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House Passes Legislation To Somehow Revalue Chinese Yuan
Just because somehow it is the Yuan's fault that America has exported its entire manufacturing industry over the past 30 years to lower cost countries, our idiot leaders have decided to take the next big step toward an all out trade war. The House of Idiot Representatives has approved legislation designed
to combat the manipulation of currency by China that results in
unfavorable trade conditions for the United States. As CNN reports, the
legislation, which authorizes the Commerce Department to impose duties
on imports from countries with undervalued currencies, passed by a vote
of 348 to 79. Somehow, because it was framed as a "jobs issue", everyone in Congress went full retard and confirmed they have not the first clue about how Economics actually works. But yes, please revalue the Yuan: the next thing will be exploding prices at Wal Mart, which have so far successfully masked the fact that the US has been exporting staple product inflation. We wonder how those same "workers" on whose behalf this law was allegedly passed will feel when their bill anywhere is double what it used to be... Not to mention that their currently unemployed status will certainly not have changed.
More from CNN:
"We can talk, or we can act. International trade is a high stakes, cut-throat business, and every time we simply talk, the other side acts, and every time they act, an American loses a job," said Rep. Xavier Becerra, D-California.
China said this year it would allow its currency, the renminbi, to trade in a wider range against the dollar. But the currency, also known as the yuan, has scarcely appreciated since then, inflaming critics who charge the undervalued renminbi helps steal U.S. manufacturing jobs.
The House vote caps years of frustration for lawmakers as the United States has continued to shed manufacturing jobs, and promises of reform from the Chinese have failed to result in policy changes.
The legislation now moves to the Senate. Sen. Charles Schumer, a New York Democrat, says the body will act quickly to move the bill to the president's desk.
"We must take decisive action against China's currency manipulation and other economically injurious behavior," Schumer said on Tuesday, noting that the Senate will take up the issue when it reconvenes later this year.
"China is merely pretending to take significant steps on its currency," Schumer said. "This sucker's game is never going to stop unless we finally call their bluff."
But not every member of Congress is convinced, especially after China raised tariffs on U.S. poultry producers earlier this week and accused them of dumping product into the Chinese market.
Our question is what happens when 1.4 billion Chinese pass legislation that the Fed's QE is currency manipulation as well? Does that particular law go hand in hand with the one that states it is now illegal to hold US treasurys (because, of course, Congress realizes that when the dollar falls in value to the Yuan, all those Chinese-held USTs don't really increase in value...)
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Because ZIRP is not manipulation...
"our idiot leaders have decided to take the next big step toward an all out trade war..."
BRING
IT
ON!
Legislation Ho!
Headline News
Law of Supply and Demand Repealed!
Next up: Congress considers repealing the Law of Gravity in order to get people "moving" again!
Really Tyler, what's all this bedwetting about rising staples?
I'll bet you're also in the "keep my tomatoes cheap" camp with regard to illegals.
You don't really give a damn about american workers do you globalist.
Sea level in the global wage arbitrage game is a modern feudalists' wet dream...Give it up Tyler..it aint gonna happen.
Manufacturing bitches.
ROTFLOL!!! That's so cute you think this will bring jobs back. Well I was a small child at the time but remember a little something something called NAFTA? So where are those manufacturers going to go, the realm of high wages and infinite regulation (health care anyone?) and bureaucracy or maybe build up in Mexico.
There should be a cheer coming from Mexico. This keeps up they won't need amnesty we'll just move everything down there to them...man I need to learn some Spanish!
THIS bring jobs back?? No.
But for the right reasons or the wrong it could be a start....
NAFTA? What's that got to do with it?
The whole global wage arbitrage regime is a scam of parasitic global elites perpetrated on Mankind. NAFTA was the 1st major salvo fired at Americans.
I know your kind, (apt screen name).
Pliant slaves, NO regs, grinding poverty, cheap, shoddy and dangerous, rivers of pollution, oceans of waste, strip mining, the Company store, child labor, happy armed forces recruiters, Potterville, the whole "nasty, brutish and short" nine yards.
Never had you pegged as a self exalted bitch till now....Shameful
Keep spiting vile without understanding what exactly is going on. This is the on set of hyperinflation. We will have less imports coming to this country in short order and with no manufacturing industry in this country prices for everything will sky rocket.
Welcome to Keynesian hell.
It's coming anyway dumbass...
Bring It On!
America FIRST.
Fuck all the globalists and political partisans of ZeroHedge
Take it easy. Here, have some Obama Bread(TM).
Have some W dick...
put on yer bifocals and LOOK at the avatar
Spotted dick. No thanks.
