China is now the world economic engine. This is because it is a growing market. Even when it fell from the hot 11%+ growth rate to a mere 6% growth, this is still GROWTH, not shrinking. The US is a classic saturated market. It can’t grow anything except debts and we are growing this at record rates even as consumers lose credit. The US money making machine is grinding at full speed even as asset-based borrowing collapses. This means higher food prices. And when I shop, this is what I see in the grocery stores.
Porsche SE Chief Executive Officer Wendelin Wiedeking will unveil the new Panamera sports sedan in Shanghai. Daimler’s Dieter Zetsche, Volkswagen AG’s Martin Winterkorn and Toyota Motor Corp.’s Katsuaki Watanabe will also be there.
“The hope for every automaker in the world is riding on China,” said Ricon Xia, an analyst at Daiwa Institute of Research (H.K.) Ltd. in Shanghai. “No matter how many difficulties they are facing, they have to be here and the Shanghai Auto Show will be the show for the year.”
A record number of automakers will attend the Shanghai Motor Show, which starts on Monday, as China threatens to usurp the U.S. as the world’s biggest auto market. General Motor Corp.’s China sales surged to a record last month, at the same time its U.S. sales plunged 45 percent.
More proof that China is the economic engine for the world. The US doesn’t understand that our privileged position is due to everyone profiting off of our open markets. Now that our market has been saturated, they will move elsewhere and let us stew in our own debts. Once we go too far into debt and too deep into the red to be of any use as an expanding market, all the goodies we get via everyone pushing up the dollar, will vanish.
This is the obvious future and is why the US negotiators must be very, very careful about mixing up our own needs with the desire to be pleasing. That is, we will find it impossible to please our main trade rivals if we are no longer the main destination of their export trade. Most Americans can’t accept this. We find is very, very difficult to overcome our own desire to consume like crazy and hand out IOUs.
When there is no one else sucking down exports, people will give us loans to do this. But when someone is offering sovereign wealth in exchange, then this draws all international profit seekers to that entity. The OPEC nations are favored destinations for exports, of course. For the same reasons. The US tried running its fiat paper magic money by using this as a debt system whereby we never pay the principal off but only the interest charges.
This leads quickly to a situation where interest charges eat up all income and the debts are perpetual. These debts can be discharged only one way: via the entire nation going bankrupt. South American and African nations do this all the time. But they are not the destination of most world exports. The US certainly is. So our bankruptcy has global consequences.
U.S. lawmakers may let cars made overseas qualify for a proposed “cash-for-clunkers” program in a bid to secure passage of the measure, designed to help revive domestic auto sales at a 27-year low.
While China receives all the automakers in Shanghai, the US is trying yet another goofy scheme to restart our own markets. We have to have all sorts of funky things like zero interest loans, rebates, tax benefits and now, this goofy cash handout.
By subsidizing everything, we may restart our buying spree but at an increasingly deadly accumulation of even more public as well as private debts. We have to accept reality: our market is saturated and our only hope is to either cut auto imports because we don’t need them or we sell to Japan and China…an impossibility.
Since it is impossible to do this, we have to cut the fiction of global free trade. It is obviously harming our nation.
An option under consideration would distribute subsidies to new-car buyers based on manufacturers’ U.S. market share, said Representative Edward Markey, who crafted the idea. The approach may overcome objections that an original plan subsidizes North American-made products only.
“What I have been looking for is a solution that would treat all manufacturers fairly,” Markey, a Massachusetts Democrat, said in an e-mail yesterday. “I am hopeful that this could prove to be a constructive way forward that all sides could agree on.”…
This is thanks to our stupid free trade deals our rulers pushed and pushed and pushed so hard. They lied about how this would bring jobs to America. This is obviously not working so it is time to kill it, not subsidize foreign automakers!
Consumers would get vouchers worth as much as $5,000 for trading in models from 2001 or earlier for a new vehicle, under the legislation Sutton proposed March 17. The program may spur sales by more than the 21 percent increase witnessed in Germany in February while improving the environment, Sutton has said.
Germans buy European Union cars. The US buys European Union cars, too. We can’t do what Germany did simply because we are a much, much bigger market and our auto industry is dying, not growing, here. So we can’t have this $5,000 give-away. This is transferring taxpayer money to automakers, many of whom are aliens.
The mixing up of internationalism with national spending continues unabated. We can’t subsidize the entire planet. Right now, we are doing exactly that. Bailing out AIG using US tax money is a typical example of this. AIG is an international organization that was launched in China, not the US. Why on earth are we the ones bailing this and Goldman Sachs, out?
Farm ministers from the Group of Eight nations will indicate their recognition that cereal prices are likely to rise sharply in the future in a joint statement to be issued Monday, Japanese government sources said Sunday.
Stagflation is when food goes up and up but manufactured goods that are not life and death, decline. So cars are cheaper and eating to stay alive is much more expensive. The money creation we are now seeing will feed stagflation.
