America is stretched to breaking point: watch the markets

[pookiki]

Manufacturing in America. If one were to walk into a Wal-mart, K-mart, Costco, or Sam's Club, I think it would be a daunting task to find much that was made in the US with the exception of processed foods, drugs, dairy items, snacks, and soft drinks. Even what's left of the auto industry depends on components made outside the US. The items that I used to buy ten years ago because they were made in the US - like New Balance or Van shoes - have long gone the way of outsourcing to Asia. Even a Harley is made and assembled in Taiwan. Multi-national companies will always look for the lowest labor costs to maximize profits. It's the nature of global capitalism.

Where do you get your sit down comedy material? Harley outsources some parts, but you'd better tell Harley that their bikes aren't built in Milwaukie.

When the US outsources manufacturing, the low paid workers get a pittance and the companies still make the big bucks by selling the brand names. The countries in Asia are picking up the scraps.

The US is rendering most cheap labor obsolete with robotics. Think of the 3d printer and the ability to make clothing without human intervention. It costs money to ship raw materials to a 3rd world country and then ship the finished product back. No cheap 3rd world worker will work cheaper or longer hours than a robotic system. Those jobs are coming back. beacause it make good jobs to build and maintain the robots and the factory.

The Accord, Camry, Toyota pickups, Mercedes and BMW are all made in the USA along with other brands. So is the Honda Goldwing.

You couldn't make your post without using a US invented computer or operating system or the internet.

Dream on,while the US companies make the real money..

You might want to check this out:

http://www.cycleworld.com/2013/11/12/where-is-it-made-2014-harley-davidson-street-750-and-street-500/

What I do know for sure, in the early 1990's, my friend bought a new Harley and it said plainly on the body that it was made and assembled in Taiwan. As for robotics, it will ultimately reduce the number of workers and robots will service and repair the robots. The capital costs for robots for items like garments, shoes, and electronic goods will still make still make outsourcing preferable and more profitable for a long time.

As for inventions, they benefit the inventor. Where was your computer made? Where are i-phones made? Etc, etc. Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made?

Al Gore said he invented the internet, right? Is he getting royalties?

The US exported $198.5 billion dollars worth of products in August. How much did the little country that you come from export in August? If you are an American then you already know.

Exports don't necessarily equate to an increase in manufacturing.

[thailiketoo]

The US exported $198.5 billion dollars worth of products in August. How much did the little country that you come from export in August? If you are an American then you already know

Exports don't necessarily equate to an increase in manufacturing.

Exports don't necessarily equate to an increase in manufacturing.

If the topic of the thread was American manufacturing you might have a point. However it is not.

In every economy there are people who do the grunt work and those who manage.

Who makes more per car; the man who makes the bolts that hold on the tires or the salesman who sells the whole auto or the president of the company and stockholders?

America got the profits from $198.5 billion dollars worth of products in August not the Mexicans who assembled the wheels or painted the trim of the autos.

[pookiki]

The US exported $198.5 billion dollars worth of products in August. How much did the little country that you come from export in August? If you are an American then you already know

Exports don't necessarily equate to an increase in manufacturing.

Exports don't necessarily equate to an increase in manufacturing.

If the topic of the thread was American manufacturing you might have a point. However it is not.

In every economy there are people who do the grunt work and those who manage.

Who makes more per car; the man who makes the bolts that hold on the tires or the salesman who sells the whole auto or the president of the company and stockholders?

America got the profits from $198.5 billion dollars worth of products in August not the Mexicans who assembled the wheels or painted the trim of the autos.

The overall point of the article is the health of the US Economy. Manufacturing is one of the most important components of any developed economy. While the US value of exports is as you noted, the stats also indicate that the US incurred a deficit in its balance of payment - there was a trade deficit.

If you look at the following stats the US went into a trade deficit mode in the early 70's when globalization began to take hold. I don't think the US is near an economic collapse but the country needs a restructuring of its economic priorities - especially infrastructure and green technology.

gands.pdf

[thailiketoo]

The overall point of the article is the health of the US Economy. Manufacturing is one of the most important components of any developed economy. While the US value of exports is as you noted, the stats also indicate that the US incurred a deficit in its balance of payment - there was a trade deficit.

If you look at the following stats the US went into a trade deficit mode in the early 70's when globalization began to take hold. I don't think the US is near an economic collapse but the country needs a restructuring of its economic priorities - especially infrastructure and green technology.