20/20 vision here. Your avatar can jump off the bridge I want to sell you.
pffft..too deep republican gramps
"we will have less imports coming to this country in short order..........prices for everything will sky rocket"
how about not being able to get it AT ALL. I've had a back order for some dental supplies for going on 2 months now.... something that is vital!! and without which I cannot operate. last year it was a key anesthetic used for complex surgeries...... I tell you I am going back to research that "most favored nation status" given out about 15 years ago. That and NAFTA and GATT..... all of it should be impeachable offenses for having voted in favor!
anesthetic?? we talkin bout anesthetics??
just show them their portfolio and watch them passout
Even in basic retail, don't you notice that there are more "empty pegs" - stock outs? How about the rearranged floor plans? - wider aisles and a sparser assortment of product. Retail has cranked their inventory way back and are only making bets on the high turnover, "A" items.
You can have any color you want as long as it is black.
Good. At some point we'll start making it here again.
Yeah I'm for no regs, have they ever worked? The simple fact is all regulators will be captured, or at least the reg system. There is a TON of regs in banking did that help, nope. Ton of regs in finance did that help, nope. All regs do is allow the illusion of safety and a fair playing field. The world we live in is unfair, and we have to treat it as such. There is no utopia where people get high wages cheap goods clean environment and live in paradise. The closest to was America post WW2 and that was because the rest of the world was a smoldering husk.
And how did you draw the company store model out of my statement in particular?
I'm for people being free to do what they wish with their labor and not having to oblige some strong man, and the company store system is directly against that. If you think the tyranny of the state can be used for the common good, good luck with that. The state you empower to protect you will be the state that enslaves you.
Also funny that I point out that NAFTA is killing us and you immediately think I'm for it. But by all means relish in your victory of the Congress trying to bring inflation back home, because this sure won't bring jobs back.
"Yeah I'm for no regs, have they ever worked?"
Republican boilerplate. Corporate propaganda.
"There is a TON of regs in banking did that help?"
Regs are meaningless without men of integrity to enforce them.
Amerika is now a riddled corpse of corruption and embezlement...This too shall pass....in the fire to come.
Regs and LAWS come into being because at some point in time someone scammed, lied, cheated, defrauded or otherwise committed acts deleterious to the common good. Are there excessive regs on the national books? YES. Even, "Hell YES".
You want to live in a world with no regs? Move to Somalia. It's a Libertarian paradise by your lights.
"The world we live in is unfair, and we have to treat it as such."
THIS is the ethos that has brought america to its present pass.
"There is no utopia where people get high wages cheap goods clean environment and live in paradise."
You just gave it all away there Sparky. Your "Realist's" Dream. Complete bullshit of course....
"because this sure won't bring jobs back."
But they WILL come back.....the Hard way or the Harder...but they will. Don't bet the farm on your dream Shameful, it'll be burned to the ground.
So where will these men of integrity come from and where have they been for the last 50 years? That's one hell of a coffee break.
Oh under a totalitarian regime jobs will be plentiful, but prosperity will be in short supply. After all not to much unemployment under Stalinist Russia, and Mussolini made the trains run on time, heck I'm pretty sure people work hard in NKorea trying to scratch out a living. Have your dreams that with the right rules and Angels from Heaven to support them that the nature of man will change.
And if mine is a realist dream can you point to a real world example of this utopia you speak of. It need not even exist today feel free to pull it form the pages of history. And my dream? I have no belief whatsoever that we will live in a free society. Far to many love tyranny. They may rail against it when it harms them but in their hearts they dream to be it's master. Meet the new boss, same as the old boss.
You will not address my points with anything but bile and derision, not facts or reasoning. You look for a society run by men dominating other men, but expect them to have integrity. Power corrupts, so unless every man in charge is a saint and remains a saint the system will just turn into what we have now or worse. I can tell that hte idea of a man keeping his own work and making a decision for himself is anathema to you. Good luck sir. And Might I suggest you join up with the Alphabet Soup, surely a man of your "integrity" can show the way.
nobody can be as dumb as you pretend to be, bananaman
Your thinking is wishful. I wish too things would straighten.
It will get much, much worse and i am so sure of that i have sold truck and equipment and downsized myself to where i can hardly be found.
best you research some more and leave the emotional (Americafirstuberalles) content out of it. have a grand eve
I'm obviously a mirror then>
I never said things were gonna be peachy. YOU projected that bit.... My own view is that we are heading for a collapse, a reset, a much NEEDED reset...The kind that enveloped our grandparents 80 years ago....a point at which americans can finally SEE the extent to which they've been SOLD OUT, get "wise" and hopefully get back to 1st principles again.
As to "America First"...Globalization is the pipedream.
You wanna see True despotism, deep, wide and eternal...keep working for that "One World" singularity. It's just as batshit crazy as when the hippies had a hold of it....only in the hands of the Right it would take on the guise of global Fascism.
How many of you here see yourselves as Ubermen, the "managers" of a brave new feudalism to come? "At least I'LL get paid", isn't that the way it works? that Wall Street ethos ....or have you simply been brainwashed by the people for whom this is much more likely to be a Reality?
