kujebak wrote:
> On Mar 22, 2:35 pm, kiril <kir...@[EMAIL PROTECTED]
> wrote:
>> kujebak wrote:
>>> What does prof. Kyn think of the distinct possibility
>>> of Democrat victory in November, and its compound
>>> effect on the wave of protectionism that is currently
>>> sweeping both ends of the spectrum of political opinion
>>> in the US? Is it more likely for a Democrat in the White
>>> House to pull up the brake on trade with China, or a
>>> Republican? To me that's a rhetorical question. Look
>>> at the current volatility in the glogal financial markets.
>>> I think the Democrats are quite capable of slamming
>>> tariffs on Chinese goods in an effort to reestablish
>>> some sort of trade balance, and killing the world eco-
>>> nomy in the process. Are we staring in the maw of
>>> another Great Depression?
>>> Where is E-strejda when you need him?
>> The US can't function without Chinese goods. It im****ts more
>> industrial goods than it produces. Since it would take much longer
>> than a year if not decades for the US to revert to the economic
>> regime of the 1960s it would be a massive shock to cut China off.
>>
>> The US is trapped in the hole it dug itself. Financial instruments
>> are not s substitute for manufacturing. As the dollar loses its value,
>> the US economy will shrivel up. The opposite of what would happen
>> if there was a robust manufacturing base that would be stimulated by
>> a lower dollar.
>
> I beg to differ with your analysis. The US is eminently
> capable of reverting to manufacturing self-sufficiency,
> It is a lot easier to reestablish manufacturing, than it
> is to develop a market for manufactured goods, such
> as we have in this country. Look how long it has taken
> Japan to catch up with its own manufacturing capacity.
> The only thing this country is lacking for that to happen
> is an economic incentive. Foreign consumer goods are
> just too cheap. Explain to me how that is a problem
> for the U.S.
Your question is a non sequitur to your paragraph and also
unclear.
Protectionism will not save the US. You can't build plants
in a few months. There is no infrastructure in the US for
the kind of economic transition you are dreaming about.
The US is literally a paper tiger propped up by the illusion
of its mighty economy which is one big credit bubble with no
physical substance to it. In other words it is one grand
confidence racket.
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