You wrote, "The overall point of the article is the health of the US Economy. Manufacturing is one of the most important components of any developed economy."

The OP does not mention manufacturing. If you want to argue or write about manufacturing go ahead and start another thread.

If you want to discuss the restructuring of it's economic priorities like green technology like China (that was a joke) start a thread about it.

[ggt]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

The OP is simply stating what many others have already written about...the US has run up a debt that can never be repaid...printing money like there is no tomorrow which will someday end badly...

Americans and the world are being sold a multitude of lies concerning the US economy...unemployment...and the so-called recovery...

Any one of many events now going on in the world could be the tipping point to send the US economy...stock market...and US dollar into a tail spin...

This is not bashing...consider it a warning...prepare yourself...a day of reckoning is coming...

Dream on. In the lastest side by side debt to GDP figures the World Bank had:

The US was 93.8%

The UK was 103.2%

Japan was 196.5%

LINK

The US has the world's largest economy by far. LINK

The US has the most usable land of any country, the most natural resources, is fast gaining on the world's largest oil producers and will pass them, and is leaps and bounds ahead of other countries in technology.

Don't hold your breath.

This just a excerpt from one of many of the world's economist saying the same thing...

From the Egon von Greyerz interview:

The real problem is that there has been no economic recovery -- it was just an illusion. The real economy is weak and we have now started a downturn in the economy that will last for a very long time. All we have seen since 2007 is a false improvement based on money printing and a massive increase in world debt.

The U.S. debt has doubled from $9 trillion - $18 trillion since 2007 when the crisis started. Of course the Fed has also printed an additional $3 trillion. It was just announced that the budget deficit for the previous year that just ended in September was only $480 billion. Well, the U.S. debt has grown by over $1 trillion in the last 12 months. So the difference between the budget deficit of $480 billion and the $1.1 trillion increase in debt is just creative accounting.

And it’s the same worldwide. Debt in China and Japan is exploding. The debt is growing in Europe also. Emerging markets have also seen a massive increase in debts. So with virtually no inflation worldwide, these debts can never be repaid. In the EU now, 8 countries have deflation, and 21 out of the 29 EU countries are now below 1 percent inflation. And growth is also now negative in Germany.

Don't take my word for it...do a little research from sources other than US Gov't propaganda...

[pookiki]

The overall point of the article is the health of the US Economy. Manufacturing is one of the most important components of any developed economy. While the US value of exports is as you noted, the stats also indicate that the US incurred a deficit in its balance of payment - there was a trade deficit.

If you look at the following stats the US went into a trade deficit mode in the early 70's when globalization began to take hold. I don't think the US is near an economic collapse but the country needs a restructuring of its economic priorities - especially infrastructure and green technology.

You wrote, "The overall point of the article is the health of the US Economy. Manufacturing is one of the most important components of any developed economy."

The OP does not mention manufacturing. If you want to argue or write about manufacturing go ahead and start another thread.

If you want to discuss the restructuring of it's economic priorities like green technology like China (that was a joke) start a thread about it.

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

[craigt3365]

Please stay on topic. This is not about China.

[thailiketoo]

From the Egon von Greyerz interview:

The real problem is that there has been no economic recovery -- it was just an illusion. The real economy is weak and we have now started a downturn in the economy that will last for a very long time. All we have seen since 2007 is a false improvement based on money printing and a massive increase in world debt.

The U.S. debt has doubled from $9 trillion - $18 trillion since 2007 when the crisis started. Of course the Fed has also printed an additional $3 trillion. It was just announced that the budget deficit for the previous year that just ended in September was only $480 billion. Well, the U.S. debt has grown by over $1 trillion in the last 12 months. So the difference between the budget deficit of $480 billion and the $1.1 trillion increase in debt is just creative accounting.

And it’s the same worldwide. Debt in China and Japan is exploding. The debt is growing in Europe also. Emerging markets have also seen a massive increase in debts. So with virtually no inflation worldwide, these debts can never be repaid. In the EU now, 8 countries have deflation, and 21 out of the 29 EU countries are now below 1 percent inflation. And growth is also now negative in Germany.

Don't take my word for it...do a little research from sources other than US Gov't propaganda...

