Multinational Corporations and The Export of American Wealth…

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Doc
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Multinational Corporations and The Export of American Wealth…

Post by Doc » Wed Aug 14, 2019 12:05 pm

https://theconservativetreehouse.com/20 ... an-wealth/
Multinational Corporations and The Export of American Wealth…

To understand the larger objectives of the global and financial elite it is important to understand the three-decade global financial construct they seek to protect. Global financial exploitation of national markets:

♦Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.
♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

neverfail
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Re: Multinational Corporations and The Export of American Wealth…

Post by neverfail » Wed Aug 14, 2019 2:37 pm

Just then other day we had to install a new hot water service after our old one packed it in. The technician/salesman who attended offered us a choice of several different makes and models. The one we picked has previously been made in China but is (beginning this year) now being manufactured in Australia.

We picked this one without fear. The fact that it was being made in Australia meant that it had to comply with our consumer protection laws.

Now this is something new. Manufacturing relocating from the PRC back to Australia. This is not due to any discriminatory tariffs imposed by this country on imports from China (we would not dare) but reflects the fact that production costs in China have risen to the point where it is now cost-effective again to make then here in Australia once more.

I do not believe that this will be the last manufacturing enterprise to make the trek back. Nor among high-cost developed countries Australia is likely to be the sole beneficiary.

Doc: instead of indulging in conspiracy theories fed by bullshit websites, why not reconcile yourself to the fact that in recent decades it has been more cost-effective for firms to make a range of products in third countries, especially products that combine a high labor content with narrow profit margins, rather than make them at home. Furthermore, competition at the retail level means that once one firm in the industry lowers production costs by making their product in lower cost havens abroad the others have had to do the same to retain their competitive advantage.

With production costs having risen in China it is likely that, when the production does not migrate sideways from China to countries with still lower production costs they will likely gravitate back to the home country - as is the case with our recently purchased hot water service.

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Re: Multinational Corporations and The Export of American Wealth…

Post by Doc » Wed Aug 14, 2019 4:09 pm

neverfail wrote:
Wed Aug 14, 2019 2:37 pm
Just then other day we had to install a new hot water service after our old one packed it in. The technician/salesman who attended offered us a choice of several different makes and models. The one we picked has previously been made in China but is (beginning this year) now being manufactured in Australia.

We picked this one without fear. The fact that it was being made in Australia meant that it had to comply with our consumer protection laws.

Now this is something new. Manufacturing relocating from the PRC back to Australia. This is not due to any discriminatory tariffs imposed by this country on imports from China (we would not dare) but reflects the fact that production costs in China have risen to the point where it is now cost-effective again to make then here in Australia once more.

I do not believe that this will be the last manufacturing enterprise to make the trek back. Nor among high-cost developed countries Australia is likely to be the sole beneficiary.

Doc: instead of indulging in conspiracy theories fed by bullshit websites, why not reconcile yourself to the fact that in recent decades it has been more cost-effective for firms to make a range of products in third countries, especially products that combine a high labor content with narrow profit margins, rather than make them at home. Furthermore, competition at the retail level means that once one firm in the industry lowers production costs by making their product in lower cost havens abroad the others have had to do the same to retain their competitive advantage.

With production costs having risen in China it is likely that, when the production does not migrate sideways from China to countries with still lower production costs they will likely gravitate back to the home country - as is the case with our recently purchased hot water service.
1) It is not a bullshit web site
2) I have known what the article says is true for a long time. At one point Walmart was importing more products from China, $31 billion, than were being imported in total(by all companies) from the UK in that year.
3) US manufactures pay the Chinese $100 for every $1000 they sell Chinese products for in the US.That is some really big profits. Which is why there is so much opposition on Wall Street to tariffs.

As for manufacturing plants moving they are getting out of China because of the politics in China and to a lessor degree the tariffs, which may change drastically in the near future. Then there would be a stampede to get out of China.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

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Re: Multinational Corporations and The Export of American Wealth…

Post by Milo » Thu Aug 15, 2019 8:06 am

I am not sure of a stampede. Robots don't stampede.

