"Why the U.S., China are about to get divorced"

[snagglepuss]

snip

The U.S.–China economic nexus is about to unwind on both fronts in the smaller world that’s just round the corner.


snip

It’s not container ships heading across the Pacific to supply American Wal-Marts that have powered China’s world-leading economic recovery. Wal-Mart parking lots across the U.S. remain half deserted as the American consumer gets reacquainted with double-digit unemployment. Rather, it’s shipments to China's own thriving local economy and exports to its neighboring Asian trading partners that are driving China’s economic bus these days.

When China recognizes that its huge trade surplus with America is a rear-view mirror on a global economy that has since gone bust, it’s likely to take the shackles off its own carefully reined currency.

Holding down the yuan–dollar exchange rate by financing Washington’s massive debt only makes sense for the People’s Bank of China if there are huge export gains to support. But if double-digit jobless rates, and soon triple-digit oil prices, make the U.S. market either too weak or too far away to be of consequence any more, why worry about a stronger yuan?

snip


http://www.theglobeandmail.com/blogs/jeff-rubins-smaller-world/why-the-us-china-are-about-to-get-divorced/article1376627/



The author Jeff Rubin was the chief economist of CIBC World Markets for 20 years, he left the bank earlier this year to seek a larger audience for the story he wanted to tell about how it was record oil prices not sub-prime mortgages that drove the world economy into its deepest post-war recession. And that unless the economy starts to wean itself off an ever depleting supply of affordable oil, he believes there will be other recessions to follow as economic recoveries quickly push oil prices right back into triple digit range.

[Greyhound]

1. We get half their assets in the settlement, right? n/t

[Vinnie From Indy]

2. Well, that and the fact that the US Wall Street Firms have rigged the game

The opaque oil markets created by our corrupt government for the insatiably greedy Wall Street titans have become merely a huge ATM machine from which the Wall Street speculators withdraw money at their whim. The gas spike we experienced was no different than the faux California power crisis a few years back. The drastic rise in gas prices happened becuase that is what Wall Street oil traders wanted to happen.

[RUMMYisFROSTED]

3. Unbelievable!

:tinfoilhat:







/s

[Warpy]

4. Not yet

It's the couple locked into a bitter marriage that is staying together because neither can afford a divorce lawyer and can't afford taking the chance of being cleaned out in a settlement.

In addition one spouse (the US) is unemployed.

The divorce can only come when either we've been completely beggared to the point China can afford to cut us off with no major loss or we build our industry up, become employed, and can tell them to go to hell with impunity.

[Vincardog]

5. How do you propose we build our industry when the Government is still paying industry to relocate

to China?

[Warpy]

6. When the government gets frightened enough of an angry populatiion

they'll do something about that. Right now the population is largely self blaming and depressed. That's not going to last much longer.

[Vincardog]

7. Go angry population. Pissed of is way in rear view mirror

[Hannah Bell]

8. The US owes 800 billion to China.

It owes 2 TRILLION to US workers.

The debt to China could be repaid in four years by rescinding the Bush tax cuts to the top 1%.

"China" = foreign investment by US, Japanese, hk & European corps.


2006 Share of exports by firm ownership in China's total exports:

Wholly Foreign Owned: 39.3%

Joint Venture Firms: 18.6

State Owned Firms: 19.8

Collectively Owned Firms: 4.3%

Private Firms: 18%

http://www.voxeu.org/index.php?q=node/1524


China was thoroughly penetrated by foreign capital before Mao took over, & it still is.

The China card is a scam to crack the whip on workers & make super-profits for capital.