Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (21321)	1/13/2005 6:06:28 PM
From: RealMuLan	Respond to of 116555

>>[Someone needs to explain this to SnowWhite Mish]<< Not just Snowman, but that Evans guy too<g> >>Investors should not take this story too seriously, in my view. << Knowledgeable investors may not take that story seriously, but an average j6p might and will. It may not backlash much eventually, but it sure will generate plenty of hatred towards China from union members and such. >>My rough calculation (based on conversations with Taiwan and Hong Kong companies) is that corporate America earns 10% net profit from final sales of Chinese goods in the US.<< I think the US companies earn higher than 10% net profit although I do not have data to prove it yet<g> >>However, US wages are more than 30 times those in China, and thus it is difficult to see how a Chinese revaluation could bring jobs in China back to the US. Instead, a Chinese revaluation would send jobs from China to other emerging economies like Vietnam or India. That would likely worsen the US trade deficit because, instead of importing from China, the US would import from higher-cost producers.<< Only the lowest end cheap labor earn 1/30th of the US wages, not all of the outsourcing jobs. As for those jobs would be sent to other Asian countries, it has already happened, although not by the US companies yet, but by Taiwanese companies. They already complain the wage of Chinese workers in coastal cities is too high, so some of them start to move to Philippines. Read here: Message 20931988