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Re: Multinational Corporations and The Export of American Wealth…

Post by Doc » Thu Aug 15, 2019 11:00 am

Milo wrote:
Thu Aug 15, 2019 8:06 am
I am not sure of a stampede. Robots don't stampede.
The Chinese own the robots. They aren't going anywhere.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

neverfail
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Re: Multinational Corporations and The Export of American Wealth…

Post by neverfail » Thu Aug 15, 2019 7:50 pm

Doc wrote:
Wed Aug 14, 2019 4:09 pm

1) It is not a bullshit web site
2) I have known what the article says is true for a long time. At one point Walmart was importing more products from China, $31 billion, than were being imported in total(by all companies) from the UK in that year.
3) US manufactures pay the Chinese $100 for every $1000 they sell Chinese products for in the US.That is some really big profits. Which is why there is so much opposition on Wall Street to tariffs.
No doc. I doubt whether your purported info on the exorbitant profitability of manufactured imports from China are right. Where did you dig up those figures from?

The reason for the opposition from Wall Street to tariffs is because the traders there have a much better grasp on how the economy actually works than that blathering fool of a president of yours and his equally vacuous supporters. They understand that it is not the Chinese who pay the cost of the tariffs but American consumers who foot the bill. The tariffs only serve to unnecessarily raise your cost of living: and that harms other sectors of the US economy.

https://www.reuters.com/article/us-usa- ... SKCN1V31JE
Doc wrote:
Wed Aug 14, 2019 4:09 pm
As for manufacturing plants moving they are getting out of China because of the politics in China and to a lessor degree the tariffs, which may change drastically in the near future. Then there would be a stampede to get out of China.
No, they are getting out because production costs has risen to the point that it is no longer profitable to produce low value manufactured items for export there. Just in case you harbor the illusion that the USA is China's only external trading partner, in fact it trades more widely with the rest of the world.

https://oec.world/en/profile/country/chn/

I count US imports of $476 billion from the PRC as 19.75 % of their $2.41 trillion exports total to the entire World. Still China's biggest single external trading partner but easily overshadowed by the more than 80% of exports that go elsewhere.

Just to put things back in their proper perspective.

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Re: Multinational Corporations and The Export of American Wealth…

Post by Doc » Fri Aug 16, 2019 2:04 pm

neverfail wrote:
Thu Aug 15, 2019 7:50 pm
Doc wrote:
Wed Aug 14, 2019 4:09 pm

1) It is not a bullshit web site
2) I have known what the article says is true for a long time. At one point Walmart was importing more products from China, $31 billion, than were being imported in total(by all companies) from the UK in that year.
3) US manufactures pay the Chinese $100 for every $1000 they sell Chinese products for in the US.That is some really big profits. Which is why there is so much opposition on Wall Street to tariffs.
No doc. I doubt whether your purported info on the exorbitant profitability of manufactured imports from China are right. Where did you dig up those figures from?
That was a widely mention factoid from a few years ago. Plenty of talk about it then. More of a warning that China could drastically raise prices on what it exports at anytime.
The reason for the opposition from Wall Street to tariffs is because the traders there have a much better grasp on how the economy actually works than that blathering fool of a president of yours and his equally vacuous supporters. They understand that it is not the Chinese who pay the cost of the tariffs but American consumers who foot the bill. The tariffs only serve to unnecessarily raise your cost of living: and that harms other sectors of the US economy.


It doesn't take a genius to figure out that US wages were stagnant from the time Chinese imports really got going until Trump was elected. What do cheap prices have to do with anything if you aren't making the money to pay for them? 70,000 US factories were shipped over seas from 2000 until Trump took over as POTUS.

As for Trump supporters Here is what your loonie left brothern in the US have to say about Trump supporters:
genocide.png
genocide.png (48.52 KiB) Viewed 67 times


https://www.reuters.com/article/us-usa- ... SKCN1V31JE
Doc wrote:
Wed Aug 14, 2019 4:09 pm
As for manufacturing plants moving they are getting out of China because of the politics in China and to a lessor degree the tariffs, which may change drastically in the near future. Then there would be a stampede to get out of China.
No, they are getting out because production costs has risen to the point that it is no longer profitable to produce low value manufactured items for export there. Just in case you harbor the illusion that the USA is China's only external trading partner, in fact it trades more widely with the rest of the world.

https://oec.world/en/profile/country/chn/

I count US imports of $476 billion from the PRC as 19.75 % of their $2.41 trillion exports total to the entire World. Still China's biggest single external trading partner but easily overshadowed by the more than 80% of exports that go elsewhere.

Just to put things back in their proper perspective.
last year it was $550 billion in exports to the US.

