Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
On the contrary, without the financial sector of today we would have a much more stable economy and enjoy higher standards of living. The real financial sector needed is a tiny fraction of what we have now. Banking would then rely on savings, not fractional reserve theft by inflation. Nothing nutty about a system that returns capital to productive business than to unproductive speculators and con artists to live it up on stolen bonuses. The current Treasury certificates would be shunned in favor of investing in companies that you know and trust.
waa waa waa. Cry me a river.
The financial sector is all crooks. Business leaders are crooks. Everyone's a crook besides Rick, the guy who proposes illegally melting coins as a way of making a living
Btw, I agree the financial sector is too big and needs to downsize. Afterall we don't need a bank on every corner. But, a lot of sectors need to downsize as well. Id there any reason we build as many autos as we do in this country when they suck for the most part? Do we need a gazillion Subways, Best Buys, Walmarts, etc? Do we really need 1,000s of biotech companies producing nothing but losses? 1000's of weight loss drugs that don't even work?
That said, I challenge you to name one successful economy in the history of the world without a financial sector. Perhaps when you said you wanted the sector destroyed you were just being nutty, huh?
A US company cannot "outsource capital" to another country unless there is demand in that country for US goods/services.
Why is that, or are you going to tell us as Rush Limbaugh does that we'll recoup losses in production by selling air conditioners to India?
Quote:
What fools like Lou Dobbs talk about is really just the "human pain" associated with creative destruction. Whether the production is being out-sourced to another country or to a robot is the same...the people that use to be employed in the sector have to find alternate sources of income. Much of this "pain" can be avoided by keeping up your skill set, but Americans tend to have the mind set that they should be able to make a living doing X for their entire lives.
Lou Dobbs is no fool. Lou Dobbs regularly discusses the differences between comparative advantage, as described by Adam Smith, and absolute advantage, which is the economic model which is destroying U.S. You really ought to watch Dobbs and learn a little more than what you've read in the WSJ.
Quote:
You're right they are not pulling wealth out of thin air, they are pulling it out of their hard work and successful social/economic engineering.
You did not finish your statement. It really ought to read: "You're right they are not pulling wealth out of thin air, they are pulling it out of their hard work and successful social/economic engineering, using U.S. capital and know-how. And BTW, the U.S. should be using more competitive social engineering as does the rest of the world. And BTW, U.S. workers want to be competitive, but cannot compete with people willing to work for 1/10th their comparable sallary and live in a mudhut."
Want to hire Third World labor? FINE -- go live in a Third World nation.
Simple, there is no magic currency genie. US dollars are little more than toilet paper in a foreign country unless there is someone in that country willing to exchange you the local currency for your US dollars. But why would someone what to exchange the local currency for US dollars, because they want to purchase product, service or asset denominated in US dollars.
Quote:
Originally Posted by Read Culture of Critique
You really ought to watch Dobbs and learn a little more than what you've read in the WSJ.
Sorry, I don't make a habit of watching babbling morons. A nice attempt to pigeonhole me, but I also don't make a habit of reading junk.
Quote:
Originally Posted by Read Culture of Critique
You did not finish your statement.....
Nah, it was finished you are just ignoring the point. You claimed that China is selling wealth form the US, yet it is the US that is in debt to China. How exactly does that work?
In terms of wages, there are simply different costs of living. Its far cheaper to live the same life-style in China vs the US. Should California put on tariffs on the South because some business can't compete with Southern companies due to the lower cost of living/property?
The irony here is that it is Americans that are sucking wealth from other nations. The dollar hegemony is a subsidy from the rest of the world to the US.
Quote:
Originally Posted by Read Culture of Critique
Want to hire Third World labor? FINE -- go live in a Third World nation.
Companies that out-source work to China, etc have representatives living there all the time. I suppose you think China is a bunch of people living in huts? There are luxury homes, hotels, etc in China.
Simple, there is no magic currency genie. US dollars are little more than toilet paper in a foreign country unless there is someone in that country willing to exchange you the local currency for your US dollars. But why would someone what to exchange the local currency for US dollars, because they want to purchase product, service or asset denominated in US dollars.
Sorry, I don't make a habit of watching babbling morons. A nice attempt to pigeonhole me, but I also don't make a habit of reading junk.
Nah, it was finished you are just ignoring the point. You claimed that China is selling wealth form the US, yet it is the US that is in debt to China. How exactly does that work?
In terms of wages, there are simply different costs of living. Its far cheaper to live the same life-style in China vs the US. Should California put on tariffs on the South because some business can't compete with Southern companies due to the lower cost of living/property?
The irony here is that it is Americans that are sucking wealth from other nations. The dollar hegemony is a subsidy from the rest of the world to the US.
Companies that out-source work to China, etc have representatives living there all the time. I suppose you think China is a bunch of people living in huts? There are luxury homes, hotels, etc in China.
americans continue in the false teaching of reaganomics-- that debt is meaningless.
its not keynesian economics-- it is a perversion of keynesian economics. this will be our undoing.
Jim Kramer is just another babbling moron and I don't read WSJ. If you are going to respond, please do so with some substance.
And in the meantime you haven't addressed the article to which I posted a link -- according to the article Japan can indeed bring our economy down by no longer purchasing our debt. What was that you were saying previously?
according to the article Japan can indeed bring our economy down by no longer purchasing our debt.
..blowing up their own economy in the process.
When you have $700b, your economy is deflating like crazy, and your economy is built around exporting to the U.S., it makes no sense to start a devaluation of the dollar.
And in the meantime you haven't addressed the article to which I posted a link -- according to the article Japan can indeed bring our economy down by no longer purchasing our debt. What was that you were saying previously?
The person writing the article is yet another babbling moron, he wrote about something without actually looking up the current state of affairs. Imports from Japan have cliff dived, as Japan is purchasing less US debt than it has previously. China is the only country that is still purchasing significant amounts of treasuries (mostly short-term).
Seriously, what this guys is saying does not even make sense. A fall in the dollar is going to cause unemployment and "currency inflation"?! That is gibberish.
So much for the moronic thinking that China will stop buying our debt. Confucius say; once you owe someone this much you own them.
China, the biggest foreign owner of Treasuries, added $24.1 billion in July after net sales of $25.1 billion in June, raising its stake in U.S. government debt 3.1 percent to $800.5 billion, Treasury data showed on Sept. 16. The country’s holdings have risen 10 percent this year, after a 52 percent gain in 2008 amid the surge in demand for the safety of U.S. government debt as global credit markets froze.
They are already dropping the dollar like a bad habbit. So is Iran and other middle eastern countries. It's official the dollar is done.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
