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  • It's starting........

    My employer has some things made in china. This is done for the obvious costing reasons, assembly labor has been essentially "free" in china. And the labor to make parts is free, too, so parts cost half or less what they cost here.

    Anyway, we recently got a 20% or so increase in costs on the china goods. I know it isn't a dollar value issue, as the chinese currency is dollar-pegged.

    It seems to be the first small step in the inevitable run-up of cost of goods from china.

    Just this costing increase alone is likely to cause one marginal product to be pulled back from the move over there that was about to happen.

    Sounds good to me.........
    1601

    Keep eye on ball.
    Hashim Khan

  • #2
    I think that soon they will have to value their money closer to what it is worth to the US dollar too. While it is an advantage for export it can also work against them as any imports of crude oil is based on the US dollar. A stonger yen will give them more buying power to offset the crude price increases. Just my thoughts.

    Brent

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    • #3
      Of course it will happen. No one, no country will stay at slave wages forever. And the quality will also improve. It has to. And overall, it's not a bad thing.

      Paul A.
      Paul A.

      Make it fit.
      You can't win and there is a penalty for trying!

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      • #4
        Yep, Same thing happened to the Japanese, that's why they have auto plants over here now.
        Plus the Koreans snatched a lot of manufacturing away from them.
        Eventually, every country will be close to our Std/lvng. but our workforce will suffer in the interim.

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        • #5
          Actually, I think our standard of living will decrease to met the others halfway..

          And, oil will be priced in something else within a year, possibly euros, possibly and more probably, gold. Much of the oil is in muslim countries, and there is a move in those areas to use gold only, in the form of one "muslim currency". I don't know how successful that would be.
          1601

          Keep eye on ball.
          Hashim Khan

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          • #6
            Oddly enough the Saudis just announce that they were dumping the Euro as an investment currency and reverting to the US dollar only. They feel the Euroweenies are incompetent.

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            • #7
              The current high price of oil is being driven in large part by the Chinese. I watched a show recently on NOVA called "China Revs UP". Very interesting. They now have over 30 million households with a middle class or higher standard of living, by our standards. That is increasing at over 10% per year. The ultimate status symbol in China now is a car. Cars don't run on coal which is plentiful in China. Oil is not. They are already running into serious air pollution problems and have closed one of the largest steel smelters to reduce pollution.

              JT, I can't see oil being tied to a gold standard since it would de facto tie all trade to the same standard. China doesn't have a lot of gold but needs a lot of oil...

              Mainland China is also spending billions on semiconductor fab plants and is set to start taking over a major part of the chip business.
              Free software for calculating bolt circles and similar: Click Here

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              • #8
                My computer is an "E Power", made in China. The logo is a red square with E Power in it.

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                • #9
                  Shame they can't feed themselves,maybe aids will thin them out,still for every container of crap that comes here four go back loaded with food.
                  I just need one more tool,just one!

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                  • #10
                    "No one, no country will stay at slave wages forever."

                    I laugh every time I hear that. Slave wages compared to what? If it cost me $1 for dinner out at a restaurant, $0.12 for a bus ride across Shanghai, $30k for a nice apartment in a major city, then I could afford to live at "slave wages" too. Not everyone in China has a high standard of living, just like here, but for many workers, they have a very comfortable life, so comfortable that many that only a few years ago would have tried to move here are now choosing to stay at home and improve life in China even further.

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                    • #11
                      Also, the mulri-national companies are pulling most of the strings

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                      • #12
                        <font face="Verdana, Arial" size="2">Originally posted by PSD KEN:
                        Also, the mulri-national companies are pulling most of the strings </font>
                        They THINK they are. The chinese will OWN them shortly.

                        Do not underestimate the number of robber barons in other countries. The chinese are at about 1870 in business laws, 2005 in technology goals.
                        1601

                        Keep eye on ball.
                        Hashim Khan

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