@^#% faces its own debt bomb ...

[dud]

I thought about posting this in P&N ... but I do not like P&N so here goes:

If you thought we (the US) had a "debt" problem ... here's a country (China) that has a BIG one:


http://money.msn.com/investing/china-faces-its-own-debt-bomb-jubak.aspx?page=2



I considered being a little surprised about this but nothing about China or the Chinese surprises me any more.

 

[DaTT]

I thought about posting this in P&N ... but I do not like P&N so here goes:

If you thought we (the US) had a "debt" problem ... here's a country (China) that has a BIG one:


http://money.msn.com/investing/china-faces-its-own-debt-bomb-jubak.aspx?page=2



I considered being a little surprised about this but nothing about China or the Chinese surprises me any more.

This.

 

[dud]

This.

Globalization may be the end of us all ...

 

[Craig234]

Globalization may be the end of us all ...

Let me sum up globalization:

From the birth of mankind to the late 18th century, human society was always some form of huge concentration of wealth and power - most people just served them, in poverty.

From the late 18th to the late 20th centuries, led by Western civilization, there was some counter to this from the freak accident of the US revolution, where 'the people' grabbed a lot of power with 'the vote'. Seemed like a good idea at the time, and worked better and better up to the FDR era reforms to create a 'middle class'.

Globalization undoes a ton of that and returns to the norm, wiping out the middle class.

 

[Craig234]

Globalization may be the end of us all ...

Let me sum up globalization:

From the birth of mankind to the late 18th century, human society was always some form of huge concentration of wealth and power - most people just served them, in poverty.

From the late 18th to the late 20th centuries, led by Western civilization, there was some counter to this from the freak accident of the US revolution, where 'the people' grabbed a lot of power with 'the vote'. Seemed like a good idea at the time, and worked better and better up to the FDR era reforms to create a 'middle class'.

Globalization undoes a ton of that and returns to the norm, wiping out the middle class.

It returns to the same old system where concentrated power allows getting more power, the rich get richer, the poor get poorer, creating a global labor pool in a race to the bottom.

That's why we see in the wealthiest countries in the word that nearly all economy growth goes to the top part of the top 1%, as they use these changes to extract wealth.

And the ability for societies with huge concentrations of wealth to be changed - by revolution, by external invasion, etc. - is now all but impossible for powerful countries.

The last time we saw this was the collapse of the USSR, which has largely resulted in a corrupt state with, you guessed it, a few very wealth and powerful at the top.

Democracy is a great thing if the people are vigilent to protect it. We're not.

Save234

 

[Londo_Jowo]

Globalization undoes a ton of that and returns to the norm, wiping out the middle class.

I work for a company that over 85% of sales (2+ billion yearly) are to overseas buyers, globalization can and does help middle class workers in the US. There are many other companies that have a similar percentage of sales to overseas customers such as GE & Boeing.

 

[Nebor]

Globalization undoes a ton of that and returns to the norm, wiping out the middle class.

Well, at least it'll be nice to get back to normal.

 

[Leymenaide]

Let me sum up globalization:
Save234

When I argue the Democrats and the Republicans are not working for us and we need fundamental chage I am treated as if I am insane.

 

[JEDIYoda]

When I argue the Democrats and the Republicans are not working for us and we need fundamental chage I am treated as if I am insane.

Yep...you said it nobody else did...perhaps you wear your feelings on your shoulder.....

 

[Ns1]

I work for a company that over 85% of sales (2+ billion yearly) are to overseas buyers, globalization can and does help middle class workers in the US. There are many other companies that have a similar percentage of sales to overseas customers such as GE & Boeing.

x3

 

[Fern]

I thought about posting this in P&N ... but I do not like P&N so here goes:

If you thought we (the US) had a "debt" problem ... here's a country (China) that has a BIG one:


http://money.msn.com/investing/china-faces-its-own-debt-bomb-jubak.aspx?page=2



I considered being a little surprised about this but nothing about China or the Chinese surprises me any more.

Unless I misread or misunderstood the article, they are in alarm over $1.6 trillion of aggregate local govt debt.

Really?

$1.6 trillion is about the size of our annual deficit. Our debt is about $15T, about 10 tens larger.

Also, China owns much more $1.6T in US govt bonds. They could cash those and easily pay off the $1.6T.

I strongly suspect the aggregate debt of all state & local govts here in the USA tops that too.

Fern

 

[Double Trouble]

Someone set them up the (debt) bomb. Debt seems to be a universal government problem. Is there any government left in the world that can live within its means?

 

[Kadarin]

I work for a company that over 85% of sales (2+ billion yearly) are to overseas buyers, globalization can and does help middle class workers in the US. There are many other companies that have a similar percentage of sales to overseas customers such as GE & Boeing.

What's good for (shareholders of) GE and Boeing is not necessarily good for the American public, particularly if the company employs overseas workers to manufacture product that gets sold in that overseas nation, and the profits stay overseas. IIRC GE is famous for this.

 

[LegendKiller]

I work for a company that over 85% of sales (2+ billion yearly) are to overseas buyers, globalization can and does help middle class workers in the US. There are many other companies that have a similar percentage of sales to overseas customers such as GE & Boeing.

Where are those "sales" produced? Or are they just IP "sales" where 100% of the entire value-chain profit stays in the US?

 

[the DRIZZLE]

Unless I misread or misunderstood the article, they are in alarm over $1.6 trillion of aggregate local govt debt.

Really?

$1.6 trillion is about the size of our annual deficit. Our debt is about $15T, about 10 tens larger.

Also, China owns much more $1.6T in US govt bonds. They could cash those and easily pay off the $1.6T.

I strongly suspect the aggregate debt of all state & local govts here in the USA tops that too.

Fern

This. You can't just look at one side of the balance sheet. That being said, there are a ton of questionable loans on the books of Chinese state owned banks.

 

[Jhhnn]

I work for a company that over 85% of sales (2+ billion yearly) are to overseas buyers, globalization can and does help middle class workers in the US. There are many other companies that have a similar percentage of sales to overseas customers such as GE & Boeing.

On balance, globalization hurts more than it helps. Witness the annual balance of trade deficits-

http://www.census.gov/indicator/www/ustrade.html

http://economicdatacharts.com/Balance_of_Trade-US.html

 

[Londo_Jowo]

Where are those "sales" produced? Or are they just IP "sales" where 100% of the entire value-chain profit stays in the US?

This is heavy industrial equipment (compressors and steam turbines) that is manufactured and assembled in factories by American workers. The equipment is commissioned and serviced by American workers as well.

 

[KB]

You can't have 10% growth forever. Eventually things must crash.