Today, at a bookstore, i saw the special issue of China and Latin America by Americas quarterly, winter 2012 issue (?) in this spring. Anyway,  by roughly flipping through the issue, the publication’s goal seems to address the expansionary force of China into the Bworld economy, which may look somewhat contradictory to the view of  previous post “China’s Blues.” The detailed view will be later reviewed as i actually read this issue. Nonetheless, the core point remains same. Culturally exposing Chinese public to westen culture, higher living standards,  and related matters in various outlets. Repeated exposure to western culture and lifestyle through media and chinese people with foreign experiences and trade / commerce may become effective in developing chinese people’s addiction, obsession with the benefits of capitalism, higher quality living standard, which will weaken people’s blind royalty to their current regime.

Regarding the democratization of energy, when i roughly read the article (months ago), i had some impression that the effect of energy revolution in future may be somewhat overrated in that article. it was my first impression. i will try to read it more carefully (later) to have better point of view. My rough points are,

(A) the “Direct Economic Impact” of energy industry’s impending transformation in future, mainly using renewable energy sources, may be roughly guessed at this point by looking the current Share of Energy Industry (that combines oil, gas, electricity etc) in total US GDP, which is probably 8-9% or so of US GDP, i guess?

(B) the “Exponential Effects” of the revolution may be not exactly measurable at this point.

1.Reduced pollution and public health risk and lower indirect costs of cleaning up environments and public health care costs.

2. Potential impacts on world politics and world energy markets, as it will make wars such as vietnamese or iraq wars unnecessary, or prevent price manipulation in world energy markets, putting world economy and security in more stable, orderly manners and eliminate the related economic costs and casualties of human lives of energy related wars.

3. Synergy effect of energy revolution with technological developments of other industries.

4.Some changes in national infrastructure, employments, and landscapes in more futuristic ways. We have to consider the nature of this new age industry, as a industry of more technology / highly skilled human labor-intensive, and less semi or low-skilled-labor intensive industry. At least in the beginning. Which make us guess the revolution’s potential impact on the US employment structure.

5. The industry’s nature will change from being a main supplier of energy to being partial energy supplier and partial manufacturer/supplier of parts and technologies for individual energy producers at home or smaller scale producers.

6. For now, the industry based on renewable energy sources can probably be called as an infant industry. It’s production costs are likely still too high to be competitively priced in energy market for consumer’s consumption. So, it will have to undergo it’s “learning curve” of being produced massively at market-competitive prices. When will it happen? Who knows, yet.

So, what would be the total impact of the industry’s direct economic impact and potential, exponential impact?

China Blues

Now my computer even doesn’t start. i had to come to public place to use….Please help me live and get rid of him (ex)from this country. otherwise, he blocks all my ways in any possible ways.

Today, by chance, i got to read Mr. Henry Kissinger’s essay, “the future of US-Chinese relations published in “foreign affair.” As it is available in bookstore. It kind of gave me a fresh, positive look on the prospect of China’s future democratization, although maybe a distant future.

My previous view of China was China’s global economic expansion after uniting, solidifying its economic /trade bloc with neighboring Asian countries including all industrializing Asian economic tigers. the major challenge of that country to democratization, regardless of expanding trade and economic power has been the rigidity of the community government that block western cultural influence on it’s people to maintain its political power. (please bear with me. my view may be decade-outdated, that of before having kids.). On contrary, Mr. Kissinger views China as a country entrapped by other neighboring democratic countries which are US allies, a refreshing perspective that gives higher hope, a more positive spin /prospect to transform the country into a democratic country.

while being a student long time ago, i used to live with and encountered a few Chinese students. (i’m not sure still what i am trying to say is true though). According to them, the Chinese government had strictly segregated those Chinese who studied abroad and came back to China from the general Chinese public. Because the regime had been afraid that those people with foreign experiences may spoil, let Chinese public know that people in western countries live different from them, live far better lives than them……

The best way of transforming China into modern democratic country may be more effectively achieved by its own cultural revolution within its people along with massive infusions of western cultures, philosophy and lifestyle choices, rather than by outside’s political or economic pressure. For purpose, it may be effective to make Chinese media open to western influences, like a lot of advertizements of products or events in American style (that go well with Chinese taste/preferences), music, dances, foods, entertainments, lifestyle, sports, commerce, business investments, whatever. Spreading Western culture there as much as possible and let Chinese public know, and compare different worlds with theirs, that would be one way of mordernizing China as one of democratic countries. Making the country similar to India’s case, which even has bollywood in imitation of Hollywood.

