Sunday, August 28, 2005

CHINESE TOOLS WANT TRADE DEFICITS

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Lots of good graphs at Marktaw.com

By Elaine Meinel Supkis

Reading Xinahuanet is a great way to track American traitors. These people are the ones who take the money of various hostile interests that want to destroy us and then tell us that it is OK for America to be destroyed. Alan Greenspan is a case in point here. He, like Friedman of the NYT and a host of others want us to "globalize" even though this is killing our country. Like Reagan, they get stipends from other nations or in Greenspan's case, his buddies in the Skull and Bones get foreign money, if they open America's doors.

From Xinahuanet:
The US economy has benefited greatly from China's economic growth, and "simply blaming China will not solve issues relating to US economic transformation," an American expert on anti-dumping laws said Friday in an interview with Xinhua.

"China and the United States are the twin engines of world economic growth. China's economic development has numerous beneficial effects on the US economy," said Jeffrey S. Grimson, 38, Counsel and Chair of the China/International Trade Practice ofKaye Scholer LLP, an international law firm with over 500 lawyers on three continents.

Foremost, "Chinese goods have a reputation for being low-priced. The availability of low-priced goods has had a beneficial impact on the US economy, by enabling consumers to enhance their standard of living while keeping inflation down," said Grimson who have been working in the field of anti-dumping laws for 15 years.

Chinese products are moving up the scale of quality too, he added.

Also, economic prosperity in China means more potential customers for US goods and services, he said.

What's more, "the rise of China as a manufacturing superpower has pushed US business to modernize and achieve ever higher levelsof efficiency and productivity," said Grimson.

Grimson holds that it is not right for US manufacturers to blame China for a decline in US manufacturing jobs, saying "the transformation of the US economy started long before the current 'crises' with China's trade imbalance, the currency, or textiles. Simply blaming China will not solve issues relating to US economictransformation."

According to statistics compiled by the US-China Business Council, he said, the US manufacturing sector's share of the US economy has fallen from 32 percent in 1960 to 22 percent in 1980, and to 14 percent in 2002.
The same old problem: we think we can dominate the world via military might and at the same time make nothing for trade! True, "inflation" is low...for singular items. But inflation for essentials is through the roof, over 10% a year if not more, this year. All I have to do is look at my own finances. Property taxes, up every year without exception. Fees for registering cars, up too. School for my son, up and up and up. Health insurance, through the roof. Fuels of all sorts: heaven is the limit! Everything I need is up and up and up.

The creep parading as a pundit and working day and night to enslave us, this lawyer, Grimson, thinks it is just cool that we are losing our industrial base. He makes lots of money this way. Selling us down the river is great, for him. The sly way these people operate annoys the hell out of me. Japan has for years run an increasing deficit with the USA. For years, we tried to pry open their doors to trade by they always out manouvered us in this, simply by purchasing the services of all the negotiators from Reagan on down. So our "negotiators" were all in the pay of the Japanese!

Which is why we run a huge deficit with them, still.

This is no longer mentioned just like the Japanese currency manipulations are never mentioned. Japan was supposedly allowed to do all this because it made them strong so they could oppose the Soviet threat which died years ago and oppose the Chinese.

Who now own many of our negotiators and legislators, learning this art from the Japanese.

Our trade deficit with "the world" started with the wild spending on the Cold War particularily with Vietnam and then OPEC. We hit our Hubbert Oil Peak the very same year our trade deficit started its relentless climb. The only reason we have "trade" is because of easy money given in the form of loans, most of which are bad deals since the populace can't pay off the principal at all. This has ramafications.

One farmer I know here wanted to upgrade his facilities 20 years ago, under Reagan. He was offered a loan 2% below prime but with a huge hitch: it never paid off the principal and worse, monthly payments were set lower than the rate of paying interest and the interest was added onto the principal! So after 20 years of hard work, his principal owed went from $350,000 to $550,000! He couldn't sell his farm and became suicidal.

He recovered his senses and sold off his dairy cows and took a 'regular' job and waited until the housing balloon was big enough and sold his farm to be turned into suburbia, for $1,000,000. Seemingly, a happy end. For him. But then, this was sheer luck for he benefits from this below the inflation rate loans that have sparked heavy speculation. Not a house has been built on his farm and we were discussing how there might never be any but he was relieved that he won't be either worked to death, a bankrupt or suicide. I am happy for him.

But millions are caught in the same trap today and many enter this trap in order to buy homes in this balloon market and when it pops, there goes our trade deficit.

No one will loan money to a bankrupt country, a bankrupt people. You can't load up debt forever nor run eternal deficits that grow exponetially as well as per capita.

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