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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: jttmab who wrote (147662)	10/12/2004 3:21:25 PM
From: Keith Feral	Read Replies (2) \| Respond to of 281500

I think that the ridulously low price of oil has kept manufacturing countries like China way too competitive. Even at their non-existant wage rate, I don not accept the fact that China can ship a good to the US more cheaply than we should make it here. Think globally and act locally makes a lot of sense when it comes to commerce. With energy costs DOUBLING, the full economic cost of transglobal exports are beginning to realize their real social cost. All of the sudden the competitive price advantage of a container of manufactured goods is cheaper to buy from a US company than it is to have the product shipped from China. I doubt the overall deficit will improve as a result. The imbalance will shift from manufacturing nations to commodity nations. The reduction in the trade deficit with manufacturing nations like China would be offset by the increase in the trade deficit with OPEC nations like Saudi Arabia as the price of oil skyrockets. This is where the redistribution of wealth is happening today. Higher energy prices will be bad for manufacturing countries and good for countries.