quality basis. The regulations however are a good thing, as long as they are abided by, the labour cost is an economic equation.

Originally posted by mnemeth1

Originally posted by Dragon33
Very misleading title...
Shame, shame, shame...

It is only misleading if you are ignorant of Zimbabwe's currency problems.

Thank you Dragon33

I did not want to read through all the pages before saying it

I thought something WAAAAAY more serious was about to go down.

Originally posted by Skerrako
reply to post by AeonStorm

 

Well you're totally wrong but it's ok I won't jump all over you Ill just explain. first, the exchange rate is currently $1= 6.57004 (info can be found HERE)

Second, the Chinese gov't has been keeping it's currency undervalued to crub inflation and in reponse to QE 1 and 2. That means that it has been keeping the value of the Yuan low in comparison to the dollar (about 1:6). As soon as their currency starts to be valued again, that ratio will move in their favor (1:5 or even 1:4). That makes all of their goods more expensive for us to buy. That will have a detrimental effect on our economy.

I know this is ATS and you'll have to take my word on this: I have a minor in Economics and still in school, so I study this fairly regularly

You didn't finish the story.

...then, people stop buying Chinese garbage because it is now closer to the price are far superior American made products. American manufacturers, not the sell-outs, but the ones who stayed here, will make more money, they will expand their business, hire people who will then buy more American made stuff and so on.

Now you know the rest of the story.

Originally posted by smurfy
reply to post by donatellanator

 

quote by donatellanator,

"Everyone is so fearful of China and most have no confidence in America even though we do manufacture a great deal of goods here! They are of higher quality and because of that more expensive, BUT SAVE YOUR MONEY and this means nothing. We also are one of the biggest countries landwise (horizontally)... Since we have more horizontal space instead of vertical we can produce an abundance of crops in mass quantities in many states. China also has this advantage, but is nowhere near the producer we are in big ag."

What do you mean by higher quality and what goods are you talking about? if you mean a same article like a B&S lawnmower motor, there is most likely little difference in quality and durability, the American product however is more costly to make because of regulation and higher labour cost, not on a quality basis. The regulations however are a good thing, as long as they are abided by, the labour cost is an economic equation.

The sheer number of utterly clueless people on this site is staggering. China makes garbage. Look at ANY competing American vs Chinese product and the American product is better. I dare you to go find one thing the Chinese do better than the US...well, except violate human rights, steal technology, and manipulate their economy. The Chinese haven't had an original idea since the Ming Dynasty.

Originally posted by mnemeth1
In layman's terms, China is going to let its currency appreciate.

This means Wal Mart prices are going to look like shopping at Neiman Marcus.

Good, stuff will be made in America again or some place that hopefully won't be so free to poison people and animals.

The headline is misleading. First, it is in their national interest to maintain a trade relationship with us not destroy it. Second, our foreign and economic policy makers have been jawboning the Chinese to convince them to let their currency appreciate as it is vastly undervalued to the dollar. Yes, that means that goods imported from China will necessarily cost us more ("cost push inflation") but it is a market reality. We are not Zimbabwe and they are not stupid.

Why only call congress criminals? I mean the whole political system in this country is criminal, the house, the senate, the white house, representatives, mayors, police the WHOLE system.

Nobody in the entire political system gives a damn about the American People.

Originally posted by DragonTattooz
I dare you to go find one thing the Chinese do better than the US

Manage their economy?
Not allow their Corporations to hijack the government?

Pretty critical things is you ask me.

reply to post by GeechQuestInfo

It depends on the.elasticity of the product involved. If it is something price inelastic (ie, opium in the exteme example) then demand is not elastic to price. But for most goods the higher the price the lower the demand and thus (as the supply and demand curves intersect) price must decline (agreed), As to oil and diamonds (which do not come out of China so a moot point) in your post, oil is not very elastic until the price makes a quantum leap as a) people need to drive to work and food and necessities need to be shipped to market and the price is quasi controlled by OPEC. As to diamonds the market is virtually controlled by the DeBeers diamond cartel. Not a "free" market.

ABC News is doing a story (and as they have a good relationship with the WH this may be a prompted campaign) on BUYING AMERICAN this week. It might be the start of something. At the very least it is making people more aware of the countries of origin for many of the products in their home.

The silver manipulation by the Fed does not help.

This ties nicely into your thread:


www.abovetopsecret.com...

reply to post by Danbones


You say the U.S. is incapable of dealing with reality.....but your pic is of a nation that hasn't existed in over 100 years. We'll I'm sure you're American so great job on the self-diagnosis!

Besides that, you're spot on. The U.S. Economy is unraveling. Someone once put it this way: It's like that old cartoon graphic where the toon is suspended in the air after running off of a cliff for some time with the legs still spinning. Thats where we are now, and we're only starting to understand the trouble we are in

well since Washington dc isn't legally a part of US soil, or participates as a state, then when the dollar dies and the government folds , we can just start printing our own money and not worry about participating with the economics of the rest of the world. we have everything we need right here without using any outside resources.

the debts ultimately Washington and the federal reserves problem

Originally posted by DragonTattooz

Originally posted by smurfy
reply to post by donatellanator

 

The sheer number of utterly clueless people on this site is staggering. China makes garbage. Look at ANY competing American vs Chinese product and the American product is better. I dare you to go find one thing the Chinese do better than the US...well, except violate human rights, steal technology, and manipulate their economy. The Chinese haven't had an original idea since the Ming Dynasty.

Same problem exists everywhere.
You can buy a Locally made Mop for $10, or buy 2 for $5
What are people going to Buy?, who cares about Quality, It's a Mop
If it Breaks, I got another one, and your still ahead.
And where are you going to buy those cheaper mops, in your all American Store Wal-mart

Wal-Mart just gave people exactly what they wanted, cheap crap.
The only other way retailers could sell more Mops was to buy more Cheap Crap.

By the time People woke up to what was happening, it's too late.
Everybody that bought Wal-Mart contributed to the start of the Unemployment downturn.

reply to post by DragonTattooz


Actually, I did finish the story. It's on page seven of this thread, but Ill save you the trouble

Things being harder to buy does NOT mean companies will move back to the U.S. Not as long as they can pay a dollar an hour (if they're lucky) to workers in Indonesia.

What will happen is we might have a lot of start up jobs and companies making things that we can no longer easily afford, but that cannot be in every industry because China may have many of the nessecary resources.

The most likely scenario is that the U.S. just gives "Foreign Aid" to a nation with the resources that it needs so we can obtain the materials that are costly from China. Or start a war with that country to forcibly take them

The U.S. makes very good products partly because we use very good materials. If those materials become scarce, companies only have two choices: Make pices outrageously high, or make products just as bad as the Chinese ones you have mentioned.

Originally posted by skeptic_al

Originally posted by DragonTattooz

Originally posted by smurfy
reply to post by donatellanator

 

.

Same problem exists everywhere.
You can buy a Locally made Mop for $10, or buy 2 for $5
What are people going to Buy?, who cares about Quality, It's a Mop
If it Breaks, I got another one, and your still ahead.
And where are you going to buy those cheaper mops, in your all American Store Wal-mart

Wal-Mart just gave people exactly what they wanted, cheap crap.
The only other way retailers could sell more Mops was to buy more Cheap Crap.

By the time People woke up to what was happening, it's too late.
Everybody that bought Wal-Mart contributed to the start of the Unemployment downturn.

I should have also added:

And how are you going to buy those Mops
On Your Credit Card, and every time you use your credit card you are
Creating Money out of thin air. Thus leading the next problem of Economy Crisis.