Posted on 11/01/2006 12:09:25 PM PST by jmc1969
US President George W. Bush said today that he hoped China would transform from a country where people "hoard the money they have" into one where people buy large amounts of US products.
In an interview with conservative radio talk show host Rush Limbaugh, Mr Bush said China should become "a society in which there's consumers. Because now they're a society of too many savers".
"If we can encourage China to become a country of consumers, you can imagine what it would mean for US producers and manufacturers to have access to that market," he said.
(Excerpt) Read more at news.com.au ...
Lotta "ifs" in that scenario...
OMFG. He said that?
"If we can encourage China to become a country of consumers..."
why did Rush even ask him this? the average worker in china makes just enough to survive, they aren't "saving" anything. they do have a middle class that is growing.
and what US goods are their consumers going to buy, that are made in the united states? a few cars maybe, but for how long before we send that manufacturing there too.
They are consumers of our debt. I'd leave it alone.
Bush is out of his mind or the unilateral free traders have gotten his ear.
India and China in no way practice free trade. Their governments, like most, look at national interests as a whole, not specific industries funding specific parties, say like the money services behind the Dem's interest in strip mining America for "free trade."
If China becomes a so-called "consumer" nation they will institute practices which continue to favor China. That's not the current American way, but it is the smart and patriotic way.
"why did Rush even ask him this?"
I don't know but the answer was scary.
China squirrels more than half of that [1997 Capital Surplus of $67 billion] away into foreign reserves which are invested abroad. Chinese companies funnel much of the rest directly overseas through bank transfers - sometimes skirting Chinese capital restrictions.
...
Usually, however, developing countries invest their capital in their own growing economies. And some Chinese officials believe that's what China should be doing, too. One former Chinese central bank official calls it "scandalous" that a country of poor peasants is financing investments of an industrialized power such as the United States."
Don't agree with him. They are saving a lot because they started with such a small capital base.
Rush was pretty quiet during that spiel. He must've been stunned. I was.
Pres speaks truth, but he is about a light year ahead of current common understanding of economics. It will be hard to get the Chinese to go on a spending spree since so many have fairly distinct memories of their parents telling them how rough it can get at any moment.
Oh, yes they are. The rate of return to the individual is awful in comparison to other countries.
Christian news and commentary at: sacredscoop.com ...
"This is further exacerbated by the fact that the Chinese can make any consumer good that might be produced in the USA for far cheaper in China."
Tell the president that all the Chinese are saving their money to buy Escalades and bling.
Why can't individual Chinese choose, personally, their own investment vehicles throughout the world? Chinese Government and their "restrictions". Those restrictions funnel all individual savings into "investments abroad".
If you know any second generation Chinese-Americans, you know how true this is. Except they prefer Mercedes and Lexus to Escalades; and diamonds and Rolexes to gold chain bling.
we aren't talking about chinese americans, we are talking about the chinese in china.
they like Buicks, for now. But once Chinese auto production ramps up, they won't anymore - until GM starts making Buicks in china.
they buy that debt to maintain their currency peg - which is the basis for keeping their export driven economy going.
the chinese are smart, they need another 20 years of this to suck all new capital investment for tech and manufacturing into china, leaving the US with only services and government.
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