For that matter, it may be effective to facilitate mamy chinese students who study in US to go back to China, as agents of spreading news /influence of American culture. Up to now, as jobs in China had bee relatively scarce, and due to the govt’s segregation, many or most chinese students seem to stay in US for job purposes (as Indian or Korean students do too) instead of returning to China.

God the Father will either unite the dividing forces or punish them for betrayal, blocking God’s way of saving this country. ; sigh of. too many headaches all around. ; english patient; http://epa82.wordpress.com/2012/03/16/in-praise-of-glasses/    ……..???? i get really confused between real world and none. i think i am getting even confused about the boundary lines between me and other people. although i’m not supposed to read things like this as i have to ……; “climate change…”?;Now my computer even doesn’t start. i had to come to public place to use….Please help me live and get rid of him from this country. otherwise, he blocks all my ways in any possible ways. ; where to go?;  “me and …..”

“Rise and Don’t Fall,” “Rise and Maintain” : The Paradigm of US Economic Strategy of Horizontal and Vertical Expansion.

Instead of the usual terminology of “Rise and Fall” regarding a country’s development pattern of economy and trade, from its infant stage through growth and aging/demise stages, the new US economic era could be catch-phrased as “Rise and Don’t Fall,” “Rise and Maintain.” (sounds funny?)

Simply to categorize this existing aspect for the purpose of easy conceptualization, there are two dimensions of US Growth-Maintenance Strategy in maintaining its hegemonic power in world economy and politics: (A) Horizontal Growth and Maintenance and (B) Vertical Growth and Maintenence. The starting point of these paradigm is to see the world as a target market of US busiensses, instead of past attitude of focusing on domestic market, protecting and defending domestic market shares.

(A) Horizontal Growth and Maintenance Strategy (Highest Growth/Profit Potential for Now; but unfortunately international recession).

By Exploring, Exploiting every aspects of competitive advantage of US manufacturing /Business to expand US world market shares while import continuously penetrates domestic markets of goods. – which indicates the importance of US export growth.

(B) Vertical Growth and Maintenence Strategy (Low Growth/Profit Potential for Now, but  Promising Growth Potential for Future).

By exploring, exploiting every aspects of developing high tech industries, innovations, development of new ideas / products, you name them; the growth potential and profits in initial stages of these new businesses/industries/business in the beginning, infant stages will be relatively low, but with promise of future growth until they  become the major market products and industries. (i have to stop for now. my little one is going crazy.)

when i finished I II Corinthians, i fell into chilled stillness, silence. the world seemed to have stopped for the moment. years ago, when i troubled, i read bible once, including these. but i didn’t remembered the contents. thesedays, the idea that these parts of scripture may have some answers kept going on my head. i heard that G-usually let us know his mind by making the parts of scripture to come to our hearts when we read bible. i couldn’t know exactly who are the we, i, you, he, them…..in the scripture….. some part of the scripture is what i seemed to have known, have experienced; some parts i didn’t know, havn’t seen yet. what i understood is, all about the lord is “his confidence, trust in me.” and when i read philippians 2: 19-20, “I hope in the Lord Jesus to send Timothy to you soon, that…..I have no one else like him, who takes a genuine interest in your welfare.” i felt like this was the answer. I’m not sure whether because this is a real answer to my question (because this part came to my heart) or because i am getting more and more scared to live here. my internet and phone has been disconnected for about a week. i got upset with Cox, visited there a few times, and still didn’t work. when i checked the connection (which i have had no knowledge usually), somebody seemed to have gotten into my place and stole the power cord. probably my ex. because it happened right after i asked him to transfer the Cox account to me last week. i changed my door lock last summer, which was really hard to put the key in, open and close. but a week later, suddenly i noticed that that lock got really soft, loose to key in and open the door. somebody did something with the lock. whoelse could do it but him? my pictures of injury, bruises disappeared all the time from my place, although i developed them so many times. still he seems to be getting in and out of my place from time to time. i had some kind of anxiety attack last night. i can not talk about this to anybody, about how scared i was. because nobody will take it serious. i feel like i can not live here anymore.; need to live. maybe hire me.

