Why the USA cannot compete with China ? Huge wage disparity
baldeagle
"China’s currency is pegged by official policy at about 6.8 yuan to
the dollar. At this exchange rate, Chinese manufacturing has a large
cost advantage over its rivals, leading to huge trade surpluses."
Either Krugman intentionally lied or he is ignorant. The RMB is no
longer pegged to the Dollar. China has lifted the official peg to the
US dollar since 21 July 2005.
China now manage the exchange rate of the RMB based a basket of
foreign currencies. The basket of currencies consist of Euro,
Japanese yen and South Korean won, the British pound, Russian rubble,
Australian dollar, Canadian dollar and Singapore dollar and US dollar.
(this is necessary to prevent 'speculators' or a foreign power from
damaging the RMB... like they did to the Asian Tigers during the Asian
financial crisis in 1997)
Krugman said that this exchange rate give China a cost advantage. He
failed to explain How and Why ? Because it is a spin, it is an
untruth.
Yes. China has a cost advantage, but not because its currency, it is
because... things are VERY cheap in China, and wages are very LOW in
China. Meals for a family of four cost only $2 a day and workers earn
about US$150 a month.
In comparison, American workers earn about $3,500 a month or $41,335
in a year. It means the US companies could employ 275 Chinese workers
for every American worker. This is the reason why giant US companies
like Walmart, relocate their manufacturing facilities to China. It is
not because of the Chinese RMB.
It is a fact, the unpleasant truth that the USA is no longer
competitive.....its wages are simply too high.... driving away US
factories to China. Now, US companies now make their merchandise in
China, ship them to the USA and sell them at a low price to
Americans.
It is American companies who caused the trade imbalance between the US
and China. (If all the American
companies were to relocate their factories back to the USA, then
there will NOT be the huge imbalance in trade).
Can Obama force US companies to stop making merchandise in China ?
Raising tariff on imports will not succeed...will not bring back
factories to US soil.... it will only make Americans pay more for
consumer goods.
http://www.nytimes.com/2010/01/01/opinion/01krugman.html?hp
http://www.ssa.gov/OACT/COLA/AWI.html
baldeagle
Correction:
It should read, " It means the US companies could employ 24 Chinese
Marcus Aurelius
"Monopoly Capitalism."
What is "monopoly capitalism"? In "Monopoly capitalism", capital is
exported from a nation instead of products produced by a nation's own
citizens.
What is "capital"? Capital is money, labor, and industry.
"Monopoly capitalism" tends to concentrate both economic power and
political power in a few individuals and entities.
"Monopoly capitalism" tends to impoverish the general citizenry.
'Monopoly capitalism" tends to destroy "true capitalism".
"True capitalism" is defined as possessing "competition" and "free
enterprise."
"True capitalism" tends to increase total wealth and distribute the
same more equitably and widely amongst the general electorate.
"True capitalism", also, tends to distribute political power more
widely amongst the general population.
Economic theorists assert that "monopoly capitalism" is the last
stage
of capitalism before some form of socialism replaces the same.
If we are to maintain our personal freedoms and maintain our high
standard of living, we must assertively and appropriately address the
evils of monopoly capitalism.
One of the other characteristics of “monopoly capitalism” is
aggressive, illegal, and criminal foreign wars
as a means to promulgate the aforementioned means and ends of
“monopoly capitalism.”
It is rather unusual for true capitalistic democratic republican
democracies to engage in wars of aggression.
One means to address the evils of “Monopoly Capitalism”, in my
opinion, is to change our current “winner take all”, “Gerry mandered”,
and “bought” form of electoral representation to some form of
“proportional” electoral representation. The same would make it much
more difficult for “special interest” groups to monopolize the
political and economic processes. The USA, the UK, and Canada are the
only world democracies that don’t utilize some form of “proportional”
electoral representation.
baldeagle
..>
> The reason that the USA is declining economically and other wise is
> "Monopoly Capitalism."
> What is "monopoly capitalism"? In "Monopoly capitalism", capital is
> exported from a nation instead of products produced by a nation's own
> citizens.
Monopoly capitalism ?
Is it like the board game "Monopoly", an economic concept in
which a single entity dominate a market ?
China is now the dominant player in manufacturing business...
because of its competitive advantage....and China is blessed
with a huge market. Foreign capital from
the USA, from EU countries, from other part of Asia is pouring
into China, trying to capture a piece of the pie.
True, this new game make China cash rich....in trillions.
> "Monopoly capitalism" tends to impoverish the general citizenry.
The USA has become a poor nation, NOT only because of
'Monopoly capitalism', but mainly because it squandered
hundreds of billions fighting, for 8 long years, the Iraq and
Afghan wars...
Also, its crooked bankers, and greedy financial CEO got
into the business of trading subprime loans which caused
the melt down of the US economy.
The whole US political and economic systems are broken...
