Toulimen, First of all, America doesn't own China. China has a...

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Reply to Msg 26989

First of all, America doesn't own China.

China has a closed market system which means no foreigner can own any business in China.

However, they can set up factories with Chinese nationals who will have complete control over the business.

The America-China debt comes about because China has a constitutional law that prohibits its currency from leaving its country.

In other words, businesses can only take 10% of liquid cash out of the country and 90% in goods.

The American debt is real and it is not a blame-game.

Only recently, America was accusing China of manipulating its currency to increase its economic power while America is doing the same thing.

Late last summer, America was crying when they realized China had a $27 billion surplus while America had a $44 billion deficit and our deficit keeps on growing by leaps and bounds.

The government can print money, but it devalues the currency thus investors become skeptical in investing in American service or goods.

You want to tell me that is a simple showmanship game being displayed by U.S. and China.

I don't believe so. The downfall of America is now, its losing population because people are leaving the country and people are not entering the country and there is no manufacturing capability.

U.S. is a service sector, meaning all of its jobs are being processed thru a service sector, such as medical, law, technology, banking, retail, no manufacturing, all goods come from out of the country.

This is where the deficits come in because when the goods arrive, they exchange paper for the payment of delivery and not liquid cash. You have the Walmart, the Target, the drugstores, the clothings, etc. all coming from abroad and the cash isn't always there to pay, it goes through a letter of credit.

I think I have given you a run down of the method of purchasing in America.

China developed a manufacturing system over 50 years ago because their population was growing at a rapid rate and they needed to devise an economic plan to provide jobs to its people and prevent starvation and simultaneously develop their economic power.

What this Chinese lady is saying has some validity but she missed the real political and economical strategy behind this complex U.S.-China relationship.

China has liquid cash and America has paper debt. Everything they own is on paper and over-extended.

China just bailed out Portugal rather than the EU and Spain didn't need a bail out because it created bonds and sold them into the market, unlike Ireland, which suffered a real estate bubble similar to U.S. had to be bailed out. Greece had to take a bailout because they were unable to produce bonds to offset the debt. Also, its political.

All of this credit card debts and student loan debts, first, student loan debt is not dischargeable through bankruptcy, only through death, same as IRS debt isn't dischargeable.

I don't believe in racking up credit card debts and default on them because it is a drain on the economy.

I believe I told you before, I don't work for anybody, I work for myself.

I have learned plenty enough about this capitalistic system and its economic function to know that if there is a demand for a service, anyone can choose to fill in that demand with a supply, on the other hand.

China is in the process of pulling its people out of poverty because of that 1. 3billion chinese and only about 350 million have buying power, similar to America.

China is in the process of building its economic system through developing cities and turning vilages into major cities to provide education, jobs and housing.

They day that China is able to pull about 700 million people out of poverty, their buying power would exceed that of America and they would no longer be in need of American business and they would significantly reduce relations with U.S.

India is in the process of pulling its people out of powerty.

Before, they were forced to believe that they should keep their population into poverty it is better for their country, but they start to realize that it is good for the outsider and not for them. They then begin to implement a new economic strategy to empower their people.

I have done my studies in international management and policies, thus have a good background in the ability to understand what sovereignty and independence and constitution provide in the way of protection to a country.

Unfortunately, that has been the handicap for Haiti, because its original constitution was stolen by the British to prevent them from establishing rule of laws to govern the country.

And Haitians have failed to undertstand that only the established laws, preamble strictures, would a country be able to structure its governmental policies and political system with which to establish general laws and ordinances.

Every time I see Haitian government rep speaking to international reps, I see a real imbalance of knowledge and scope.

The Chinese woman made a good point, only through constitutional strictures can a country protect itself from being occupied by another.

Haiti must learn that lesson first and foremost before moving forward, otherwise, it would be a repeat of another 200 years of tug of war in trying to protect the assets of the country.

Haiti is no country's backyard and that should not even be spoken in this modern age. Such language creates the ideology of an imperialist system that is creating an extensionist system for the sole purpose of occupying smaller nations simply to control the wealth of every small nation thus increasing their wealth and power at the expense of the disenfranchised.

Til then...

God bless you2!!!!

Alas, Haiti is free!

Rose L, March 5 2011, 12:57 PM

Topic: The Capitalism as an Economic System Is One of The Best Ones

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Capitalism, which I studied in my undergrade courses, is not the best form of economic structure because it narrows... read more >
Rose L, 28-Feb-11 8:36 pm
If capitalism is so bad, how come the UNITED STATES which arbohrs it as its economic system ended up creating jobs for... read more >
Toulimen Legrand, 28-Feb-11 10:20 pm
Haitians are not endangered species because they are overpopulating based on the world population record. As... read more >
Toulimen Legrand, 28-Feb-11 10:41 pm
Have you forgotten that we are experiencing over 12% of unemployment and we are in a very economic slump right now... read more >
Rose L, 2-Mar-11 8:50 pm
Rose, I used to believe that like you years ago that America owns China a lot of money. That is not true. America does... read more >
Toulimen, 2-Mar-11 10:00 pm
Toulimen, First of all, America doesn't own China. China has a closed market system which means no foreigner can own... read more >
Rose L, 5-Mar-11 12:57 pm


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