Egon is a gold nut and said "The problem is it’s not just the dollar. The dollar is the first one that’s going to fall, but all the currencies are in a race to the bottom. Since 1913 when the Fed was created, we’ve seen a fall of 97% to 99% of ALL currencies against gold.”

[thailiketoo]

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

You wrote, "Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made."

I wrote, "The US exported $198.5 billion dollars worth of products in August."

What is being made? The profit from selling #198.5 billion dollars of products.

You asked a simple question and I gave you a simple answer. Manufacturing is obfuscating the real issue which is the economy making or losing money. Banks don't manufacture anything but a country based on the banking industry makes a lot of money.

[pookiki]

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

You wrote, "Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made."

I wrote, "The US exported $198.5 billion dollars worth of products in August."

What is being made? The profit from selling #198.5 billion dollars of products.

You asked a simple question and I gave you a simple answer. Manufacturing is obfuscating the real issue which is the economy making or losing money. Banks don't manufacture anything but a country based on the banking industry makes a lot of money.

And the last stats I sent to you were on the overall balance of payments for the US since 1960. Did you look at the document? How can a country continue to sustain and build its economy when it continues to import more than it exports?

[thailiketoo]

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

You wrote, "Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made."

I wrote, "The US exported $198.5 billion dollars worth of products in August."

What is being made? The profit from selling #198.5 billion dollars of products.

You asked a simple question and I gave you a simple answer. Manufacturing is obfuscating the real issue which is the economy making or losing money. Banks don't manufacture anything but a country based on the banking industry makes a lot of money.

And the last stats I sent to you were on the overall balance of payments for the US since 1960. Did you look at the document? How can a country continue to sustain and build its economy when it continues to import more than it exports?

OP

BANGKOK: -- The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting. Each of these crises arose from dubious circumstances and long-standing developments.

Balance of payments is not part of the topic. Gotta draw the line somewhere. The four areas above are giant size and plenty to discuss.

[craigt3365]

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

You wrote, "Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made."

I wrote, "The US exported $198.5 billion dollars worth of products in August."

What is being made? The profit from selling #198.5 billion dollars of products.

You asked a simple question and I gave you a simple answer. Manufacturing is obfuscating the real issue which is the economy making or losing money. Banks don't manufacture anything but a country based on the banking industry makes a lot of money.

And the last stats I sent to you were on the overall balance of payments for the US since 1960. Did you look at the document? How can a country continue to sustain and build its economy when it continues to import more than it exports?

Definitely worth a read, a good summary:

http://en.wikipedia.org/wiki/Balance_of_trade

Having studied Economics quite a bit, I always enjoyed Friedman:

In the 1980s, Milton Friedman, a Nobel Prize-winning economist and a proponent of Monetarism, contended that some of the concerns of trade deficits are unfair criticisms in an attempt to push macroeconomic policies favorable to exporting industries.

.............

However, it may be in one form or another including the possible tradeoff of foreign control of assets. In his view, the "worst-case scenario" of the currency never returning to the country of origin was actually the best possible outcome: the country actually purchased its goods by exchanging them for pieces of cheaply made paper. As Friedman put it, this would be the same result as if the exporting country burned the dollars it earned, never returning it to market circulation.^[23]

Lots of food for thought.

[pookiki]

With all due respect, you were the one who relied on trade stats to support the health of the US economy. When such stats indicate a pervasive trade deficit for the last 40+ years, it is just another form of debt and a drag on the economy. If you think that the US has a robust economy, then please present the stats that support your point of view. Thanks! Or maybe you should start a new thread?

You wrote, "Can you show me that the number of manufacturing jobs in the US has increased in the last two decades? If so, what is being made."

I wrote, "The US exported $198.5 billion dollars worth of products in August."

What is being made? The profit from selling #198.5 billion dollars of products.

You asked a simple question and I gave you a simple answer. Manufacturing is obfuscating the real issue which is the economy making or losing money. Banks don't manufacture anything but a country based on the banking industry makes a lot of money.

And the last stats I sent to you were on the overall balance of payments for the US since 1960. Did you look at the document? How can a country continue to sustain and build its economy when it continues to import more than it exports?

OP

BANGKOK: -- The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting. Each of these crises arose from dubious circumstances and long-standing developments.

Balance of payments is not part of the topic. Gotta draw the line somewhere. The four areas above are giant size and plenty to discuss.

