US pledges financial rescue plan (2008)

This is a hectic thread. But of great value thanks guys.
 
@vxv, thought so

Some of the humble South Africans who were once part of this community back in the day, are now based in China, at the helm of IT companies that compete with Gigabyte and ASUS.
 
Last edited:
vxv said:
LOL, very true. I have a Walden, lol. I tried to find one made in europe but even the cello's are made in china via a germany company. LOL.

I looked at the fender and came to the same conclusion as you. :)
Click to expand...
Yes, we can all cite examples of cheap Chinese goods flooding the market. From electronics components to ballbearings.

My Fender Strat from yonks ago is from the first wave of the Eastern exports boom - Japan. Ironically it's now regarded as 'quality', though not as desirable as the original American model.

These types of goods are labour-intensive and low-cost labour can provide some advantage in the short term. But as you move up the economic scale to high value-add, the labour component diminishes, and the competitive drivers become intellectual value-add and capital plant ... more like those proverbial American managers who "sit around in offices shuffling paper". The former phase provides the lowest returns, and though better than a subsistence agrarian economy, it's the second-least desirable place to be from an economic growth viewpoint. That is largely where China is.

Ands believe it or not, China is experiencing serious labour shortages, which is driving wage inflation by almost double the economic growth rate. What is keeping the lid on for the time being is heavy central control by the Communist Party, but the sheer financial insanity of frenzied export growth with an artificially low currency, large DFI, and over-leveraged capital markets means the system WILL blow. It's as inevitable as night follows day. The only question is when.

In the meantime, of course, we are all getting cheap Chinese goods. But it's not the end of the story by any means.

One last thing: when it comes to forecasting the future, about the only thing you can count on is that projections and extrapolations from current trends will NOT happen.

The Chinese financial and demographic volcano WILL blow. The impact on China will be much more severe than any financial crisis in the USA, if only because the USA's economy is so much bigger, so much more robust, and so much better managed (not by politicians, but by real business people).
 
Last edited:
Arthur said:
Sorry to go on about the Chinese vs USA economy, but posters have raised an issue and I'm on a roll.

US (mid-high risk or 'bubble') debt exposure is perhaps $1.3-trillion or about 10% of GDP. No-one knows the truth about China, but conservative estimates put bad or 'bubble' debt there at around $450-billion or 14% of GDP, and perhaps as high as 18% or even 20% ... no-one knows by just how much collateral is overvalued, so the reality might be worse than imagined. It's certainly not better than the officially admitted figures. And China has a far smaller development cushion than the USA, exacerbated by the great disparities between the coastal third and the rest. By some estimates China's growth has already passed peak.
Click to expand...

The Chinese did something as unnatural before. They noticed that birds were eathing up their grain so they mobilised their population which went on a rampage chasing every sparrow they could find. The result was that the birds died out from exhaustion. What followed were serious insect plagues which
destroyed even more food crops because the were no sparrows to control
them. The one child policy is similar in this regard and as said above we will see a sudden drop off in functional population.
 
Turiko said:
@vxv, thought so

Some of the humble South Africans who were once part of this community back in the day, are now based in China, at the helm of IT companies that compete with Gigabyte and ASUS.
Click to expand...

Asus and Acer are Taiwanese.
 
FiestaST said:
*Le Bump*

https://twitter.com/x/status/1592301518497386496

Also look back at how things were in ‘08.
Click to expand...

As much as Americans tried to hide this or ignore it, the US economy has already officially been in a recession for some months now. It is only Biden who refused to accept this and questioned the definition of recession and raised the bar.

That being said, this is no recession. This is permanent economical damage done by the Democrats, pretty much like here in SA from 1994 onwards. Americans will now see living costs increase permanently and there will be no stop to it. Their economy will keep declining. Markets will keep declining. Inflation will become a permanent measure. Unemployment will keep rising. Taxes will keep increasing on citizens.

In 5 years from now America will be unrecognizable for anyone that has been there before and knows the country.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X