It is no real secrete that China is coming out of the dark ages and industrializing on a mammoth scale. They have embraced the evil capitalism as an economic strategy while socially remaining communist. The result is their economy is blooming like never before and one prediction is that they will have to build a city the size of Philadelphia each week to keep up with the urban migration. As a result there are some huge shifts in the supply / demand paradigm. Copper, zinc, iron, steel, aluminum prices are skyrocketing. All these people will want cars (in a country with practically zero emissions controls). So here we go with oil and fuel demands. The world’s suppliers of these products will profit huge from the industrialization of China. Also we will see a similar trend in with India's huge population with new outsourcing jobs bringing in money and a demand for technology there. This is talked about so very little and for those who like to play the global investment market there are fortunes to be made in commodities. Now the other reciprocal trend will be inflation in your local economy. If steel prices spike so will cost for automotive production just as one example. So do we have a prospect of hyper-inflation in the future? If I were a GM chairman I would be talking about using their finance division to invest very heavily in these commodities to then profit from. And therefore offset the spite in production cost for the industry over all. But if their division makes a huge profit then would that be used to cushion the loss in the production sector maybe save workers from being laid off? Or would the windfall be dispersed among the inner circle to give million dollar bonuses to "the wielders of the money" for having made such genius decisions? (I can see it and I’m just your regular Joe that sleeps very little and thinks constantly but no genius I can assure you.) It has long been my belief that it does in no way take a rocket scientist to make a millionaire actually I think its more like some of the worst traits of human behavior are an asset in this area. Now that I have thrown down several different angles regarding the industrialization of China and India. What have I missed? Will the next big dollar commodity not mentioned be Uranium? China is almost a clean slate existing power grid infrastructure to patch onto and mend and adapt and band aid along. But rather a clean slate to design from the bottom up using knowledge learned from trial and error around the rest of the world. Will they go clean nuclear power and build one of the must stable and efficient power grids in the world? Will the demand for uranium go up 1000 percent over night? Your thoughts please.
So you are saying, invest in raw minerals such as copper and zinc and iron, due to the fact that chinas up building will need them to sustain as many people as they have to have technology? China is an un-tapped resource on its own, they have a lot going on under their ground with as big as they are they have their own resources and such, but will they depend on others resources first like we depend on foreign oils before we use are own? Because we have more oil un tapped in the gulf of mexico the all of the middle east. So you are saying that china is building up and its going to send the market in a skyrocket so they can expand.
Basic supply and demand law. More than just China though although it is an easy example to wrap you're thinking around. India also and from there just start looking at all the other countries that are beginning to come into the times benefiting from the global market. Before you start looking to this as an opportunity to find fault in an analogy that is not taking into account countries being screwed by or exploited by the system and making zero ground in advancement. I will say your right they are but the point is not relevant to China and India as an example. Lots of vehicles and equipment will be needed. Thousands of miles of dirt roads will be paved. Houses that lacked running water becoming the exception rather than the rule. etc. etc... I just like to attempt to view the dynamics that affect global supply and demand with an eye towards the future. Then make my predictions and sit back seeing how it plays out. Also it is interesting to see how the media frames event that occur. The media is usually extremely unrealistic, however what the media says and prints invariably gets written in the history books as fact and becomes common opinion. Here I will give you a classic example. California since the 70's all the hippies after their war cause was over were all into the anti-nuclear energy movement. There rallies were much televised. Then they were the anti-progress you know tree huggers you cannot put you're power generating plant here. They had their radical pro-bono lawyers and exploiting of the endangered species act to force the power plants to stop from being built. So 30 years later we have an outdated power grid that cannot support the number of households. (this all very easily predictable) Some how the cause of the problem is never addressed but the people are stirred up each election year. Finally something has to be done and people are mad as hell as the local government runs power utilities gross mismanagement. They allow private companies to come in to better manage the problem. Then the pants are running much more efficiently however we still have an issue with a 30 year old infrastructure. You can only send so many amps through a given copper wire till it starts to over heat and melt. So GOVERNMENT REGULATORS step in and regulate that the current stations generating electricity have to turn off their generators to prevent this meltdown. Californians then are forced to purchase their power from other companies in Nevada, and Arizona for instance. Prices skyrocket because they have the Californians by the balls. One thing for sure the issue was never de-regulation that caused the problem. But ask you're average idiot and they will confidently spew their idiocy that the California power problems are a result of de-regulation. For all extensive purposes the facts have been twisted and history re-written to suite a socialist pro government regulation agenda. Now watch the global economy, see and predict the obvious future along with the cause and effect that makes it happen. Then laugh at the stupidity of the news reporters deranged framing of reality. But when you see the extent of how effective and capable the media machine is it is a sobering observation for sure no laughing matter.
