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View Diary: Making It in America: Building the New Economy (41 comments)

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  •  How will we keep this green jobs in the US (3+ / 0-)
    Recommended by:
    TheCrank, Unenergy, progresso

    Sure US invented green technology --ie., fuel cells, solar, etc --but after funding the research we send it to China to manufacture them --how is the US benefiiting.

    Unless we remove the pegging of US dollar and Chinese ruan --we will never have fair trade, jobs will continue to be outsource to China, we will be  continuing to import a lot,  whether it is a green product, job, technology or not.

    It is the unfair currency that is keeping America from being competetive.

    Dont let the LIARS win. Stand up for TRUTH! Stand up for Health Care Reform!

    by timber on Sat Oct 24, 2009 at 02:06:05 PM PDT

    •  Trade policy and foreign exchange policy ... (4+ / 0-)

      ...is also getting the campaign's attention.

      "White people are looking at you." - Wanda Sykes

      by Meteor Blades on Sat Oct 24, 2009 at 02:09:47 PM PDT

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      •  Sometimes Ideas Seem Like Poetry (2+ / 0-)
        Recommended by:
        Ophelia, progresso
        Especially when your mind is starving for wont of them.
        The president would enjoy this thread. It has seeds of what we need.

        Alan Grayson is a leader of the Democratic Party. I oppose the extremist hypocrite parroty parity. Go Phila Phillies!

        by renzo capetti on Sat Oct 24, 2009 at 03:49:30 PM PDT

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      •  It might be interesting (0+ / 0-)

        For you to research Yuan-Dollar exchange rates, publish charts and consider the complexity of the issue including such factors as the effect of exchange rate fluctuations on the value of Chinese held Treasury Notes that underwrite US Government debt and how a rapid increase in Yuan value would afftec both nations as well as the global economy which the Chinese economy presently underpins.

        Questions might also include:

        What is the correct (or reasonable) exchange rate?

        How much has the Yuan appreciated over the past 3-5 years and to what effect?

        How would a sudden change affect the present recession and recovery pro/con?

        How would "hot money" inflows to China ahead of an expected increase in Yuan value effect monetary exchange markets and currency supply affect the liquidity of present credit markets?

        How might Chinese react to sudden devaluations of the US Dollar with respect to present and potential secureties holdings?

        In fact, this is a very complex issue and not the panacea for America's economic woes that many people imagine. Indeed, most economists credit Yuan stability for moderating the crash and have urged Dhinese to maintain a stable Yuan, while the US demanded Chinese buy additional Treasury Notes to suppport the US economy which the Chinese have despite concerns about the value of the Dollar. Given Chines cooperation on this and the fact that the linkage of these economies is essential to both, it might be good for Kos members to learn more.

        I had actually planned to diary the topic last summer before the crash but the birth of my daughter interrupted my bloging for awhile and the issue was eclipsed by the crash.

        However, if this issue is percieved to be a major problem/solution to trade issues, of that the situation is quite one-sided, than it might be good for people to get a few more facts and a more clear concept of underlying issues.

        Ask me about my daughter's future - Ko

        by koNko on Sun Oct 25, 2009 at 08:38:28 AM PDT

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    •  no way WE can remove the peg....which has been (0+ / 0-)

      there for a long time....when in a hole...stop digging.

      •  We have pressured third world countries to float (0+ / 0-)

        We have pressured third world countries to float their currency when they borrow from the IMF.

        Why should we trade with a country that is unfairly trading with us?

        If China does not float their currency,  then we should apply import tax on goods that we want to manufacture in the US.  We should at least protect our automobile, furniture, green jobs,  high tech
        industry --apply import tax or outsourcing tax to have a level playing field.

        If we dont then we will lose our technological and manufacturing knowhow.

        If currency is fair,  America will be very competetive.  And there will be jobs for everybody, even for China.

        I bet once China floats their money,  there will be a boom in the US --- more businesses hiring Americans because it will become apparent that it is cheaper to produce here than import from China.

        Dont let the LIARS win. Stand up for TRUTH! Stand up for Health Care Reform!

        by timber on Sat Oct 24, 2009 at 05:57:36 PM PDT

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        •  Why should China continue to buy Treasury Notes? (0+ / 0-)

          Maybe you better think this through.

          Ask me about my daughter's future - Ko

          by koNko on Sun Oct 25, 2009 at 07:51:57 AM PDT

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          •  I think you are right (1+ / 0-)
            Recommended by:
            koNko

            China and then Japan are our biggest investors. Japan probably won't recover very well.  China is dumping reserve currency in dollars.  As well as all the BRIC countries.  Brazil, Russia, India and China.