When you talk about 'stock market bubbles from busting', it open up a whole host of economic issues to be addressed. You may not like the points I have raised but it is all relevant to how the stock market reacts -- just as the statement 'from dubious circumstances and long-standing developments. As you said, they are giant size. The trade deficit and globalization are all part and parcel of long-standing developments. If you don't agree, I guess you can make a case with the moderators.

[thailiketoo]

When you talk about 'stock market bubbles from busting', it open up a whole host of economic issues to be addressed. You may not like the points I have raised but it is all relevant to how the stock market reacts -- just as the statement 'from dubious circumstances and long-standing developments. As you said, they are giant size. The trade deficit and globalization are all part and parcel of long-standing developments. If you don't agree, I guess you can make a case with the moderators.

BANGKOK: -- The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting. Each of these crises arose from dubious circumstances and long-standing developments.

The above is the topic. I don't have to make a case with anyone. It's black and white.

If you want to go off topic feel free but don't expect me to join you.

[NeverSure]

Manufacturing in America. If one were to walk into a Wal-mart, K-mart, Costco, or Sam's Club, I think it would be a daunting task to find much that was made in the US with the exception of processed foods, drugs, dairy items, snacks, and soft drinks. Even what's left of the auto industry depends on components made outside the US. The items that I used to buy ten years ago because they were made in the US - like New Balance or Van shoes - have long gone the way of outsourcing to Asia. Even a Harley is made and assembled in Taiwan. Multi-national companies will always look for the lowest labor costs to maximize profits. It's the nature of global capitalism.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total August exports of $198.5 billion and imports of $238.6 billion resulted in a goods and services deficit of $40.1 billion, down from $40.3 billion in July, revised.

August exports were $0.4 billion more than July exports of $198.0 billion. August imports were

$0.2 billion more than July imports of $238.3 billion.

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

Results of daunting task. August exports of $198.5 billion.

That's only part of the story and neglects to mention the huge profit US companies make on most of those US imports.

The US is China's largest buyer of it exports but almost all of that is merchandise that China manufactured for US companies under US direction. Those items come into the US to be sold in American stores, in other countries, and online.

US companies are making a huge profit from the cheap labor in Asia, and US consumers are benefiting from low cost merchandise, so of course its imports are large.

If, for instance, a smartphone is made in Asia with cheap labor, Asia is picking the bones and a US company is making the big money on that item by holding the patents, brand name, and even the manufacturing technology. Nike has a pair of shoes made in China for $10 and sells them in another country for $100. Who's the winner?

[TheCruncher]

Manufacturing in America. If one were to walk into a Wal-mart, K-mart, Costco, or Sam's Club, I think it would be a daunting task to find much that was made in the US with the exception of processed foods, drugs, dairy items, snacks, and soft drinks. Even what's left of the auto industry depends on components made outside the US. The items that I used to buy ten years ago because they were made in the US - like New Balance or Van shoes - have long gone the way of outsourcing to Asia. Even a Harley is made and assembled in Taiwan. Multi-national companies will always look for the lowest labor costs to maximize profits. It's the nature of global capitalism.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total August exports of $198.5 billion and imports of $238.6 billion resulted in a goods and services deficit of $40.1 billion, down from $40.3 billion in July, revised.

August exports were $0.4 billion more than July exports of $198.0 billion. August imports were

$0.2 billion more than July imports of $238.3 billion.

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

Results of daunting task. August exports of $198.5 billion.

That's only part of the story and neglects to mention the huge profit US companies make on most of those US imports.

The US is China's largest buyer of it exports but almost all of that is merchandise that China manufactured for US companies under US direction. Those items come into the US to be sold in American stores, in other countries, and online.

US companies are making a huge profit from the cheap labor in Asia, and US consumers are benefiting from low cost merchandise, so of course its imports are large.

If, for instance, a smartphone is made in Asia with cheap labor, Asia is picking the bones and a US company is making the big money on that item by holding the patents, brand name, and even the manufacturing technology. Nike has a pair of shoes made in China for $10 and sells them in another country for $100. Who's the winner?

Thanks for reminding us that every thing is well in the US

Apple has its phones produced in Asia and Nike their shoes, and make huge profits on their sales, which they pay no taxes on in the US. Who's the loser ?

