Yeah, and if China commented on the U.S. economy, we'd listen.
Used to be a trillion dollars was an almost unimaginable number. Then it became common when referring to the economies of the world's largest countries -- the U.S. debt is now more than $9 trillion.
Now we have the first company in the world to be valued at $1 trillion. Not Exxon, or General Electric, or even Google.
It's PetroChina, the largest oil and gas producer in the Asian behemoth. Its worth became more than Exxon and General Electric combined. According to Bloomberg News, the company has greater value than the Russian stock market.
Owned by the government, it was spun off from China National Petroleum Company in 1999. Its profits typically trail Exxon because the government, ignoring soaring oil prices, arbitrarily keeps retail prices low.
Flush with money, eager domestic investors snapped up the stock despite warnings from analysts that the stock was severely overvalued and a correction was in the offing -- American Ãber -investor Warren Buffet sold his stock in the company months ago.
The all-controlling Chinese government is the culprit here. It doesn't seem to understand that in a real capitalistic economy, you should build value before you reap the rewards.
By opening up its nascent energy companies to investors, it continues to try to play at being a capitalist while maintaining communist control. Recent public offerings of other oil and coal concerns also have set records.
The only beneficiaries of these shenanigans are the short-term speculators who act like sharks feeding on an injured whale. The losers will be the many Chinese investors who are being hoodwinked by their own government.
What does it mean for the rest of us?
Today's worldwide economy is so intricately connected that if an economic bubble bursts in one area, panic could easily spread rapidly to the rest of the world. Our fragile economy, closely connected to China and still recoiling from the subprime mortgage fiasco, could fall victim.
China needs to stop acting like a greedy, drunken salesman at the gambling table, before it's too late for all of us.
Comments
Yeah, and if China commented on the U.S. economy, we'd listen.
I am critical of China's human rights record, but I think if China is approached on issues relating to economic sustainability and the environment they are open to dialog. Of course, the Bush 43 administration doesn't do dialog. They prefer U.S. Naval maneuvers to send a message to China about its expanding influence in southeast Asia. Meanwhile in the short term mentality of the Bush-Cheney war profiteering machine cash overrules logic when it come to high tech trade transfers to China even if it puts U.S. ability to defend Taiwan at risk. Make no mistake - money makes the world go round. China is out competing United States at its own game of cutthroat capitalism. Unless issues of sustainability are addressed in a cooperative manner China will inevitably be a competitor for dwindling resources and a potential enemy in armed conflict.
China is being approached on economic issues, Cain. World ambassadors are trying to explain why cutthroat competition doesn't work while trying not to come across as losers. (Your "naval maneuvers" whine makes your phobia obvious and detracts from your comment)
Who would you rather own our banks the Sauds or Chinese? Can't wait for Cain's comments concerning the Democratic Profiteering machine when we have both a Dem Congress and Dem President. So our econcomy is being hijacked and controlled by foreign interest-I guess that is no concern to anyone. We will have another armed conflict with someone probably under the Dem regime. Ironies of ironies.
Hillary Clinton said during the debate last night on MSNBC that we shouldn't be surprised if there is an attack on this country immediately following the election. BTW..She said not to confuse this with the Republicans' fear-mongering. Her fear-mongering is entirely different. This was in answer to a direct question from Russert..
RE: DoctorBizzarro's "So our econcomy is being hijacked and controlled by foreign interest-I guess that is no concern to anyone." ---- Wrong! Our economy is being destroyed from within. How typical of the blame-spinners to point the finger at others. It is Americans, and their mendacious, self-aggrandizing "leaders," not the Chinese that: 1.Spent $1 trillion invading and destroying another country; 2. Established ~ 725 U.S. military installations in foreign countries; 3. Spend more on war-making than all of the other nations in the world, combined; 4.Have a Federal Reserve system (private bankers) that print money at will and debase the currency; 5.Do virtually nothing to conserve energy (because that goes contrary to the interests of The Shrub's friends); 6.Gave us a U.S. government that rewards spenders and punishes savers, via the income tax code -- to the extent that 70%+ of the U.S. GDP is now CONSUMPTION;7. Gave us The Shrub who has put more U.S. debt in the hands of foreign nations (particularly China) than all of his predecessors, combined. 8. Created a national debt of ~ $60 trillion, not $9 trillion. (Government bookkeeping is a phony as the government "leaders.)
From Marketplace Morning Report: Commentator Robert Reich says China isn't to blame and neither is the value of its currency. The blame lies with us.// Robert Reich: Don't be surprised if in 2008 Congress threatens China with tariffs unless it does more to raise the value of its currency against the dollar and thereby, it is assumed, save good American jobs.// But the trade deficit numbers are deceptive. Much of what we buy from China today we used to buy from Japan, South Korea, and Taiwan, but now parts from these countries go to China for final assembly and because the goods are exported from China, they're counted as Chinese. Subtract what's merely assembled in China and more than half of China's trade deficit disappears.// China is also sucking in vast quantities of cheap components from places in Southeast Asia where wages are lower than in China: Thailand, the Philippines, Indonesia, and Vietnam. So if China's currency rises and as a result it's more expensive to export stuff from there, where do you suppose both parts and assembly operations will move? To these lower-wage countries. Remember, we're dealing with global companies seeking the lowest costs from ...cont'd ...
...anywhere around the world and they're often headquartered here in the United States. Even if the trade deficit with China narrowed, America's overall trade deficit with Asia could very likely grow.// The real problem is that America as a whole is living beyond its means. If anything, China has been an enabler, lending us heaps of money to continue our buying binge including homes with low-interest mortgages. That binge seems to be coming to a close. If American politicians succeed in forcing China to raise its currency another 10 or 20 percent, the binge will end faster than you can say the word "stagflation."// But not all Americans feel they've been living beyond their means and here's why Congress is feeling pressured to do something about the trade deficit with China: Adjusted for inflation, the median wage is below what it was in 2000. Almost all the benefits of American economic growth have been going to the very top. But China shouldn't be a scapegoat for this, either.// Robert Reich was Labor Secretary under President Clinton. His new book is called "Supercapitalism."
TO: JohnRandolphHardisonCain --- As much as I might agree with much of what you say, you destroy the credibility of what you say by quoting Robert Reich. He is a political animal, joined at the hip to those outrageously immoral (and very wealthy) political animals, Bill and Hillary. There are plenty of really smart, well-informed apolitical financial and economic analysts who have similar views, but are not carrying around the lead weights in suitcases that the Clinton crowd does. Try David Walker, the U.S. Comptroller General, for example. A person (and his/her thoughts) are known by the company they keep. You convince no one by quoting Robert Reich.
nor praying for ever growing entitlements and fascist control of the economy, (i.e. healthcare).
One of the Knaves jumbled list is the tax code. A horrible mess if there ever was one. It has been used to manipulate and coddle for so long that half of it contradicts the other half. It needs to be done away with and replaced with a simple, easy to understand system. Save our country. Do away with the income tax.
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