On May 7, 7:54 pm, D Peter Maus wrote:
ve3... wrote:
On May 7, 1:48 pm, D Peter Maus wrote:
ve3... wrote:

If you really understood economics, you'd shut your pie hole.

I may not be an Alan Greenspan, or better a Kenneth Galbraith, but
some facts about the US economy are worrisome. Some facts from the pie hole.

1. The US national debt is clse to 8 trillion dollars and rising
rapidly.
2. The foreign trade deficit is about 800 billion dollars this year.
3. The manufacturing base of the US has been sent to China
4. The savings rate is negative for the first time in 70 years.
5. The value of the US dollar has dropped from $1.35 to the Euro to
0.81 . Gold is similar.
6. There has been no provision for future Social Security and
Medicare
7. Wages have been stagnant or declining since 1975.
8. The official inflation rate is a lie. True inflation is about 8%
9. China holds about 1 trillion dollars in US debt.

That is just a few items off the top of my head. Do you disagree with
any of them?

Not a one.

But the facts are not within context.

In a global economy, trade deficits do not exist. US has a
deficit in context of the US only. Globally, we import, someone exports
one commodity imports another from a third party. The third party
exports and imports from fourth and fifth parties. Each nation has their
own trade deficits and surplusses. Money changes hands all the way
around. Globally, the trade balance is zero. In which case, the real
money to be made is by the nation that conducts the most volume. That's
the US. Closely followed by Japan, and soon China.

Regarding the manufacturing base....some manufacturing jobs
have been sent to China, true. Quite a number, actually. Then, again,
look at the number of high wage, high skill manufacturing jobs moving
INTO the US from other nations. Germany is building more cars here than
in Germany, now. Japan is investing trillions in manufacturing in the
US. Honda, Toyota, Mitsubishi, Nissan, Mazda, to name but 5 Japanese
firms, have built plants in the US for manufacture here, and are
building more. Hyundai is building not one, but two major plants in the
US. Mercedes is building a second plant in the US as is BMW.

With those jobs come construction and engineering jobs,
manufacturing machine tool building jobs. Ancillary parts manufacturing
jobs. Accessory manufacturing jobs. As well as boutique manufacturing
jobs, like the building of aftermarket iPod interfaces for factory sound
systems by Peripheral and a half dozen more companies cashing in on the
iPod/vehicle phenomenon.
With those jobs come manufacturing jobs in other countries
providing parts and supplies, as well as consuming products for
inclusion in their own market places.
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Chrysler is sold for 7.4 billion. It paid 36 billion to buy it a few
years ago. Actually, when you look at the details, they gave it away.
Hell of a deal. Got any other hot tips in this best of all possible
worlds?