“Obama Call for Manufacturing Revival a Tough Goal” – Really? Don’t Be So Pessimistic, Sheepish. You are Proud American, Aren’t You?

Today’s Yahoo news talks about:

“President Barack Obama is making a strong election-year push for an economic revival “built on American manufacturing.”

But he faces an uphill slog, with little consensus even within his own party on how to do it.“

Trade and industry issues are interesting subjects to me because I like to call myself some kind of expert or something. I included some excerpts from the article and explain some additional points to them.

Source: http://finance.yahoo.com/news/obama-call-manufacturing-revival-tough-095144615.html

Excerpt: “For decades, the United States has gradually shifted from creating goods to providing services. Fifty years ago, a third of U.S. jobs were in manufacturing. Now they account for just 9 percent, according to the Bureau of Labor Statistics.“…

“Economists suggest plans to help boost manufacturing jobs may make more political sense than economic sense.”

Just political sense? Really? I am somewhat disappointed to hear this. Which economists said this? The accuracy of what they are saying may  depend on which area of economics they specialize in, and what kind of data they have been dealing with. Not every economists know everything, every aspects of economics, economy, or industrial competitiveness. Economists have their own specialization area and know better on their experties, not on everything.

To deepen economists’ understanding on economy or industrial competitiveness, they should also know business aspects in details, business mangagement, marketing, etc., and vice versa for business people.

I suggest that:

“World/US market is not an amass of same all, same things. It’s not a standardized, homogenized bunch of consumer, consumer demand. It’s rather a whole mass of all different, heterogeneous bunch of consumers, consumer demands, with different needs/wants/tastes.”

“The revival / survival of US manufacturing / business depends more on how to decompose this big chunk of consumer market into small consumer of different needs, wants, and tastes that share some common factors, detecting the potentially profitable product markets / consumer groups whose demands American manufacturing/business can meet well, and digging into those identified small consumer markets with accurate reading / understanding of consumer mind and developing right strategies to attract their product royalty and purchase behavior.”

“The seeming failure of US manufacturing / business, up to now, may be not only due to the declining price competitiveness of US products but also due to US businesses’ failure in reading consumer mind, or avoiding / neglecting to do so, and running business, producing products as the ways manufactures like, not as the ways consumer like.”

“The key point of US manufacturing / business in dealing with US and world consumer market is to do “Accurate Market Segmentation” and “Zooming into the Right Target Markets” that “well match” with the Competitiveness of US Manufacturing / Business (probably should not be only about “low price.”).”

An Extremely Simplified Example of World/Domestic Market Segmentation: “World market consumers have different needs/wants/desires for different product groups. Some low-income-consumers (Let’s call this “Mass/Standardized Market”) may want cheapest products that meet their basic living conditions, like food, humble clothing, shoes, that’s it. Middle-income consumers (Let’s call this “A-Bit-Differentiated Market”) may want a bit better products at slightly higher prices with more varieties/differentiation of products. Middle-upper, upper, upper-upper, super rich consumers (Let’s call this “Highly Differentiated / Affluent Market”) may go for untra high quality, designs, highly differetiated style/taste, sometimes even eccentric or novelty products that other people usually don’t own, the kind of products that meet their differentiated tastes and desire for signaling their social status or uniqueness, desire to differentiate themselves from the rest of others.” (apology for extreme simplicity of example)

What would be the sizes of each market segments in world market sales (as a whole of all merchandize trade / sales, or those of a product or product groups, for example): to hypothetically guess:

“Mass/Standardized Market” accounts for 50% of world consumption/sales (all all merchandize or a particular product group).

“A-Bit-Differentiated Market” accounts for 30% of world consumption/sales. 

“Highly Differentiated / Affluent Market” accounts for 20% of world consumption/sales.

“So, with given nature of US industrial competitiveness, “Which Market Segments” American Manufactures should go after, tackle?”

Excerpt: “This heavy attention on manufacturing may be misplaced, economists suggest.”

Here, it would be more desirable if the rhetoric changes from “this heavy attention on manufacturing” to “balancing out US industrial structure, including manufacturing to have more desirable US employment structure / job markets” with the revival of declining manufacturing sectors that could have been competitive but were declining anyway, not necessarily because of the death of US competitiveness but probably because of ”Lazy-fair” Approach (watch out the different spelling, instead of laissez-faire) of American businesses to domestic and international consumer demand / markets.”  

