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Insufficient Chinese consumer demand
| black native wrinkle | 01/27/12 |
| Electric skinny woman casino | 04/09/12 |
| Vigorous Carnelian Location Nowag | 04/09/12 |
| Abnormal vibrant menage | 04/09/12 |
| chocolate new version | 04/09/12 |
| duck-like place of business | 04/09/12 |
| pea-brained parlor | 04/10/12 |
| floppy kitchen | 04/10/12 |
| Flatulent Fuchsia Forum | 04/09/12 |
| duck-like place of business | 04/09/12 |
| pearl selfie | 04/10/12 |
Poast new message in this thread
Date: January 27th, 2012 10:39 AM Author: black native wrinkle How does insufficient Chinese consumer demand create trouble. Let's say that instead of producing dollars, we produced and bartered with grains of corn. Further assume that the Americans and Europeans eat a lot of corn per person whereas the Chinese eat less corn per person. Why would it be a good thing for China to eat more corn? It only seems to make sense if we want, for some strange reason, China's ability to make corn to increase. However, encouraging people to eat more corn just to improve the ability to make corn seems foolish. We may also be interested in producing lots of corn, but that would be weird. We should be concerned with social welfare. Further, why wouldn't it make sense to simply invest in corn-making tools and research. (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#19846846) |
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Date: April 9th, 2012 3:29 PM Author: Electric skinny woman casino tl; dr (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425263) |
Date: April 9th, 2012 3:27 PM Author: Vigorous Carnelian Location Nowag (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425255) |
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Date: April 9th, 2012 3:30 PM Author: Abnormal vibrant menage because the chinese, in your example, already grew a SHITLOAD of corn that needs to be sold...otherwise, the chinese corn market will collapse, along with its peripheral markets such as fertilizer, farm machinery, agro-financing, etc.
this is a bad thing
i could be wrong |
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Date: April 9th, 2012 3:31 PM Author: chocolate new version <> (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425270) |
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Date: April 9th, 2012 4:19 PM Author: duck-like place of business "insufficient chinese demand" is usually code for insufficient chinese demand for our exports. when this is coupled with chinese inflationary monetary policy, we have a perpetual trade deficit.
as the poaster above wrote, it can also mean insufficient demand for their domestic supply, in which case they dump excess supply onto the world market and crush our suppliers.
the moral of the story is that mercantilism/nationalism and free markets dont really work together. And while an ideal world would have the latter, that reality would require a one world government regime, and the WTO isnt strong enough for that. In fact, the eurozone crisis has turned sentiment away from international central banking/countries surrendering sovereign monetary policy (which, again, goes hand in hand). |
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Date: April 10th, 2012 7:18 AM Author: pea-brained parlor close. the moral of the story is economists who claim mercantilism does not work cannot explain how it has worked, marvelously, in china for three decades and is still going strong.
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Date: April 10th, 2012 7:59 AM Author: floppy kitchen i can see why it doesn't work when nations base it all on gold and silver (which was classic mercantilism IIRC). (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20430792) |
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Date: April 9th, 2012 4:21 PM Author: Flatulent Fuchsia Forum ME SO HAWWWNY! ME RUV U RONG TIME!! (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20425560) |
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Date: April 9th, 2012 10:13 PM Author: duck-like place of business (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20428219) |
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Date: April 10th, 2012 8:40 AM Author: pearl selfie the moral of the story is that the US economic model is based on brainwashing people to be stupid and consume way too much, and Chinese culture is either resilient to that brainwashing or their government chooses not to back it (http://www.autoadmit.com/thread.php?thread_id=1859334&forum_id=2#20430826) |