Posted on 05/31/2011 7:53:00 PM PDT by mkleesma
The United States exported more goods and services in March than in any single month in its history: $172.7-billion (U.S.) worth. It was the country’s 21st consecutive month of rising exports, pushing the year-over-year increase to 20.9 per cent. In these 12 record-setting months, exports reached within one-tenth of 1 per cent of $2-trillion – more than four times the cost of the country’s imports of crude oil. This is significant. People are starting to take notice. Markets writer Joseph Lazzaro (on the Daily Finance website) anticipates that the U.S. up-trend in exports could last for years and turn its intractable trade deficit into a surplus. More dramatically, Boston Consulting Group (BCG), a global management consulting firm, discerns “a renaissance” in manufacturing that will, within five years, lure major U.S. corporations to return home from China.
(Excerpt) Read more at theglobeandmail.com ...
Ha! Only had to devalue our currency by 20% this year to do it. Who cares about the cost of food, oil and clothing! I’m sure everyone here feels richer, right?
I find this very interesting.
Just today, we learned that:
*675,000 homes in foreclosure have made no payment in over two years
*’Double dip’ in home prices is official, and prices could drop more
*Oil up 2 percent on weaker dollar
*GM Admits that Dealerships are Taking Chevy Volt Tax Credits
*Food Stamp Usage Hits Fresh Record
*Share of Population on Food Stamps Grows in Most States
*QE3 Has Already Started
*Goldman traded $1.3 billion in Libyan funds: report
*Chicago manufacturing gauge nosedives: Largest drop in two-and-a-half years
So- ... something smells here.
These data are predicated on the value of goods exported, in US dollars. I would like to know what these data mean when the fall in the value of the dollar is factored in.
We have some folks on this website who believe raising your prices by 100% will solve the problem, so it (the problem) is more intractable than you think.
The real question is what type of goods are we sending to China?If we are exporting coal , metal and lumbar to China and they send us finished goods then I don’t see that as a favorable position. China get our raw materials and we get a raw deal.
With the corporate tax rates the US saddles business with, there is no way these places are coming home anytime soon. There is also a problem with the claims this piece makes. The value of the dollar matters a great deal in these calculations. I didn't see any compensation for it here.
The decline of the dollar has a lot to do with this. Foreign currency buys more US goods than before.
The US can easily double that number by taking the Corporate tax rate to zero or providing full tax credit for any and all startup costs and providing a 10 year tax credit
Companies WANT to set up in the US. Give them an incentive and they will beat down the doors to open in the US, especially in the Right to Work States.
If I were President, the first thing I would do is make Corporate taxes effectively ZERO by giving a $1MM tax credit per LEGAL US employee.
A company like Microsoft would only need 20,000 LEGAL employees in the US to make its entire income tax free in the United States
The mantra would be “If you make your dough here, using labor from here, then you get to keep your cash”
40 Signs The Chinese Economy Is Beating The Living Daylights Out Of The U.S. Economy
Yesterday the AFL-CIO had someone come to my door to copy a paragraph for a petition stating I wanted all corporations to pay taxes like I do.
I told the guy no.
It is the expected result of the intentional weakening of the dollar by Obama and the Fed.
Obviously there are many factors to be considered when selecting a new manufacturing plant location, but to assume the US is “dead” for manufacturing is silly. Anyone who doubts this should get the facts rather than rely on doom and gloom pundits. The other trend to watch is “backshoring” of jobs from China and India to the US. Again, there are many factors involved and it’s a trickle rather than a torrent, but it is happening. Not because of cost, either - but because of quality and other factors in most cases.
Think how much these trends could be accelerated with a President and Congress who actually understand how business works (and want that to happen).
I know there might be some good data there, but any website citing to the Economic Policy Institute should be a red flag to economic conservatives.
We wouldn’t have had to devalue our currency if we didn’t allow foreign governments to buy our debt and become our manufacturing base. Especially chinese communist governments who used slave labor to drive down American workers wages for the jobs that were left, and and sending the rest offshore subsidized with US taxpayer dollars.
The globalists just laugh. They incorporate in the US so they get the protection of our vast legal system for corporate law, they use tax payer money to pay themselves to move US jobs to the lowest labor cost markets, that is slave labor communist, socialist and totalitarian dictatorships.
Right minded Americans abhor that their money is used for enslavement, but the globalists just laugh because they got Obama elected, and GW Bush before that and Clinton before that and GHW Bush before that.
We’re a bunch of idiots, they think, and we need to prove them wrong!
Apparently the Chinese have bought the entire US fish catch of sardines allocated this year.
Since sardines are traditionally a cheap protein for depressionary times, this is very bad news.
Apparently the Chinese have bought the entire US fish catch of sardines allocated this year.
Since sardines are traditionally a cheap protein for depressionary times, this is very bad news.
Just what the hell are we “exporting” ... besides our jobs?
Cardboard and other waste papers are big money. We sell it to the ChiComs and they sell it back to us, wrapped around a Chinese product of course.
The Economic Policy Institute is a liberal non-partisan [1] non-profit American think tank that was created in 1986. According to EPI's website, the institute was established to "broaden the discussion about economic policy to include the interests of low- and middle-income workers." EPI focuses on "the economic condition of low- and middle-income Americans and their families."[2] EPI researchers, who often testify to Congress and are widely cited in the media, brought to light the disconnect between pay and productivity that marked the U.S. economy in the 1990s.
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