As the example of the Super Bowl Ads, “a Chrysler spot featuring actor Clint Eastwood that celebrates Detroit, suggesting it was near collapse until the residents “all pulled together.” Eastwood implores the nation to do the same.” (did “Some Republicans called the spot a valentine to Obama’s auto bailout“? the more proper way of calling it would be “the spot is the Ad incarnation of  “Obama’s Valentine Gift to Detroit,” or American Auto sector”)

So, we have to think about this point. If Detroit, or American autos, or Chrysler had fallen into almost collapse, but is being quickly recovered (though partially) yet) with some government help, ”Is this phenomenon happening because of the American Death of competitiveness in the auto industry?” or “American Business Failure in the industry because of wrong business decisions or doing correct things or negligence, although the industry may still have had remaining potential of staying relatively competitive if the companied have managed their business correctly?”

 

Excerpt: “It is still “20 percent more expensive to manufacture in the United States than it is anywhere else in the world.”: Interpretation - Low product price is an important factor, but not the only single determining factor. There are a lot of other contributing factors in determining the competitiveness of business or products in market competition.   

I respect Professors Robert Reich and Christina Romer for their role in correcting public misconception on recovering the US economy. But I cannot quite agree to their views on US manufacturing:

Excerpt: “Let’s not fool ourselves. We’re not going to have the kind of manufacturing-based economy we had 30 or 40 years ago,” says Robert Reich, labor secretary under President Bill Clinton. And Christina Romer, who headed the president’s Council of Economic Advisers from 2009-2010, says it is wrong to suggest that producing “real things” is more important than “services.” “American consumers value health care and haircuts as much as washing machines and hair dryers. Our earnings from exporting architectural plans for a building in Shanghai are as real as those from exporting cars to Canada,” she wrote. “The vast majority of jobs in the future are going to be created in the service sector, not the manufacturing sector,” said Nigel Gault, chief U.S. economist for the consulting firm IHS Global Insight. He said he thought it was “a bit misleading” to focus so much on manufacturing. “I’m not sure why manufacturing rather than any other industry warrants tax incentives,” Gault added.

At first, all of us have to remember that how the service/retailing/financial sectors-oriented US economy has melted into (along with other factors though) the current Great Recession. I heard that only fools learn nothing from the lessons of past hardship. Please refer to: http://mikyunglim.wordpress.com/2011/12/05/additional-truth-about-us-inequality-and-economy-global-trade-perspective/

President Obama’s View that “US manufacturers are poised for a renaissance”, is not completely guaranteed with certainty, but quite possible if the right strategies to pursue it is found by someone.”

Economists alone probably can not find the right strategeis to achieve “Amerian Business Renaissance.” Because they only see the big chunk of pictures but miss all details inside it. Business people alone probably can not find it either, because they only see the details of their own business/product  areas but often miss, neglect the big picture of the world.

 

“Only the combined knowledge of both economics and business marketing would be able to produce the right strategies to pursue “US Business/Trade Renaisance.”

“There are political overtones to Obama’s State of the Union appeal for “an economy that’s built to last, an economy built on American manufacturing.”

Yes, that might be quite possible, depending on the creativity of pursuing individual(s).

Good News for the economy but bad news for overall employment?: “Despite the job losses, the U.S. remains an exporting powerhouse, right behind No. 1 China and vying with Germany for the No. 2 rank. U.S. factories have steadily become more advanced and automated, requiring only a fraction of the workers previously needed.”

Is there any way of measuring the impact of stimulus package on the US economy?

i woke up with this notion, which i should have remembered, but forgot remembering earlier.

Earlier, some economists warned that the size of the first recovery package was not big enough to make a significant impact on the US economy and unemployment situation.

