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China’s Economic Policies Can Cause Chaos

admin — Sun, 18 Sep 2011 00:00:00 +0000

Chinaâ€™s economy works against the western world and specifically the United States.

First, China does not allow their currency to be market set which means that China can set the price of the Yuan at almost whatever level they want it to be. The problem with this arrangement is China usually has it set at an artificially low rate. This means that Chinese goods and services can be bought for a lot less than U.I was looking for more information and found it here.S. or UK goods. at 6.60 to the dollar, chinese goods will be cheaper than if the dollar was worth 8.50. So the Chinese sell more goods at a cheaper price. They make less money than if they set the yuan at 8.50.

The bottom line is that China-s economy has now reached the size that its undervalued exchange rate and export-led manufacturing development policy are serious problems for the current open, multilateral, international trading system which allows its currency to be set in the open market.

As China produces more goods which they can sell at cheaper prices the U.S. market is threatened with detsabilization and price wars at home. This may happen in other world economic regions as well. China is not under control.

Is America Exporting Less GDP Components

admin — Wed, 14 Sep 2011 00:00:00 +0000

Due to the economy today, the US has recently been shipping fewer exports out to other countries, and they have been relying more on the outside world, in order to have goods shipped into the states, in order to have products and services sold to their consumers. Not only that, but even work is being taken to other countries, and the job shortage here in the US is also do to the slow economy, and the lesser pay that large companies can pay to 3rd party countries, and the workers who are willing to do the jobs for much lower pay, and these large companies do not have to even pay minimum wage to these employees, as they would be paying here, if they had hired local US workers instead.Is this new to you? Catch up here

So, during these slow economic times the US has greatly relied on other countries, and has taken a back seat in the exports and imports market, and relied on other countries to do the work for it. So, until there is a clear sight of things getting better here in the states, we can probably expect this lagging in exports come out of the US, and the high imports coming in.

The Economies of Greece, Spain and Turkey Affects America

admin — Mon, 12 Sep 2011 00:00:00 +0000

Unfortunately, the economies of Greece, Spain, and Turkey have recently been severely harmed by worldwide financial crises. The economy of the United States has inevitably affected the economies of those countries and, in turn, has been affected by them.

Greece’s economic troubles have probably been the most widely publicized. Spain had quite a robust economy prior to the severe downturn of 2008. Turkey’s economy is still often considered to be “developing’. The development has largely halted in the wait of the global financial crisis, but it has actually gained ground relative to other, more developed, countries that have been very severely affected.

The United States is a major trading partner to many of the world’s countries. This certainly includes Greece, Spain, and Turkey. President Obama visited Turkey in 2009, and Spain’s sovereign debt crisis, among other factors, has raised concerns about the possibility of a global “double dip’ recession.

Considering the ever-increasing global interconnectedness of the world, a financial crisis in one nation will inevitably have a ripple effect on the rest of the developed world. This summer, Greece asked for a bailout to take care of its out of control debt situation. Hopefully, the world economy will stabilize soon.

The Export of American Jobs Does Hurt the U.S.

admin — Sun, 11 Sep 2011 00:00:00 +0000

Money is not the only casualty of the unemployment problem sweeping the United States. While it is obvious that earning a living supports families and returns that income back into the economy when earners become consumers, the consistently high unemployment rates have done damage to the psyche of the American worker, employed or unemployed. A very realistic cause of anxiety is that their jobs will be lost, or will not return because the positions are being shifted overseas where the expense of human resources can be reduced as equally educated and talented foreigners require a significantly reduced salary. American companies believe in order to keep consumer prices down and balance sheets profitable, the solution is to human capital expenditures.

Long-term unemployment numbers are increasing not only in population but in length of joblessness. In the past, the emergency fund savings rule of thumb advised a liquid asset account lasting from three to six months. Former full-time workers with college-level skills are lucky to find part-time or contract work to keep some sort of income rolling in. Many of these jobs are being exported overseas where customer service, IT help desk and order fulfillment call centers are sprouting up in second and third world economies.

Obviously, the unemployed are financially hurt by overseas outsourcing, but to what extent will society be damaged further by the addition of immense pain of depression and anxiety to this equation?Take a look here to learn more: When The Unemployed Become ‘Effectively Unemployable’