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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (65900)	8/18/2011 9:13:59 PM
From: Fiscally Conservative	Respond to of 208347

Cheif: To be honest, China really scares me. I worry that the step child we reared will one day rise up against us. I pray that I'm wrong.

To: da_cheif™ who wrote (65900)	8/18/2011 10:38:40 PM
From: Winfastorlose	Read Replies (1) \| Respond to of 208347

Here is a very telling article about the observations of Andy Grove, the former Chairman of Intel: smartplanet.com "Grove observes that manufacturing employment in the U.S. computer industry now stands at about about 166,000 — which is actually lower than it was in the mid-1970s, when the personal computer industry was born. By contrast, high-tech manufacturers in Asia employ 1.5 million workers. Foxconn alone employs 800,000 people — “more than the combined worldwide head count of Apple, Dell, Microsoft, Hewlett-Packard Co., Intel and Sony Corp.” The cost of job creation has increased dramatically, Grove points out. Grove observes that the cost of creating jobs for many Silicon Valley companies grew from a few thousand dollars per position in the early years to $100,000 per job today. He says the cost has gone up so much due to companies hiring fewer employees. The issue isn’t confined to the computer industry, either — Grove points to the alternative energy industry as an example of jobs gone overseas. “US employment in the making of photovoltaic films and panels is perhaps 10,000 — just a few percent of estimated worldwide employment,” he writes." What is interesting about this to me is in the 1970s and all the way up until the 1990s, the one predominate edge we had over the rest of the world was in Computer Technology manufacturing, development and employment. This has changed and now China and other parts of Asia have most of the computer tech jobs. Recently, GE announced it was moving its imaging business to China and HP announced it was moving product development to China. Just what do we have left? The first part of this century our only area of strong economic growth was in construction of homes. That is over for now. Outside of construction, we got most of our new jobs in the waitresses and bartender category. That will not "serve us well". Our companies are all scrambling to get more and more involved in Asia and are not investing in the US much anymore. It doesn't matter where the Asians got their ideas about free enterprise if they end up with most of the game when the smoke clears. We would have been better off if they had never heard of making a capitalist buck if our politicians let our companies move outside the country in mass and pay no duties to bring the finished goods back here to sell. It's a very short sighted game we have been playing. In the end, who here will be able to afford the goods? (Outside of the people who follow your trading guidelines of course, lol)