[NeverSure]

It is a financial impossibility for the US to survive a financial crash. 17 trillion in debt, an expensive "war on terror" that has lasted more than 10 years and protecting big financial firms. Where is that money coming from? It has to blow, nowhere else to go. Hey! It rhymes!

But what country has the balls to demand payment.......none...not China that's for sure.

re energy than the United States does.

#39 The average household debt load in the United States is 136% of average household income. In China, the average household debt load is 17% of average household income.

I just took one. To let the others have some fun too.

In developed countries it isn't unusual for a household to have a home mortgage for 2 or 3 times its annual income. Right now interest rates are so low in the US that even a 20 year loan will yield payments including taxes and insurance that are about 2/3 of the rental value of that home in most markets.

Consider the home financing in some other countries including Thailand. In the US It's regulated, and the home loan must be simple interest with the interest charge decreasing each month and the principle amount of the payment increasing each month as the principle balance drops. If the borrower wish to pay off the loan, perhaps due to a sale, simple interest will be charged only to the date of payoff with no penalty.

Please DON'T look at just one figure, ever. Consider the context and how things got to be that way and whether it's truly good or bad. As long as the market isn't over inflated, the interest rate is very good, and the borrower has a good career, it is smart to buy that house and get it paid for before retirement. BTW the interest and taxes on that house are deductible from income before calculating Federal income taxes so there's another help in making the payments. Rent isn't deductible.

[NeverSure]

Thanks for reminding us that every thing is well in the US

Apple has its phones produced in Asia and Nike their shoes, and make huge profits on their sales, which they pay no taxes on in the US. Who's the loser ?

Are you really that clueless? Did you type that yourself?

Consider one thing. Apple and Nike are public companies. The profits go to the stockholders. If you think they are making too much money, buy some damn stock and quit complaining. You too could be a prosperous capitalist if you only had a clue.

[F430murci]

Please Dear Santa, give me a 15,500 or a 15,250 and a 590 or 600 on the S&P 600 before year end and I promise to be a good boy. Small caps over corrected after an unimaginable torrid pace in recent years and I want back on an ETF train here, but only if index pushes a bit more into support for a nice bounce back.

I have been sitting on side lines since February waiting for a correction before I invested some new cash and looks like we are getting it before new year.

Good ole October! Both the hedge and alternatives needed this before I jump back in. I was just not feeling short term upside across the board when hovering at 17,XXX with all of the macro issues going on at the same time.

The micro is sound and the macro will pass or subside. Those of us purchasing at support levels driven by current macro events will experience a nice quick bounce, but you gotta play early as it won't sit at support for long before big bounces..

Once profits are taken, most will be right back in if for no other reason addiction to the game and easy money. The bounce off support will be a quick one.

Bummer. Lookedike support was 16,000 ish. Bounce of 263 today. Still sitting waiting on that 15,500 ish. My S & P 600 may have support at 600, so all is not lost.

[pookiki]

Manufacturing in America. If one were to walk into a Wal-mart, K-mart, Costco, or Sam's Club, I think it would be a daunting task to find much that was made in the US with the exception of processed foods, drugs, dairy items, snacks, and soft drinks. Even what's left of the auto industry depends on components made outside the US. The items that I used to buy ten years ago because they were made in the US - like New Balance or Van shoes - have long gone the way of outsourcing to Asia. Even a Harley is made and assembled in Taiwan. Multi-national companies will always look for the lowest labor costs to maximize profits. It's the nature of global capitalism.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total August exports of $198.5 billion and imports of $238.6 billion resulted in a goods and services deficit of $40.1 billion, down from $40.3 billion in July, revised.

August exports were $0.4 billion more than July exports of $198.0 billion. August imports were

$0.2 billion more than July imports of $238.3 billion.

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

Results of daunting task. August exports of $198.5 billion.

That's only part of the story and neglects to mention the huge profit US companies make on most of those US imports.

The US is China's largest buyer of it exports but almost all of that is merchandise that China manufactured for US companies under US direction. Those items come into the US to be sold in American stores, in other countries, and online.

US companies are making a huge profit from the cheap labor in Asia, and US consumers are benefiting from low cost merchandise, so of course its imports are large.

If, for instance, a smartphone is made in Asia with cheap labor, Asia is picking the bones and a US company is making the big money on that item by holding the patents, brand name, and even the manufacturing technology. Nike has a pair of shoes made in China for $10 and sells them in another country for $100. Who's the winner?

