Why It Was A Bad Idea To Allow America To Be Owned By Foreigners

[Praxeas]

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

[CC1]

At least Chrysler is once again an American company!!!!!!!!!!!!!

[Rico]

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

The Chinese will hurt themselves more than us, if they do something like this. They are always making threats to do this or that. It's their style of negotiating. I've seen North Korea use the same tactics with the development of weapons grade nuclear material. They threaten to do this or that as a means of negotiating.

[Rico]

At least Chrysler is once again an American company!!!!!!!!!!!!!

Not as long as so much of the materials that goes into automobiles is imported. The days of an all American made set of wheels are sadly long gone.

[Hesetmefree238]

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml


It certainly puts us in a bad position, but we would also be in a bad position
if they suddenly quit buying our treasury bonds. This is due to the fact that
our government spends more than what it receives in tax revenue. The only
way we can fund our deficit spending is through the selling of treasury bonds
which brings in the needed money to fund the deficit. Of course the best
solution would be to cut spending to equal what we receive in tax revenue.
This would solve the budget crisis, and we would not need the Chinese any
longer to buy our debt. On the flip side if we cut spending drastically at this
point it would possibly move us into a recession. What an economic tightrope!

[CC1]

The USA exporting almost all of it's manufacturing is a huge mistake. I am not a big believer in the benefits of an open world trade policy and economy.

I know the idea is that this interdependence will cause more cooperation and strengthen the reasons for getting along rather than war BUT at some point it means that we are no longer independent.

If I were king of the USA we would begin the process of making it difficult for foreign countries to own American companies, give disincentive to companies moving manufacturing offshore, and speed up the development and implementation of alternative fuel options for vehicles. This last would be to end our dependence on outside sources for oil. That should be a priority based on national security.

[Rico]

The USA exporting almost all of it's manufacturing is a huge mistake. I am not a big believer in the benefits of an open world trade policy and economy.

I know the idea is that this interdependence will cause more cooperation and strengthen the reasons for getting along rather than war BUT at some point it means that we are no longer independent.

If I were king of the USA we would begin the process of making it difficult for foreign countries to own American companies, give disincentive to companies moving manufacturing offshore, and speed up the development and implementation of alternative fuel options for vehicles. This last would be to end our dependence on outside sources for oil. That should be a priority based on national security.

That would mean Toyota, Honda, Subaru, and Nissan would all have to pack up and scram.

One thing that can be done to spur American manufacturing would be to change some of our regulations. When I went to truck driving school, a jillion years ago, one of the things we learned is that it costs more to ship a pair of jeans from Houston to Dallas than it does to ship the same pair of jeans from overseas.

I like the idea of developing alternative fuels. However, it will be interesting to see the impact producing these alternative fuels will have on our environment, namely air and water quality.

We could stop our dependence on foreign oil overnight, if it wasn't for the tree hugging owl lovers in this country.

[CC1]

That would mean Toyota, Honda, Subaru, and Nissan would all have to pack up and scram.

One thing that can be done to spur American manufacturing would be to change some of our regulations. When I went to truck driving school, a jillion years ago, one of the things we learned is that it costs more to ship a pair of jeans from Houston to Dallas than it does to ship the same pair of jeans from overseas.

I like the idea of developing alternative fuels. However, it will be interesting to see the impact producing these alternative fuels will have on our environment, namely air and water quality.

We could stop our dependence on foreign oil overnight, if it wasn't for the tree hugging owl lovers in this country.

At least those companies have not bought American companies. They have just build factories here. My gripe is when our laws allow major American corporations to be bought out by foreigners. That should be against the law.
Mercedes should never have been allowed to buy Chrysler.

Alsmot 15 years ago I was a member of a group that hosted specialists on business and trade at our monthly meetings. These were world class folks. Back then I heard one guy predict how multinationalism of companies would evolve and everything he predicted has come to pass.

[Ron]

I thought Americans believed in free trade?
Or is it just when it is in your favor?:hypercoffee

[RevDWW]

Can anyone say "One World Government"?

[CC1]

I thought Americans believed in free trade?
Or is it just when it is in your favor?:hypercoffee

Many do believe in free trade as a concept. I don't.

[RevDWW]

Many do believe in free trade as a concept. I don't.

Ain't nothing "free"........

[Rico]

At least those companies have not bought American companies. They have just build factories here. My gripe is when our laws allow major American corporations to be bought out by foreigners. That should be against the law.
Mercedes should never have been allowed to buy Chrysler.

Alsmot 15 years ago I was a member of a group that hosted specialists on business and trade at our monthly meetings. These were world class folks. Back then I heard one guy predict how multinationalism of companies would evolve and everything he predicted has come to pass.