Hatjman Hunsen , mafia Boss of Cambodia
technicians can work up to
18 hours a day , 7 days a week with bonus pay .
tfkmjk6262
degradation, no helath and safety or IP protection (laws are mere window
dressing), state protection for industries, a VAT system that is little
better than a subsidy, subsidies them selves etc .Wets an others should
tariff until they stop cheating
"baldeagle" <botak...@yahoo.com.sg> wrote in message
news:ba096591-e9f8-48af...@j19g2000yqk.googlegroups.com...
A spin doctor, Paul Krugman writing in New York Times, claimed :
"China�s currency is pegged by official policy at about 6.8 yuan to
baldeagle
.>.
> Unfree labour, no real trade unions, under-valued ER, massive enviromental
> degradation, no helath and safety or IP protection (laws are mere window
> dressing), state protection for industries, a VAT system that is little
> better than a subsidy, subsidies them selves etc .Wets an others should
> tariff until they stop cheating
>
Are US companies and US managed factories in China..doing all
these mean things to Chinese workers (no real trade union, massive
enviromental degradation, no helath and safety protection ...) ?
Sure or not...may be you are talking nonsense.
I have visited US managed factories (most factories in China
are foreign owned or partly owned by foreigners)..in Shanghai
and Shengzhen...
I found them having good working conditions....far, far better
than the sweat shops I found in New York.
Jesus Christ , a long - term fucker of the Prostitute St . Mary 's cunt hole , is an Unique Son of GOD
,
in Reality ,.
Chinese have no labour laws.
baldeagle
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> On Fri, 1 Jan 2010 15:44:55 -0800 (PST), baldeagle
>
>
>
> <botakea...@yahoo.com.sg> wrote:
> >A spin doctor, Paul Krugman writing in New York Times, claimed :
> >the dollar. At this exchange rate, Chinese manufacturing has a large
> >cost advantage over its rivals, leading to huge trade surpluses."
>
> >Either Krugman intentionally lied or he is ignorant. The RMB is no
> >longer pegged to the Dollar. China has lifted the official peg to the
> >US dollar since 21 July 2005.
>
> >China now manage the exchange rate of the RMB based a basket of
> >foreign currencies. The basket of currencies consist of Euro,
> >Japanese yen and South Korean won, the British pound, Russian rubble,
> >Australian dollar, Canadian dollar and Singapore dollar and US dollar.
> >(this is necessary to prevent 'speculators' or a foreign power from
> >damaging the RMB... like they did to the Asian Tigers during the Asian
> >financial crisis in 1997
>
> bullshit artist.
>
It makes no difference whether it is 6.8 or 1.8 or on par....
it happened that currency traders (inside and outside China)
chose to buy or sell US dollars at 6.8 RMB.
Since July 2005, beside the US dollar, the RMB is managed against
many other currencies...the fluctuation of US dollar has no
significant
effect on the economy of China. NO one (or country) can do
damage to the RMB or China's economy.
Krugman lied when he said RMB is pegged against US dollar. It is NOT.
baldeagle
>
> You're a bullshit artist. You talk through your ass.
Talking from personal experience !
baldeagle
>
> China is undercutting its competitors by screwing its workers.
Most of the employers are US companies and other foreign
companies...NOT the Chinese government.
The US companies are paying low wages to Chinese workers
employed by them.
It would be nice if US companies paid Chinese workers the
same salaries as workers in the USA. Ha ha ha ha
The low wages, in term of purchasing power in China, are
more than adequate. Meals for a family of four cost $2 a day.
The same meals in the USA would cost US$50.
Who is undercutting the US workers?
US companies in China.
> .........China's economic rise is sustainable
> is with the support of the rest of the world.
It is not a question of demand, or support from
US and the rest of the world. The demand of
Americans (and else where) are supplied by US
companies in China.
US Companies in China... like Walmart...are not stupid.
They produce their merchandise in China to meet
the demand for US market, because China is the best place
the manufacture the goods, better than the USA, better than
anywhere else in the world.
If other places are better, they would have relocated their
factories elsewhere.
You see, China has a distinct competitive advantage.
Until the USA and other countries could become more competitive,
US companies will continue to made products for US market
in China.
baldeagle
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>
> <botakea...@yahoo.com.sg> wrote:
> >NO one (or country) can do
> >damage to the RMB or China's economy.
>
> Dickhead.
Who said it is free ...free for anyone to do damage
to the RMB or China's economy ?
The RMB is well managed...well protected against those\
who want to do harm to China.
I said, ...Kurgman was wrong to claim that the RMB
is pegged to US dollar. It is NOT.
Vishnu , om Mangalam Mangalam
USA has Labor Laws.
baldeagle
<hinduvis...@gmail.com> wrote:
> Chinese have no labour Laws.
>
> USA has Labor Laws.
