all the time, its getting worse...

[Korgoth]

I recall a very similar thread to this one not that long ago. It seems our asian friends are becoming increasingly more skidish when it comes to the dollar and the world economy....

http://www.washingtonpost.com/ac2/wp-dyn/A25310-2005Mar10?language=printer

Just thought I'd share, even though I will be casted as un american, or paranoid, or whatever... You can only run from the truth for so long. Eventually it will catch up.

 

[The Monkey]

Isn't Washington Post some extreme-right, fundamentalist-christian newspaper? If so, why would they publish something like this?

 

[Exclamatio]

unlucky america

 

[K e r b e r o s]

Just thought I'd share, even though I will be casted as un american, or paranoid, or whatever... You can only run from the truth for so long. Eventually it will catch up.

Umm, you just slapped yourself.

But to the idea about the dollar -- we just need to rebuild its strenght. Isolationism with a time to better acourse our currency will do it good in time.

 

[kmack]

But to the idea about the dollar -- we just need to rebuild its strenght. Isolationism with a time to better acourse our currency will do it good in time.

rebuilding its strength is impossible on the course we are taking. Our trade defecit has hit the 2nd highest in history (first highest was last november ) at $58.3 billion dollars. Our biggest defecit is to China with an imbalance of $15.3 Billion. trade gap surged last year by 24.3% and set a new record for the THIRD straight year at $617.1 billion. This year will set another new record according to private economists.

For three years now the dollar has declined in value and we have done nothing to correct the problem

(source Martin Crutsinger, Associated Press, March 12th 2005)

 

[Sieg]

I better swich my dollars into yuans before it even declines more......

 

[K e r b e r o s]

rebuilding its strength is impossible on the course we are taking.

Sorry if my optimism offends you, but we can always change course.

 

[kmack]

Sorry if my optimism offends you, but we can always change course.

yes we CAN, but nothing in the governments future plans will do anything to alter the course, unless of course you have a source that says otherwise.

Our trade defecit has hit the 2nd highest in history (first highest was last november ) at $58.3 billion dollars. Our biggest defecit is to China with an imbalance of $15.3 Billion. trade gap surged last year by 24.3% and set a new record for the THIRD straight year at $617.1 billion. This year will set another new record according to private economists.
(source Martin Crutsinger, Associated Press, March 12th 2005)

Three years now, no changes, just getting worse.

 

[K e r b e r o s]

So glad we can change it. Anything else your pessimistic about?

 

[kmack]

So glad we can change it. Anything else your pessimistic about?

unfortunatly (three years now) we are not changing it, unless of course you have a source that says we are. (you do not, and you will doubtlessly pretend not to see that I am calling out your ignorance and never post a single source.)

THIS THREAD IS ABOUT THE PROBLEM GETTING WORSE, and it undeniably is, saying it "can change" is really useless, especially when no measures are being taken to change it.

 

[K e r b e r o s]

No, how about we discuss what could make it better. I mean, is'int that what smart men do instead of trying to fixiate how to make it worse?

 

[Korgoth]

If everyone acknowledges the problem then we can try for a solution, this thread is to bring about awareness, not solution.

 

[K e r b e r o s]

What is the solution? I mean, for every thread this has come up in -- does anyone, ANYONE, have any idea's what needs to be done with our dollar?

 

[Scoobnfl]

Trade deficits do not bother me that much. Our economy as a whole has switched from mfg to service industry, sooooooooo I actually take comfort in countries like Canada and China enjoying trade surpluses with us, because they are dependant on that surplus, sure we buy the goods that cause the surplus, but we could buy them elsewhere. Where is China going to get the 15.3 billion $$$$$ if we stop trading with them? Same for Canada, what are they going to do to replace the 8 billion $$$ trade surplus they enjoy? We could wreck their economies if we stopped trading with them, much more so than they could hurt us if the situation were reversed.

 

[jondy]

Personally I'm glad the dollar is down, I just bought a bunch of new photog stuff at about 55% of the rrp from over there

 

[T.H.C.138]

how about all the countries we have given money or supplies of some kind, pay us back? or at least cancel that amount from what we owe..or something like that

 

[jondy]

Where is China going to get the 15.3 billion $$$$$ if we stop trading with them? .