If that had been the case, the outcome of computable generalized equilibrium model of the recovery package on the US economy and employment may not be impressive. In that case, as economists may do so as standard procedure, the CGE analyses may be run with several scenarios of the different sizes of recovery packages: (A) the case of the actual recovery package, (B) the benchmark scenario of no recovery package, (C) several scenarios of what if the recovery package had been far bigger, what would have happened to the economy and unemployment? (with a few scenarios of bigger, far bigger recovery package sizes; may provide good justification of future recovery packages)

Original Text: It’s again a random thought. The kind of thing that pops out when doing random things, like driving, doing dishes, chores, or taking shower etc. i seem to do more intensive thinking when doing dishes or grocery etc. Again, while i was driving, it occurred to me that maybe there may be a possibility of measuring the impact of the economic stimulus package on the US economy. It’s because, although the stimulus package has done something good in terms of creating jobs, improving the US economy, it still gets criticized, attacked by ignorant people. And the only defense of the package has been “It Could have Been Worse” without it. 

“Computable general equilibrium (CGE) model”

i don’t know this model in detail. i hadn’t used it.  if i had stayed in academia i would have taken the training program for using this model. i just read the rough description of this model. it just occur to me that there may be a way of measuring the effect of stimulus package on the US economy by using this CGE model. As wickipedia shows, “CGE models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE (applied general equilibrium) models.

The outcome of this model may vary, depending on how the model settings are conditioned by the analysts, which economists do the analysis with what intention, etc. But if properly, fairly done, this model could be a way of answering, closing this arguments of recovery package and finding the justification of having another one??? Probably right economists should have some answer to this.

Obama Addresses Job Creation For Election Year (Video) and GOP ect..

Obama Addresses Job Creation For Election Year

“President Barack Obama’s “billion-dollar war chest”"

 

We are proud of it.

Still things seem to be going all right, toward reasonable directions. And there is an “INTRIGUING,“ “HILLARIOUS“  title of  Yahoo news.:

 

“The evangelical dilemma in South Carolina: adulterer or Mormon?” 

 

“For South Carolina conservatives, especially evangelical Christians, the 2012 campaign season is the year of magical rethinking. Look at the frontrunners:

If you want a president with a legacy of marital fidelity, you’re going to have to work around Newt Gingrich’s adultery.

If you believe that Mormons don’t really qualify as Christian, you may find yourself struggling with Mitt Romney.“

 

“almost-dead.bz.cm” you are none of my concern. you are too stupid, trivial, meaningless, filthy, same with your Russian whore and her stupid husband. YOU THINK I”M ALMOST DEAD?; your life has been useless, full of dirts with your dirty heart/eyes, even messing up churches with your filthy, dirty eyes. The LORD will deal with you, what you have done. not me. Despite all cruel/brutal things you’ve done to make me disappear, why do you think i’m still here?

“In your righteousness, bring me out of trouble. In your unfailing love, silence my enemies; destroy all my foes, for I am your servant.” “The LORD has rewarded me according to my righteousness, according to the cleanness of my hands in his sight. To the faithful you show yourself faithful, to the blameless you show yourself blameless, to the pure you show yourself pure, but to the crooked you show yourself shred. You saved the humble but bring low those whose eyes are haughty. You, O LORD, keep my lamp burning; my God turns my darkness into light…..You broaden the path beneath me, so that my ankles do not turn. I pursued my enemies and overtook them; I did not turn back till they were destroyed. I crushed them so that they could not rise; they fell beneath my feet. You armed me with strength for battle; you made my adversaries bow at my feet. You made my enemies turn their backs in flight, and I destroyed my foes. They cried for help, but there was no one to save them – to the LORD, but he did not answer. I beat them as fine as dust borne on the wind…“ “Forgetting what is behind and straining toward what is ahead, I press on toward the goal to win the prize for which God has called me heavenward in Christ Jesus.”;  Psalms 18″ Thank G-.

“Ending a Standoff, Congress on Friday Extended the Payroll Tax Cut.”

How has this happen? Have no idea. But this quick and simple resolution of extending payroll tax cut seems to be a sudden christmas gift from Santa to middle class for two months.  

Huffington Excerpt:”Ending a standoff that left the Republican Party battered and its House leader with tears in his eyes, Congress on Friday extended the payroll tax cut for another two months, sending the package to President Barack Obama’s desk just in time for the holidays. The House passed the measure within a matter of minutes by unanimous consent, which meant only two lawmakers were present for a voice vote. The Senate had already cleared passage of the bill, contingent upon House passage. Both chambers were virtually empty of lawmakers as Friday’s business was largely procedural in manner. Shortly after the bill passed, Obama thanked Congress for “ending the stalemate” and said that while passage of the short-term bill is a victory for the economy, lawmakers still have more work to do…..”Speaker Boehner did not make this mess. I think it was forced upon him. He had to try to clean it up. He’s the front person and he’s here alone,” Cohen told reporters. They always say victory has a thousand allies, defeat is an orphan. And today, he was an orphan.”