Remember, rulers have no right to do anything that you have no right to do on
your own. If you shouldn't do it, you shouldn't ask others to do it for you.
Yeah I'm for no regs, have they ever worked? ... All regs do is allow the illusion of safety and a fair playing field. - Shameful
Unless you are a complete anarchist. your statement is misleading and inherently self-contradictory.
There are regulations (laws) regarding child labor, worker safety, food processing, disposal of wastes, contract fraud, private property, taxation, business incorporation, patents, liability, etc. and etc.
Do you wish to abolish them all?
You don't have to be an anarchist to want to repeal all those things.
Private property exists whether the government recognizes it or not.
All that other crap is just that, crap. We didn't have most of it prior to 1900, and the US THRIVED. Now we've got it all (minus the private property), and we are being smothered.
Things like child labor disappeared on their own decades prior to their being made illegal, and now those laws are used to stop teenagers from working. What is wrong with a 14 year old having a part time job? Why is it alright for a 16 year old to have a part time job? Worker safety is also something that comes about naturally, and without regulations. Look at China. The workers got pissed off, and now their conditions are improving. This is how things work. You can't just point a gun at someone and say "You have to live without the wages your child brings in". The children had to work until society saved enough capital that they didn't have to.
what a goddamned fool you are Tmosley
The return of Perot.
http://www.youtube.com/watch?v=Rkgx1C_S6ls
(Read with imaginary high kinda squeakie voice, like Ross Perot's)
Fuuuupppshhhhhhhhhhhhh.
Hear that sound? Ya'll hear that big suckin' sound? It's American jobs going overseas. Now listen, I'm a talkin'. Shut up. Yer' not listen-en to me. Shut up. I'm all ears. That's NAFTA.
Fuuuuuupppshhhhhhhhhhh.
Perot was famous for his charts -- and he's still doing them.
Damn nice ones and current.
http://perotcharts.com/
In addition, there is nothing FREE about NAFTA.
I did a quote for a supplier that was selling product to an American auto maker in Mexico. He told me there would be a 17% tariff on my machinery if he bought it and put it in the factory. I said to him: "What about NAFTA?" He shrugged his shoulders and said our product is taxed at the border. Yours will be too!
We are getting fucked so hard we will never walk straight again. Bastards never even gestured the courtesy reach-around.. :)
Thanx Rocky. These charts do a good job of illustrating how lopsided the tax situation is. "Beggar thy neighbor" is not simply a Euro or world phenomena - we are beggaring each other on our own block. 'Round here lets call it "buggar thy neighbor".
When tomatoes go to $10 per pound, it will help the unemployed and the poor put food on the table for their families. Basic economics can not ignore comparative advantages.
I will quadruple my tomato planting this spring. Now is the time to spray roundup, on those pretty green lawns & start workin that dirt.....
Gardening Bitches....
whooop!
Starting your garden with poison? Ah , i forgot, its the american way.
Dumm and dummer.
Hey, ever hear of Smoot-Hawley?
http://americanhistory.about.com/od/greatdepression/f/smoot_hawley.htm
Dems haven't, smoot has too many letters. Joe-Bite-Me knows that what we need is a three letter word J O B S.
yep, here we go again.
And raising taxes too, that'll work.
- Ned
NO, DOG SHiiT.
Schumer's a slick cunnt and knows full well EXACTLY what hes doing. He sees the economic/ fiscal situation in the US falling apart, and they are striking out at China because they feel the searing heat of whats coming over the next 18 months, and they know they will need that common enemy real bad. This is a cokksucker's legislation-- any self-respecting country doesnt give a fcuk who pegs to it's currency. If China wants to bitch out and peg thats there prerogative. When you are a strong and self-respecting nation, you produce and , export and import with no regard for other nations' currencies. If the import is too expensive you dont buy it. If they dont wanna pay the price of your export you dont sell it. ANY INVOLVEMENT IN THE CURRENCY OF ANOTHER NATION IN THE MANNER OF THIS LEGISLATION SHOULD BE A VERY VERY BIG RED FLAG TO THE PEOPLE OF AMERICA THAT THE C***SUCKERS THEY WERE FOOLISH ENOUGH TO ELECT FEEL THE HEAT OF THE DOMESTIC ECONOMIC PROBLEMS THAT ARE COMING. THEY ARE NOW ANTAGONIZING ANOTHER NATION PURELY TO DISTRACT FROM THE RUIN THAT THEIR MISDEEDS AND INCOMPETENCE HAVE AND WILL INCREASINGLY BRING. Schumer: "China's manipulation of their currency is the boot on the neck of the American people." Me: "No, Bitch, yours is the boot on the neck of the American people!" ... SCHUMER FEELS THE HEAT AND HIS FLINGING OFF A NON-SENSICAL-IN-ALMOST-EVERY-WAY PIECE OF LEGISLATION TO PRESERVE HIS POWER, PERIOD. This stuff would only pass as acceptable among a nation of morons. Either way, BIG BIG red flag. Rocky Raccoons got a post below from Yardeni about the stimulus-pushers jumping ship. Chuck is damning the torpedoes prancing up to the bow and stepping up the charge against the chinese and at the same time all of america.
