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Wall Street new round of layoff

US is the largest importer of Chinese goods, and China is the largest holder of US debt. It's the mutual relationship.

China's economy is very much export oriented and China's internal consumption is nearly not enough to sustain the economic growth. China's nation has the highest savings rate in the world, they just do not spend very much.

Well, since the Bank of China is printing all the yuans to buy up the US dollar to maintain the peg, sure, chinese people cain't consume as much as they would like to because of all the inflation created by their central bank.

And again, remember, China is LENDING the US money in order for them to buy CHINESE products, lol

See it this way,

There's an island with 5 people on it. 4 asians and 1 american.
The 1st asian's job is to gather wood....the 2nd one job is to go fishing...3rd one is to build a wood house and the 4th one job is prepare the meals.

The american's job is to consume what the 4 asians produced (this is the actual economic situation).

Now you got this 'modern economist' that comes in and tell you : ''See, without the american, these poor asians wouldn't know what to do, couldn't consume, and wouldn't have jobs'' (this is what we constantly hear in the mainstream media).

And of course, this is non sense. To the contrary, if the asians kicked the american off the island, they could consume their own products and maybe even take some time off to relax on the beach!

Economic growth is based on savings and production (why you think china is taking over?) and NOT on consumption and borrowing (why you think the US is sinking?).

Just keep this in mind, since we measure the 'biggest' economies based on their GDP numbers, remember that the US GDP is 70% consumption based on borrowed money, lol....so their GDP can evaporate in a heartbeat.
 
Agreed. There are signs that this is already happening. So many more stories coming out these days of gang violence, flash mobs, absurd thefts...
Flash mobs aren't necessarily violent or bad though..!
And there's always outrageous stories on the news. If it wasn't so, it wouldn't be news, now would it?
 
Economic growth is based on savings and production (why you think china is taking over?) and NOT on consumption and borrowing (why you think the US is sinking?).
Agreed heartily.
 
Flash mobs aren't necessarily violent or bad though..!
And there's always outrageous stories on the news. If it wasn't so, it wouldn't be news, now would it?

Seriously? Um, the frequency is picking up, that's for certain. Do you even read aggregated news sources on a daily basis? A good one to look into would be http://www.drudgereport.com . And by flash mobs I was referring to flash mobs of gangbangers, not carolers in a mall. I would consider this to be violent.
 
Seriously? Um, the frequency is picking up, that's for certain. Do you even read aggregated news sources on a daily basis? A good one to look into would be http://www.drudgereport.com . And by flash mobs I was referring to flash mobs of gangbangers, not carolers in a mall. I would consider this to be violent.
Would you care to show actual quantitative data, instead of just re-iterating your speculations?
 
Can you quote where I said there is an increase in crime rates? I was referring to many reports of particularly indicative forms of civil disobedience occurring in the US, not to even mention around the world. I could list dozens of recent news stories of these such incidents but I'm sure you're plenty capable of doing some research. You should try to incorporate qualitative data into your world view; it would really help you I think. Not everything is about numbers or pompously trying to prove someone wrong. I'm done wasting my time responding to your trolling.
 
Would you care to show actual quantitative data, instead of just re-iterating your speculations?

Well, remember...when it comes to violence etc...alot of times these crimes are not reported in the ''ghetto''. And since the economic situation is only getting worse, more and more people will move where the housing is cheap (ie, in the ghetto).

This means, more crimes commited and less reported.

It is hard to get the real data on this so I'm just going by logic. A good test would be to drive around a ghetto so each one of us can make his own idea on the subject (confront governement numbers with reality).
 
Well, remember...when it comes to violence etc...alot of times these crimes are not reported in the ''ghetto''. And since the economic situation is only getting worse, more and more people will move where the housing is cheap (ie, in the ghetto).

This means, more crimes commited and less reported.

It is hard to get the real data on this so I'm just going by logic. A good test would be to drive around a ghetto so each one of us can make his own idea on the subject (confront governement numbers with reality).
Sure, but you can't really say if it is deviating from the norm unless you used to do this in the past.
 
Looks like anyone who has an opinion around here nowadays is a troll! What the hell? Open your eyes, people!
 
Well, remember...when it comes to violence etc...alot of times these crimes are not reported in the ''ghetto''. And since the economic situation is only getting worse, more and more people will move where the housing is cheap (ie, in the ghetto).

Crime rates are going up -- I just don't think they're necessarily reflected in the official stats. Also, the crimes seem to be becoming more violent, at least in my neck of the woods. If one lives in a gated community or in an expensive 'burb with vigilant police, one may be insulated from what's happening elsewhere.

On the other hand, I don't see much evidence of "civil disobedience" -- riots, demos, strikes -- the kind of collective action that might affect government policy. There are reasons for this. The US doesn't have a recent history of this; a heterogeneous group of people finds it difficult to find common cause; and the authorities stomp on this vigorously (whereas they're much more complacent about street crime in deprived areas).
 
Crime rates are going up -- I just don't think they're necessarily reflected in the official stats. Also, the crimes seem to be becoming more violent, at least in my neck of the woods. If one lives in a gated community or in an expensive 'burb with vigilant police, one may be insulated from what's happening elsewhere.