The loser is the American worker who has seen real wages stagnate or decrease for the last three decades. Why are there so many expats retired in Thailand and other third world countries? It's because they can no longer afford to live in the US. I know my children will never enjoy the same standard of living that I enjoyed while I was actively working. I strongly disagree that corporate profits and salaries for CEOs equate to a healthy economy for working people. Yes, transnational companies have become very adept at exploiting workers in third world economies where salaries are a pittance compared to that in the US and in other industrialized countries. I would invite you to visit a garment factory in Bangladesh or in Cambodia and view firsthand the conditions under which these workers toil. But, hey, it's only people, right?

In the meantime, all these great and profitable corporations do everything possible to avoid taxes in the countries to which they repatriate their profits. They want the best of both worlds while US consumers and workers subsidize their profit making through a lower standard of living. But in monopoly capitalism, winning at all costs is the name of the game.

[craigt3365]

That's only part of the story and neglects to mention the huge profit US companies make on most of those US imports.

The US is China's largest buyer of it exports but almost all of that is merchandise that China manufactured for US companies under US direction. Those items come into the US to be sold in American stores, in other countries, and online.

US companies are making a huge profit from the cheap labor in Asia, and US consumers are benefiting from low cost merchandise, so of course its imports are large.

If, for instance, a smartphone is made in Asia with cheap labor, Asia is picking the bones and a US company is making the big money on that item by holding the patents, brand name, and even the manufacturing technology. Nike has a pair of shoes made in China for $10 and sells them in another country for $100. Who's the winner?

If you look at the EU as a single entity, they seem to be a larger buyer of exports:

http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_China#Countries_.26_regions_that_China_trades_the_most_with

[NeverSure]

Please Dear Santa, give me a 15,500 or a 15,250 and a 590 or 600 on the S&P 600 before year end and I promise to be a good boy. Small caps over corrected after an unimaginable torrid pace in recent years and I want back on an ETF train here, but only if index pushes a bit more into support for a nice bounce back.

I have been sitting on side lines since February waiting for a correction before I invested some new cash and looks like we are getting it before new year.

Good ole October! Both the hedge and alternatives needed this before I jump back in. I was just not feeling short term upside across the board when hovering at 17,XXX with all of the macro issues going on at the same time.

The micro is sound and the macro will pass or subside. Those of us purchasing at support levels driven by current macro events will experience a nice quick bounce, but you gotta play early as it won't sit at support for long before big bounces..

Once profits are taken, most will be right back in if for no other reason addiction to the game and easy money. The bounce off support will be a quick one.

Bummer. Lookedike support was 16,000 ish. Bounce of 263 today. Still sitting waiting on that 15,500 ish. My S & P 600 may have support at 600, so all is not lost.

Never try to catch a market bottom. Buy on the way down and buy on the way up.

I realize you know this, but it's called "dollar cost averaging."

The best opportunities to make money in the stock market is when it's fluctuating.

[thailiketoo]

The loser is the American worker who has seen real wages stagnate or decrease for the last three decades. Why are there so many expats retired in Thailand and other third world countries? It's because they can no longer afford to live in the US. I know my children will never enjoy the same standard of living that I enjoyed while I was actively working. I strongly disagree that corporate profits and salaries for CEOs equate to a healthy economy for working people. Yes, transnational companies have become very adept at exploiting workers in third world economies where salaries are a pittance compared to that in the US and in other industrialized countries. I would invite you to visit a garment factory in Bangladesh or in Cambodia and view firsthand the conditions under which these workers toil. But, hey, it's only people, right?

In the meantime, all these great and profitable corporations do everything possible to avoid taxes in the countries to which they repatriate their profits. They want the best of both worlds while US consumers and workers subsidize their profit making through a lower standard of living. But in monopoly capitalism, winning at all costs is the name of the game.

There is one CEO making too much money, OK. How many union members? Who are the people getting corporate profits? Officials at the United Auto Workers union have told members employed at General Motors Co. to expect profit-sharing checks for as much as $7,000 early next year, according to two people briefed on the matter. Over at Ford Motor Co. , which is more profitable than GM in North America, the 2012 payouts could top $8,000, based on a pay formula spelled out in the UAW contract.

