Fact 2: This raises the standard of living for those who live in the U.S. because we have more goodies than we could otherwise afford.
Fact 3: But it causes a large negative balance of trade for the U.S.
Fact 4: This imbalance is settled by the purchase of U.S. corporate and government bonds, stocks, real estate and by the making of other capital investments in the U.S. by the holders of the surplus dollars.
Bottom Line: We are buying goods and selling investments. There is no trade imbalance.
Questions:
This is the way it works isn't it?
What is so bad about it?
False. You confuse currency accounts with trade. Trade is clearly and badly imbalanced if currency accounts need to be papered over with these "investments". Investments in what, a sinking ship? There is frankly, no "investment" in a T-Bill. It is DEBT...backed up by...and paid for...by the American Taxpayer. Unless the Govt. merely runs the printing presses, and inflates the currency, depreciating its value to repay the unwisely sold treasury notes. In any event, it is particularly unwise to be selling your country's "mortgage" to these particular customers:
Reprinted from NewsMax.com
War With China
Charles R. Smith
Friday, Nov. 21, 2003
Battleground America
China has declared a global war. China has openly named its foes, warning them to come into line or face terrible retribution.
China's recent threat against Taiwan is only one of many opponents that China is prepared to destroy. China openly warned Taiwan that the red state will re-unite with its long-lost brothers and sisters even if the People's Liberation Army has to kill everyone on the island.
"If the Taiwan authorities collude with all splittist forces to openly engage in pro-independence activities and challenge the mainland and the one-China principle, the use of force may become unavoidable," said Wang Zaixi, Chinese vice minister of the Taiwan Affairs Office.
According to Wang, Taiwan will "pay a high cost if they think we will not use force."
The openly belligerent warning is not expected to help global peace. Chinese efforts to shut down Taiwan include threatening to veto the U.N. peacekeeping force for Liberia unless the Liberian government ejects Taiwanese diplomats. Liberia and the U.N. caved in to Beijing's threats.
The actual threat of force is aimed not just at Taiwan but also at its two largest supporters, Japan and the United States. Yet Beijing's growing war machine will not encourage a policy change in Tokyo or Washington except toward more defense spending.
The last similar threat was made by the second in command of the PLA itself. Gen. Xiong Guangkai told Western reporters that China was prepared to vaporize Los Angeles if the U.S. backed Taiwan.
The most recent threat by Beijing will serve one purpose: It is certain to drive Taiwan's nationhood campaign and its nuclear weapons program into high gear.
China at War With Itself
The fact remains that China is at war with itself. The democracy in Taiwan represents but one of many threats against the brutal communist regime in Beijing. The Chinese Communist party, unable to tolerate any freedom, is at war against its own people, jailing millions of political dissenters in the Lao Gai prison camps.
For example, Chinese cyber-dissident Luo Yongzhong was recently given a harsh jail sentence for subversion. Luo's crime was to post articles on the Internet "attacking the socialist system." Luo published more than 150 articles on current events, including some direct criticism of the Communist government. Lou was given three years in jail for his efforts.
The war against the Chinese people waged by the Communist Party is most evident in its campaign against the Falun Gong. Since 1999, when the party outlawed the spiritual practice, over 100,000 Falun Gong members have been sent to Lao Gai camps.
More than 500 Falun Gong members have been sentenced to prison terms of up to 18 years. Over 1,000 have been forced into mental hospitals, an act condemned by the World Psychiatric Association.
At least 800 Falun Gong members have died while in police custody. Torture and brutal treatment are the norm. Chinese government sources inside China calculate that the actual number of Falun Gong members killed by the police exceeds 1,600.
The Wall Street Journal's Ian Johnson won a Pulitzer Prize with his stories documenting Chinese government abuses, including the case of Chen Zixiu, a 58-year-old woman who was beaten and tortured to death for refusing to renounce Falun Gong.
China at War in America
The war against the Falun Gong does not end at the Chinese border. For those of you who feel safe in America, be warned: The Chinese Communist Party is at work here inside our nation.
