To back up my earlier post about US economics and the problems you guys are facing:
http://nextbigfuture.com/2010/04/china- ... world.html
You guys are importing more than you are exporting. This creates a net loss. I dont have to have a nobel price in economics to see that this is a problem. Get it?
Shall I do the math for you?
Export value 1057 Billion
Import Value 1604 Billion
1057 - 1604 =
- 547 billion
So your country spent 547 billion more last year than it got in.
That does not look so good, does it?
Socialism As Socialism Does
The producer doesn't care where your money comes from. Maybe it comes from a service you provide,Yeah, but if you want to consume something somebody else produced, you first have to pay for it. And where is that money going to come from?
It's almost like they work for us, isn't it?You guys have container ships leaving for china empty and coming back full of cars, cloths, etc.
We export a fair amount to China. The difference is financed by China to keep their producers producing. They produce, they finance, we consume.What is it that you are selling to China in return for these goods? I see a serious lack of balance there.
How? It's dollar-denominated. It puts pressure on the exchange rate. If we inflate/exchange that debt away, guess who ends up holding the bag? The bondholders. Eventually China won't be able to keep this going and our producers will benefit from a levelled playing field.Of course you can keep making debt, but at some point the debt is going to kick you into the butt hard.
n*kBolt*Te = B**2/(2*mu0) and B^.25 loss scaling? Or not so much? Hopefully we'll know soon...
Yes and this is why Austria is still making a net profit. We do import more goods but we export enough commercial services to make up for the difference and make a profit.Maybe it comes from a service you provide,
You too have a net profit there of 139 billion.
That still leaves you with a net loss of 408 billion.
Sorry.
Maybe, but is it more than you import from China? The total numbers are not in your favor.We export a fair amount to China.
Of course you can inflate your debt away. That is always a "brilliant" strategy.
Well, we will see how it goes. Currently I see a bit of a reason to holster the arrogance and do some serious rethinking.
We are rethinking. It is what the Tea Party is all about. It is unfortunate that the government is behind the curve.Skipjack wrote:Yes and this is why Austria is still making a net profit. We do import more goods but we export enough commercial services to make up for the difference and make a profit.Maybe it comes from a service you provide,
You too have a net profit there of 139 billion.
That still leaves you with a net loss of 408 billion.
Sorry.
Maybe, but is it more than you import from China? The total numbers are not in your favor.We export a fair amount to China.
Of course you can inflate your debt away. That is always a "brilliant" strategy.
Well, we will see how it goes. Currently I see a bit of a reason to holster the arrogance and do some serious rethinking.
Engineering is the art of making what you want from what you can get at a profit.
As Tall Dave points out: we are getting China to pay us reparations for their being so belligerent for so long. Think of it as payback for their supporting the wrong side in the Vietnam WarHow? It's dollar-denominated. It puts pressure on the exchange rate. If we inflate/exchange that debt away, guess who ends up holding the bag? The bondholders. Eventually China won't be able to keep this going and our producers will benefit from a levelled playing field.
Engineering is the art of making what you want from what you can get at a profit.
It happens all the time in an economy where the prospects are good.So your country spent 547 billion more last year than it got in.
That does not look so good, does it?
When our prospects are no longer good the net flow will stop.
Engineering is the art of making what you want from what you can get at a profit.
LOL A trade surplus is not a profit, it's a trade surplus. In this case the trade deficit is not a loss, it's a gain; we've traded stuff for little pieces of paper that will aren't worth what we exchanged them for because the exchange rate is being propped up with massive bond purchases.That still leaves you with a net loss of 408 billion.
Sorry.
It would be much much much much harder on China than us. I mean, think about it. Why do you suppose they buy all those bonds in the first place? It isn't because they're doing us any favors; they're pusing the dollar up against the yuan. Eventually their currency will appreciate, and the bonds will lose value, which will affect us barely at all.Of course you can inflate your debt away. That is always a "brilliant" strategy.
n*kBolt*Te = B**2/(2*mu0) and B^.25 loss scaling? Or not so much? Hopefully we'll know soon...
