Mark Anderson <[email hidden]> wrote
Quoted message said:[email hidden] wrote
Quoted message said:Quoted message said:If China or Bangladesh can make something better or cheaper,
we should encourage them to do so. We both benefit.
Quoted message said:China refuses to float its currency so its products can remain cheaper.
Yep, and Japan did exactly the same thing at one time.
Quoted message said:This is called dumping.
Nope, dumping is something else entirely, selling stuff at below cost.
Quoted message said:Dumping is the practice of underpricing your competition
less than what it costs to make a product
Yep.
Quoted message said:for the sole purpose of driving them out of business.
Nope, it can also be done to get rid of excess stock.
Quoted message said:After you become the sole provider
Doesnt ever happen.
Quoted message said:you can jack prices up again to recoup your earlier losses.
Or its better to get something for your excess stock than nothing.
Quoted message said:China used this economic tool to close down the American manufacturing base,
Nope, it aint been closed down, most obviously with cars and aircraft.
Quoted message said:thus weakening us.
Wrong again. Manufacturing what china sells is a very small
part of any modern first world economy and the economy
benefits from the low cost goods from that country.
It didnt even have a significant effect on the unemployment rate
given that its still 4.x%, one of the lowest in the entire world.
Quoted message said:Had China floated their currency like every other country
There are others that havent floated their currency.
Quoted message said:their products wouldn't be so cheap and the trade
imbalance between US and them wouldn't be so great.
Yes, but it would still happen. Thats what Japan did eventually
and the trade imbalance was still a problem when they did.
Quoted message said:Currencies float to even out trade imbalances.
Its MUCH more complicated than that. There is STILL a trade imbalance with Japan.
Quoted message said:Every month China increases its stake in the US economy.
Nope, just increases their collection of US dollars.
Quoted message said:Their long term goal is to hold us hostage.
Fantasy. Their long term goal is to provide much of the worlds manufacturered goods.
Quoted message said:So far Congress fears what China can do now if they ever
choose to dump their US debt or US dollars onto the market.
Congress has never had a clue about that sort of thing.
Quoted message said:The only reason they don't because they are still building up their empire.
The real reason they dont do that is because the US is their biggest
market and they arent stupid enough to damage the US economy
because that would result in less sales of what they manufacture.
Quoted message said:One day they'll buy a high tech military and weapon
systems with your money that rival or exceed ours.
Another fantasy and it doesnt matter if they do, nukes have changed things
forever and they wont be stupid enough to try doing anything much with them.
They wont even be stupid enough to try taking Taiwan back, you watch.
Quoted message said:Meanwhile, they'll still be able to manufacture goods and we won't.
The US can manufacture again if that makes sense.
Quoted message said:At any time they can send earthquakes through our economy destroying
more of America than any carrier fleet loaded with cruise missiles ever could.
And since the US is their biggest customer, they aint actually that stupid.
Just like the Japs never were that stupid either.
Quoted message said:Quoted message said:Your complaint is with the buying public, not Walmart or China. The
buying public has simply voted with their dollars and democracy rules.
Quoted message said:Your ignorance of economics is astounding.
Yours in spades.
Quoted message said:It's not "democracy," it's the economics stupid. People don't "vote" with their dollars,
They do effectively.
Quoted message said:they buy the cheapest goods.
Some do, some dont.
Quoted message said:In economics 101 they teach you the concept of a supply/demand curve.
The lower the price, the higher the volume that goes to them.
And in economics 101 they also teach about elastic
and inelastic demand, you obviously slept thru that.
Quoted message said:Quoted message said:The only way to reverse the trend is with government intervention:
tariffs or outright prohibition of imported goods. Will the public
accept the absence of DVD players or TV sets? Can you get
along without nails, screws, or even thumb-tacks?
Quoted message said:If China won't float their currency we should
have implemented tariffs a long time ago.
Nope, that would just have produced higher priced goods
and they would still have come from china anyway.
Quoted message said:It's too late now though. A trade war with China may cause them to use some
of their legal economic weapons against us -- like dumping the US dollar.
They aint that stupid, only you are.
Quoted message said:We can only hope China will be a benevolent master in
the year 2025 or so when their economy exceeds ours.
Those with the largest economy dont get to be masters.
And while Japan did eventually end up with quite a bit of manufacturing,
the full commercialisation of virtually all technology still continued to happen
in the US first regardless. And there is no sign of that stopping any time
soon, most obviously with the internet, google, paypal etc etc etc.
Quoted message said:But you must thank WalMart for this.
Have fun explaining how come it happened in countrys where Walmart doesnt bother with.
Quoted message said:They pioneered the concept of building their entire business model around selling
out America by providing us goods for far less than they should be possible.
Mindlessly silly.
Quoted message said:WalMart made huge short term profits at the expense of the US economy
The US economy is doing fine and still manages to produce an unemployment rate of 4.x%
Quoted message said:and US security.
Mindlessly silly. The US is still the only world military power of any significance.
Quoted message said:Remember one old saying that's still true, "There's no free lunch."
It aint about free lunches, its actually about manufacturing being
only a very small part of any modern first world economy.
Quoted message said:Through conduits like WalMart we've been
enjoying a free lunch through ultra cheap prices.
Cant even work out the difference between free and cheap.
Quoted message said:The tab for that bill will come in another decade or two.
The same mindless claim was made about Japan too.
Quoted message said:Meanwhile, enjoy your cheap DVD and TV.
We'll be doing that forever. And we will start to see much cheaper cars eventually too.
Fools like you get to like that or lump it.