Our Constitution is the founding principle and the core of our freedom, including the freedom of speech and freedom of religion. However, Chinese intelligence, military and political officials have already engaged in documented efforts to deny U.S. citizens their rights here inside America.
One case involves Randy Voepel, the mayor of Santee, Calif.
"I received a very strong, very intimidating letter from the Consulate of the Communist Chinese," stated Mayor Voepel during a 2002 interview.
"Dear Mayor, the purpose that I am writing to you today is to discuss with you a matter which is of great importance and grave concern to the Chinese Government and its relations with the United States," stated the letter to Mayor Voepel.
"It is our hope that your City, by proceeding from the overall friendly relations between China and United States and by taking your citizen's interests into consideration, will earnestly consider the request from the Chinese side that no recognition and support in any form should be given to the Falun Gong cult organization, including designating a 'day' or a 'week' to Falun Gong, Falun Dafa or its leader," continued the letter from the Chinese government.
"They came up with a list of things that they either didn't want us to do for the Falun Gong, or things that they wanted us to do to the Falun Gong," stated Mayor Voepel flatly.
'Chilled Me to My Bones'
"I must tell you I have no connection at all to the Falun Gong. From a mayor's viewpoint, these people are a little exercise group, and I was very surprised a national government of the stature of the Chinese People's Republic would go to the length of contacting all the mayors in California. It was just very unsettling to me. It chilled me to my bones."
Mayor Voepel is not the only U.S. official to get a harsh letter, filled with threats, from the Chinese government. New Jersey Congressman Donald Payne was asked by Chinese Embassy officials to withdraw the Falun Gong notice in the Congressional Record.
The mayors of Saratoga and Alhambra, Calif., Seattle, Baltimore and St. Louis all have been asked directly by Chinese Consulate officials to rescind proclamations given in support of Falun Gong.
In February 2001, the Chinese Consulate General of Los Angeles asked Pasadena city officials to make the Pasadena Civic Auditorium off-limits to Falun Gong practitioners.
According to the general manager, Rick Barr: "A day after they called the Pasadena Civic Auditorium, the Consulate dropped off anti-Falun Gong pamphlets. ... What I told them was [Falun Gong] has signed a contract for the auditorium and we do not discriminate based on beliefs."
While many local officials have rebuffed the communist pressure, some have given in without a fight, including the mayors of San Francisco, Seattle, Baltimore and Los Angeles – all of whom in 1999 rescinded proclamations they had issued for the Falun Gong.
China's war against the Falun Gong on U.S. soil not only runs counter to American principles, it is also illegal. The activities of the Chinese government constitute a crime against our homeland, our cherished Constitution and our sovereignty.
The Chinese war against the tiny democracy Taiwan, the Falun Gong, Tibetan monks and cyber-dissidents has begun. The war is one of tyranny against freedom. It has spilled over the vast Pacific Ocean and landed right here in Main Street, USA.
104-104
Ever question why this is true?
How about "labor arbitrage," the practice of finding the cheapest possible labor.
Even better if that labor is in a country which has no enviro controls, no safety regulations, no retirement mandates, AND which subsidizes exports and offers tax rebates for exporting--right??
More: even better if that country manipulates the value of its currency so that it PERMANENTLY remains below the value of the USD.
Tell you what: let's do free trade all the way. Tell your mother that she never actually PAID all the Social Security that she's getting--toss her off the program instead of burdening me and my children with her.
While you're at it, tell her that she's not going to get health insurance (either from the Gummint OR from her ex-employer) anymore. All medical treatments will be paid in cash, including pharmaceuticals. That way, others will SAVE all that money we currently WASTE on her--so we can buy other stuff!!!
You can take that 'free trade' stuff as far as you like, as long as it's YOUR mom that gets the results.
Exactly! Larry Kudlow has an excellent article posted on FR today that says the president nails the economic conditions in the country today. The naysayers won't listen to him, but he's correct. The country is in good shape economically and we lead every single other nation on the planet in terms of our economy.