"a sucker's game which will only stop when we call THEIR bluff" indeed!
flag as vehement (1)
wait, can i not be vehement? or is that a joke
A compliment, friend. You can be whatever you want as far as I am concerned.
More vehemence, Bitchez! Your rant was highly cathartic, thank you. Right up there with one of my favorite scenes from Animal House:
Blutto: "When the going gets tough....................................................................................................
...........the tough get going! Now, who's with me?"
"Did we give up when the Germans bombed Pearl Harbor?!"
+10, f'n warmongers.
Jump on the Hansel-train.
I stand all amazed.
No, really, that post was pure water down my throat. Please. Please. Please.
Continue.
I like it! Schumer needs to get fucked with Shaq's dick. He is an ass-monkey cock-eating shitstain cumlunch gutter sperm burping gutter whore fuckbucket asslunch with herpes on his face and barkney frank's dick in his mealy little mouth - that cuntshitstainfuckhole!!!"
or, something like that... :-)
It's so weird. I was thinking the exact same thing.
yeah then theres fuckin barkney...
yeah i mean its over-the-top totally nonsensical stuff they are firing up.... "china must be punished and forced to revalue their currency! it is the boot on the neck of the american recovery! its not really anything In america! .... CHINA!.... BOOT!!!!!... on our necks, i tell you!! .......AAIIIIIIIIIIIIIIIIIIIIIGHHHHHHHHHHH!!!!!!!!...
to schumer, et al-- like gimme a goddamned break for ONE fucking second guys!!! come on man .... like this is amazing amazing stuff.....
One thing everyone should watch out for is big chutzpah... bernankes gonna do it... theres a guy who will show madman-like chutzpah.... same with schumer apparently.... you think you are going to take chuck out of power, do you think chuckie is gonna step down when the country collapses, because he was intimately involved by virtue of being a senior senator from nY.... chuckie has the answer.... its a brilliant one.... the Boot of CHina! the rhetoric is like something from 100 years ago or something... next chuckie is going to be saying america must "SPEAK SOFTLY AND CARRY A BIG STICK." boot of china... like everything else... just way too dumb to work for very long... im TELLING you this shits too dumb to work out in any way nearly as successful as theyd like... im sorry... i know crony capitalism and democratic politics doesnt have much to do with intelligence etc, much less rocket science etc..... but im sorry this shits too dumb, its too dumb and its gay... boot of china on necks of americans.... thats like a fuckin 1930s phrase or some shit... from street scenes in chuckie's childhood on the streets of tin pan alley in nYC... "get ur boot off that poor lad's neck you hellion!"...
This type of rhetoric...."boot of the (insert identifier) on the (insert the manipulated) people/economy ..." etc --- has been used specifically by old racists (hitler types) and contemporary hate groups to stir up emotions of their followers.
It has not been used effectively for more than seventy years - thats why it sounds like a throw-back.
it wont be used effectively in the intermediate to long run now... reason? simple enough-- it sounds like a throwback and the people who are putting out rhetoric that sounds like a throwback dont realize how it sounds... so its a symptom of kind of being psychologically disconnected in an important way... the policies/ actions of people who are psychologically disconnected WILL BE OVERRULED by more psychologically connected people and their policies/ actions... more to the point: hot bitches will be like "ehhh i dont like that", and as stupid as that may sound, it is huge when you want the general population on board with something...
Hyperinflation, bitchez!
US says, we want, we want, we want, we want, we want, we want, we no pay, we no pay, here give credit card.....
China sells cheap wanted goods to US
China buys US treas..
US says we can't afford cheap goods.. put the price up
China says..
Here, is a book of Inverse Sun Tzu for Dummies...the really uneducated morons edition
ROFLMAO ...go take a hike sucker.....
know your enemy, know yourself, in 100 battles you will never be in peril.
- Ned
(Griffith translation was his PhD. Thesis at Oxford in... NOT ECONOMICS!)
The term "asstards" comes to mind....not sure why...
Hoot-Smalley, bitchez
Exactly.
The USA 'forcing' a revaluation of another country's currency...
BWAAAAAaaaahahahahahahahah!!!
Go ahead, send in the US military and see how far that gets 'em.
At an average expenditure of 436 rounds (all calibers) per kill, let's see, 436 x 1.4 billion = ... Oops. My calculator doesn't go that high. I see a shortage of .223 at Walmart soon.
I do my part when in the neighborhood. My Mini-14 loves 'em.
... and then they kill a puppy, I suppose.
No. "Acts of job loss" would be General Motors exporting production jobs to China to boost the bottom line. Even Henry Ford knew better than this.
