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


To: UncleBigs who wrote (55008)3/1/2006 8:50:10 PM
From: KyrosL  Read Replies (1) | Respond to of 110194
 
I disagree. PPP increases Chinese GDP by a factor of 4.5. I think it reflects the relative GDPs pretty accurately. As to the US and its manufacturing, you are too pessimistic. Many foreign car manufacturers are manufacturing profitably and extensively in the US, and their car content is more than 80% US sourced. There are plenty of high power US manufacturers such Boeing and Caterpillar doing profitable manufacturing here.

You should not forget that manufacturing capacity can be rebuild fairly rapidly in a country that has in place the basic institutional and human infrastructure. It took less than a generation in post WWII Germany and Japan from literal ashes. It will take less than a decade in the US, should we decide to turn isolationist.