Where would you get the goods if you didn't buy from China? Don't kid yourself into thinking you're in a position of security, you're not

 

[Scoobnfl]

Where would you get the goods if you didn't buy from China? Don't kid yourself into thinking you're in a position of security, you're not

We could easily develop some of our more friendly South American countries to fill the gaps. Also I rarely shop at Wal Mart so I'm pretty sure I'd be ok.

 

[jondy]

We could easily develop some of our more friendly South American countries to fill the gaps. Also I rarely shop at Wal Mart so I'm pretty sure I'd be ok.

They simply haven't got the manpower or the resources that China have. As for Wal- Mart... :upstare:

 

[gh0st]

Trade defecits dont really have that much of an inpact on the economy as some of you may think. In fact, its good to have trade debt, it helps establish credit for your country.

 

[Scoobnfl]

They simply haven't got the manpower or the resources that China have. As for Wal- Mart... :upstare:

you just simply do not have a clue.

If Wal-Mart was a country it would be China's fifth largest trading partner.

 

[kirovman]

It's worth noting that manpower is not the only important thing.
Consumer market is also important for a corporation.

China is growing to become a large consumer country, it's middle class is growing everyday.
And what's better than a market with 1.3 billion consumers, in the eyes of a company?

That's why companies are not only shifting manufacturing up over there, they are setting up distribution and retailers too.

Chinese companies aren't well known yet, but they are growing in number and size, and I'm sure in the next 10 years you will begin to notice some of the items you purchase have Chinese brand names rather than American brand names.
And Chinese investment overseas is growing too.

So it's not all one-way.

 

[jondy]

you just simply do not have a clue.

If Wal-Mart was a country it would be China's fifth largest trading partner.

Uhn, buddy, that was my point; you guys are reliant on China, and right now no other country has the economic capacity to keep trade level if China suddenly bottomed out.

Oh, and try to keep it impersonal, huh

 

[Scoobnfl]

Uhn, buddy, that was my point; you guys are reliant on China, and right now no other country has the economic capacity to keep trade level if China suddenly bottomed out.

Oh, and try to keep it impersonal, huh

my point is that of that 15.3 billion most of it is going inot Wal-Mart. Trust me if we took that 15.3 billion to other countries they would gladly subsidize the factories necessary to build the same junk that China does. China is a supplier, we are the buyer, the buyer has the control in any situation especially when it concerns common manufactured goods. If we took that 15 billion elsewhere it would hurt China far worse than it would hurt us, the same situation for Canada. Trade deficits are a good thing, it allows us a measure of control over the economies of other countries, another benefit of having the largest economy on earth.

 

[Korgoth]

The buyer doesn't have the choice here, the buyer buys what he can afford, china just happens to have nice cheap slave labor, if china suddenly decides to raise the price to be competitive with other nations, we would collapse because our society today is built around cheap consumer goods, and if the seller raises the price and there is no other option for the buyer, then the buyer isn't the one holding the cards, no are they?

 

[Calanen]

The buyer doesn't have the choice here, the buyer buys what he can afford, china just happens to have nice cheap slave labor, if china suddenly decides to raise the price to be competitive with other nations, we would collapse because our society today is built around cheap consumer goods, and if the seller raises the price and there is no other option for the buyer, then the buyer isn't the one holding the cards, no are they?

I think you really don't have a clue about asian economies if you think that china is the only place that can sell or make cheap goods. Ever heard of India which has almost as many people? And most things that china sells are not made with slave labour. Some of the prisons make stuff, but it is by far not the case that is the bulk of people are enslaved.

 

[Scoobnfl]

The buyer doesn't have the choice here, the buyer buys what he can afford, china just happens to have nice cheap slave labor, if china suddenly decides to raise the price to be competitive with other nations, we would collapse because our society today is built around cheap consumer goods, and if the seller raises the price and there is no other option for the buyer, then the buyer isn't the one holding the cards, no are they?

:rolling: are you serious?

China needs the 15 billion dollar a year surplus, in fact they are dependant on it, just like Canada is. That is the beauty with a trade deficit, other countries like China and Canada depend on our economy being strong and growing, and they suffer if it doesn't. The buyer in a case such as this is always the one holding the cards and the bigger the trade deficit, the stronger the hand. Like was previously mentioned there are numerous 3rd world countries that would gladly take Chinas place if we decide to do business elsewhere.

 

[dream431ca]

america dollar keeps falling..Canadian dollar keeps rising...I hope bush stays longer cause this is good ....for canada I mean.