Everyone in government is set to become demagogues. Race to the gutter, running over orphans and grandmas in the process. This is what "end of empire" looks like folks. Devoid of logic, immoral and insane.
"This is what "end of empire" looks like folks" Spot On!
+1
Exactly. Dickwads! Really, those jobs will come back?
If that ship hadn't already sailed on its one-way journey so long ago--financed, built and operated by the congressional-corporate complex of the USA--this might make some sense. But really. What a lurid joke now.
Now we ask for further consequences. This kind of shit worked when we were the rich kid--everybody wanted to play our games, laugh at our jokes, follow us around, etc.; seems that now that Daddy's broke, the fat kid without toys has no clue that he's a domineering bore who nobody really likes. It isn't just the Chinese. The entire world feels that way.
This is gonna get so ugly.
Democracy has always been about demagoguery. Read Mencken's Notes on Democracy and dispel your ignorance.
what the fuck is the problem with trade war? When faced with a mercantilist ponzi, this sort of thing is inevitable.
EVERYthing the economists tell us about the cause of the Depression was wrong, why should we fucking believe Smoot-Hawley protectionism was a cause?
GFD, China is wantonly protectionist as is Japan. Maybe we should just buy yuan.
+ plus
Maybe you should move to North Korea if you like protectionism so much?
Free trade does no evil. It merely lays bare the evils of domestic policy. Trade barriers do nothing but make a prison out of the nation that imposes them.
Maybe you should move to the interior of my anal cavity Tbitch.
We don't HAVE "Free Trade™" or "Fair Trade" any more than we have "Free Markets"...We have a global race to the bottom.
You still got room in your anal cavity? I need a place to park my car
fuckin awesome. well played, sir.
I thought you were still taking the bus...
well, you'll have to ask Tmos...
Maybe you should try to sell a web press into mainland China from the good old USA, that will cost you a 40% mark up'... Free ~ Trade, are you mad?
*UPDATE ~ They do this to force you into entering a *partnership* with them, nike,cat, ect.... for the right to sell goods into China you must build it their.Or you get hammered with tariffs.
2 junks for the Truth??
Who cares? If they have an environment that is oppressive towards business, I won't open a business there. You never here Americans bitching about how unfair the trade practices or Cambodia are. Why is that? Because their crappy economic policies have made them pariahs for international business, and stunted their own growth!
The problem here is that certain people have penis envy. They see China's big export led trade dick, and they try to cover up the fact that our own formerly massive export-led has been obliterated by our fast food diet of excessive government regulation, which has caused our governments waistline to grow from 2% of GDP to 40%.
It's not China's fault that we are losing jobs. If it was just a matter of cheap labor, then Africa would have taken over all world production decades ago. No, it is a matter of government bloat. Our government spends twice as much as China's as a percent of GDP, and even less per capita. They are frugal, and we are spendthrifts. THAT is the cause of our decline, NOT this DEYTUKRJBS fantasy.
Classic Stupidity', Wow.
Yes, attack the poster without any rhyme or reason as to why his position was "stupid". Your debating skills are stellar.
Where the fuck did you see free trade with China? Free trade implies intellectual property rights, free economies, and above all, free people.
Might as well, these incompetent, bought & paid for motherfuckers running the show, ain't going to do nothing but keep digging the hole....
Trade war inevitably leads to military war; the loser (in this case, America) inexorably resorts to using his guns.
Trav, Milton and Anna were economists and, well, weren't wrong. - Ned
Woo hoo, we just told the Chinese our rigging is better than yours. Except, they weren't rigging it.
They just didn't start rigging themselves like we did....i.e. float their currency.
We shouldn't of either.
So instead of asking them to float, we should get the world to PEG. Bretton Woods style.
Or continue to look like idiots that cannot be reasoned with to the Chinese. Probably too late on that one though.
Or continue to look like idiots that cannot be reasoned with to the Chinese. Probably too late on that one though.
We're clearly determined to stay the course on this. It will play here on the home field as Yankee spirit and backbone.
So clueless.
Man, somehow this seems so familiar. Country in the midst of a massive economic downturn made worse by imbecilic fiscal policy, increasing foreign tensions, and now an incendiary piece of legislation which threatens to touch off a powder keg . . .
It's on the tip of my tongue . . .
http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff_Act
"China is merely pretending to take significant steps on its currency," Schumer said. "This sucker's game is never going to stop unless we finally call their bluff."
Seriously, how can he be this dumb?
Not dumb. Tough! Tough-talk for the cheese-doodle crowd glued to the nightly news. Grrr! See? Me tough! Argh!
Grrrr! I'm a tiger!
http://www.youtube.com/watch?v=JN99jshaQbY
Full retard bitchez
Excellent.
is that the hoff?
Too late, CAT already building more plants in China. See, the thing is, currency war at this point is moot, since there's nothing that China would buy from the USA.
