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Post by nailbender on Sept 6, 2009 0:49:46 GMT -6
The Chinese are already talking about "bailing" on derivatives that aren't going their way. Am I the only one that sees this possible scenario? cross post... ----------------- @ulvy-I sort of wonder if something like that could happen. What would happen if we get into a trade war and China starts to ban specific products exported to the U.S. Would they target U.S. owned manufacturing companies and their products? Put the owner U.S. owner out of business. ------------ nailbender- When this crap pile of lies collapses, it's going to be worse than a "trade war". The terms "nationalization" and "confiscation of assets" come to mind. When Uncle Sam starts it's "Desperation Printing Scheme" to cover the $23 Trillion in financial guarantees coupled with the Trillions in SS "promises" that CANNOT be covered with tax collections, China, the Worlds #1 slave owner, will rightfully be pissed and determine ALL US investments on their soil now belong to China. Bomber, not only will your friend go out of business. (friend has a pencil factory in China, he was forced to "relocate" in 2000 to stay competitive) He will no longer have his Capital (manufacturing facility/tooling) either. This will be the price he pays for globalization and the offshoring of 1100 jobs. Those pencils won't seem to cheap then. I'm not saying your friend had any choices. Our Korporate Amerikan Gov set the terms for their game. In this game of profit, the US middle class gets a "cliff drop" to 3rd world status.
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Post by unlawflcombatnt on Sept 6, 2009 3:41:37 GMT -6
nailbender- When this crap pile of lies collapses, it's going to be worse than a "trade war". The terms "nationalization" and "confiscation of assets" come to mind. When Uncle Sam starts it's "Desperation Printing Scheme" to cover the $23 Trillion in financial guarantees coupled with the Trillions in SS "promises" that CANNOT be covered with tax collections, China, the Worlds #1 slave owner, will rightfully be pissed and determine ALL US investments on their soil now belong to China. Bomber, not only will your friend go out of business.... he will no longer have his Capital (manufacturing facility/tooling) either. This will be the price he pays for globalization and the offshoring of 1100 jobs. Good. That's exactly what American expatriate businesses deserve--confiscation of their facilities by China's government. His "friend" should have spent some of his capital campaigning against PNTR with China, instead of on relocating his production facilities to China. Those manufacturing facilities in China do American workers no good whatsoever. The takeover of them by China would be a boon to American production, because now the former American owners would become advocates of American domestic production and tariffs on imports. And they'd probably put much of their capital still remaining into American production facilities, where it should have been to start with.
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Post by beatle on Sept 6, 2009 18:29:20 GMT -6
Given the trade agreements the U.S. has set in place, it can make really good sense for a company to re-locate to China or Mexico. It increases the bottom line. However, when it makes good sense from many, many company perspectives to do that, it destroys the economic infrastructure of the U.S.
As Jane Jacobs noted in her book, "Cities and the Wealth of Nations", cities that replace their imports by producing their own products thrive...ultimately creating new products developed from the existing ones to export themselves...generating the export income among their own populations to expand imports of a wider variety of products....a cycle that repeats itself. Cities that don't do that stagnate and decline.
A country's economy is merely reflection of a compilation of its cities.
Local economies can be stagnant or expansive.. The poorist settlements in the U.S. produce nothing to export to other cities...and don't generate the income to buy from other communities. They remain stagnant backwaters.
Non-producing cities find the trade even among themselves grinding to a halt. A book publisher in N.Y. won't export books to Backwater City if Backwater produces nothing but pet rocks to generate the income to buy its books. If it Backwater has a product to sell to other communities, it generates the income to buy from them.
Trade between domestic cities is just as important as trade between nations. Cities that don't produce, have nothing to exchange with one another....except pet rocks. Their populations have stagnant, small incomes.
If U.S. cities become "rust belts"...so does the country.
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