[StBernard] ban cheap goods made in China

[Westley Annis]

It's a great article (thanks) and very informative.  But as the article
indicates, it is Korea and other Asian central backs that hold the majority
of U.S. securities - not so much China.  

Though they do to have some holdings, my thinking is if we would revoke
Favored Nation Status to China (basically ending all trade with them) then
what ever negative impact might result (against those holdings the Chinese
have) could eventually be made up by transfering their
production/manufacuturing to U.S. companies, resulting in the U.S. economic
growth and reducing our trade deficit.

Of course, there's no guarantee U.S. businesses would do that...most would
likely want to move their production (or purchasing) to Korea, India or the
like.  That's why we also need to develop "nationalism" economic laws like
those that exist in Japan.  Probably few Americans are aware that the
Japanese allows very little importation of products - and they control and
limit what few products they let in.

My ideas might at first come across as somewhat anti-free market, but
they're really not...because the trade restraints I'd like to see put in
place would favor the U.S. and American investors, thus American
(production/factory) workers.  I would have never contemplated such thinking
a few years ago, but the times are a changing.  After all, desparate times
call for desparate measures...and I think things are starting to get a bit
desparate when you read articles like the one you attached.  

I believe leaders in other countries would understand what we would be
attempting do - they might not like it, but they would certainly understand.


John Scurich



-----Original Message-----
I would love the idea John and here's why it won't work:

The Bank of Korea's reserves of foreign exchange have roughly doubled in the
past 3 1/2 years, to $207 billion -- a staggeringly large sum for a country
of 48 million people but not a uniquely Korean phenomenon. The Bank of Japan
holds reserves of $823 billion; the People's Bank of China holds $769
billion; Taiwan's central bank holds $252 billion. The vast bulk of those
reserves are invested in U.S. Treasury bonds and other U.S. securities, such
as bonds issued by the mortgage finance company Fannie Mae.

Link to old story [this was pasted from it]  http://tinyurl.com/5dxg95

The thing is, we have to deficit finance our government and we sell bonds at
auction as ref'd above.  Who's buying those bonds T-bills, T-notes, etc?
Foreign governments and mainly these days it's China.  If we stop their crap
from coming in, they stop buying our paper and we're up the crick.  

I forget now what it was even, but the other day I purchased an item (and
not at Walmart) which was just, ya know, every day crap...got home opened it
and upon flipping it over there it was:  Made in China.