“Passage of the two-month deal headed off what was seen as a public relations disaster by many veteran Republicans, including Arizona Sen. John McCain, who said that House Republicans’ opposition to the deal was hurting the party and that Democrats were winning.”

“Everything we do around here doesn’t have to wind up in a fight. … Legislation is the art of compromise.”

http://www.huffingtonpost.com/2011/12/23/payroll-tax-cut-bill-house-congress_n_1167203.html

And behind this sudden settlement of extending the payroll tax cut, there had been the warning of senior republican Sen. McCain to save his party:

Excerpt: “Sen. John McCain said Thursday that Congress’ failure to reach agreement on legislation extending a payroll tax cut for working Americans “hurts the Republican Party.” The GOP’s 2008 presidential nominee said his party made a mistake in voting down the Senate-passed version of a bill that would have kept the current payroll tax relief intact for at least two more months.…he feels badly for 160 million Americans, whom he called “innocent bystanders caught in the crossfire.… McCain also said, “This is really tragic for the American people, and I would say that next November, no incumbent is safe, nor should they be.“

http://news.yahoo.com/mccain-republican-stance-payroll-tax-mistake-122334329.html

“House Speaker John Boehner on Sunday rejected a Senate plan to extend the payroll tax cut for two months, thwarting a deal cut by the White House and Senate Republicans that would prevent taxes from rising on middle-class workers in the new year.”"Obama’s backing of the Senate bill came after he earlier threatened to veto any payroll tax cut bill that was tied to the pipeline.” http://www.usatoday.com/news/washington/story/2011-12-18/Boehner-House-GOP-biparisan-Senate-deal-payroll-tax-cut-extension/52054996/1

Seriously, i wish there are ways to split these two issues of “extending the payroll tax cut” and “Keystone Pipeline” issues. It seems to have turned out that prgmatism, compromise haven’t really worked out to pursuade political opponents but end up hurting support base. Maybe because it is justice, but with flaws. it seems unjustifiable to play with poor people’s lives with political games.

“China Gets Revenge On the U.S. With Tariff On U.S. Autos”

 Oh, “My Apology !” for this careless post. As I mentioned before, I briefly read the title of this news, without reading the details. As already all the considerations of whether going to the WTO for its mediation has been made by the govt, now the further consideration could be to estimate (A) how much US - China exports and imports of  other remaining goods could be affected by the possible US action of going to the WTO with this tariff dispute on US auto exports to China: Positive impact on the dollar value of US exports to China? or Negative value?; possibly (B) to what extents the potential US action would affect US trade relationship with other countries?.

Also, the definition of subsidy can be issue in this case; whether the US government’s bailout for the failing auto companies can be defined as unfair government subsidy or not? Furthermore,  unless the WTO has a way of having direct measure to require China’s immediate drop of tariffs, bringing this case to an internation court for the verdict may not be able to bring immidiate help for this case but possibly become a process of years to see the eventual resolution. So, it is not an simple issue to deal with, definitely. (12/19/2011)     

Excerpt: “China is a member of the WTO, but that doesn’t mean member nations cannot take protectionist measures whenever they see fit. This opens up a host of legal battles and due diligence to see whether or not the tariffs are warranted. It’s time consuming, and it’s political. The Obama administration has not made any decision yet about consulting the WTO on the matter, but the House Ways and Means Committee, which has oversight of U.S. trade deals, is pushing for it.”

I briefly read the title of below news. i am although not sure about all the detailes, wouldn’t there be anything inside the terms of WTO conditions that innitially allowed China to be the new member of World Trade Organization in the early 2000s to use to demand China to drop this new tariffs? I believe China had to make several concessions to become a WTO member, like market opening / accessibility to foreign exports/investors……As China’s current success as a world major economy owes a lot to it’s WTO membership that has enabled China to have easier access to foreign markets, there might be some controling / binding factors with China’s WTO membership if the US can work through with WTO…….although it is my rough guess……..

