11 replies to this topic

[nicolasillo]

http://www.atimes.co...y/IH11Dk01.html

[Wombat]

Fascinating and scary! Thanks for posting that!

[arbman]

Come on now, the Asian economies do not have the proper consumer base to self sustain and their over-production feeds many local families there by only exporting them. So go ahead and collapse the western currencies today, then collapse yourself into the same faith the next day. Nobody will buy from them, if it costs the same producing in Europe and US... The nuclear option is also self-destructive...

[nicolasillo]

Come on now, the Asian economies do not have the proper consumer base to self sustain and their over-production feeds many local families there by only exporting them.

So go ahead and collapse the western currencies today, then collapse yourself into the same faith the next day. Nobody will buy from them, if it costs the same producing in Europe and US...

The nuclear option is also self-destructive...

I m sure that you would say the same thing 10 years back if somebody told you that China and India were going to become what they are today

[underabigw]

Excellent article. Thanks for sharing it!

http://www.atimes.co...y/IH11Dk01.html

[arbman]

I m sure that you would say the same thing 10 years back if somebody told you that China and India were going to become what they are today

China and India might not be exactly the same as Japan or Taiwan who also kept their currencies depressed for decades to export. But I do not see much difference anyway, whenever you only sustain your economy by keeping your labor the same as the material costs, it is impossible to grow out of it no matter how hard you work. On the other hand, the western lifestyle is not also sustainable the way it is anyway. But, I do not think they chose to be that way, it is the flow of the world trade since the west managed to advance faster technologically and developed a culture based on consuming as it produced cheaper and cheaper...

Edited by kisacik, 11 August 2007 - 07:07 PM.

[nicolasillo]

I m sure that you would say the same thing 10 years back if somebody told you that China and India were going to become what they are today

China and India might not be exactly the same as Japan or Taiwan who also kept their currencies depressed for decades to export. But I do not see much difference anyway, whenever you only sustain your economy by keeping your labor the same as the material costs, it is impossible to grow out of it no matter how hard you work. On the other hand, the western lifestyle is not also sustainable the way it is anyway. But, I do not think they chose to be that way, it is the flow of the world trade since the west managed to advance faster technologically and developed a culture based on consuming as it produced cheaper and cheaper...

Don t take me wrong I was born and live in the West, but why and how the West has managed to produce cheaper and cheaper? Is it because of Asia??? or not?

[arbman]

Don t take me wrong I was born and live in the West, but why and how the West has managed to produce cheaper and cheaper? Is it because of Asia??? or not?

That's the problem, it doesn't matter who is producing it as long as you can profit from it, the West has still better resources to educate and grow by advancing in new ideas than the East. What will the East do if they can not even move their low margin products?!?

Chairman Bernanke has been trying to switch away from the easy credit gradually, this would reverse the negative savings rate, which is not sustainable in the long term. But apparently, he underestimated the heavy dependency...

- kisa

[n83]

Don t take me wrong I was born and live in the West, but why and how the West has managed to produce cheaper and cheaper? Is it because of Asia??? or not?

That's the problem, it doesn't matter who is producing it as long as you can profit from it, the West has still better resources to educate and grow by advancing in new ideas than the East. What will the East do if they can not even move their low margin products?!?

Chairman Bernanke has been trying to switch away from the easy credit gradually, this would reverse the negative savings rate, which is not sustainable in the long term. But apparently, he underestimated the heavy dependency...

- kisa

"..What will the East do if they can not even move their low margin products?!?"

low margin? - lol

and what will the West do when they do not get their low margin products (and high margin products)? who are far more accustomed to them - g

Edited by n83, 11 August 2007 - 08:37 PM.

[arbman]

who are far more accustomed to them - g

you sound like chicken and egg problem to me...

They did want to be part of the global economic machinery and this is where they fit the best, honestly. Otherwise, they would've done better already...