huangthomas

Jim Rogers on the Next 10 Years

Learning Chinese means Chinese as the first foreign language, which has been shifting from French, German, and Japanese. All students should master the English first. Do you know close to 30% of our high school graduates can't write or read English?

Remember we used to say that the 21st century belong to Japan. Japanese economy peaked in 1998 and has been on the slippery slope since then. China should be careful in accepting that title. It is a western trick. They are trying to set you up for something, such as beat you down with protectionism.

U.S. vs. China: Has Trade War Begun?

Jeff: Don't fall into the trap. There are none you can write about!


On Sep 14 11:50 AM Jimbo wrote:

> Ok, Jeff. Now write an article about the glories and superior elements
> of the Chinese health care system.

U.S. vs. China: Has Trade War Begun?

This is an excellent insightful article. Hollowing of the American manufacturing jobs started with Japan and Asian 4 tigers (South Korea, Taiwan, Hong Kong and Singapore). To deal with the problems of high labor costs, American corporation finds a solution in China. The book "Post-industrial America" was published then and predicted that the manufacturing jobs will leave America. It become true as we all can see now.

U.S., China Increase Trade Deficit: Win-Win Situation

The inexpensive goods we imported from China, such as shoes, clothing...are not consumer discretionary items. In economic hard time, our traffic to Wall Mart has not decreased, as a matter of fact, it probably increased.

China has control over foreign exchange and set the daily exchange rate. The practice is susceptible to exchange rate manipulation, but that does not means it is "highly" manipulated. As a matter of fact, there is no way we can balance our trade with China by exchange rate "reverse manipulation". Remember we do not manufacture those items any more and never encourage your children to dedicate their career to manufacturing those items. Before long, we'll see those goods labeled made in Vietnam, India, Indonesia......

As I see it, the only way to balance our trade is to sell them high technology know-hows, some of which are used in our weapon systems. China has asked for them for a long time. Do we want to sell them "Lenin's ropes?

Global Impact of the Fed Funds Slash

Chinese are concerned about cost of 1. health care, 2. higher education, and 3. unemployment. The per capita income of Chinese is close to sub-Saharan African nations such as Namibia, Botswana.........etc. (the latest World Bank data is 2005). Unless some of the cost of 3 major concerns are taken care of, stimulation of domestic consumer consumption is a myth. Fortunately the national health insurance is under discussion and will be finalized by the end of the year. It will be a government-operated public system. I have my deep concern of how well such a system is going to work. But we just have to wait and see, and hoping for the best.

Service-Based Economy Is Progress? Show Me the Money

This is another hallow talk of not exporting manufacturing industries to the third world countries, including China, Vietnam..... But how? What we have here is talk, talk, and talk. Everyone is singing the same theme.

In 70's, it was decided by the industries that the wage structure in the US is not competitive with the third world countries. If we want free trade, then there is no way you can keep those industries in the United States, unless we are willing to lower our own living standard. I am sure you heard of "post-industrial America". Surprise! We are there!

We are witnessing the same thing in the auto industries. Anyone want to bet what is going to happen to auto big 3? It's only a matter of time. Don't pretend that you don't know. We are ahead in wages and benefit, and behind in technology. Auto industries are striving the the South, but not in Detroit. Can we do something about people and industries who are digging their own grave?

China Slowdown: A Drag on Global Growth

Without recent stimulation package, China can still grow at 7% yoy. With added stimuli, it will add 1.5% to the growth to 8.5% GDP growth.