Politics is the real killer and the biggest variable by far. If China and Japan demand that the US pays their bills, then the country's wealth will plunge to the point where the economic fallout could be catastrophic. This would mean that very few Americans will enjoy the current lifestyles that have long separated Americans from other nations of the free world. This is the result of capitalism. Let the weak fail... which conceivably would imply weaker nations as well as businesses.

Another scenario, if Japan's currency keeps increasing in value, you can be sure that Japan will do whatever it takes to reintroduce trade barriers to limit the amount of foreign competition... with the view to protect its manufacturing industry. This will ensure that Japan's economy never results in a trade deficit... thereby limiting the likelihood of incurring debt. This is a totally different dynamic to the strategy adopted by the US in the past and precisely the reason why Japan (and China) has a big say on political matters concerning the US.

My point is basically this, manufacturing is important to a nation's well being. Without it, you send the wealth to the nations that will embrace it. We have already seen how those nations have prospered in proportion to the decline of other nations.

 

SSbaby.....well said.

 

Capitalism is not the problem. If we weren't spending money like a drunken sailor the Chinese wouldn't have us by the nadz. Our government needs to stop with all this spending and get it all under control. If that means we have it rough for a couple years because of it.....so be it. We're going to have it rough no matter what because the way we are printing money to cover all these ridiculous pork projects and entitlements......inflation is coming....and its not going to be pretty.

If you want manufacturing companies here in our country....make it worth it for them to do business here. When we have the 2nd highest corporate tax rate in the world its no wonder why companies choose to go to other places to set up shop.

 

I'm not understanding your message.

The rules of Capitalism are no government intervention! You are contradicting yourself if you expect the government to put up barriers/taxes on imported Chinese goods.

Sometimes I wonder if people really understand what they preach?

 

Where did you get taxing the chinese out of what I said? What I meant is to lower the taxes on our corporations and small businesses to make them more competative in the global market.

 

Please get back on topic. Wanna directly address each other one on one? Do it privately. E-mail, PM, whatever.

 

Bingo. and for the slow people who don't understand how this mess was not created by capitalism, your earlier post...

Loaning money to those who couldn't pay it back was a government created idea that runs counter to capitalism. Who really believe bankers are in the business of loaning money to people they know can't pay it back? Exactly, they did it because they planned on selling that bad paper ASAP. And it was government backed institutions (FMs) that were buying that bad paper.

 

1Fast, I know greed caused this not Capitalism, true.

I hear that a lot, and it's true for many.
BUT...there were ALSO many who defaulted on loans they COULD afford..."IF"...their good paying job, with good benefits weren't pulled out from under their feet.
A lot of working middle class Americans (millions) in manufacturing.
And I find it very hard to believe that people honestly believed there would be no repercussions.
The proverbial crap hit the fan...