“President Barack Obama hit China automobile tire makers with a trade tariff in 2009 and now Beijing has struck back with a potentially more punitive tariff, as much as a 21% tax hike on U.S. car exports bound for China, the world’s largest auto market.

This week, the Chinese government upped the ante in the Obama-China trade dispute by surprisingly imposing new tariffs on imports of Honda and Cadillac models, Chrysler Jeep Grand Cherokee, the BMW X5 and X3 and Mercedes Benz models made in Michigan, Alabama and South Carolina. China argues that the U.S. provided illegal subsidies to these companies during the economic downturn in 2008 and is selling those vehicles cheaper in China than they are sold for in the U.S…..”

News Source: http://finance.yahoo.com/news/china-gets-revenge-obama-tariff-u-autos-213747820.html

“US Self-Sufficiency, No Trade, Global Isolation, Protectionism, and Collective Sliding into a Poorer Nation.” – This is What “The Era of America’s Pacific Century” is About to Cure.

picture source: http://www.cglg.org/projects/trade/Images/World_Map.jpg

This post was originally posted in 2009. As the U.S. continues to face the challenges of Great Recession, high unemployment, and the fundamental social structural problem of intensifying income equality, disappearing middle class and growing poverty in the heartland of America, it has become urgent to find answers to cure these crises.

“The existing American Social Economic System have dictated to diverge, widen the gap of this country’s economic classes among super-rich, middle class, and poor, deteriorating the health, balance of this country’s economy and growth pattern by degradading middle class and promoting extreme poverty in middle America. This has been the very National State which China, the country that has suffered extreme poverty in rural provinces, scarce middle class with overall poor economy nationwide, has been working hard to grow out of, through exports, commerce and economic development. Some politicians in this country keep insisting that we have to maintain the very old sorry policies that drive this country to plunge into the very sorry National State at accerlating rates. Is it wise to maintain the very sorry destructive social economic system while the major rival country(ies) has been moving fast to grow out of it? This is the “Crux of proposed Mr. Obama and Romney Policies.” Whose policy plans propose the U.S. to grow out of the past and current downward spiral of once respected world economic power or to regress back to the old troublesome system or even worsen it?”

One emerging possible solution to soothe these economic crises is to develop global export markets for US produced goods. To clear up the conceptual roadblock for this path, I’d like to explain some existing myth about trade and globalization in very simple way.

False: “America grew strong in isolation and protectionism.”

True: No Trade, No Globalization, Protectionism result in “Restraining Order of American Lives of high living standard”, “Collective Sliding of Consumer into Poorer Living Standard.” Do we really want to see continuous price increases of our groceries, clothing, household items and other goods while our wages are falling down (in relative terms), and medical bills, mortgage payments, and all bunch of bills continue to pouring in? 

True: Trade, Globalization, despite some strings attached, bring in “Collective Enrichment of American Lives, Standard of High Quality Lives”; There have been some job losses in industries of traditional manufacturing that have faced import competition, which should be compensated by improving US global competitiveness of manufacturing and increasing US exports that will create export-related US jobs.

“This is why enforcing the “Era of America’s Pacific Century” is important for the American economy.” 

The above writing was my answer to a reader’s comment to my Huffpost comment the night before Thanksgiving of 2009, which insisted on “the Isolation of US economy from the world,” “ Protectionism,” and “the Lie of Globalization.”  As there may be a lot of people who share the same opinion as this person, I wanted to clarify the myth of globalization, protectionism, no trade. The commentor’s statement was as below:

danarothrock replied on Nov 25, 2009:

“Tariffs were not the main cause of the 1930s depression. The cause was the exact same financial casino gambling that brought us down this time. Hence, the Glass-Steagall Act, which was repealed in 1999. America grew strong in isolation and protectionism. We produced almost everything we needed, except rum, coffee and bananas. Globalization – “Flat Earth” – has been the theory that has destroyed the economy of this country and several other countries. We are on the losing end of every “Free Trade” agreement. We are trading jobs for foreign workers. The Ex-Im Bank and Overseas Private Investment Corporation (two agencies of the US Treasury) are funding $billions every year for American companies to move overseas. 67% of American corporations have plans to increase offshore operations. Do some research on “protectionism”. “Globalization is a LIE.” (to be continued with my response)