EU: Goods that can't be sold locally may end up in markets hit by global slump

[touchring]

Expect an avalanche of cheap and below cost products from China.

http://74.125.153.132/search?q=cache...&ct=clnk&gl=sg

China's excess output may hurt foreign markets

EU: Goods that can't be sold locally may end up in markets hit by global slump

(BEIJING) China's excess production capacity is an 'international concern' as goods that can't be sold locally may be sent to markets that have shrunk amid the global slump, European Union Trade Commissioner Catherine Ashton says.

[doom&gloom]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

here come the trade wars...

[touchring]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

here come the trade wars...

The Whitehouse still have to ask the permission of Wall Street. They are making good money in the east. ;)

The Dow Jones will hold up even if unemployment in the US hits 20%. But it will fall if China is not allowed to export. Wall Street and the bankers make their money by importing cheap goods and credit from China and selling to the American consumer. 20% unemployed means 80% are employed and can continue buying.

[Kadriana]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

The Whitehouse still have to ask the permission of Wall Street. They are making good money in the east. ;)

The Dow Jones will hold up even if unemployment in the US hits 20%. But it will fall if China is not allowed to export. Wall Street and the bankers make their money by importing cheap goods and credit from China and selling to the American consumer. 20% unemployed means 80% are employed and can continue buying.

I think a lot of that 80% isn't spending. There is a big chunk that is living pay check to pay check because they're wages decreased, food and gas prices increased, or medical bills. Then you have a group like my family where we're cheap. The only thing I've really purchased lately is canning jars.

[touchring]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

I think a lot of that 80% isn't spending. There is a big chunk that is living pay check to pay check because they're wages decreased, food and gas prices increased, or medical bills. Then you have a group like my family where we're cheap. The only thing I've really purchased lately is canning jars.

They don't pay living checks here in Asia, so the governments are frantically making sure companies got something to produce or service.

It doesn't matter if you buy the stuff, the Chinese are going to make it, even at a loss. They're going to dump the goods on the world market, give it away if they need to, and force producers in other countries to go out of business, transfer the jobs to China. Low interest rates has allowed the Chinese government to push easy credit to fund money losing production.

The big fight is over jobs, everyone in the far east is doing everything to make sure that they get the most jobs, subsidize wages, subsidize raw materials, subsidizing everything.

The irony is that they are using dollars produced by the Fed to fund the subsidies.

[ThePythonicCow]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

The big fight is over jobs, everyone in the far east is doing everything to make sure that they get the most jobs, subsidize wages, subsidize raw materials, subsidizing everything.

This sounds to me like the Chinese strategy with silver we're discussing on some other thread here. We were speculating the Chinese were driving down the price of silver in order to drive other silver mines out of business and halt exploration for more silver, all to gain a near monopoly for Chinese silver mines.

Over in my James Dines newsletter, he's noticing similar Chinese actions with rare metals.

[don]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

This sounds to me like the Chinese strategy with silver we're discussing on some other thread here. We were speculating the Chinese were driving down the price of silver in order to drive other silver mines out of business and halt exploration for more silver, all to gain a near monopoly for Chinese silver mines.

Over in my James Dines newsletter, he's noticing similar Chinese actions with rare metals.

I think it was Lenin who wrote a capitalist can skin a cat 9 different ways. The Chinese are probably re-reading Vladimir now from a new perspective ;)

[touchring]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

Driving down prices is the common practice Chinese businessmen from the street stall peddler that earns $3 a day to the multi-billion dollar state enterprise. There are no rules on how prices are driven down, common tactics include using fake ingredient such as talc for milk and paraffin for cooking oil.

I recent years, Chinese food products have been allowed to be imported into Singapore, I avoid all food products with the made-in-china wording regardless of price.

http://chinadigitaltimes.net/2008/09...sanlu-edition/

Satire: A Happy Day in the Life of an Ordinary Chinese Person (Sanlu edition)

Here is another popular online satire piece, translated by Prof Christopher R Hughes:

I wake up in the morning and throw off my ‘black heart’ quilt[1]. I turn on the renovated TV that was a prize given when I bought my suit (using a special prize voucher that came with the newspaper). The TV weather forecast says the air condition will be good. I look at the sky for a while – Oh! A very yellow sun! I will not need to wear my acid rain proof raincoat today. After I get out of bed and put on my carcinogenic ‘amine scented’ Walmart clothes[2], and my suit that has been dry cleaned with carcinogenic acetylene tetrachloride, I feel that there is a slight odour on my body and burning in my eyes. Luckily I can freely use my scent for non-pregnant men and the sparkle immediately returns to my eyes. I pick up the toothpaste with its slight traces of the chemical Triclosan[3] and let it react in my mouth with the chlorinated tap water to produce carcinogenic Trichloromethane. I always eat well in the morning and after using the carcinogenic toothpaste I wipe my face with the Benzidine contaminated towel, have a cup of Melamine polluted milk, eat some fried bread sticks (youtiao) cooked in diesel, dipped in some chile source died with Sudan Red, added to a bowl of duck egg gruel with poison rice and egg with large amounts of Lead Oxide, not forgetting of course do add some condiments made with chemical ingredients. After a belch, I put on the helmet I bought for 10 renminbi to keep away the traffic cops and go out. I get on the motorbike which has just had its cut price famous brand brake pads changed and carefully go off to work.

