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

To: RealMuLan who wrote (46341)	2/12/2006 6:56:46 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

The Gini Index for China in 2003 is 0.47. That 0.45 was in 2001. 2005 figure perhaps will even be higher.

To: RealMuLan who wrote (46341)	2/12/2006 11:12:18 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

People on the FOOL saw your post here. This is a reply from Harmy... In order to secure maximum profit, many foreign companies require in the contract of using their own imported components (at inflated price), and then export at below market price, thus booked as loss on the ledger so they do not even pay any tax to the Chinese gov. By doing this, they transfer almost all the profit out of China without even leaving a trace. This is transfer pricing and is illegal in most Western countries. It is not the lack of profit that is the important thing because much of the profit is retained by being vested in local wages, it is the tax which the Chinese government is missing out on. Sooner of later they will wake up to this practice and put a stop to it. Regards Harmy

To: RealMuLan who wrote (46341)	2/13/2006 9:05:39 AM
From: shades	Respond to of 116555

There are now 11.5 million unemployed urban Chinese (many of them are young people in late 20s and early 30s), and an additional 150-250 million surplus labor from rural areas. They would like to consume more if they could. I remember reading about the US depression, factories were way under capacity and food in the storage even while people wanted and needed shoes and food and such. For one thing, I would like to see the US Congress passes the law and put heavy tariff on China’s imports to the US. Because I am pretty sure China will suffer very little, 80% of the damage will go to the US companies themselves and companies from Japan, S. Korea…. Why do you think it hasn't happened already - big megacorp has the best gubbment in both countries that money can buy - where is Jay Chens granddaddy when you need to shine some public light on some global business crooks and warmongers? Who is willing to sit in jail today with lice covered assassins? iratecinemaunderground.com