The only reason China is not depegging on its own, is b/c it wants to continue its own frenzied/ponzi'ed growth scheme not too dissimilar from Brazil/Petrobras, with America being the middle man to allow China to buy from itself.
The sooner Hugh Hendry's predictions come true, the sooner Gonzalo Lira's predictions will come true, and the sooner this Keynesian catastrophe will end.
fuck CAT
I agree!
CAT is full retard
full greedtard...oh well, tis but a Chinese lure....
"Please to leave blueprints on table..."
How the hell did we elect these people? Oh yeah, we didn't, "DIEBOLD" did. Congressionals are stupider and crazier than your average American, and that is saying a lot! Sorry average American, sorry to bring you into this, but you are leaving those who go full retard to dictate your fate. Oh, and in reality, this whole full retard thing, it is more like covertly (sometimes not) psych manipulation MK style on these dudes. Check out Bob who obviously had just come from his weekly goat sacrifice.
Congressman Bob Etheridge (D-NC) Assaults Student on Washington Sidewalk:http://www.youtube.com/watch?v=_oqIP9yagkQ
People Against Goodness And Normalcy
http://www.youtube.com/watch?v=pT_QRKfv8H4&feature=related
LOL
Poor goats. If only they knew they are essentially training wheels.
Total fuking ignorant retards in Washington D.C.
Thats the first thing you have said that i'd agree to.
Best commentary on this debate I've read so far from
China Bashing in High Gear Again"Trade is after all a voluntary economic activity"
So is freebasing.
So is the slave trade...as long as you're the slave trader
Great! Let's turn the US into a prison!
Hi there, Mr. Obama. How's Michelle?
Too late. The US has the most jailed per capita in the world.
After having read through this thread (slow morning) it's my considered opinion that this is parody.
Nobody could be this stupid unless it's on purpose.
You may now continue with your regularly scheduled "JUNK" parade.
Nice.. I think I'll just head over to my bank tomorrow morning, walk over to my banker, and b!tchslap him with my spilling, iron coffee cup. That'll teach him to loan me money ata ridiculously low interest rate.
Yeah but the question is, does your mug say, "Gold, bitchez!"
No mine says KCA <cmdy> go lol
Going forward, I'm just going to mentally end every statement by a Congress-critter with "... so I can get reelected in November."
See? Doesn't that help a lot?
Word
It all makes sense now.
Blindingly BRILLIANT!
China can raise the value of the renminbi. An undervalued currency affects the domestic and trade imbalances by shifting income from households (who are net importers) to net exporters. This automatically increases the gap between what is domestically produced and what is domestically consumed, and so expands the trade surplus. By increasing savings (savings is equal to production minus consumption), an undervalued exchange rate increases the excess of savings over investment, which is by definition equal to the current account surplus.
By revaluing the currency, Beijing reverses this transfer and helps rebalance the economy. So who benefits?
Clearly households in the aggregate, as consumers, benefit because the reduction in import prices implies a real increase in their income. The greater the import component as a share of income, the greater the real increase in income. My guess is that middle and lower middle classes benefit most since the very poor (especially the rural poor) are likely to have a relatively low import component in their consumption, and the rich consume a very low share of their total income.
A second group of winners includes companies that sell imported goods (for example large retailers) and companies that otherwise benefit from an increase in domestic consumption but who don’t have an important export market. This includes most importantly the labor-intensive service industries.
The losers are, first and most obviously, the export sector, who will see a rise in their costs relative to their revenues, and second, if these rising costs lead to bankruptcies, households to the extent that they are employees of the export companies. Part of the rise in unemployment in the export sector will be mitigated as new workers will in fact be employed by the winning industries, but a rapid rise in the currency could cause unemployment in the export sector to rise faster than employment in the other sectors, and so any change in household income could itself be constrained or even negative.
This, of course, is the big problem China faces. By now nearly everyone recognizes that raising the value of the renminbi is a necessary part of the process of raising the real value of household income and improving the balance between producers and consumers, but if the currency rises too quickly and so leads to rising unemployment, it will actually cause household income (and with it household consumption) to decline as unemployment rises. The imbalance will still improve, but it will improve in the “wrong” way, in the form of production declining faster than consumption.
Finally any entity that is long dollars and short renminbi will lose. The most obvious example is the PBoC, which loses greatly from revaluation. Investors who have stockpiled significant amounts of commodities funded by renminbi borrowing will also lose.
Michael Pettis
http://mpettis.com/2010/09/the-politics-of-chinese-adjustment/
Just another source of madness. I think they are losing control, this will be the distraction to keep people from burning down the Capitol/al : )
Wow, is global war on the doorstep?
A quick look over your shoulder at recent history would tell you the answer is yes. Now think about all the morons drunk on debt in the US. Is it really hard to imagine a crazy man winning the vote in the future, running a campain on "return to glory" at any cost.