I agree with you to an extent. Some countries are going to be begging for change, but what says that they don't want to? Outsourcing has given them a taste of american life and they want all that comes with it. It is supply and demand, there is going to be such a high demand that our supply is going to be limited and have to stretch out over these poplous countries. Its all going to take time to see, but I understand where you are coming from.
True admittedly it is just a theory. I have seen things I predicted come to fruition before but then that was before internet and forums. Fugly Forums will be here forever and 20 years from now I can point to a thread and say "See I told ya so!" That statement may be the nail in the coffin for Fugly in the next 20 years cause the Elites cannot allow that to happen.
A few points to ponder going into the end of the year. Since the 2003 tax cuts took effect, the deficit, despite what's been spent on the war, despite the national disasters like Hurricane Katrina, despite the necessitated recovery after 9/11, despite all of the growing federal entitled programs. Since 2003, when the tax cuts went into effect, the federal deficit has gone down by nearly a quarter of a trillion dollars. In February of this year, the budget deficit for 2007, this year, was projected to be $244 billion. The numbers yesterday came in. The budget deficit is now just $163 billion. And Rush Pegs it again here But remember I predicted this a year ago. We were speaking early in the program about the federal deficit and how it's come way, way down and how it's the tax cuts since 2003 that have caused this to happen. It's inarguable. Democrats are doing everything they can to dispute it. "Retail sales posted" the usual "stronger-than-expected gain, and prices at the wholesale level jumped up significantly in September. The commerce department reported Friday that retail sales increased 0.6% last month compared to August as a big increase in auto sales helped offset weak demand for clothing. The strength in retail sales should ease concerns that the worst slump in housing in 16 years and this summer's financial market turmoil could push the economy into a recession." They're just hoping for a recession. The Drive-Bys are just dying for a recession, while Bush is in office, to give the Democrats something else to run on. It is striking. Every story is another dang surprise. Every economic is a dang surprise. They can't believe it! Stronger than expected! Experts surprised! I thought that I heard yesterday that J.C. Penney, Nordstrom's were reporting bad September sales. This was a harbinger of a very bad Christmas. There's a story in the stack here: There might be a toy shortage this Christmas because of the ChiComs putting lead in all the toys which has led to a recall, and if there's a shortage of toys, of course we'll not have as many toys sold. That will lead to a recession.
Better Mexican Economy has Immigrants Returning in Droves Better Mexican Economy has Immigrants Returning in Droves China is by large the biggest exporter in the world America is by large the biggest importer and biggest customer of China. Trinkets, gizmos, wiz bangs, games ,wondering gnomes, pink flamingos, plastic mop buckets... what ever shipped en-mass to our ports. I would think Mexico can make at the same price and ship cheaper. Have a better economy. Have their own universities, schools, general infrastructure. Much less need to depend on an illegal black market economy with America. Point blank if we are going to import and we are. Why invest one more penny into propping up a communist country who will bite the hand that feeds it? Why not do the same business with our neighbor to the south? A two pronged solution approach. Now it's like a strategic chess game and the next step is to cut off at the knees the ability of China, Japan, and the other countries with silly trade deficits from influencing our politicians. How about some foreign lobby reform? One thing for sure is we have a candidate running now that is VERY deeply indebted to the Chinese lobby.
