The wealth of 1st world countries is being transferred to third world countries who can afford to work for next to nothing to manufacture inexpensively. With billions living in third world countries this will destroy a lot of wealth for the richer nations who are getting a bit of a wake up call trying to spend hundreds of billions of dollars more then they take in to prevent the wealth destruction. Wealth destruction by trade deficit...
Wealth transfer to third world countries causing much of the financial crisis
- Thread starter Archin
- Start date
The old days are over;
There are 192 countries in the world of which more than 100 of them manufactures automobiles
And what is the almighty superpower supergenius America is doing?
They waste their hardly earned money with subsidizing what a 3rd world country can manufature also.
America is decaying fast.
There are 192 countries in the world of which more than 100 of them manufactures automobiles
And what is the almighty superpower supergenius America is doing?
They waste their hardly earned money with subsidizing what a 3rd world country can manufature also.
America is decaying fast.
There is no wealth transfer to 3rd world countries. We pay them in dollars which they then can only spend on t-bonds so that money just goes back to us.
I know what you are thinking...we pay interest on those bonds....yes, but we pay the interest in dollars which they can only then use to buy t-bonds, so in a way...they produce our products and then give us back our paper money in exchange for a different piece of paper. Great scam, huh?
I know what you are thinking...we pay interest on those bonds....yes, but we pay the interest in dollars which they can only then use to buy t-bonds, so in a way...they produce our products and then give us back our paper money in exchange for a different piece of paper. Great scam, huh?
Quote from peilthetraveler:
There is no wealth transfer to 3rd world countries. We pay them in dollars which they then can only spend on t-bonds so that money just goes back to us.
I know what you are thinking...we pay interest on those bonds....yes, but we pay the interest in dollars which they can only then use to buy t-bonds, so in a way...they produce our products and then give us back our paper money in exchange for a different piece of paper. Great scam, huh?
There's a lot of other assets up for grabs besides just t-bonds, all of which can be considered wealth.
Not enough that they can buy without driving the price up and causing massive inflation. Gold? Imagine china trying to buy a trillion dollars worth of gold. How fast would gold hit $50k per oz? Or what about oil? How easy would it be to buy 1 billion barrels of oil without the price going to $500 per barrel?
The only assets they can buy that wont cause massive inflation and destroy the value of the dollars they still own, is treasuries.
The wealth of 1st world countries is being transferred to third world countries who can afford to work for next to nothing to manufacture inexpensively. With billions living in third world countries this will destroy a lot of wealth for the richer nations who are getting a bit of a wake up call trying to spend hundreds of billions of dollars more then they take in to prevent the wealth destruction. Wealth destruction by trade deficit...
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You are correct in a sense. I have moved plenty of Companies to Indonesia, Vietnam, China, and Brazil in the last two years. All buying up Hard Assets (Not renting bldgs, et all but investing).
All were manufactures and still have divisions here in the US. However, there is talk about Shutting some of their US plants down here shortly and moving all "Industry" overseas.
But, such a move is being put on hold as the EMU is starting to crumble. Many want to see where the EMU lands in the next quarter or so. But plans are on the table.
Many of the people I deal with have zero faith in the US political system or the Banking System FYI. Rep/Dem, does not matter. They do not see change coming nor do they think the "SUPER COMMITTEE" is going to do much.
Very few are even paying attention to the "Election" coming in Nov of next year. ALL are writing up battle plans to protect their companies from damage..
ZERO ARE HOPEFUL OR BULLISH ON THE US.
If you have money, be it 50k or 5000 million you better wake up.
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You are correct in a sense. I have moved plenty of Companies to Indonesia, Vietnam, China, and Brazil in the last two years. All buying up Hard Assets (Not renting bldgs, et all but investing).
All were manufactures and still have divisions here in the US. However, there is talk about Shutting some of their US plants down here shortly and moving all "Industry" overseas.
But, such a move is being put on hold as the EMU is starting to crumble. Many want to see where the EMU lands in the next quarter or so. But plans are on the table.
Many of the people I deal with have zero faith in the US political system or the Banking System FYI. Rep/Dem, does not matter. They do not see change coming nor do they think the "SUPER COMMITTEE" is going to do much.
Very few are even paying attention to the "Election" coming in Nov of next year. ALL are writing up battle plans to protect their companies from damage..
ZERO ARE HOPEFUL OR BULLISH ON THE US.
If you have money, be it 50k or 5000 million you better wake up.
Globalization is Zero sum