22 year old kids can fly waves of drones into china,iran from kansas, while eating donuts, like they did on playstation3 and bombs away with no remorse. All in the name of ,entitlement.IE~ dibs,be in line for,comeuppance,deserts,privilege,rights,vengeance, what is coming to one.
"crazy man", or woman. Dose wimmen like Palin, Bachmann and that new tea party chic out east are plenny crazy for me.
Ya something like this fucking wacko- ...Koo Koo..Koo..Koo..Bing,Bing,Bing, Koo..Koo
Phil Davison, GOP candidate ...http://www.youtube.com/watch?v=h7XwV_h9wWM&feature=related
This guy had me laughing for days. Haven't seen this version of it. The thing that scares me is I'm seeing this same kinda behavior in the gen pub. Everyone/everything is spiraling outta control!
Petraeus. Not crazy.
1) Replaced McChrystal.
2) "Succeeded" in Iraq.
3 Will soon "succeed" in Afghanistan.
American people will love him. He is "pure," a military man, probably Christian. Unable to be bribed. The Tea Party will love him. LOL.
Geopol is correct; he is our next president.
These are the probabilities that are consuming Tim..
The Chinese currency reserves could also be used internationally. The Chinese have been intensely focused on Africa as a source of raw materials for their future growth. Beijing would therefore be well advised to solidify its position in Africa by launching an ambitious Marshall Plan for that continent in the form of comprehensive infrastructural, agricultural, and industrial development. This could involve the creation of a Sino-African Development Bank from which many states could benefit. In effect, the Chinese could offer the Africans an alternative to the hated and discredited policies of the International Monetary Fund and the World Bank, which could not survive a competitor that would respect national sovereignty and offer the Africans equitable terms.
The result would be a new African market for Chinese exports, mainly in the area of modern capital goods. Until this is done, the Chinese will have a very hard time escaping their excessive reliance on the US consumer market and U.S. Treasury paper.
As for Geithner, he had better come home and start working on his federal income tax return due April 15, since we know how much trouble he has had with paying his taxes in the recent past.
Africa unite! 'Cause we are moving right out of Babylon!
"Viva Nepal!"
Africa is China's future. That writing has been on the wall for a long time. The Anglo-American establishment has helped make sure all those goodies have been unharvested, and China is of course sniffing around for untapped resources. It won't be good for the average African. If China plays it smart and ruthless they will just buy off dictators and strip the resources out to boost their economy. Africa will not be a destination for goods, for that they would still be looking elsewhere. However should a war start they would be able to direct excess capacity and African resources to a mobilized war economy.
I see you can post pics, so when can we expect to see articles here? I love reading about your analysis of geo-politics even if I vehemently disagree with your economic policies.
Hi Shameful,
That writing has been on the wall for a long time.
As it is history of sorts..not relevant??
I don't believe John Perkins will play a role in this scenario or Chas T. Main..
China has us buy the balls,,,it won't work,,in simple terms..When asked by Kissinger what he thought about the French revolution,, He responded "It's early to asses.. They are patient...
I'm not sure I get what you are saying. I was not thinking along the lines of a John Perkins soft takeover. I was thinking more direct pay off of petty dictators and warlords and moving Han Chinese to Africa. I'm an amateur student of history and the Han Chinese get around, so wound not be surprised if a portion of them settled Africa. The Anglo power in Africa will wane, the Chinese will offer at least a degree of improvement. Even just providing resource extraction jobs will improve the lot of many Africans, but I doubt they will be provide the tools to truly lift themselves out of poverty.
Totally agree that China has us dead bang. They are not only a creditor but our industrial base. They have their own problems but from my perspective they can quell some dissent with a minor conflict or skirmish particular if it at least looks like they defeated the great America. The jingoistic moral boost would in my estimation let the CCP keep control of the situation.
The jingoistic moral boost would in my estimation let the CCP keep control of the situation..
Shameful,
They are not succumbed by the over zealot sense of patriotism as it would manifest in America... And as that would prevail no CCP expanded control.
They are not going to overreach they will be very careful.. Their mantra..
I find you a fun antagonist,,, and someone that will provide a clue as to what is going on....We are not as diverse as you think on the economy...I will explain later...
Are you sure? Now it's only personal experience but talking to people from China, and having friends who have spent time there, the are very proud of China. They are porud of their achievement and the eventuality of having the same things as America. The pride they have is similar to the pride I read about in America past. They are watching modern infrastructure come out of no where and experiencing a rapid industrialization. I can only imagine the setup would come presented as the USA trying to cheat them or harm them in some way. I'm not saying they would take on the US lightly, but my guess is the Angle-American faction would fire the first shot forcing their hand. And it need not even be a real war, simply forcing the US to back down in the current Vietnam row or a reunification with Taiwan would do the job.
