China Rising, II

Yesterday, it was announced that Geely, a Chinese auto company bought Volvo, formerly owned by Ford (a little known fact to all the Volvo drivers who thought it was a company from Sweden, which it once was).  Geely's major financier?  Goldman Sachs.  And Goldman Sachs  is funding this deal.

Great article here about why American taxpayers may end up holding the bag, again, with these "too big to fail" banks.

We're Not Out of the Woods

Buried deep in this article about European economic issues, and today's declining stock market, are woeful employment numbers.

And one more thing. The economic battles between the US and China are just beginning. For years, China, eager to jump-start it's economic juggernaut with cheap labor, inexpensive raw materials, and oppressive government, would at least occasionally kow-tow to American demands. But no longer. They own us, they don't have to do what we ask. The kidnap a human rights activist (and refuse to disclose if he is even alive), the execute a Briton convicted of selling drugs, they smile at Copenhagen but balk at any emission restrictions or real reductions, and they somehow hack into Google...

So, America, how does it feel to be Briton in 1930?

China Rising

Click here to read a fascinating article on China's ascendency in the world.

Googling China

Of course, everyone knows the "business model" for Google is selling ads. So when someone or something in China began hacking into systems in the US and interfering with Google, well, the largest company finally decided to stamp it's feet and tell China where to go! For so many businesses, they salivate at China right now: lots of money, largest population...if only we can get them to spend...

It never bothered Google that China enforced a censorship on them before, but now when it looks like their credibility to deliver "product" might suffer...

Show me the money, Google!

It's About Economic Growth!

Gasp! The Climate Change talks stalled today when the so-called developing nations under the Kyoto Treaty walked out.

But the actions of the G-77 (the 77 developing nations) were controlled by India and China, who do not want to be regulated as if they are developed nations. They want to be able to spew out more CO2 until they feel they are totally dominating the world's economic engine.

Way to get them back to the table? Stop buying stuff from China.

Talk But Where Is The Action in Copenhagen?

China and India, emitting more green house gases than the US and the European Union, are trying to "talk the talk" in Copenhagen. But, ironically, both nations are on a consumption binge, emulating what the US has been doing for the past several decades.

It's going to be a little hard to curb green house gases if you're driving millions of Humvees or Cadillac Escalades. And, to the surprise of no one, China has essentially surpassed the United States as the world power, because of it's boundless economic growth. The box that China and to some degree India is in, is that to scale back this growth will be politically unsettling.

The question is, then, are the promises of reductions in emissions just talk?

China First

I thought this article was a fantastic analysis on why China now dominates the world economy (in my opinion they are not a developing nation, they are fully developed) and how America's corporate leaders made China what it is today.

There is nothing wrong with buying American!

Making It In America

There was a fascinating article in Monday's New York Times about manufacturing in America. Troubling was the news that we are almost dead last among so-called developed nations in manufacturing. Last is France. This is not good news.

If we want to develop an economy that does not experience the ravishes of boom and busts, we simply must wean our reliance off of cheap products from overseas. And we must develop those manufacturing jobs which create and sustain a middle class.

An added component in this discussion about the economy has got to be health care and whether we want to continue, as a society, to rely upon employers to provide it as a benefit, whether it is taxed as income, and how to address the reality that very few people stay in the same job their whole lives.

We have succumbed to the flame-throwers who say by advocating "made in America" we are shutting the door to free-trade. I believe we are taking control of our money, just like families who are weaning themselves off of credit card debt. China, who has tons of cash, keeps taunting us as the world's largest market. But what, really, do we have to market to them? What do we build here that they need? We have got to at least equalize the trade deficit so jobs, good jobs, are created here at home and we're not supporting some repressive toy factory in China.

Our failure to figure this out may result in a further deepening of the depression, despite the current glimmers of hope.

China and the US Economy

News that a Chinese company may buy Hummer from GM along with Secretary of Treasury Geithner's comments that "China feels secure with the US economy," seems startling.  Several years ago a the Chinese government voiced it's interest in purchasing Standard Oil, the company started by John Rockefeller, but the idea was quashed by the government.  Now that we, the taxpayer, owns Hummer, along with the rest of GM, we may sell it to China.  

So let's see how this works.  The largest polluting country in the world purchases a large, gas guzzling car manufacturer.  Analysts say the company would be moved to China to sell Hummers to Chinese and Russians.  Adding, of course, more carbon into the air as well as consuming more oil.  Makes sense?

Then, of course, there is the comment by our own Secretary of the Treasury.  He went to China to assure them, our largest creditor, that we are solvent.  Think about that.  He did what thousands of home owners are having to do, call their mortgage company to tell them the check is in the mail!  

May we live in interesting times.