Brother, the only reason they bought it is because it was for sale. GM and Ford had their chance to buy it and weren't interested. I see what you are saying, but I don't see how it could work, given the fact that everyone participates in the global economy. If we back out where would it leave us? If we tell companies like Mercedes they can't buy our companies then they could tell us we couldn't buy theirs. Did you know the largest growing imported vehicle in China is Buick? Ford is very big in Europe. If we show them the door and they show us the door everyone loses. I wish we could figure out a way of better protecting our interests, but I don't really know how.

[Ron]

Many do believe in free trade as a concept. I don't.

I agree.

But only because it doesn't work and it isn't nesecarely free!

[Ron]

Can anyone say "One World Government"?

Or what is here right now-Globalism?

I am finding out now that most of those so called "hippies" protesting at the
WTO meetings actually have a point after all.

I talked with one about their tactics and he said and I quote, "they aren't listening and nothing else works-what have we got to lose?"

It is a scary thing when people stop listening.

[Ferd]

There is a reverse nuclear option. America can tell them we aint paying you a thin red yuan.

[Brother Strange]

The Chinese will hurt themselves more than us, if they do something like this. They are always making threats to do this or that. It's their style of negotiating. I've seen North Korea use the same tactics with the development of weapons grade nuclear material. They threaten to do this or that as a means of negotiating.

Not hardly. We would be hurt much worse than they will.

While our economy is still growing inspite of the growing credit crunch and the continued fall of the dollar, the Chinese economy is growing exponentially. It is predicted that in ten or less years it will surpass our own.

For instance, while we have approximately 40 major airports in the U.S., China will have more than 400. The fastest growing wealthy class in the world is in China as is also the growing middle class. They have artificially kept their currency low for the sake of exporting their goods, making them the largest manufacturing and exporting economy in the world. It is unfair to the American Economy for them to do this, taking away much of our competitive edge.

The greatest migration of people that has ever happened in history is going on in China right now as millions move off the collective farms under communism to the cities to seek their fortunes in a newly created capatilist society.

China is no North Korea.

[Ron]

Not hardly. We would be hurt much worse than they will.

While our economy is still growing inspite of the growing credit crunch and the continued fall of the dollar, the Chinese economy is growing exponentially. It is predicted that in ten or less years it will surpass our own.

For instance, while we have approximately 40 major airports in the U.S., China will have more than 400. The fastest growing wealthy class in the world is in China as is also the growing middle class. They have artificially kept their currency low for the sake of exporting their goods, making them the largest manufacturing and exporting economy in the world. It is unfair to the American Economy for them to do this, taking away much of our competitive edge.

The greatest migration of people that has ever happened in history is going on in China right now as millions move off the collective farms under communism to the cities to seek their fortunes in a newly created capatilist society.

China is no North Korea.

You are correct in this Elder except for two points.

China will surpass the US economicaly and be able to match the US in military
strength, not in ten years--just two and half.
Analysts predict.

Watch if they make a move toward Taiwan.

[Brother Strange]

Yes, this is correct.

If they move toward Taiwan, the U.S. will back down and will not honor their standing treaty of protection of them. The West has lost their resolve. The rest of the world knows it.

One bright spot in all of this is that there are more converts to Christianity in China than anywhere else, by far. Conversions are growing by leaps and bounds and is becoming more open and free.

[Praxeas]

The ironic thing is China is supposed to be Communist

[Ron]

The ironic thing is China is supposed to be Communist

The world is built on illusions.
Things that seem like they are-are not.
Things that seem what they are not-are.

Canada is viewed as a socialist country when in realty it has more right wing governments than the US.

We have provinces where there is a three week waiting period for welfare.
If you are eligible to work-you don't qualify unless there is an active job search.
The maximum welfare rate is 1,100 for a family-that don't even pay rent in most places. No food stamps up here.
The maximum time if you are employable you can only get welfare for two years-than it is finish time.

Hardly sounds Socialist, does it.

[OP_Carl]

The USA exporting almost all of it's manufacturing is a huge mistake. I am not a big believer in the benefits of an open world trade policy and economy.

I know the idea is that this interdependence will cause more cooperation and strengthen the reasons for getting along rather than war BUT at some point it means that we are no longer independent.

If I were king of the USA we would begin the process of making it difficult for foreign countries to own American companies, give disincentive to companies moving manufacturing offshore, and speed up the development and implementation of alternative fuel options for vehicles. This last would be to end our dependence on outside sources for oil. That should be a priority based on national security.

You're in favor of the protectionism and tarriffs that brought American industry to a point of horrible quality and stagnated innovation?

[Hesetmefree238]

At least those companies have not bought American companies. They have just build factories here. My gripe is when our laws allow major American corporations to be bought out by foreigners. That should be against the law.
Mercedes should never have been allowed to buy Chrysler.


It would be very difficult to make this against the law. These are PUBLICLY
traded companies. Anyone from any country can buy stock in these
companies, and stock is ownership. If we pulled all of the foreign investors
out of our stock market, our market would sink and stock prices would
fall drastically.