You are writing more off topic left wing nonsense. Corporations are people who buy shares in the corporation.

You want profit go buy some stock and don't expect my hard work to fund your nanny countries.

On topic the author is correct America is trying to do too much at the same time. Give Ukraine back to Russia except for the ladies working in Thailand; give Syria to the Syrians and Africa to the Africans. America now has lots of oil now so why mess with those countries anymore. No one wants America to be the world's policeman most of all Americans. It is not my fault. I didn't vote for the guy.

Edited October 18, 2014 by thailiketoo

[pookiki]

The loser is the American worker who has seen real wages stagnate or decrease for the last three decades. Why are there so many expats retired in Thailand and other third world countries? It's because they can no longer afford to live in the US. I know my children will never enjoy the same standard of living that I enjoyed while I was actively working. I strongly disagree that corporate profits and salaries for CEOs equate to a healthy economy for working people. Yes, transnational companies have become very adept at exploiting workers in third world economies where salaries are a pittance compared to that in the US and in other industrialized countries. I would invite you to visit a garment factory in Bangladesh or in Cambodia and view firsthand the conditions under which these workers toil. But, hey, it's only people, right?

In the meantime, all these great and profitable corporations do everything possible to avoid taxes in the countries to which they repatriate their profits. They want the best of both worlds while US consumers and workers subsidize their profit making through a lower standard of living. But in monopoly capitalism, winning at all costs is the name of the game.

There is one CEO making too much money, OK. How many union members? Who are the people getting corporate profits? Officials at the United Auto Workers union have told members employed at General Motors Co. to expect profit-sharing checks for as much as $7,000 early next year, according to two people briefed on the matter. Over at Ford Motor Co. , which is more profitable than GM in North America, the 2012 payouts could top $8,000, based on a pay formula spelled out in the UAW contract.

You are writing more off topic left wing nonsense. Corporations are people who buy shares in the corporation.

You want profit go buy some stock and don't expect my hard work to fund your nanny countries.

On topic the author is correct America is trying to do too much at the same time. Give Ukraine back to Russia except for the ladies working in Thailand; give Syria to the Syrians and Africa to the Africans. America now has lots of oil now so why mess with those countries anymore. No one wants America to be the world's policeman most of all Americans. It is not my fault. I didn't vote for the guy.

"Corporations are people who buy shares in the corporation." Isn't this the biggest problem at the moment? Corporations actually do think they are people. Out of curiosity, what happened to your stocks during the last financial crisis? Was it ok to spend billions of dollars of my and other Americans taxes to bail out companies whose CEOs who made stupid decisions and put their shareholders equity at risk? Should the government reward incompetency and let the companies rebuild so they can screw us, again? But we were told that the 'system' would have collapsed. We should have let it collapse! And don't blame Obama for the bailout, it happened before he took office. I do agree with the article, another bubble is coming and it will be worse than 2008.

Oh, by the way, who is the one CEO you think is overpaid?

[pookiki]

"Corporations are people who buy shares in the corporation." Isn't this the biggest problem at the moment? Corporations actually do think they are people. Out of curiosity, what happened to your stocks during the last financial crisis? Was it ok to spend billions of dollars of my and other Americans taxes to bail out companies whose CEOs who made stupid decisions and put their shareholders equity at risk? Should the government reward incompetency and let the companies rebuild so they can screw us, again? But we were told that the 'system' would have collapsed. We should have let it collapse! And don't blame Obama for the bailout, it happened before he took office. I do agree with the article, another bubble is coming and it will be worse than 2008.

Oh, by the way, who is the one CEO you think is overpaid?

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Of course I blame Obama he was the President for all of the above.

Who is overpaid? Obama.

I think your memory is a bit hazy on the bailout. http://www.theguardian.com/business/2008/oct/03/creditcrunch.useconomy2

Bush signed the legislation for the 700 billion $ bailout. Since it wasn't Obama, does that make it ok??

[thailiketoo]

"Corporations are people who buy shares in the corporation." Isn't this the biggest problem at the moment? Corporations actually do think they are people. Out of curiosity, what happened to your stocks during the last financial crisis? Was it ok to spend billions of dollars of my and other Americans taxes to bail out companies whose CEOs who made stupid decisions and put their shareholders equity at risk? Should the government reward incompetency and let the companies rebuild so they can screw us, again? But we were told that the 'system' would have collapsed. We should have let it collapse! And don't blame Obama for the bailout, it happened before he took office. I do agree with the article, another bubble is coming and it will be worse than 2008.

