I get hate mail now and again blaming China constantly for the worlds ills economically that is.... and to an extent they have a point as China has the ability to manipulate its currency and keep living standards low for its people. RMB are in effect proxy dollars these days and the lack of social care means the saving rate is incredible.
There are also still 600 million people who are rural poor who can be used to replace those who demand higher wages. Thus the cycle will continue and probably end in tears. Much like a drug dealer it is bad business for your customers to die in the short term.
But then the USA manipulates its currency too printing endless numbers of dollars, I could write all day about it...
But then the USA manipulates its currency too printing endless numbers of dollars, I could write all day about it...
However you did it to yourselves as the video implies a future outcome. In that it is simply demand, in that if people in the USA simply refused to buy the stuff made in China boycotting organisations which destroyed American jobs for Chinese slave labour then the USA wouldn't be in hock to China for 850bn.
Korean Koreans who live in Korea for instance absolutely refuse to buy anything made in Japan, Sony, Nikkon, Honda and Toyota. But in Seoul all the cars were Korean, Hyundais, Ssayonngs Daewoo etc. The motorbikes were all Hyosung or Dalem. Koreans would give me the evil eye regularly while I was riding in down town Seoul on a Japanese motorbike (XT600E) . You have a Sony Phone? Every piece of consumer electronics I saw in Korea was made by LG, Samsung etc. even the xray machine I was strapped into in a clinic. This means Japanese products have zilch market in Korea. Hell their KTX is based on French technology instead of the obvious Japanese tech nearby!
Korean Koreans who live in Korea for instance absolutely refuse to buy anything made in Japan, Sony, Nikkon, Honda and Toyota. But in Seoul all the cars were Korean, Hyundais, Ssayonngs Daewoo etc. The motorbikes were all Hyosung or Dalem. Koreans would give me the evil eye regularly while I was riding in down town Seoul on a Japanese motorbike (XT600E) . You have a Sony Phone? Every piece of consumer electronics I saw in Korea was made by LG, Samsung etc. even the xray machine I was strapped into in a clinic. This means Japanese products have zilch market in Korea. Hell their KTX is based on French technology instead of the obvious Japanese tech nearby!
A similar thing happens in Japan where Korean products have little market there too, they tend to buy Sony, Nikkon Toyota etc.
France.... mostly see french cars, Germany mostly German cars.
Therefore if it wasn't for everybody there creating the demand for this cheap stuff from China you wouldn't be in the economic troubles you are in now. I mean a t-shirt or a pair of socks may well cost a couple of $ (TCG at the weekend saw a pair of trousers at £1.25!). But the cost is more than the sticker price! Of course there is a certain irony to this being that when people are short on money the imported stuff is so incredibly tempting.
But just spare a thought for a moment as to what the longer term costs are...
I think it's weird in this commercial how the professor talks exactly like the US Republican party. Similar I could understand. The Republicans are quite popular in the Chinese Government circles. But the exact, 100% match in ideology seems somehow like this is less a Chinese professor and more a sock puppet for the Republicans who made that commercial.
ReplyDeleteI see a lot of currency bullcrap fly in every which direction. US Politicians accuse China of crapflooding their currency to near worthlessness, and Chinese ones accuse the US of doing the same. And they're both probably right: Both sides are attempting weak-currency strategy to encourage manufacturing. Neither one appreciates the competition.
I know that on the American end, we owe preposterous amounts of money, 1/4th of the total to China, and any means we have of paying it of are horrifyingly unpopular. Cutting spending is unpopular, people love getting government programs. Raising taxes is unpopular, people hate paying them. But to do neither is to expect to stand firmly in midair.
The US politicians don't have a clue! Its the same with immigration (especially illegal), their blaming them for this bad economy? In reality, we had this coming with our laissez faire approach to business! Don't get me wrong here, I'm 100% behind Capitalism. But if its a vehicle for making up CRAP (housing based financial products) than government have to step in and regulate it so it won't collapse the entire system.
ReplyDeleteWell I hear this a lot that we're own by the Chinese because they buy so many of our debt! But in reality its more complicated then that. If the Chinese stop buying our debts than where else will they invest it without the kinds of returns and reassurance of the US backed government. In other words, Chinese money take a lost elsewhere!
Marcus the problem is that the USA isn't capitalist even though it claims to be capitalist. China claims to be communist but its not either. These days I'm not sure what you could classify the USA corporatism I used to think but it didn't fit as bank bail outs and socialising losses doesn't fit a true capitalist agenda. But whatever it is capitalist it isn't! Nor is it a free market! Due to central banking and land controls. Both of which are not capitalist ideas.
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