I mentioned in another thread about something I heard Donald Trump say on UK TV. “The Chinese are stealing American Jobs,” and the reason for saying this he stated, “If a tax of 25% was put on all Chinese products then the Chinese would have to revalue their currency and bring it in line with the rest of the world.”
The UK we can only get limited trade from the Chinese because of the European Union, but it is a fact that all the time they bring cheap goods into the UK or the USA there will be jobs lost on both sides of the pond. In the UK we tax everything that is imported with an import duty unless it is from the EU. However our contribution is just a blip on the screen, whereas the Americans could make a difference worldwide. As the saying goes, if America sneezes the whole world gets a cold.
Snark quite rightly stated “That if the USA did that, the Chinese would most probably dump paper on the market. The end product being that the dollar would fall so far that that it would no longer be a global reference currency.” I think he was saying the dollar would be useless paper, and I understand that.
Well the other night I was watching another political and financial program, [Does this mean I am becoming my father?] mind boggling. It was reference to the BRIC org, and I had never realised how dangerously close they are to doing exactly what Stark talked about. These four countries are moving up in the world and their growth is staggering.
I would like to point out to all that the Chinese and BRIC might over the next few years be in a position to stop the US dollar being a world reference currency.
I will give you an example of Chinese trade and how they steal jobs both sides of the pond. I had to go to a party and my 17 year old Daughter wanted an evening gown for it, she found one on e bay. Made to measure £7.50....I believe that to be about $11. The catch...she had to wait 3 weeks while it was made, that was ok plenty of time. There were thirty measurements that had to be sent before they would start the dress, fine her sister took them. There was a £100 delivery charge because it was made in Shanghai; no problem I thought, cheap price for peace as I know it.
When it arrived it was hand stitched and was lined, it also fit her like a glove. She took it to a Wedding dress shop to have an invisible strap sewed on one shoulder, the woman in the shop asked her how many hundreds of pounds she had paid for it? When my daughter told her, the woman told her that the lining would cost more than the actual dress and if she had to make and sell the same dress it would cost a staggering £1000.
The point I am making is the fact that the west can never keep up with the Chinese in production. I picked up a souvenir from Worthing UK the other day and on the bottom it said made in China, [Is nothing sacred]? The Asian countries have been stealing jobs from the west for many years, and just a thought. The Chinese could dump paper tomorrow morning and still be where they are now, the Chinese have crept up on the west.
Who would have thought that two countries that have been warring for thousands of years like Russia and China would help form an alliance?
Be Well IAN 2411