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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ldo79 who wrote (7510)	2/9/2004 10:05:13 PM
From: Jim Willie CB	Respond to of 110194

US mfg dispatch offshore was canary in coal mine, RIP / jw

To: ldo79 who wrote (7510)	2/9/2004 10:32:27 PM
From: gregor_us	Respond to of 110194

Why Make Steel When You Can Manufacture Dollars? Just kidding. Sort of. As my pal E.K. in Sanger, California says: "What's WMD really stand for? We Manufacture Dollars..." So the Chinese will package up an entire steel mill in parts, and pay Baltic Dry Shipping Rates to bring it all home to make steel in China. They'll make steel. We'll make more dollars. A great arrangement...until...

To: ldo79 who wrote (7510)	2/10/2004 7:56:29 AM
From: Mike da bear	Respond to of 110194

Interesting story on a couple of points: 1. It's cost effective enough to ship this big bulk of equipment back to china. That is doable because shipping rates must be very low due to the fact that the ships going back to China are otherwise empty. 2. From a national security standpoint, China is smart enough to buy and ship away the infrastructure. This prevents us in the future from restarting the factory. We will be dependent on foreign supplies of steel. Now at this time there may be enough other plants in the US to accomidate demand should there be an interruption of foreign supply but if this is a trend, eventually there won't be. 3. What else is China buying with those excess dollars given the huge trade imbalance? Maybe more infrastructure from other industries. Long term goal... gut the US like an old diseased fish. China wins the war via economic means without firing a shot... what an interesting thought... a communist country defeating a capitolist country via an economic war. 4. Maybe ultimately capitolism destroys itself because the quartly profit goals and stock incentives by the CEOs have a higher priority that any nationalistic goals.