Geitner wastes no time in PO'ing the Chinese (borrowing, purchase, money)

[ViewFromThePeak]

Originally Posted by GregW

About time somebody called China's bluff. if they devalue the US Treasury bills it will be good for us and a disaster for them.

Yeah right. When you say "good for us", I suppose you mean it'll be good when you can't buy iPods, LCD TVs, and tube socks anymore.

As for the Chinese, they've been eyeing many other customers. After a short term world of hurt, others will line up to buy their cheap goods once again. When you have much of the world's productive capacity available to you, I don't think you have to care too much about what some empty suit in Washington has to say.

[cdelena]

A public insult to party you need cooperation from (be it a trading partner, employee, or spouse) is simply stupid. There is no win for those that foolishly speak their mind in public. He may be an educated economist but I bet he sucks as a poker player (and national spokesman).

[N.Y.Traveler]

Why would the Chinese "dump" the U.S. Treasuries bonds?
This will hurt, not only in America, the whole world as well. They rely on export and they don't want to see any "financial disaster" happening in America!
To those who said it is time to stop doing business with China...Yeah, when you have to pay $1000 for an IPOD or $4000 for a laptop computer, then stop doing the business with anyone is good. Without China, Christmas right here in America will be very miserable!

[RedNC]

Originally Posted by N.Y.Traveler

Why would the Chinese "dump" the U.S. Treasuries bonds?
This will hurt, not only in America, the whole world as well. They rely on export and they don't want to see any "financial disaster" happening in America!
To those who said it is time to stop doing business with China...Yeah, when you have to pay $1000 for an IPOD or $4000 for a laptop computer, then stop doing the business with anyone is good. Without China, Christmas right here in America will be very miserable!

I enjoy these kind of clueless statements. Back when these items were American made they were affordable to the masses and the workers made not only enough to purchase said items, but they were able to enjoy a living standard that was the envy to the world.

What you seem to not understand is the products aren’t any less expensive the difference is the ones that produce them are making a far greater profit at the expense of our middle class way of life.
Some how we had wonderful Christmases before all the leaded toys came from China. We can either get back to making stuff in America and continue our way of life, or continue this downward rush to a third world way of life just like China.

[Compression]

Originally Posted by N.Y.Traveler

To those who said it is time to stop doing business with China...Yeah, when you have to pay $1000 for an IPOD or $4000 for a laptop computer, then stop doing the business with anyone is good. Without China, Christmas right here in America will be very miserable!

Well, It would seem those exports you speak of, already have stopped.....everywhere. The BDI(Baltic Dry Index) stands today at 980. That's up, very slightly from a low about six or seven weeks back, but still way off it's high of over 11,000 last May. The world has stopped doing business........... period. If we are going to start manufacturing in the USA, and building and buying local, the time to do so was several years ago. Now, it's just gonna hurt.
And, BTW, ask any retailer, Christmas was miserable, and many wont be around for the next one.

[N.Y.Traveler]

Originally Posted by RedNC

I enjoy these kind of clueless statements. Back when these items were American made they were affordable to the masses and the workers made not only enough to purchase said items, but they were able to enjoy a living standard that was the envy to the world.

What you seem to not understand is the products aren’t any less expensive the difference is the ones that produce them are making a far greater profit at the expense of our middle class way of life.
Some how we had wonderful Christmases before all the leaded toys came from China. We can either get back to making stuff in America and continue our way of life, or continue this downward rush to a third world way of life just like China.

....the products aren't any less expensive the difference is the ones that produce them are making a far greater profit at the expense of our middle class way of like."
I am trying to understand what are you trying to say!!!

[tallrick]

Originally Posted by RedNC

I enjoy these kind of clueless statements. Back when these items were American made they were affordable to the masses and the workers made not only enough to purchase said items, but they were able to enjoy a living standard that was the envy to the world.

What you seem to not understand is the products aren’t any less expensive the difference is the ones that produce them are making a far greater profit at the expense of our middle class way of life.
Some how we had wonderful Christmases before all the leaded toys came from China. We can either get back to making stuff in America and continue our way of life, or continue this downward rush to a third world way of life just like China.

It is amazing how people forget this. You could buy an American car for 1/3 your salary and a home for 3 times it as late as the 60's. Electronics were expensive but minaturization was bringing costs down. Automation also cuts costs and is the result of technology. The reason our standard of living fell was because of the Federal Reserve and the 1971 drop from gold. As the well-connected stole the nation's wealth, it became the job of the third world to make our goods. When we had domestic production, wages of workers led to domestic consumption. Since we have squandered many of our resources and allowed Government to regulate our businesses, we may never be able to return to our former prosperity.

[RedNC]

Originally Posted by N.Y.Traveler

....the products aren't any less expensive the difference is the ones that produce them are making a far greater profit at the expense of our middle class way of like."
I am trying to understand what are you trying to say!!!

Simply put, a product that sells for $10 cost $5 to produce in the US, the same product produced in China would cost $3, giving the producer $2 more in profit. The item still sells for $10 no matter where it’s made thus making it only good for the producer not the consumer.

You might say that’s a great thing that the producer makes an additional $2 profit. I’m not saying that’s a necessarily bad thing, but what are the costs?
When a factory moves from the US to China it isn’t just the factory employees that suffer the impact will be felt in many other areas.
For instance, suppliers of raw materials, packaging, manufacturing equipment, electricity suppliers, local taxes, small business that serve the needs of the employees and their families, transportation services, computer services, just to name a few. Entire towns have had to close in areas that were heavily dependant on having a large manufacturing plant close by.

You have to ask, is it really worth the pain inflicted on those US workers to gain a couple of dollars additional profit. I don’t think so.

[f_m]

Originally Posted by RedNC

Simply put, a product that sells for $10 cost $5 to produce in the US, the same product produced in China would cost $3, giving the producer $2 more in profit. The item still sells for $10 no matter where it’s made thus making it only good for the producer not the consumer.

This isn't the case for all products, it depends on the number of middlemen. My previous employer makes products in the US, but some of the competition makes products in China. Some brands are sold at the same MSRP as the US built products, so in those cases, the middlemen are making big profits. However, some other brands are just dirt cheap and sell for less than the US products could be built for, and of course many people are buying them because of the lower price.

[Sunny-Days-in-Florida]

We need to do something about China. Maybe this will turn things around.

Sure we owe them a ton of money, but how far will America have to drop till we have to start begging them for our own land? They are buying up our land folks with our own money.

We need to find a way to stop them from destroying us with money and goods.

We all know what they are doing and in this case, I think he said the correct thing.

Time to end the game, look around, no more manufacturing jobs, steel mills, textile mills etc left all because we have allowed them to take us over.

Time to make the items we need here and stop the gushing of their products on us.

Want to create millions of new jobs, stop the importing and start the exporting on a EVEN slate.

No more 90% them 10% us trading.

The bums wont even buy our farmers corn. What does that tell you?