When I get to the office, I take a quick look at my pirated phone[4]. I am right on time. I have a cup of E. coli water from the water barrel and then work through the morning without incident. In a blink it is lunch time. Because I have to see some important customers in the afternoon and get instructions from my department leaders over lunch, I definitely cannot drink any alcohol, but just order a few dishes of grilled dog meat with Potassium Cyanide, pork Clenbuterol, a pan of fried greens and meat slices with beansprouts swollen by various chemicals, two plates of dumplings filled with chicken skin and duck neck skin pretending to be pork, and two cans of Coca Cola.
After getting the go ahead from the leaders I go to see the customers with full confidence. During the thirsty discussions with them in the afternoon we constantly drink high quality Kangshi mineral water[5]. Nevertheless, after our discussion there is a general expression of willingness to work together. The boss is very happy when he hears the report and of course offers to entertain everyone for dinner. Before dinner we all drank a cup of Biluochun tea died with lead and chrome, and have some pine nuts roasted in caustic soda and Sodium metabisulfite along with some pumpkin seeds in talcum powder and paraffin wax. The dinner itself is of course more sumptuous, with DDVP soaked Jinhua ham and chicken feet soup, boiled beef with spicy source washed and filtered by thousands of people, beef injected with water [6]and contraceptive fattened eel slices with red pepper, soy-cooked squid rolls puffed with caustic soda and preserved in formaldehyde, dyed Carmine pork, steamed crab raised on several types of Western medicine and dead cats, dogs and ducks, garlic shrimps baptised in human urine. He also orders a plate of seasonal green vegetables with excess pesticides cooked in hogwash oil.[7] There are some bottles of ‘15-Year-Old Maotai’ spirit ‘filtered’ through women’s stockings and a couple of boxes of artificial sweeteners and red wine with excess colouring. The filler is steamed bread buns bleached with Benzoyl peroxide. Finally there is a plate of fruit with strawberries, peaches, apples and water melons grown large and ripe with hormones.
In the evening some freinds phone to go out for dinner and I can’t get out of it. At the food stalls we order a Chongqing hotpot thickened with paraffin, accompanied by some emerald green tender kelp soaked in sodium hydrosulphite and light green alkaloid, tofu skin made with sodium formaldehyde sulfoxylate[8] ducks blood with nitrate treated cow blood added, rice flour treated with carbolic acid and pork sausages with lymph nodes. Because I have really eaten too much supper, I take some chopsticks treated with sulfur hydrogen peroxide and polished with sodium to eat some ‘stinking beancurd’ steeped in human faeces, and eat some diseased pork, barbecued mutton made of cat meat, then have a few glasses of formaldehyde beer with them and leave.
I feel very tired when I get home. My head is dizzy and I can’t sleep. I take some sleeping pills made with glutinous rice, but it is no use. Because I have caught a cold I ask the company for some time off when I get up in the morning. I take some carcinogenic diethylene glycol glycerine that has been passed off as cough medicine, but I do not take a turn for the better all day. After passing a few days like this, my headache gets even worse, I became nauseous, lack energy, sweat, vomit, and have diarrhea. So I have to go to hospital. The instant intravenous revival is no use, so the doctor can only give me false medicine produced by Shangqi,[9] but it still isn’t any use! Finally the doctor consults and recommends that I go to the US for a complete examination and ask an expert from the FDA there to find the real cause.
As soon as I hear I have to leave the country, I suddenly become excited: I resolutely will not go! I was born a Chinese person, and will die a Chinese spirit. I want to be a pure Chinese person!
Notes:
1. Reference to the discovery of a consignment of contaminated down delivered to Sichuan for disaster relief in May. See here.
2. Reference to discovery of high levels of carcinogenic amines in children’s clothing in Guangzhou, July 2006
3. Reference to the carcinogenic toothpaste scare following the discovery of Triclosan in Chinese exported toothpaste in April 2005
4. Reference to the proliferation of cheap imitation phones with doubtful safety standards
5. Reference to the admission by the Kangshi company that it was selling tap water as high quality mineral water on 4 September
6. On water injected beef see here.
7. On the detection of hogwash oil in food see here.
8. A potentially lethal chemical used illegally to whiten foodstuffs, and detected recently in July during food tests in Changsha.
9. In June 2008 10 patients filed a suit against the Zhongshan No 3 Hospital in Guangzhou for injury due to the administering of Shangqi fake medication

[blazespinnaker]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

I don't know why excess production is a big deal economically. Not so hot for the environment, sure, but can't we just print money and depreciate the currency?

[GRG55]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

I don't know why excess production is a big deal economically. Not so hot for the environment, sure, but can't we just print money and depreciate the currency?

Either that or print money and keep up the rate of consumption through an endless series of "Cash for ________ [fill in your favourite consumer item]"

[jk]

Re: EU: Goods that can't be sold locally may end up in markets hit by global slump

The big fight is over jobs, everyone in the far east is doing everything to make sure that they get the most jobs, subsidize wages, subsidize raw materials, subsidizing everything.

The irony is that they are using dollars produced by the Fed to fund the subsidies.

moving jobs east helps [temporarily] with the demographic problem of a graying american population and worforce. of course the now-impoverished boomers aren't able to retire [provided they still have jobs], and aren't able to avoid "retiring", and scraping by on minimal pensions, if they lose their jobs. but on the whole, the u.s. work force is aging along with the population. so let the heavy lifting get farmed out to younger populations. the chinese, faced a little further down the road with the an even worse demographic disaster stemming from 2 generations of 1 child per family, will have to quickly move up the value chain in their own economy, and farm out lower value-added tasks to younger populations. they will quickly have to learn to compete on value instead of just price.