They will also stress the need to step up farm production while expanding agricultural investment in the statement to be released after their three-day meeting in Cison di Valmarino, Italy, according to the sources.
In the statement, they will also show their readiness to map out measures against erratic fluctuations in cereal prices caused by speculative money, and to develop an international storage system.
In the past, I mention how all civilizations are based not on gold, not on silver, but are based on GRAINS. This is because, they can store grain for years, unlike cows or sheep who have to eat or die, and this grain can then REGULATE PRICES. And thus, during famines, can keep speculators from raising the price to the moon and thus, beggar everyone of all their wealth including gold.
This regulation system began in the city of Ur thousands of years ago. All such systems in rice growing regions as well, are all government regulated to THWART speculators. Speculators all hope to get rich off of something shooting upwards in value. The ultimate speculation is to get rich, selling grain during bad times.
The statement will be reflected at the G-8 summit meeting in Italy in July. The G-8 groups Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
There are a lot of emotional reasons to refuse to understand the fundamental basis of all civilization. We want to be heroes, not farmers. We want to be free, not chained to the land. But no civilization is based on free ranging, war heroes. They do conquer the farmers but after just one generation, become beholden to Libra and how she regulates the crops.
Scales were not invented for weighing gold against gold. It was for weighing fine crops such as tea, cocoa, nutmeg, pepper, saffron, etc, against gold! In the Middle Ages, there were charts drawn up that tried to set the value of these valuable crops against the value of gold. This fluctuated, of course, due to demand. But the fact remains, the value of coins, etc is always in relation to various foods. And the common denominator always is the mass-crops, namely the grains.
This is why we talk about ‘grains’ when talking about rare metals, just for example. As well as other expensive things. This news about grains going up in price is a sign of incipient hyperinflation. This is why the refusal to count food prices in the inflation rate system of the Fed is such a fraud. Food is THE BELL WEATHER of inflation! As well as deflation.
A food-processing company in Shinjo, Yamagata Prefecture, is suspected of selling Russian and Chinese bracken as homegrown warabi, local authorities said Saturday. The prefectural government has already conducted an on-site inspection of Saito Shokuhin Kogyo while questioning its employees in order to determine the sales channels and sales volume of the falsely-labeled products, its officials said.
Japan locks out other traders via a society-wide system of ‘buy only Japanese.’ This is why we are not clamoring for Japan to hand out $5,000 gift certificates to buy cars since they only cars they will buy will be their own, anyway. They should do this but won’t. They want ONLY to export. They have ZERO plans for expanding Japan’s consumer base.
Former Finance Minister Shoichi Nakagawa suggested Sunday that Japan should promote discussions on the possibility of possessing nuclear weapons.
On North Korea’s notification to resume nuclear development, the hawkish lawmaker said in a speech in Obihiro, Hokkaido, ”It is common sense worldwide that in a purely military sense it is nuclear that can counteract nuclear.”
Take a look at the real face of the LDP of Japan. Japanese animators often make fun of the LDP. American fans of anime should look more closely at the very strong nostalgic thread of fascism in anime. The Japanese can see that the US will soon be utterly destroyed by doing nearly totally one-way business with Japan. And Japan can make itself nukes.
They have the rocket technology to launch nukes, too. And they will have nukes just like Israel, if they must and they will do this. All the heaving and howling about Iran getting nukes is due to the G7 nations wanting the US to have sole power to terrorize trade rivals.
But China is a nuclear power. So this is now collapsing. The threads of military systems and economic systems are interwoven very tightly throughout history. This guy was the drunk who was demoted after embarrassing Japan while he was in Europe. On the other hand, he is still in the news! If anyone did this to Hu in China, he would be entertaining the ravens.
Gulf stocks rose, with Dubai’s measure climbing for a fourth day as the emirate’s ruler Sheikh Mohammed bin Rashid al-Maktoum said the worst of the economic crisis passed.
Emaar Properties PJSC, the United Arab Emirates’ biggest real-estate developer, advanced to the highest since December. Sorouh Real Estate PJSC, Abu Dhabi’s second-biggest property developer by market value, rose for a fourth day and Industries Qatar jumped as much as 9.5 percent after restating earnings.
Sheikh Mohammed “reassured investors on the action plan for Dubai and on the impending projects and affirmed we are in a stability phase,” said Hesham Bakry, institutional sales manager at Al-Futtaim HC Securities Co. in Dubai. “He addressed the most important concerns. Investors do believe his message.”
They are expecting oil inflation. With record fiat funny money making, everyone smart is expecting a repeat of the 1970’s stagflation experience. Already, I find it harder to find things I want to buy. More than one, I have left a store with no purchase and had to find another with the desired item. This is an early symptom of stagflation. I remember last time this happened all too vividly. This is why I am warning people, the things we need will rise in price and paying for this won’t be easy.
One question here is obvious: will metals shoot upwards like they did at the very end of the stagflation years of the seventies? This is all up to the Chinese and OPEC.
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