Every time I see these trade surplus figures I have to believe that there is something happening that isn't being measured. Simply because when they go on as long as they do without the usual trade deficit/surplus consequences. I think that if you followed the money you would find out that the Chinese are getting something for the money that disappears that doesn't appear in the trade statistics. More than likely it's things like technical consulting, financial advice and leveraging, paying for marketing services and buying stuff like oil for instance that they have to pay dollars for with other countries. In essence they are buying dollars with goods that they can spend to do things they cold not do otherwise.TallDave wrote:LOL A trade surplus is not a profit, it's a trade surplus. In this case the trade deficit is not a loss, it's a gain; we've traded stuff for little pieces of paper that will aren't worth what we exchanged them for because the exchange rate is being propped up with massive bond purchases.That still leaves you with a net loss of 408 billion.
Sorry.
It would be much much much much harder on China than us. I mean, think about it. Why do you suppose they buy all those bonds in the first place? It isn't because they're doing us any favors; they're pusing the dollar up against the yuan. Eventually their currency will appreciate, and the bonds will lose value, which will affect us barely at all.Of course you can inflate your debt away. That is always a "brilliant" strategy.
Yes, but they did not honor the deal. Instead they prepared to take the rest of Europe.And made a deal with the Russians who took the rest.
Yes that was not right and it is a dark part of German history.And also got rid of a lot of folks who were occupying land that was rightfully German.
Still, there were more Germans living in that part of Poland, than polish people.
It is not automatically a profit of course, but it is not automatically a loss either. I cant imagine how you can turn a trade defficit into a profit. Inflating your currency is not always a good idea.LOL A trade surplus is not a profit, it's a trade surplus
It is to a large extent responsible for your current credit crisis. Your idiot bankers bought mortgages in foreign countries when the US Dollar was strong. Then the USD got weaker compared to the foreign currency that they had bought the loans in and all of a sudden nobody was able to pay their mortgage rates anymore. That non only cost your people dearly, but it was partially responsible for you dragging the entire world into a financial crisis.
Of course none of these bankers was every charged for this. Personally I think that this sort of thinking is criminal.
Anyway, you guys are now paying the bill for it and I see you paying the bill for this in the foreseeable future.
You guys are affraid that the Chinese will start a war with the US?
If you keep inflating your currency like that compared to the Yuan, they will simply be able to go and buy your country.
LOL
It's not that we are inflating our currency, but China keeps their currency artificially undervalued, which is what makes exports attractive and discourages consumer spending on imported goods. The Yuan/Renmimbi is about 40% undervalued, which is the current source of strife between our governments (beyond the whole google situation and the selling weapons to taiwan situation, and meeting with the Dali Lama situation).Skipjack wrote:Yes, but they did not honor the deal. Instead they prepared to take the rest of Europe.And made a deal with the Russians who took the rest.
Yes that was not right and it is a dark part of German history.And also got rid of a lot of folks who were occupying land that was rightfully German.
Still, there were more Germans living in that part of Poland, than polish people.
It is not automatically a profit of course, but it is not automatically a loss either. I cant imagine how you can turn a trade defficit into a profit. Inflating your currency is not always a good idea.LOL A trade surplus is not a profit, it's a trade surplus
It is to a large extent responsible for your current credit crisis. Your idiot bankers bought mortgages in foreign countries when the US Dollar was strong. Then the USD got weaker compared to the foreign currency that they had bought the loans in and all of a sudden nobody was able to pay their mortgage rates anymore. That non only cost your people dearly, but it was partially responsible for you dragging the entire world into a financial crisis.
Of course none of these bankers was every charged for this. Personally I think that this sort of thinking is criminal.
Anyway, you guys are now paying the bill for it and I see you paying the bill for this in the foreseeable future.
You guys are affraid that the Chinese will start a war with the US?