As to economics I'm vehemently pro private holdings, and from the Austrian school. However I hate the corporate structure. On it's face it exists to remove liability, which is crazy if one expects responsibility. I'm all for private business and enterprise but I'm not for these corporations having more rights then people. So in that we most likely agree, my concern is when the state takes hold, it wastes resources and destroys the little guy. Almost universally the state is the enemy of small business and the common man. So I'm loathe to support state action even in infrastructure, though I would find it more palpable if it was done on the state or local level.
Wow, geopol became a contributor. Congratulations.
Upgrade bitches!!!
CD, Do I owe you a PM of sorts,,,Maybe as a result of my misguided attempt at skate boarding in Europe...Did you see the VID??
http://vimeo.com/10555652
Either cyborgs or aliens will thank you for this link someday.
Just as I.
Nope, you were drunk at the time you made the bet.
Yes I did, three times. All I can say is Very Thin Guardrails, Very Long Drops!
Nope, you were drunk at the time you made the bet.
Work is the curse of the drinking class.
Hey,,tmosley,,,
Thankx
Thanks for illuminating one of the implications in the international arena, Geo.
People seem to still think that we're the center of the universe. We could only reasonably expect this trade war mongering to accelerate existing trends in common-sense fashion. If the Chinese are smart, they'll help those EM countries develop more equitably than we have, capitalizing on the worldwide ill will we have cultivated so tirelessly over such a long time (though the past ten years have truly been our crowning glory) while replacing lost US consumers with new ones (in addition to their own citizens.) This would also accelerate the abandonment of the dollar as reserve currency. Etc, etc, etc.
It's a slow motion train wreck of hubris.
It's a slow motion train wreck of hubris.
Perfect!!!
Pretty sure Rome and the Romans were none too pleased when the Goths and Visigoths rode over them!
geo-Thomas P.M. Barnett has been on this thesis for years, projecting that China-U.S. partnering with occasional squabbles, is a natural course of events. He might be right.
http://www.thomaspmbarnett.com/weblog/
He's pretty good, not too partisan, and Art C. ('bout the sharpest blade in the drawer) leaned on him before he (Art) died.
Worth a look.
- Ned
What part of "pegged" do people not understand?
Recently read a book about China from about 4 years ago by a Brit business journalist based there for years. He described what must have been the world's biggest ongoing site bringing buyers and sellers together. His point was the Chinese mfg costs were so low that the surprise was how high Wal-Mart's U. S. selling prices were. So even if the yuan went up a bit more, WMT/TGT don't need to raise their prices at all.
Just as Tokyo can have had years of real estate deflation and still be the most expensive developed city for rents, we could in theory see price deflation here even if input prices rise.
Not made in China (I hope!) and thus slightly OT, but just consider how much mouthwash or toothpaste, which are almost all water, really cost to produce and get to a store shelf. The margins are gigantic.
Who knows, but just sayin' . . .
The growth paradigm dictated by Wall Street, that actually caused the move of all manufacturing to China and the monumental acceleration of CEO salaries will not allow lower margins.
The US would need an entirely different paradigm ...
Decrease margin? Decrease CEO salaries? They'd rather sell the company ... which is what is happening now.
>The growth paradigm dictated by Wall Street, that actually caused the move of all manufacturing to China
And how does the Wall Street growth paradigm differ from other kinds of peaceful, human striving for greater prosperity?
>The US would need an entirely different paradigm ...
>Decrease CEO salaries?
You sound like a pay czar.
The problem is that USA is too socialist - by some measures, it is more socialist than China. Basic freedoms are lacking. For example, the freedom for two adults to exchange a certain amount of money for a certain amount of labor. Or, the freedom to keep more than half the money you've earned. No wonder business is fleeing.
Confucious say, "wise man not try to trap jobs in country by taking freedoms away".
<sarcasm on>
Wow it is amazing how once Germany and Japan were forced by the US to devalue their currencies in the 80's, US exports took off. Yep the US started exporting up a storm once commodity prices spiked for US manufacturers and dropped for Germany and Japan.
<sarcasm off>
The Yen was 240/$ in 1985. It is now 90 yet their exports are still strong especially since they use China..etc. to hold down labor costs.
The Chinese will suffer pain if their currency rises too fast but they will also be able to buy commodities, foreign real estate and companies for less.
Perhaps the motivation is to build up the scapegoat for after the catastrophe; it was all China's fault, lending us money with impudence and all that.
"We're going to need a bigger Ahmadinejad."
That looks like the larger political picture.
I often fear that those fucking apocalyptic doomsday cultists (Christians) are right.
The Jews believe that the world has ended many times before, and will end again.
Jews control a large percentage of American power. A scapegoat may be unnecessary.
Exactly. We suckered China, just like the folks that lent money to people that would never pay it back to buy their McMansions.
It's called Managing Up.
Gold vending machines coming to the U.S.?
http://www.engadget.com/2010/09/29/gold-to-go-atms-dispense-precious-met...
Thanks.... shoe shine boy', can you say *Top*