[Praxeas]

You're in favor of the protectionism and tarriffs that brought American industry to a point of horrible quality and stagnated innovation?
Was it protectionism and tariffs that did that or American smugness?

[Brother Strange]

Yesterday, I went in to a shop that rebuilds alternators and generators. The generator in my diesel tractor burned up so I went in to pick up a new one. While I was in there, there were two Chinese men who were trying to negotiate with the owners to buy them out.

The week before, I went in to see a man with whom I had been negotiating to buy his convience store and gas station in Houston. He told me that some Chinese people were pressing him to negotiate with them about buying his store. He told them that under no circumstances would he sell to a foreign concern.

Say, what's going on anyway? Are we being bought by the Chinese?

[tbpew]

Yesterday, I went in to a shop that rebuilds alternators and generators. The generator in my diesel tractor burned up so I went in to pick up a new one. While I was in there, there were two Chinese men who were trying to negotiate with the owners to buy them out.

The week before, I went in to see a man with whom I had been negotiating to buy his convience store and gas station in Houston. He told me that some Chinese people were pressing him to negotiate with them about buying his store. He told them that under no circumstances would he sell to a foreign concern.

Say, what's going on anyway? Are we being bought by the Chinese?

I thought that Chinese interests were the largest single purchaser of our T-bill issues? sorry if I am wrong --please feel free to correct.

If they are buying our internal "loans" that finance our deficit spending addiction, the irony of our dependance on their continued interest in "our interest" is very troubling. Just suppose they make an abrupt governmental change and our T-bill rate goes from 5% to 9%...will the US economy of 2008 survive another 'Nixon/Carter-years' double-digit cost of money without impoding on itself?

just wondering...

[Brother Strange]

I thought that Chinese interests were the largest single purchaser of our T-bill issues? sorry if I am wrong --please feel free to correct.

If they are buying our internal "loans" that finance our deficit spending addiction, the irony of our dependance on their continued interest in "our interest" is very troubling. Just suppose they make an abrupt governmental change and our T-bill rate goes from 5% to 9%...will the US economy of 2008 survive another 'Nixon/Carter-years' double-digit cost of money without impoding on itself?

just wondering...

These are questions that our finest economist are struggling with. Most that I've read do not see a good outcome. With the imploding credit makerts and the reluctance of investors to assume the credit risks, there is but one direction for the well being of our national economy, especially in view of the threatened Chinese readiness to call their investments.

This bleak outlook is reflected in the last two Friday's market dip. So far today, it looks like we are going to have another serious dip. It appears that all markets are plunging in value.

I hate to say "run for the hills," since over all, our economy has been expanding for the last few years, but I can only hope that this present credit crunch is only temporary. There are strong influences calling on the Fed Chairman to lower interests. Kramer went nuts on one MSNBC show, screaming his head off and slamming things around, while calling on the Chairman to lower rates. Well, I suspect the reason that he is gone ballistic is because his own billion dollar plus fund that he manages has lost millions.

[Digging4Truth]

The Chinese will hurt themselves more than us, if they do something like this. They are always making threats to do this or that. It's their style of negotiating. I've seen North Korea use the same tactics with the development of weapons grade nuclear material. They threaten to do this or that as a means of negotiating.

Generally when a lender requires an immediate & full accounting of all debts it is far more hurtful to the lendee than the lender.

There is no shortage of International loan takers. China can surely find another country to debt into submission after they call in their loan based ownership of this nation.

[Digging4Truth]

You're in favor of the protectionism and tarriffs that brought American industry to a point of horrible quality and stagnated innovation?

So we have now to the other far reaching extreme of that same pendelum.

So... do we... as we reach the apex of this swing...still rant about the last swing.

Both are harmful to the American economy and stability. Neither are the answer. There is a balance to be found unless we just love this fun pendulum thing we keep doing.

[Truly Blessed]

It certainly puts us in a bad position, but we would also be in a bad position
if they suddenly quit buying our treasury bonds. This is due to the fact that
our government spends more than what it receives in tax revenue. The only
way we can fund our deficit spending is through the selling of treasury bonds
which brings in the needed money to fund the deficit. Of course the best
solution would be to cut spending to equal what we receive in tax revenue.
This would solve the budget crisis, and we would not need the Chinese any
longer to buy our debt. On the flip side if we cut spending drastically at this
point it would possibly move us into a recession. What an economic tightrope!

Seems I recall the last president to accomplish a balanced budget was named Clinton. So, if you want to balance the budget perhaps you should be rallying behind Hillary in the next election. :)

[BrotherEastman]

At least Chrysler is once again an American company!!!!!!!!!!!!!
made in china, of course

[Hesetmefree238]

Seems I recall the last president to accomplish a balanced budget was named Clinton. So, if you want to balance the budget perhaps you should be rallying behind Hillary in the next election. :)

Are you kidding? She would spend us into oblivion. :killinme