The USA has flawed labour laws, that make giant auto makers
bankrupt....laws that made 15 millions American workers
jobless.
China has better laws, .....laws that create hundred of
millions of jobs for the people,...laws that attract huge
investments, (in trillions), ...laws that make China more
competitive than the USA,... laws that do not make China into
a poor nations... like those in the USA (the USA need to borrow
trillions from China)...laws that make China into an efficient
nation ( building high speed train network through out china
and other nation building projects in a few years), ...laws that
allow China to show case China in the Beijing Olympics....
China has superior laws than the USA.
tfkmjk6262
health and safety are non-existent and has massive enviromental degradation.
Also a maniplulated exchange rate - yes not fixed - but set against a
basket- smoke and mirrors so it can say not fixed to the US$ - just more
deceit from the guys who covered up SARS.
"baldeagle" <botak...@yahoo.com.sg> wrote in message
news:04506b2c-fb75-4e1f...@26g2000yqo.googlegroups.com...
baldeagle
.>
> China sells unsafe goods, steal IP and break copyrights, has no unions,
> health and safety are non-existent and has massive enviromental degradation.
You are posting falsehood and lies ... and spins
dished out by anti China Western media.
Just two points:
Point 1..It is American companies who made most of the
China-made products (sold to Americans at home and
to people in other countries)... are owned and managed
by US corporations. If they are guilty of those falsehood,
then it is the fault of US corporations.
Point 2 ,... The fact that Americans buy trillions worth of
China made goods ...prove that the goods made by
US factories in China are of good quality...as good as
those made in the USA.
I am sure, Americans would not pay good money to buy
poor quality products. Are you saying Americans are fools ?
charlie vietcong
hour .
Chinese government says you can cheat and not pay labors in
China .
Jan 3, 4:07 am, "tfkmjk6262" <ke...@ihug.co.nz> wrote:
> China sells unsafe goods, steal IP and break copyrights, has no unions,
> health and safety are non-existent and has massive enviromental degradation.
> Also a maniplulated exchange rate - yes not fixed - but set against a
> basket- smoke and mirrors so it can say not fixed to the US$ - just more
> deceit from the guys who covered up SARS.
>
> "baldeagle" <botakea...@yahoo.com.sg> wrote in message
tfkmjk6262
boy
80% of fake goosd intercepted in EU originate china
as do precursor material for the production in "P" in australasia
China - what a beneift to the world. Russia should have nuked the place in
the 60s
"baldeagle" <botak...@yahoo.com.sg> wrote in message
news:298e10ae-92f3-44ec...@r5g2000yqb.googlegroups.com...
baldeagle
>
> 80% of fake goosd intercepted in EU originate china
You repeat lies and spin from western media.
You have no brain..cannot think for yourself.
tfkmjk6262
Hey did you know Mao your god was a mass murdering pedophile.
CHINA HAS A PEDOPHILE ON ITS CURRENCY !!!! HAHAHAHA
"baldeagle" <botak...@yahoo.com.sg> wrote in message
news:fa3c9eb5-8c30-4703...@s3g2000yqs.googlegroups.com...
baldeagle
.>
> is that all a ccp bum boy can come up with.
>
You must be a China bashing bum boy ..without
a brain...can only single anti-China jingle.
tfkmjk6262
china is imperialist - get out if tibet is does not belong to china
your arse must be seriously gaping with all the ccp dicks you take
"baldeagle" <botak...@yahoo.com.sg> wrote in message
news:fb002cee-e820-4f09...@h9g2000yqa.googlegroups.com...
Anti-DabianchenVirus
prepared to criticize and insult a whole nation and the people of that
nation, you must then be prepared to be criticized yourself. If you
were to be so concerned about Tibet, why are you not living in Tibet
and fighting alongside the Tibetans? Verbal support is worthless and
only indicates that you are a lazy troll.
On Jan 6, 1:17 am, "tfkmjk6262" <ke...@ihug.co.nz> wrote:
> every criticism of chinas allaling hr record becomes chian bashing.
>
> china is imperialist - get out if tibet is does not belong to china
>
> your arse must be seriously gaping with all the ccp dicks you take
>
> "baldeagle" <botakea...@yahoo.com.sg> wrote in message
tfkmjk6262
get away with it.
surely you did not your few cents for that post from your ccp master - more
gaping for you
"Anti-DabianchenVirus" <wus...@rocketmail.com> wrote in message
news:7cc3987f-df10-4a7b...@m16g2000yqc.googlegroups.com...
baldeagle
.>
> every criticism of chinas allaling hr record becomes chian bashing.
>
Of course, China is not beyond criticism.
China has its faults...China has accepted constructive
criticism...but you do not have brain to see
China objectively, to see the fault of China.
Your China-bashing posts were NOT criticism.
Obviously you don't know what is criticism..and
what is rational and objective comments...you
are a no-brain moron.