The views expressed in any article published in this blog are the author's own and do not necessarily reflect the views of Joseph Foster or Bob Lupoli.

Tuesday, November 23, 2010

Does government owe it’s people jobs? China, Japan, U.S.?

Bob:  as a scholar and well read man please ponder the following question? Does the Government owe its citizens jobs? Yes to avoid a revolution. – Joe

Joe:  my response is no. This is not the proper role of government; a limited government’s role is to ensure a fair trading system for the people. It is the people that are of utmost & primary concern. (Hear of the Iron Rice Bowl?)

Here is the deal for China same as was for Japan. We allow access and import into our market. You (China) make a lot of money then we revalue your money so you can buy into and invest in our Western government system (US & Europe, now Japan) then you MUST open your market for investment and sales by us (US & Europe, Japan). China has no choice in the matter. Last night I heard T. Geithner say "we are the 800 lb. gorilla" meaning the US not China. I think this is a true statement. China is now way overrated in the same way that Japan was overrated in the 80's (and earlier the USSR). By the way Indonesia was a huge liar that the World Bank supported.


Let's take the case of Japanese auto vs. the US auto industry. When Japan began exporting heavily in the 80's the currency was +400 Yen to $1. After the "Plaza Accord" it was revalued to I think 150 Yen overnight.  Recently it has been 83 Ten to $1. China will undergo the same adjustment. But during this period then US automakers made poor quality & ugly cars because the unions so infiltrated the industry and exerted its power that manufacture became expensive, so expensive it went bankrupt eventually. The Japanese moved manufacturing to the US and the competition has made much better quality cars, more stylish, and some of the jobs have been replaced. The consumer has better products to purchase because of the improved quality and new designs. The US and other people benefited.

The so called China threat is similar to the old so called Soviet Union threat it was based on false economic growth statistics that greatly overestimated its growth rate. However, China has been eagerly going along with the estimates and other Western economists are going along with it because we can use it as justification for currency revaluation and market access. It is really market we want to build, access, and dominate (with free & fair completion of course), we want the ever mythical level playing field. –Bob

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Bob:  your response as to the question does the Government owe its citizen a job, in my initial answer it was NO. The yes was put to get your reaction.

However if a Government does not create a healthy economic environment  and,  the unemployment rate keeps raising you have a possibility of a revolution, third world countries have for centuries lived with 30% unemployment moreover, has never created a revolution, except Russia and China during the 19th Century. On Obama return from China, he said we have a trade deficit of $400 billion. Here is my take and see if I am right after the election. Corporate America just loves the Chinese not the American worker. Corporate America controls both Republicans and Democrats as Lou Dobbs would say they are swayed by big money. Lou tells it straight they finally fired him.

Every time our politicians raise the alarm bell about our being screwed as to trade, the big boys Lobbyist spring into action and begin the cooling process of our politicians, these guys knows where the big buck comes from, it does not come from the American voter that may send Obama $5.00 or $50.00.

Why did Obama when he returned from China not raise hell with the Chinese and is now doing so close to the election date of November 2, 2010 why did Bush not raise hell when American manufacturing plants one by one have relocated in China, why did Clinton not raise hell? Was Washington blind that 20 years ago the Chinese currency was undervalued? Was Washington blind that the Chinese labor wages is undervalued relative to western workers wages?

Bob, believe me the noise is being made because the election is getting closer. Obama and his accomplices will play the issue right now to let the voters know we are doing something and the issue will drag on in negotiation until after the election. Many of my investment gurus have said the issue comes up ever six months then dies down. Buchanan, Lou Dobbs, Ross Perrot, Trump and a great Investment Guru Jim Rogers have been screaming to Washington and they pay no attention to these high profile Americans.

Bob remember, friends of China in Washington namely  American big business and  their lobbyists are now  working around the clock to does the fire. Here is one Company that I will use as example since it came to my attention by a substantial importer from Africa for tractors; while I was in Beijing.

John Deere has set up a plant in China their export is booming to the US and over 100 countries around the world as their export zooms up wards more and more Chinese workers are hired not Americans, as their export zooms up Wards profits keeps rising and the CEO and all of the upper management people around the CEO salaries and bonus keeps rising, these guys are supporting China and the Lobbyist they employ are working in Washington.

At the end of my Chapter 2 in my book, the Answer Is Yes. Here is my message that I have written at the end of the Chapter. “A message to every voter’’ Every voter should ask any one that is running for congress or the Senate including the President to commit to you the voter that he or she will support a bill to outlaw Lobbying activity only you the voter and the Governor of a State shall have the legal right to Lobby.

Bob, I do not think such a bill that I suggested will ever be passed the guys that keeps getting elected year after year that  gets mega bucks to run will never vote for such a bill, If you remove the mega bucks that support these guys the little guy will have a chance to be elected. Did you read recently McCain re election cost $20 million. Keep a tab on your calendar and see if the China noise will produce the result that we all want. –Joe

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