Greatest Threat to U.S. Prosperity:
“Personally, I can think of no faster path to a worldwide recession than for the twin engines of the global economy — the United States and China — to turn against one another. Both countries need to make an extra effort to ensure that we treat each other with mutual respect. Rather than threatening protectionism, leaders must redirect their energies toward improving competitiveness and opening markets.”
Writers such as Bastiat have noted, when commerce doesn’t cross borders, armies will. Note, the above quote is from the current CEO of Caterpillar, of earth-moving fame.
Via Digital Rules.
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I wonder how long it will take for a chinese serf earning 69 cents an hour to put a down payment on one of those Caterpillars?
I wonder how long it will take for a chinese serf earning 69 cents an hour to put a down payment on one of those Caterpillars?
A few weeks like today and the Chinese will be able to buy most US banks at fire-sale prices. So, the anwser: 6 to 8 weeks?
There is an old saying. “Keep your friends close, and your enemies closer”. It sure seems like that’s the way China is trying to deal with the United States. I think the US is very economically co-dependent on China, but I think that US interests are very different than China’s. We shouldn’t be supprised at all if China pulls the lever on the US economy and then seizes Tiawan while the US dollar falls off of a hyperinflationary debt cliff.
If more companies would be like Caterpillar and embrace China’s growth opportunities U.S. manufacturing would be much better off. Caterpillar has done a great job of selling its products in developing countries like China by providing quality, reliability and service. The U.S. can compete on the global stage and Caterpillar is good proof of that.
China Law
More open trade will help us not only with China, but also with Iran and Cuba, where embargoes have just played into the hands of demagogues abroad and at home and particular private interests at home.
von Mises correctly summarized our domestic motivations that favor war:
“[T]he essence of so-called war prosperity; it enriches some by what it takes from others. It is not rising wealth but a shifting of wealth and income.”
In addition, there is also clear rent-seeking behavior as various corporates and individuals look to benefit from spoils.
for a chinese,there is still a long way to go to reach the living style as annual income 50000 dollars
smith,
Chinese adoption guides make US$25,000 per year on tips alone. And 25 grand goes one hell of a lot farther in China than 50 grand does in the US.
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