Quote:
Originally Posted by OneHungLo
Your hatred of the USA is blinding you of the sheer buying power we have.
Look at these trade imbalances:
China - $636 billion traded with a $375 billion deficit.
Canada - $582 billion traded with an $18 billion deficit.
Mexico - $557 billion traded with a $71 billion deficit.
Japan - $204 billion traded with a $69 billion deficit.
Germany - $171 billion traded with a $65 billion deficit.
Do you understand just about every country we trade with we have a deficit?
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obviously you are not able to produce the same quality for the same price - if so nobody would need to import it.
and possibly you never asked where the surplus (with the countries you have one) would be if you could not import from countries for a cheap price.
this deficits are ruled by the markets.
no goverment is ordering goods - the companies do that - and they do it because it makes them able to produce on a price where they can be competitive on EXPORTS.
example: if you order 1 million mercedes benz in germany because the US market wants them - there is no reason for germany to import 1 million chryslers for that when the market does not want them.
with other words: a country IMPORTS what they need and what the other country do better.
you fucking deficit is based on your crazy system - thatīs all.
i will tell you how this is done and WHY it can not be stopped:
1. company XXX imports 1 million tonns of steel from china.
2. company XXX produces 5000 machines from that for the export market
3. company XXX exports the 5000 machines on a cheap price to itīs daughter company
in singapore.
4. the daughter company sells it on a much higher price to china and the money will stay in singapure
and BANG!!!! you have a deficit with china !!!
now lets have a look what happens when the steel from china will be too expensive:
1. company XXX buys 100.000 tonns of stell from US
2. company XXX produces 500 machines for the US market (because they will not be able to sell it to anybody)
3. for a 10% production company XXX needs only 10% of the workers - 90% will be fired
4. the doughter company in singapore will be closed but as china needs the machines they will order it somewhere else - and they EXPORTS this steel to some other countries
where company XYZ will do this job and create a lot of new jobs.
but why i explain you that?
you will not understand this basic rules anyway.
keep on dreaming !!!
ahhhh - and by the way - do you know how your deficit with canada works?
because a lot of american and canadian companies are buying stuff together.
if the joint imports of both countries entering US first the are calculated to the US imports from the country they came from - even when they are straight delivered to Canada.
if those imports are entering Canada first and are delivered to USA they will be calculated as imports from Canada.
so before you write nonsense (or go to vote for a monkey) make yourself smart (if there is any chance for that).