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

To: mishedlo who wrote (75774)	12/15/2006 2:09:37 PM
From: kris b	Read Replies (1) \| Respond to of 110194

More price pressures on US multi-nationals like P&G And others. Just wait for them to start shipping cars and steel duty free to the US. Bye bye F, GM, X. It will start a trade war.

To: mishedlo who wrote (75774)	12/15/2006 2:27:10 PM
From: Broken_Clock	Respond to of 110194

Seems like they are way ahead of the game to me. This article is 3 years old. Taking the fast boat to China machinedesign.com Looking for a way to cut costs and increase profits, U.S. companies head to China. -Sherri Carmody, Associate Editor It's an issue no one wants to discuss but which makes headlines. U.S. companies are moving manufacturing and engineering resources to China in significant numbers. Over 400 of the world's Fortune 500 companies are now invested in China, according to a report from the U.S. Congress' China Security Review Commission. Eighty U.S.-based corporations have recently shifted production to China with an estimated job loss of 34,900. Nevertheless, there seems to be a code of silence when it comes to Chinese operations. None of the manufacturers we contacted for this article would comment about their experience there. China's entry into the World Trade Organization (WTO) in 2001 announced clearly to the world that China needs foreign investment. According to the Commission report, the U.S. is a major contributor to China's rise as an economic power, helping that country become an increasingly important center for research and development. But some of this help may not be intentional. The State Dept. informed the Commission that a large number of Chinese students, scholars, and researchers present in U.S. academic and industrial establishments are a principal means used by China to acquire U.S. science and technology. The majority of them study mathematics, science, and technology. The U.S. government has limited knowledge of their number, backgrounds, and activities. The U.S. Embassy in Beijing reportedly issued over 9,000 visas to Chinese in 2001 for working in high-tech U.S. firms. Nevertheless, it is difficult to forecast whether the jobs-to-China phenomenon is something that has trickle or floodgate proportions. Economists say the data relating to the trend is subject to a wide range of error. And interest in China isn't exactly new. IBM, for example, says it began employing Chinese residents in 1979. (And 57% of all IBM jobs are now somewhere overseas, the company says.) But the motivating factor for many U.S. companies to establish roots in China today is simple: economics. China has low labor costs. For example, a typical worker in China is paid approximately a dollar a day and forty-two cents in benefits. That stacks up favorably not just against U.S. wages, but also to those in Nafta countries. A sobering fact from the Commission states that from 1990 to 2000, the U.S. goods trade deficit with China grew from $11.5 to $87 billion and surpassed Japan as our largest deficit-trading partner. Such an imbalanced relationship, economists say, has disturbing implications for U.S. jobs and wages, as well as for the overall economic health of the U.S. manufacturing sector.

To: mishedlo who wrote (75774)	12/15/2006 2:49:05 PM
From: GST	Respond to of 110194

<More price pressures on US multi-nationals like P&G Quite deflationary implications for the US> Ya sure, an emerging market of 600 million urban Chinese consumers gives P&G the best market outlook in the history of the company and you figure that this is yet one more 'deflationary implication' for the US. Oh but I forgot, you say that deflation is a contraction in money supply, so the exploding market demand in China for the consumer goods P&G sells is going to cause a contraction in money supply and credit in the US -- I get it Mish, I really do.