the difference is the development of the transnational corporation the richest can move freely away from the decaying heart anywhere they wish as their manufacturing base is already well established in China, they could easily pull up stumps at the extreme end, the wealth involved, as I understand, is multiples of the entire GDP of the USA food for thought
the problem is that China's whole economy is based on export, not internal consumption so, to suddenly revalue the RMB would hurt exports as the price of virtually all your clothing, gear from the $2shops and Bunnings will rocket so you will buy less, and those companies, most if not many of them, already run on a wafer thin margin and make their profits on volume they will have to lay off workers the bubble in investment property would be put to the sword that would lead to a risk of severe civil disorder not to mention what would happen here as it is, the Chinese government has pegged their currency to the USD, to give them an export advantage, as their wage costs are much lower & regulations are absent or can be massaged they just have to outlast the USA it looks like a potent game of chicken
to give you an example of how cheap our clothing is, I looked at a nice Merino jumper in NZ (McDonald's label), and the cost was over $500 NZD! a sheepskin lined coat was $1300 I'd really hate to think what would happen to the price of shoes I think stacking clothes (esp cotton) is shaping up as another good idea at this point
Blunstones boots? Tassie factory shut after over 100yrs. Want to buy a Billabong/RipCurl t shirt made in China for over $50? They should pay me to wear them. Reminds me..........WHERE are the Silver Stackers range of clothes coming online?
Everything you said is right, BUT if all the money is in china now, if the surplus is all with china then if we become poor because china float their currency and my iphone doubles in cost, my clothes double in cost and everything thing else made in china doubles in cost then wouldnt that be what capitalism is about ? Real capitalism ? The successful rise whilst the failures fall ? China has over 1 billion people, were people earning a wage of say $1000 (equivalant in purchasing power) would all of a sudden have that be able to purchase up to the same as $6000 or $7000 dollars. If you look in china now, engineers working in telecommunications companies such as huawei and similar earn about $1000 whilst engineers of similar her in western countries would earn about $6000 a month. A waiter here will make more then an engineer in china, looking at that there is something a miss i would say. Im not pro china or pro anything btw, im just stating my views of how things would play out and how it relates to the video we saw. China has over 1 billion people, if those people where all of a sudden elevated to the level similar to those now who earn say $60,000 - $70,000 dollars a year in western countries wouldn't the internal domestic chinese ecomony be a big driver in its self ? If china floated they would be producing for the biggest and largest group of people, which is essentially themselves no ? If other countries can afford to buy chinese anymore, they need to learn to build their own or do something to move up to standard, thats what the rest of the world has been doing relative to the western economies for the last few decades and i guess we are at the cusp of where one of the nations has caught up, that being china. Thats why i understand the *china's export market now* but will it always be like that in the future. I think the hardest part is the transition to becoming the largest ecomony, there could be many little baby black swans in the middle of this transition , thats why china has to play it correctly and time it perfectly so when the dump and the reevaluation happens , there is minimal collateral damage to their own ecomony. If we continue to view china as a producer and export economy ONLY, who will ALWAYS export to western countries then I understand the argument, i also understand that right now china needs to produce and sell to maintain its economy , keep people working , keep jobs going so that their economy doesnt slow down, but the transition that they make so that what is in the video could happen may not be so far off. Id really like to hear apposing arguments cause we learn from getting proved wrong or different opinions
No special in insight or anything we don't already know. "We own all of their debt..... Now they work for us" I wouldn't be laughing if my country exchanged alot of our goods and services for US debt then have it become worthless. The US hold the biggest hand.... they have the gold. Untill China has a position on gold compareable to the US and gets rid of US debt then things will get interesting. When US is indebted to China in gold then things will get verying interesting and you know how the rest of this story goes. I am not arguing this won't happend or isn't happening now....
Ahh ok, so we agree, i dont think anyting will happen either unless china gets rid of US debt too .... thats gotta be the first thing, followed by a reevaluation of currency at a strategic future time... thats why i think america is in deep sh!t, simply because china is working on it AND once the work is done, a simple re-evaluation of currency would be the nail in the coffin... We all know fiat is actually worthless BUT right now, the paper is still not considered worthless, we still use it to do everything, just as china can still use US treasuries to get assets that do have real value.... if the value of the treasuries tanks and become worthless before china can make the swap then we are looking at a different ball game then
This is about creating elites. So, the more Chinese elites on par with Western elites, the better. Here's the sheep digest version: http://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires With more Chinese elites, where there are clear examples of being above the law already, then elites can interact at their own level and set up the hampster wheel on their terms That's clearly not great for any sheep with a decent coat One part of capitalism is about capital formation, that part they love the other part, being accountable for your mess, is apparently not which tells you that they are not capitalist they (elites) seek the best method for the extraction of your nutrients, almost an alien incubation, anaesthetising the senses into serfdom the plural of a four letter word beginning with C sums it up the problem with elevating the RMB to a factor of 6 to 1 would be the massive wealth disparity in that country that exists already, since Deng Xiaoping opened the borders with the 4 modernisations although he wished the best for his country, what he's got is a debt based fiat pegged to another debt based fiat, which mathematically polarises into haves and have nots this is even despite the extreme amount of labour involved, clock on at 7 and clock off at 10, 7 days a week if anyone here did that, the chainsaws would be out, and zombies would be butchered but the sense of social contract is different there history says, when that social contract is violated, as it is being doing, a very potent SHTF event happens they've done it time and time again this incarnation is quite new, starting in the early 1970s, and the pure communist version only from 1949
just like the Western elites, they have a top down mentality, when it should be bottom up liberty is well armed sheep armed with knowledge, technology and weapons what they are careening to is a turbo charged version of our problems
I guess what matters is that its in their country, not who it belongs to, leased to etc...assuming it still is.
Isn't that the great irony? The world is reliant for a large proportion of its consumable commodities on a country that has been able to produce cheaply, and thus gain good credit. We are indebted to them, but if it's all on credit, who's going to pay? How? And how can that possibly make them a powerful nation if nobody pays them what's owing?