The Chinese are still selling cheap junk because that is what US retailers want. That is why the tariffs hurt them. AND they just devalued the Yuan to try to stop the bleeding of US companies moving to other countries.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

neverfail
Posts: 3827
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Re: Multinational Corporations and The Export of American Wealth…

Post by neverfail » Fri Aug 16, 2019 3:33 pm

Doc wrote:
Fri Aug 16, 2019 2:04 pm



1) It is not a bullshit web site
2) I have known what the article says is true for a long time. At one point Walmart was importing more products from China, $31 billion, than were being imported in total(by all companies) from the UK in that year.
3) US manufactures pay the Chinese $100 for every $1000 they sell Chinese products for in the US.That is some really big profits. Which is why there is so much opposition on Wall Street to tariffs.
neverfail wrote:
Thu Aug 15, 2019 7:50 pm
No doc. I doubt whether your purported info on the exorbitant profitability of manufactured imports from China are right. Where did you dig up those figures from?
Doc wrote:
Wed Aug 14, 2019 4:09 pm
That was a widely mention factoid from a few years ago. Plenty of talk about it then. More of a warning that China could drastically raise prices on what it exports at anytime.
Could it have done so with impunity? Only is market demand in the US allowed it to (and as you correctly point out, wages and salaries in the US have been stagnant for years). More likely any precipitous move by the Chinese to raise prices of what they export would have resulted in lost business.
neverfail wrote:
Thu Aug 15, 2019 7:50 pm
The reason for the opposition from Wall Street to tariffs is because the traders there have a much better grasp on how the economy actually works than that blathering fool of a president of yours and his equally vacuous supporters. They understand that it is not the Chinese who pay the cost of the tariffs but American consumers who foot the bill. The tariffs only serve to unnecessarily raise your cost of living: and that harms other sectors of the US economy.

Doc wrote:
Wed Aug 14, 2019 4:09 pm
It doesn't take a genius to figure out that US wages were stagnant from the time Chinese imports really got going until Trump was elected. What do cheap prices have to do with anything if you aren't making the money to pay for them? 70,000 US factories were shipped over seas from 2000 until Trump took over as POTUS.


It is not just in the US that wages and salaries have been stagnant doc - this is a phenomenon currently evident in ALL of the (allegedly) rich, developed countries (yep, even here in blessed Australia we have the same economic syndrome) and I do not accept that the ability of China to attract foreign capital is the root cause of it. What do cheap prices have to do with it? If Americans with their stagnant incomes had to pay higher prices they would (logically) have experienced being worse off then they are now. It does not take a genius to figure that one either Doc.

Catch 22?
Doc wrote:
Wed Aug 14, 2019 4:09 pm
As for Trump supporters Here is what your loonie left brothern in the US have to say about Trump supporters:

genocide.png
:lol: I have no looney left brothers in the U S at all Doc since I am not that way inclined to lean that way myself. Sorry if some of the challenging stuff I post gives you that impression but that is the price I pay for being an iconoclast. As for the outrageous content of that link well, in your country even members of the loony left are guaranteed the right to free speech by your constitutions and there is nothing that either I or you can do to stop them from exercising that right.

Freedom means that at times you must be willing to suffer the insufferable.
Doc wrote:
Wed Aug 14, 2019 4:09 pm
As for manufacturing plants moving they are getting out of China because of the politics in China and to a lessor degree the tariffs, which may change drastically in the near future. Then there would be a stampede to get out of China.
neverfail wrote:
Thu Aug 15, 2019 7:50 pm
No, they are getting out because production costs has risen to the point that it is no longer profitable to produce low value manufactured items for export there. Just in case you harbor the illusion that the USA is China's only external trading partner, in fact it trades more widely with the rest of the world.

https://oec.world/en/profile/country/chn/

I count US imports of $476 billion from the PRC as 19.75 % of their $2.41 trillion exports total to the entire World. Still China's biggest single external trading partner but easily overshadowed by the more than 80% of exports that go elsewhere.

Just to put things back in their proper perspective.
last year it was $550 billion in exports to the US.

Doc wrote:
Wed Aug 14, 2019 4:09 pm
The Chinese are still selling cheap junk because that is what US retailers want. That is why the tariffs hurt them. AND they just devalued the Yuan to try to stop the bleeding of US companies moving to other countries.
Us Retailers are ordering that "cheap junk" in response to market signals - which is to say that they know that American consumers love a bargain. Probably more so now that straitened family budgets are the norm than before. As for devaluation of the Yuan: since the PRC currency is not, unlike the US dollar, the world's reserve currency that option is certainly open to them. Further, since the Chinese Yuan is not a freely floating currency the ability of the PRC central bank to manage the exchange rate value of the Yuan is proportionately greater.

In a war you use whatever weapons you have at hand inn order to win. Trump has the bludgeon of tariffs to use on the PRC and the PRC has the stiletto of exchange rate devaluation to use in retaliation.

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