            Additionally keeping the interest rates low will help home buyers, but not attract foreign investors.  A simple look at the 20% loss of the dollar since March shoes this.  

            My biggest complaint.  Treasury loaned at no interest rate to banks.  Banks invested back in Bonds.  This created the feel good effect of both the banks and Treasury feeling solvent.  It was easy money for the banks.  No interest on the loan, but guaranteed money in return.  

            We are in a real economic down spiral here.  If you looked at the housing market it looks good, until you realize Bush and Obama okay'd the "No Foreclosure" on Fannie, Freddie, Ginnie and VA loans.  Nearly 70% of the market.  And then take a look at why banks are not foreclosing on houses.

          •  China is giving us a credit card (0+ / 0-)

            To import from China,  buy their goods,  effect technology transfer to China.

            If China does not buy our treasury notes --then who is going to import from them.  The recession in the US also affected China because we decreased our exports, causing many Chinese to lose their jobs.

            Floating the Yuan will be fair to both countries because both currencies will try to find its real value.  

            It is like Macy's or Sears providing credit to customers or Best Buy having a no interest 12 month no payment so that customers will buy their goods.

            Dont let the LIARS win. Stand up for TRUTH! Stand up for Health Care Reform!

            by timber on Sun Oct 25, 2009 at 03:49:56 PM PDT

            [ Parent ]

    •  and.. (2+ / 0-)
      Recommended by:
      renzo capetti, Unenergy

      Things are not going to return to the way they were. This focus on minutiae ignores the big picture of structural change in the economy.

      ...that is because of Neo-Conservative/Neo-Liberal policy called Globalism which was, in a nutshell, economic imperialism that looked and looks more like 18th century British imperialism exploiting third world slave wage labor and lack of environmental regulation costs just to make huge but temporary profits at the expense of our working middle classes.

      The only people that have had any real prosperity for a good while now are the Multinationals and the related Wall Street crooks that looted the home loan market, IRA's, pension funds and other savings and investment accounts with the use of bogus instruments that make Michael Milken’s junk bonds look like solid investments.

      Junk financial instruments that have been used to rob eighty percent of the population have replaced a sound manufacturing based economy. Rather than try to fix the problem the crooks who ruined the economy have by using official bribery called campaign financing to control Congress as usual have indebted the next several generations of Americans with two horrible so called bail out bills going to themselves just so they could continue the same rapacious policies.

      How long are we going to take this piracy by a very small minority? Are we going to wait until the bastards decide to solve the disaster they made by removing excess population with some plague or horrendous series of wars (one of Kissinger’s favored solutions)? It would seem based on the insane actions of the Plutocracy they have already made the decision for a solution that does not involve them giving up their ill-gotten gains and economic whip hand. Id say they have decided on them or us, otherwise everything they are currently doing makes no sense whatsoever because they are not addressing g any of the very real problems facing the majority of the population and bound to affect them in serrious ways.

      The young man who has not wept is a savage, and the old man who will not laugh is a fool. George Santayana

      by Bobjack23 on Sat Oct 24, 2009 at 02:42:41 PM PDT

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    •  It doesn't matter, even if we do. (0+ / 0-)

      Except for the final installation (itself ever more mechanized) most of the "green production" is going to be done by machines.  It was a worry often expressed decades ago, that computers and automation were going to displace lots of jobs, usually phrased as a transition to a "service economy".  That "future" is still waiting in the wings. It was only delayed a bit by the temporary intercession of "overseas" (read "foreign slave" to replace domestic slave) human labor.

      The "elites" have been locking up control (all the money . . . they will own the machines) in preparation . . . the only thing not arranged is how to pacify the masses.  Convincing them that there are important foreign wars to fight, and that their "way of life" is threatened by everything else but their real masters seems to be working so far, but there are limits.  It won't be long before they're using the Army (the darling of every authoritarian) to put down the (domestic) slave revolts . . .

      Fake Left, Drive Right . . . not my idea of a Democrat . . .

      by Deward Hastings on Sat Oct 24, 2009 at 02:54:51 PM PDT

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    •  Yuan-Dollar peg (0+ / 0-)

      Can we assume then, that you are in agreement with many economists, including a significant number of Chinese, that the world should no loger use the US Dollar as the global rate of exchange standard and migrate to a basket of major currancies or an IMF index for exchange rates?

      After so many years of providing the US a unique and arguably unfair economic advantage, isn't it past time we really leveled the playing field?

      It is, after all, the Mother of all pegs, no?

      Ask me about my daughter's future - Ko

      by koNko on Sun Oct 25, 2009 at 05:41:15 AM PDT

      [ Parent ]

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