Oh, by the way, who is the one CEO you think is overpaid?

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Of course I blame Obama he was the President for all of the above.

Who is overpaid? Obama.

I think your memory is a bit hazy on the bailout. http://www.theguardian.com/business/2008/oct/03/creditcrunch.useconomy2

Bush signed the legislation for the 700 billion $ bailout. Since it wasn't Obama, does that make it ok??

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Not Bush. The OP is about current events not 2008. Get with the topic. Obama has had the lowest approval ratings of any PresidenT since Nixon.

Obama's Current Approval Rating Is The Ugliest Since Nixon

http://www.businessinsider.com/obama-approval-rating-polls-nixon-2013-12

The OP is obviously about Obama's policies and not about two Presidential terms ago.

[metisdead]

A post using bold font has been removed, there is no need to be posting in all bold font, Keep doing it and posts will simply disappear.

[pookiki]

"Corporations are people who buy shares in the corporation." Isn't this the biggest problem at the moment? Corporations actually do think they are people. Out of curiosity, what happened to your stocks during the last financial crisis? Was it ok to spend billions of dollars of my and other Americans taxes to bail out companies whose CEOs who made stupid decisions and put their shareholders equity at risk? Should the government reward incompetency and let the companies rebuild so they can screw us, again? But we were told that the 'system' would have collapsed. We should have let it collapse! And don't blame Obama for the bailout, it happened before he took office. I do agree with the article, another bubble is coming and it will be worse than 2008.

Oh, by the way, who is the one CEO you think is overpaid?

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Of course I blame Obama he was the President for all of the above.

Who is overpaid? Obama.

I think your memory is a bit hazy on the bailout. http://www.theguardian.com/business/2008/oct/03/creditcrunch.useconomy2

Bush signed the legislation for the 700 billion $ bailout. Since it wasn't Obama, does that make it ok??

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Not Bush. The OP is about current events not 2008. Get with the topic. Obama has had the lowest approval ratings of any PresidenT since Nixon.

Obama's Current Approval Rating Is The Ugliest Since Nixon

http://www.businessinsider.com/obama-approval-rating-polls-nixon-2013-12

The OP is obviously about Obama's policies and not about two Presidential terms ago.

Trying to prevent stock market bubbles from busting is a clear reference to the 2008 financial crisis and Bush was at the helm at the time. Why are you in such a state of denial? Is it OK to bail out Wall Street when the CEOs of Goldman Sachs, AIG, etc., made stupid and incompetent decisions with their investor's money?

[thailiketoo]

The topic, "The United States is now battling on four fronts - squaring off against Russia over the Ukraine crisis, bombing ISIS in Syria and Iraq, grappling with a threatened Ebola pandemic at home, and trying to prevent its stock market bubbles from busting."

Not Bush. The OP is about current events not 2008. Get with the topic. Obama has had the lowest approval ratings of any PresidenT since Nixon.

Obama's Current Approval Rating Is The Ugliest Since Nixon

http://www.businessinsider.com/obama-approval-rating-polls-nixon-2013-12

The OP is obviously about Obama's policies and not about two Presidential terms ago.

Trying to prevent stock market bubbles from busting is a clear reference to the 2008 financial crisis and Bush was at the helm at the time. Why are you in such a state of denial? Is it OK to bail out Wall Street when the CEOs of Goldman Sachs, AIG, etc., made stupid and incompetent decisions with their investor's money?

The OP is clearly about now. Not 2008.

The OP "Now, seven years later, there are fears that US stocks can't continue to rise forever, as judged by the swing of equity prices over the past week or so. The trouble is that this time the Fed has run out of ammunition. The interest rate, which is almost zero, can't be brought down further. If a crisis were to hit the US market again, and it will, the Fed will be caught without any rescue tools. Some say the market could crash 50 per cent. Others, such as "The Death of Money" author James Rickards, argue that it could collapse by 70-80 per cent.

The whole article is about Obama and how he has messed up the country. Read it.

Sorry if any of my posts have bold. The first paragraph of the article is bold so to quote that paragraph I used bold.

Edited October 18, 2014 by thailiketoo

[Scott]

An inflammatory post has been removed.