China is worse than anyone imagined

re: China is worse than anyone imagined

Motorcity Kurt — Mon, 08 Dec 2008 20:29:50 GMT

C'mon, the US is still the economic powerhouse of the world. With everything that has happened, our currency has gained strength against every other currency in the world (with very few exceptions). Our stock market crash is less severe then that of Europe, China, Russia, Japan, etc.. Our government bailout of banks is less than one quarter then that of the extensively regulated EU banks. Heck, our proposed auto bailout is one quarter of the EU's auto bailout.

We have the worlds most free and competitive market. Sure, other country's manipulate currencies, subsidize markets (EX: Asian autos), dump products and try to cheat the system in every imaginable way but that hurts them more than the US in the long run. Let the Chinese finance us out of this mess, we could use some of their trillions of US currency right here at home. Heck, we can get our own money back at a big discount if the Chinese aren't careful. Ask the Japanese how that worked out for them in the late 80' and early 90's. Since every consumer good seems to be made in China, let them absorb the social cost of the massive unemployment caused when their biggest customer (the US) ain't buying. We have already restructured to survive economically without these jobs. The Chinese government better be careful with their monetary policy or the free market will correct them severely.

Basically, the US$$$ has been artificially inflated against most Asian currencies. Deflating our money with these bailouts will correct this unnatural balance. We have asked Asian countries for fair exchange rates for decades, but the Asian exporters kept cheating the market. Well the chicken has come home to roost. As bad as we have it, watch for the exporters to get it worse. They are at the mercy of our own poor decisions.

As Ted Nugent says, "We suck. We just suck a whole lot less than everybody else!"

re: China is worse than anyone imagined

chris middle class america — Tue, 11 Nov 2008 18:55:32 GMT

"Collective" America has lived the high life for many years now - Pay up and live like the Third World nation of beggars you are - And the world might take pity on you. Though I doubt it because the world has learned to be as greedy as America!!!

Pay your debts

this scumbag must live in Europe i live out of dept we americans are so bad i am sorry that we are the first ones to help and back up the rest of the wimpy world

re: China is worse than anyone imagined

icky thump — Tue, 11 Nov 2008 18:00:20 GMT

is anyone going to mention the chinese-made food and goods that have been contaminated and injuring and killing people and animals? even if many people had the money to spend on anything right now, and they dont, they would likely not be choosing to buy chinese-made products. last year i somehow ended up with some chinese-made hand wipes (i didnt buy them i know that much) and i threw them away for fear of what was in them. i think its over for china and their dangerous, cheaply-made products. they tried to get one over on the world by cutting every corner imaginable to lower their costs. i hope they (and everyone else) learns from this. noone is entitled to these sickeningly overbloated profit margins, taken at the expense of the consumer (are you listening AIG?)

re: China is worse than anyone imagined

e-plastika — Tue, 11 Nov 2008 17:20:53 GMT

I don't like the scenario. We owe China and in effect they own a part of our economy while all we have is plastic (literally and figuratively) to show for it. The people of china are deprived of almost everything a developed nation promises and yet we convince ourselves they will go on like this forever. When the people of China rise up again-and they will-the U.S. will be so deeply engaged and dependent on stability there that all the other things issues in the world won't matter. Money from China will be as deadly to our well-being as oil from the Middle East. Think about it. Its not a pretty picture.

re: China is worse than anyone imagined

Pay your debts America — Tue, 11 Nov 2008 15:33:49 GMT

re: China is worse than anyone imagined

TR Mogul — Tue, 11 Nov 2008 13:31:31 GMT

America, and the western world at large will have to seriously consider down-sizing their wage levels, if they are to survive this mess. Is there any logical reason why a middle class person, say in India, can live a very decent life style on under $20,000/= a YEAR, and his western counterpart needs many times that. I make about that much, I hold membership to a golf club, play 3/4 times a week. I drive an Indian make compact car, pay for gas at a much higher rate than the USA does, is 8 years old, which has never broken down, nor ever seen a repair shop. It takes me and my family reliably from A to B and back. I live in a condo of 1100 sq feet, more than enough for the 2 of us. Why does my counterpart out in the western world need a residence of 3000 sq feet? I have all the mod-cons that most US homes have. We eat out 2 or 3 times a week. So what really makes the difference ? Perhaps the viscious cycle of higher wages, resulting in higher living costs, resulting in outsourcing !! And job loss? And therefore inability to make both ends meet? It is no one's case that western living standards drop to sub-Sahara levels. But some serious moderation in wages and correspondingly prices will be absolutely necessary. Can there be any justificaton for multi-million dollar golden hand shakes, or a 1 Million $ prize money for winning a golf tournament, or the US Tennis Open? For what is essentially 20 hours of work at the "office" and amounts to $50,000/= per hour? Or in terms of golf, $3500/= per stroke? If some sponsor is putting up that kind of money, you can be sure you are going to be paying a higher price for the sponsors goods in the High Street shops. No free lunches...remember? The rampantly wild running buck has to stop somewhere.

re: China is worse than anyone imagined

jimmy — Tue, 11 Nov 2008 00:00:51 GMT

There's terrific problems in the world without an easy solution. Fortunately there aren't any epic wars and destruction, there's no plague or 1918 influenza and we're all in it together. The Chinese have shown incredible patience with our consumption and have also profited from it. It is Russia that has dark thoughts and animus. Let's move forward. Hopefully Barrack stays on his game, we need him.

re: China is worse than anyone imagined

Pete — Mon, 10 Nov 2008 22:52:49 GMT

Don't forget that China has 4 or 5 times as many people as the US. Therefore, an increase in unemployment of 1% is actually FIVE TIMES as many people out of work as a similiar increase over here.

This makes for a harder fall, and a fix is likely slower.

re: China is worse than anyone imagined

ml — Mon, 10 Nov 2008 21:45:05 GMT

If we implemented the fair tax, we would reap the benefits almost instantly.

re: China is worse than anyone imagined

Jon Do — Mon, 10 Nov 2008 17:58:58 GMT

The scariest thing about this crisis, IMO, is that the same bunch in the gov’t that got the U.S. into this position are the ones who are trying to get us out.

First of all, huge bailouts are going to have an effect, but the problem is that bailouts will likely only delay a slide into deep recession or depression. The bailouts that are intended to free money are freezing it instead, since banks are sitting tight hoping that Federal $$$ will buy their bad debt. Meanwhile we’re hearing that some banks are using bailout money to buy other banks instead of loan it to stimulate the economy! What a mess...

Second, huge bailouts incur huge Federal debt. The trillions being flippantly borrowed will incur a huge cost (interest payments) and a precarious indebtedness to governments who are not necessarily friendly to us.

Ironically, China may use this crisis to leverage up much like the U.S. economically crushed the U.S.S.R. in the Reagan years by ratcheting up military spending. Fortunately, China needs us as a market...