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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (12676)	12/19/2006 8:53:52 AM
From: CapitalistHogg™	Respond to of 218194

If I were the US, I would cozy up to China ... Strategically that is our best option.

To: elmatador who wrote (12676)	12/19/2006 9:12:44 AM
From: foundation	Respond to of 218194

re: If I were the US, I would cozy up to China ... ---------- ...why, in the world, would China reciprocate? Strap a depleted uranium missile blaster to Wimpy's waist -- and this is the image we present to China: "I'd gladly pay you Tuesday for a hamburger today"

To: elmatador who wrote (12676)	12/19/2006 6:17:42 PM
From: energyplay	Read Replies (1) \| Respond to of 218194

The US / China Co-prosperity Sphere - a very cozy deal - has been going on since before China's admission to the WTO. The cozy deal has already happened, and continues to work. I expect the recent US-China financial talks really are about small adjustments to the relationship, plus lots of photo-ops stuff "China stands up to US begging" "Paulson pushes for changes in Yuan - Dollar" Both countries have gained far too much from this "cozy deal" to screw it up, unless one party is very stupid. That's why George W was invited to go on this trip ;-) The US GDP is probably on 1 Trillion dollars higher out of 12 Trillion, and China has moved about 300 million out of poverty. There is also not much of an alternative. Europe won't take as many goods as the US, and there laws and politics make it hard to shut down European operations and move entire factories to China. The US needs cheap capital, and Japan is already maxed out, and Europe doesn't have much and would not let it all go to the US anyway. Only recently have the oil producing countries had extensive free cash. Chinese buying of US Treasury Bills effectively financed the Afghanistan and Iraq activities. China got access to US markets, massive US FDI, and US multinationals selling China made products all over the world. The US got very cheap goods to stop inflation, investment opportunities, and massive amounts of Chinese savings. Who got screwed ? Well, Mexico for starters. Work that was going to Mexico has gone to China, and US FDI in Mexican manufacturing (not retailing or finance) was down for a number of years. US Factory workers, and US intermediate material supply companies. Indirectly, this reduced the market for US made automobiles. The high US Dollar also made US automakers less competitive vs. Japan, Korea and Europe. The European based multinationals and European workers - US firms moved to heavier into China, even though many European firms were in China earlier. The artificial high US dollar made it easier for the US to buy foreign assets with printing press money. See US companies buy mines in Australia, retailers in Britian, farmland in Brazil, office buildings and shopping centers all over the world. The higher profits from China produced goods help produce record profits and balance sheets loaded with cash for most US companies. Who else won and lost ? Shipping companies, for conatiners, oil, bulk goods, everything. US railroads and trucking companies. Air freight. Logistics companies. International banks. Resource companies and countries - Australia, Canada, Brazil, Peru, Chile, South Africa, Norway, Argentina, parts of the US. Selling wheat, rice, metals, coal and oil. The Middle East oil producers and Russia. If China's growth the past 5 years was 5% instead of 10%, oil might be back in the $40 range. Most of Europe gets left behind...