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Yeah the one Party government outsourced our jobs.
told us all the ice cap was melting, So we all need to get rid of our cars, our jobs, our Sovereignty accept TPP aka the EU in disguise and flood America with people who hate us ..(COMMUNISM) We need military intervention Not politics and Propaganda
If I were in business or RE or whatever, I would have no qualms about selling to some foreign entity paying in USD. Only a no-no if the business or commodity is in our national security interest.
If assets in the US are owned by foreign corporations, all profits accruing simply leave the country. It's like a farmer selling off chunks of his land to cover perpetual losses. This is the opposite of what we'd be doing if our goal was prosperity.
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IMO over time more of the USA will be foreign owned. Almost has to be as for instance China grows up more. And if they properly comply, we here in the the USA will own more of them.
We aren't swimming in Chinese currency, so we won't be reciprocating.
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We get stuff from overseas much cheaper than produced here. Of course the point of all this. If we only had local producers to rely on, the cost of our goods would be much higher.
NO!!! It is demonstrably obviously NOT the point!
Would you take a 50% pay cut to save 2% on purchases? In round numbers that is what we've done. Relative to per capita GDP, real median wages have been cut in half. Very little of what you spend money on is imported, and the cost savings is a lot less than you presume. Domestic production of most things would be only a little more expensive, if at all. Look at Germany for instance.
Trade isn't the problem anyway, rather the perpetual deficit in trade. Which is forced to happen by design.
The "point" of this "free trade" (it isn't) BS between the US and Japan, China, etc is for the mega rich on both sides of the trade transaction to get even richer and more powerful. US consumers are getting screwed all around.
I can tell you didn't even read the article. Then you say I'm making things binary. That's pretty funny.
End the wool-over-your-eyes era. Learn what the 95 million number actually means.
Oh, and AEI is a propaganda shop. It was built as one and has always been one. Everything they publish needs to be deconstructed back into unslanted real-world terms.
Not apropos. The USD has status as "the world's reserve currency" only because so many other nations choose to hold their reserves in that currency. We had no great say in that, and neither will China. It's a bottom-up, crowd-sourcing sort of thing.
Not apropos. The USD has status as "the world's reserve currency" only because so many other nations choose to hold their reserves in that currency. We had no great say in that, and neither will China. It's a bottom-up, crowd-sourcing sort of thing.
China's central command will decide if they want to be/own a Reserve, then they will have to create all the Yuan necessary and send it out into the world. Sure there has to be acceptance for it to work. I have no worries about that, but that is just my opinion.
As opposed to say countries or banks saying, "OK China, we'd like X amount of Yuan. Or Y amount of Yuan based debt." Of course some might, but the Yuan has to be first created. Similar to what we have done the past 200+ years. Except I suspect China will do it more like our Fed.
If assets in the US are owned by foreign corporations, all profits accruing simply leave the country. It's like a farmer selling off chunks of his land to cover perpetual losses. This is the opposite of what we'd be doing if our goal was prosperity.
Some money is bound to leave. Some will come. This is trade. If we want more jobs vs cheap we send less. Wages and prices will have to rise.
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Originally Posted by rruff
We aren't swimming in Chinese currency, so we won't be reciprocating.
Their economy is not yet ripe for this. But we do not want Yuan in general. We deal in USD and that is still the law of the land and the world.
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Originally Posted by rruff
Would you take a 50% pay cut to save 2% on purchases? In round numbers that is what we've done. Relative to per capita GDP, real median wages have been cut in half. Very little of what you spend money on is imported, and the cost savings is a lot less than you presume. Domestic production of most things would be only a little more expensive, if at all. Look at Germany for instance.
The above is very dependent on what you do, when and where. For me as a doc I take it as it is. For someone trying to make ends meet in some post-industrial rural area, they would not be happy. We need to find them a solution, and IMO the solution should not be inflationary. If we somehow decide to eliminate imports, then it will have to be rampant. At least a decade of chaos for all but us rich, and after that is not clear how much the post-industrial laggers will benefit. Of course the rich will stay rich.
However, the annual interest on the national debt would easily fund over half of our military budget, and I don't know of anyone who thinks that is "money well spent." .
I do. The people receiving that interest as income. One third of our national debt is owned by foreign sources, a number that is way too high, but also means that two thirds is domestic owned. Think for a moment, if the US were to declare default and void the national debt, who would be instantly and directly affected?
What people overlook is that expense and income are opposite views of the same transaction. Most everyone thinks that "cutting spending" is a good thing whether it's an individual, a business, or a government. The same people would likely consider "cutting incomes" as a bad thing but in fact it's the same thing. The income you earn is an expense for someone. The money you spend becomes income for someone. The "wasteful" interest we pay on debt is a valuable source of income for someone else. That is "consumerism".
I'm not saying that excessive spending and high debt loads are the best course of action or that more efficient allocation of resources doesn't matter but the bottom line for the economy as a whole comes down to aggregate productivity. Do something, anything, that is productive. That's why wars and government spending programs kickstart economies. It forces economic activity and productivity.
It's also about keeping the economic activity within our economy. The trade deficit is a bigger threat than the national debt. That effectively exports domestic productivity to foreign countries with foreign citizens working jobs and earning incomes, indirectly but effective from our economy.
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