If you keep inflating your currency like that compared to the Yuan, they will simply be able to go and buy your country.
LOL
They are also inflating foreign currencies and deflating their own is long term a bad thing for China, because more and more of their energy needs are being met by imported oil. So eventually they'll be sending much of their wealth to the oil producers, who will reach maximum capacity.
Once this occurs, we will drill our vast untapped known and unknown reserves and pay off all our debts by exporting high priced oil to China... now you see the trap of our cunning plan...
Oh my... what are you smoking man?Skipjack wrote:The Germans never wanted the war. They invaded Poland to take what was rightfully theirs and everybody declared war on them. Hitler begged Churchill for peace and Churchills response was: Unconditional surrender.Now Hayek's point is that Germany needed the war because it was failing economically.
The Russians were about to roll over Europe. They had already thousands of tanks (with the GM stickers on them) built in factories that Roosevelt had paid for line up to conquer Europe. Hadnt it been for Hitlers preemptive strike, all of Europe would have been communistic less than a year later. I have talked to eye wittnesses that said that Hitler was crying tears when he learned of Stalins betrayal (they had a pact). The Germans had high flying transport gliders with high resolution cameras on board. Those happened to take pictures of the almost finished tanks that were lined up already. Tens of thousands of those. Do you realy think that Stalin only started to build those after the war with the Germans had started? The Russian industry was incapable of that.
That is why they are building nuclear reactors like crazy.their own is long term a bad thing for China, because more and more of their energy needs are being met by imported oil.
I dont smokeOh my... what are you smoking man?
What? Hello? They fought him until the end. I dont know what you are talking about! They destroyed much of the roads and bridges to slow them down even. Much of Doenitz strategy for the end was to give in to the west and delay the russians. Anything was better than thoseActually... they helped Stalin to occupy half of Europe.
Being you, I would rather say "highways".
Then get your facts straight first please. Yes, Stalin relied on pact with Nazis and was not preparing for defensive war in 1940-1941. But he certainly did NOT got any U.S. equipment before autumn 1941.Skipjack wrote:I dont smokeOh my... what are you smoking man?
Well, here is a simple review of history for you. I guess you will be hearing this for the first time. First, Germans annected Austria. Not much protests in the world. Second, they occupied most of Czech Republic, with reluctant agreement of France and Great Britain, with Hitler claiming this to be the last teritorial request.What? Hello? They fought him until the end. I dont know what you are talking about!Actually... they helped Stalin to occupy half of Europe.
Being you, I would rather say "highways".
Then Nazis (and Soviets) attacked Poland. Poland had treaty with France and England, so they were forced to go into the war this time. With excellent military performance, Nazis conquered France - which made them extremely dangerous.
The next target was USSR. After the war with Finland, they seemed week, easy target. After Hitler attacked Soviets, West had virtually NO CHOICE than to support Stalin (enemy of my enemy is my friend). So AFTER Hitler attacked USSR, they have sent them about 400 tanks per months and other supplies to stop Hitler (Lend&Lease pact). (BTW, Soviet designs on tanks were superior to those of U.S. at the time and Soviet tank production exceeded supplies from U.S. several times soon).
Anyway, all of that happened BECAUSE of Nazis. If Germany had a normal government, they would be allied with France, England, U.S. and Stalin would never had a chance to win any war.
That might be true, but the primary cause was Nazis. This is like exploding dam and then trying to save people down the stream.They destroyed much of the roads and bridges to slow them down even. Much of Doenitz strategy for the end was to give in to the west and delay the russians. Anything was better than those
Also, for nations occupied(Poland, CZ etc), Soviets were heroes expelling Nazis. You might be surprised by the fact, but Nazis behaved much worse than Soviets in occupied countries. Later that made pro-Soviet governments established easily in these counties. There is a big PR difference between "being attacked" and "being liberated".
I am afraid that education is Austria is somewhat wanting. Maybe you should take some online course or dig into wikipedia for a while.