On the other hand, I don't see much evidence of "civil disobedience" -- riots, demos, strikes -- the kind of collective action that might affect government policy. There are reasons for this. The US doesn't have a recent history of this; a heterogeneous group of people finds it difficult to find common cause; and the authorities stomp on this vigorously (whereas they're much more complacent about street crime in deprived areas).
I can agree to that. I'd understand if crime rates go up with a declining economy. But I haven't seen any indication of rebellion-like activity going on either.
 
I can agree to that. I'd understand if crime rates go up with a declining economy. But I haven't seen any indication of rebellion-like activity going on either.

When people -- especially youngsters -- are alienated and isolated in an atomised society where one is told one is individually responsible for one's problems, street crime -- drug pushing, robberies, thefts, carjacking -- is what occurs. Eventually, as US society becomes more polarised, the crimes will become more serious -- kidnappings, hold-ups, staged armed robberies, robbery-associated murders. Like Brazil and Mexico (remember the US gini coefficient is approaching that of these countries). And there isn't much social glue or cohesion in US civil society to begin with. The rich will soon be living in a state of siege. Seen it all before.

Interesting to contrast the USA with Europe, where concerted social action is taking place. Indeed, many commentators have pointed out that there is very little happening in the US along these lines, and that what little does occur peters out (like Wisconsin). Again, there are reasons for this, grounded in US history of the last few decades.
 
Mexico has kidnapping and extreme violence (in certain areas) because of corruption and a weak control of the country. The USA would never, EVER get like that. New Orleans was probably the most extreme this country can get and what happened? We called in the national guard and brought in federal forces and it was done. A lot of the reports of mayhem were either exaggerated or not true. This is not to say that there wasn't a break down or chaos, but absolutely not third world stuff.

Crime is decreasing in the US. Watching the news and trying to infer anything from that is utterly useless. We are still in the middle of a shaky recovery with unemployment that the USA is not particularly used to. In an environment like this new sources will report negative incidence.

I really don't understand how the US is becoming polarized. I am nearly 30 and for 30 years I have seen low skilled manufacturing go overseas. This country simply is not conducive to low value added manufacturing. People have known for the longest time that an education is key, yet people still fail to go to college. Considering that ANYONE can go to community college and then state universities, all low cost and with guaranteed federal loans, I believe the onus is on the individual to prepare themselves for the working world.

As for this whole argument that because China lends the US money to consume Chinese good, it simply doesn't work. Suppose China stopped lending the US money and the US stopped buying Chinese goods. China, today and in the near future, does not have enough consumers to keep their population employed. Also, if China truly became that antagonistic towards the US, guess what? We would bring our factories back to the US and employ our own people who would in turn buy US made goods.

China is a Communist controlled nation. The ruling political party cares about one thing and one thing only: staying in power! You know how an authoritarian nation maintains control? Through a large state control mechanism and keeping the populace generally happy. China might have a lot of growing middle class consumers, but the nation as a whole is still extremely poor and undeveloped.

I am honestly getting tired of this whole China vs. USA issue. China is a developing nation. The USA is developed. The worst standard of living in this country is better than the majority of living in China. I want China to grow and develop. They are not our enemy and attempting to portray things as one nation winning or losing is completely off base.

Final note, the WHOLE world is having economic issues. Economies heat up and cool down. Industries go out of business, become antiquated, etc. That is life. People should focus on adapting, learning and accepting change instead of pointing fingers at other countries or other people. The USA is the land of OPPORTUNITY, not hand outs and guarantees. Somewhere along the line people got this idea that being born in this country meant that they should be given everything.
 
What's the topic here?
I thought we are talking about the possible new round of the Wall St. job cuts.
 
I'm of the school of thought that one should be equipped with skills that can translate into at least 2 industries. Programming skills are the perfect candidate for it.
You can work for banks, tech companies (Google, MS), start your own company, etc.

Being able to program is a useful skill to have.
 
Well, since the Bank of China is printing all the yuans to buy up the US dollar to maintain the peg, sure, chinese people cain't consume as much as they would like to because of all the inflation created by their central bank.

And again, remember, China is LENDING the US money in order for them to buy CHINESE products, lol

See it this way,

There's an island with 5 people on it. 4 asians and 1 american.
The 1st asian's job is to gather wood....the 2nd one job is to go fishing...3rd one is to build a wood house and the 4th one job is prepare the meals.

The american's job is to consume what the 4 asians produced (this is the actual economic situation).

Now you got this 'modern economist' that comes in and tell you : ''See, without the american, these poor asians wouldn't know what to do, couldn't consume, and wouldn't have jobs'' (this is what we constantly hear in the mainstream media).

And of course, this is non sense. To the contrary, if the asians kicked the american off the island, they could consume their own products and maybe even take some time off to relax on the beach!

Economic growth is based on savings and production (why you think china is taking over?) and NOT on consumption and borrowing (why you think the US is sinking?).

Just keep this in mind, since we measure the 'biggest' economies based on their GDP numbers, remember that the US GDP is 70% consumption based on borrowed money, lol....so their GDP can evaporate in a heartbeat.

You are sort of taking my post out of the flow of the previous posts.

Production is nice, however if no one is buying the produced goods then the production goes to waste. China is producing more than they can consume internally, hence they need US and others to buy their goods and services. Your four Asians surely would survive on the island. Their GDP would grow ~1%, but would they grow 15% year after year without selling their stuff to external consumers?

China is buying US Treasures not just to lend money but also to satisfy their savings.

I do not think this is the correct statement: "the US GDP is 70% consumption based on borrowed money". GDP is measured in produced goods and services and US GDP is 70% based on services.
 
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