China

[Sequimite]

Several years back I made a number of posts indicating that the tide had turned and that jobs were flowing back to the US from Asia and that Chinese exports were starting an inevitable decline. I just heard the other day that Warren Buffet, the smartest investor that I know of, has been buying companies that manufacture in the US for over a year. I also predicted civil unrest and eventual change to democracy.

Well the chickens have come home to roost. The Chinese government bought its people's acquiescence by a steady increase in the standard of living. With the arrival of a recession and coming years of decline in that standard of living the result will be anything from gradual change to a sudden revolution. The markets hate uncertainty and so China's problems are bringing all markets down in the short-term.

[Sequimite]

One more point. The efforts to build the Chinese economy for the long-term are doomed as long as there is no protection for intellectual property. The rip-off economy of China gave them a decades long growth spurt but ultimately soured companies on investing in China and is preventing domestic innovative technology from being developed in China.

[Ankerson]

Wouldn't get too carried away just yet, still one **** of a long way to go to correct the balance that shifted back in the 80's.

It's going to take a very long time to fix over 30 years of screwing the American people and killing the US job market.

Corp America is not going to change overnight, it going to take some serious changes in policy before that will ever really start to become reality.

A lot of major things need to change and the immigration issues need to be handled before any real inroads to recovery actually happen.

That's going to take decades if it ever really happens.

[Sequimite]

This shift began about five years ago and will take decades. I'm not getting "too carried away" by pointing out what is actually happening. This is happening under current policy. Changes could cause faster or slower change.

Things in China could move much more quickly.

[Ankerson]

This shift began about five years ago and will take decades. I'm not getting "too carried away" by pointing out what is actually happening. This is happening under current policy. Changes could cause faster or slower change.

Things in China could move much more quickly.

For anything to actually happen it will have to start in Congress with some very serious changes to the Corporate Laws.

They have a lot of things to fix.

[Sequimite]

Wow, how is it that you are able to ignore the fact that something IS happening, that it HAS been happening for a number of years?

To go back to one of many examples I gave years ago, GE invested a BILLION dollars in it's Louisville production facility and is bringing back ALL major appliance manufacturing from Asia to the US. This is one of the many facts that you seem blind to.

[Ankerson]

Wow, how is it that you are able to ignore the fact that something IS happening, that it HAS been happening for a number of years?

NOTHING is actually happening at all.

Other than more Companies from overseas are starting to manufacture products here.

All I see is more US factories shutting down, US sweat shops getting busted and other assorted issues like US Corps getting busted for using Illegal labor.

[Sequimite]

"Other than more Companies from overseas are starting to manufacture products here."

So you see it as completely insignificant whether US companies manufacture in the US or overseas. You are entitled to your opinion but I doubt anyone else agrees with you.

[Ankerson]

To go back to one of many examples I gave years ago, GE invested a BILLION dollars in it's Louisville production facility and is bringing back ALL major appliance manufacturing from Asia to the US. This is one of the many facts that you seem blind to.

That's funny....

Until their freebies run out and they shift it all back like it was.

Seen that happen a lot of the past 30+ years.

[Sequimite]

Again, a billion dollar investment and thousands of jobs in the US is "funny".

[Ankerson]

"Other than more Companies from overseas are starting to manufacture products here."

So you see it as completely insignificant whether US companies manufacture in the US or overseas. You are entitled to your opinion but I doubt anyone else agrees with you.

Until there are MAJOR changes in the Corp Laws nothing will really change.

Not really.

[Ankerson]

Again, a billion dollar investment and thousands of jobs in the US is "funny".

Yeah it is....

With around 30 Million unemployed in the US it doesn't even make a dent and it's completely insignificant.

[JAfromMN]

Buy Made in USA.

[Sequimite]

For those of you that understand basic economics and have a grasp of statistical trends:

Years ago I pointed out that the shift in manufacturing away from China was happening for three main reasons. The rapidly rising cost of maufacturing primarily due to labor cost doubling each decade, lack of protection for intellectual property and the high cost of transportation across the Pacific.

While the price of oil has collapsed and shipping costs should remain lower for a number of years there is now one additional factor, political instability. As China goes into recession the fear of political instability will be a greater factor than any of the others and could put Chinese exports into a death spiral.

[Ankerson]

For those of you that understand basic economics and have a grasp of statistical trends:

Years ago I pointed out that the shift in manufacturing away from China was happening for three main reasons. The rapidly rising cost of maufacturing primarily due to labor cost doubling each decade, lack of protection for intellectual property and the high cost of transportation across the Pacific.

While the price of oil has collapsed and shipping costs should remain lower for a number of years there is now one additional factor, political instability. As China goes into recession the fear of political instability will be a greater factor than any of the others and could put Chinese exports into a death spiral.

Yeah, and all of that means is manufacturing will move to the next Country that has cheap labor that they can exploit.

We have been talking about that for awhile now as once China became expensive labor wise production will move to another place.

Like Mexico for example and that is happening.

I personally don't have to drive very far to see what those Wonderful Corps have done lately, maybe a hour or so from here.

Like WOW man X Company built a Factory in Y Town only to shut down once all the freebies ran out so we have empty buildings and dead towns.

Happens all the time and there are one heck of a lot of them around my area with more shutting down every year.

So no I have very little faith in Corp America.

Another BS thing they do is open some office someplace like they are investing in the area and creating jobs. It's all BS because they don't actually hire anyone locally, they transfer the people in from other parts of the US. The only people they might actually hire are the ones that do the floors and cleaning crews. But as always once the freebies run out they close up move to another part of the US and do it all over again.

We see this crap all the freaking time.....

Nothing has changed, SOS, different day.

[noseoil]

China will lose jobs to the US AFTER the US standard of living is on a par with China's and not before. To me, all this doom & gloom scenario is too reminiscent of global warming & eugenics. The US standard of living continues to decline. Just a fact.

[Ankerson]

China will lose jobs to the US AFTER the US standard of living is on a par with China's and not before. To me, all this doom & gloom scenario is too reminiscent of global warming & eugenics. The US standard of living continues to decline. Just a fact.

That has been the general thought process over time.

Either theirs has to come up to our level or ours has to fall to their level, one or the other.

But what has happened is the costs have gone up, labor costs that is so the Corps are and have been looking for other Countries that have very low labor rates. They will do the same thing as they did with China and others over the decades, they will exploit them until the labor costs get too high then bail out.

That's why things never balance out, once the rates go up they bail and the economy of that Country falls while they moved to another one. The process continues over and over for it seems forever never seeing any real balance.

And the American Corps just move on to the next one leaving and forgetting about all of the damage they did in their wake.

They are still doing the same things on a smaller scale here in the US also, but the damage is just as severe to the local economies. :rolleyes:

Every time I hear about it I still can't believe the Local Governments are that stupid to get involved with them in the 1st place. With the Local Governments giving them handouts and actually paying them to come in. Then Corps bail out once the handouts run out leaving a mess. :rolleyes:

So the Local Governments are using taxpayer money to subsidize them and line their own pockets and the Corps bail out leaving a mess behind.

As I pointed out there needs to be some major changes in the Corp Laws across the board and that all has to start in the Government.

Things have been going on for way too long.

[MacLaren]

I agree with Jim. .......its been needed for years....