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You'll notice that I said we are getting free products, not free money. The principle on the loans is money they borrowed us, the interest on the loans does not even come close to the number of free products we've gotten as a result of Chinese trade policy. Does this deal sound good?
Dude you must really love to argue because you have now taken a position that is impossible to defend. In effect what we have done is buy a bunch of crap, which will all be in landfills soon and in exchange taken on trillions in debt and decades and decades of increasing payments. Yea that is a hell of a deal.
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Hate to break it to you but a business is not a tangible entity, it is an abstract structure. And why would they want US real estate?
Now I know you are hitting the bong! What exactly about a business is not tangible? The land? The buildings? The inventory? The Cash? The income? The market share? And why would they want real estate? I can not even believe someone would make a statement as ridiculous as that. I suppose in your world real estate does not have any tangible value either, I mean you can't put it in a bong and smoke it or anything.. right?
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Give me a break this is nonsense.
The US is borrowing in its own currency as a result it would never default; it could always inflate to avoid defaulting.
Yes inflation that is the answer, why did I not think of that before? After all it worked so well for Germany after WWI it also worked so well for Argentina. We will just start printing money and drop it from aircraft until we are up to our necks in the stuff and we will all be rich! There will be no negative consequences and we will all live happily ever after.
I hope you will understand if I do not answer any more of your posts, I have something really important to do; I have to go teach my pig to sing.
Dude you must really love to argue because I hope you will understand if I do not answer any more of your posts, I have something really important to do; I have to go teach my pig to sing.
That's hilarious. The analogy I use, which is very similar, is giving French lessons to a cat.
Personal responsibily is the CEO who will step up to the plate and renounce his bonus or pay increase this year in order to save 10, or 20 or 200 "regular" jobs.
Personal Responibility is the Banking/Wall Street Exec who will take his bonus this year and pay off or pay down a few of the "bad" mortgages his firm wrote during the bubble to keep a few American families in their homes.
Personal Responsibility is the Health Insurance Exec who will take a pay cut this year to make sure that insurance premiums remain affordable for all Americans.
Personal Responsibility is the American consumer who vows to at least try to buy products made in the U.S, of A. Yes, even if they cost more.
Some of us are still waiting to see if any of the Big Girls and Boys have the balls to do the responsible thing.
I'm all about the personal responsibility of not getting pregnant as a teen, living your life stoned and dropping out of high school so your only choice is a minimum wage job.
Neither the crack addict nor the credit card addict come out well served by your "business plan."
As I said, the policy distorts the US labor market and that is why the US should push to change it.
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Originally Posted by Philip T
When it comes due your $80 worth of "products," will be in the junk yard, and China, et al, have the production capacity, the money, and the capacity to buy and own the underlying resources.
China is not gaining financially from this, rather the opposite. The Chinese are reducing their standard of living to subsidize our standard of living.
Their policies just act as a gigantic stimulus program and its unclear whether its really been effective or not. Much of their productive capacity is on rather dubious grounds, the margins are way too low for long term sustainability.
In 1970 manufacturing was almost 23% of our GDP.
After almost 40 years of globalism, offshoring, NAFTA type laws...
In 2008 manufacturing is 11% of our GDP
Luddites....What else has happened since 1970? Well the computer revolution. What did it do to manufacturing? Made it for more productive and hence less people (and GDP) were required for the same output.
No different than farming being revolutionized by the combustion engine, etc ~100 years ago.
In effect what we have done is buy a bunch of crap, which will all be in landfills soon and in exchange taken on trillions in debt and decades and decades of increasing payments. Yea that is a hell of a deal.
The issue is that the debt was not taken out to purchase the products, the only thing the US is losing when it borrows money from the Chinese is the interest. So the deal in itself was rather nice for the US, the problem is the US did not utilize it well.
What did the US actually spend the money on? Well wars and tax cuts for the wealthy. That is what grew the deficit.
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Originally Posted by jimhcom
What exactly about a business is not tangible? The land? The buildings? The inventory? The Cash? The income? The market share?
The land, the building, the inventory, etc are not the business. They are parts of the business, the business as a whole is an abstract legal entity.
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Originally Posted by jimhcom
And why would they want real estate?
The question is why would they want real estate in the US, which is what they're going to be purchasing with US dollars. I guess you don't have an answer.
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Originally Posted by jimhcom
Yes inflation that is the answer, why did I not think of that before?
It is the answer to the issue of default. There our of course consequences, but again the US has no reason to default on its debt it can just inflate until its affordable. That would not require hyperinflation either, an inflation rate of say 5~6% over 10 years would greatly reduce our real liabilities.
Good luck with the pig, hopefully its more fruitful than your thinking on economics.
I hope you will understand if I do not answer any more of your posts, I have something really important to do; I have to go teach my pig to sing.
My life has been much better since I put a certain forum user on my ignore list.
Good luck with the pig, and I heartily agree that teaching it to sing is a better use of your time than arguing with a forum troll. You may not succeed in your original goal, but at least when you get tired of arguing with the pig you'll have something tasty to eat.
basically, our congress and this president approved using AMERICAN TAXPAYER money to fund the IMF, which turns around and says that advanced economies (meaning us!) need to cut their social service programs- so we are giving them money to tell us to cut our expenses.
i have a better idea- we cut off IMF funding first.
Try what a lot of people have done. If it requires it find two minimum wage jobs. Don't buy cars or houses you cannot afford. Save what you can for a rainy day. It can be done, you just have to want it.
You're overlooking the depression factor. Depression can obliterate your energy level and your thinking is enveloped in fog. Once you become a victim of that, it's hard to know what you want, as you're stuck in quicksand.
Blessed are those that are perennially optimistic, positive-minded, with an abundant supply of steely determination, but humans are a race of many different "colors".
If someone throws up their hands, and cries: I give up! I give up!, I completely understand and accept that.
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