[shortonoil]

.

Jensen sort of says it all:

http://www.financialsense.com/fsu/edito ... 1208b.html

I think that the problem will really show up as China starts to come apart for economic and political reasons. She is more highly over extended than the US and has less assets to fall back on. As a result we could see a complete break down of world trade over the next few years. Since NO ONE makes anything in its entirety, we could see industry worldwide essentially come to a standstill. PO will claim its victim long before it shows up on the nightly news.


.

[oilluber]

$this->bbcode_second_pass_quote('shortonoil', '.')

Jensen sort of says it all:

http://www.financialsense.com/fsu/edito ... 1208b.html

I think that the problem will really show up as China starts to come apart for economic and political reasons. She is more highly over extended than the US and has less assets to fall back on. As a result we could see a complete break down of world trade over the next few years. Since NO ONE makes anything in its entirety, we could see industry worldwide essentially come to a standstill. PO will claim its victim long before it shows up on the nightly news.


.

[RdSnt]

$this->bbcode_second_pass_quote('Falconoffury', '')$this->bbcode_second_pass_quote('', 'T')he bottom line is that the US, and every citizen in it, is so far in debt there is no feasible way to recover.

[Rafa]

$this->bbcode_second_pass_quote('shortonoil', '[')China]is more highly over extended than the US and has less assets to fall back on.

[Falconoffury]

$this->bbcode_second_pass_quote('', 'A')ctually you are responsible for your countries debt, you are a citizen and you have benefitted from the infrastructure that it entails.

[shortonoil]

.

Raga said:

“Huh? less assets? Last time I checked the factories were in China, not the US.”

At the present time 40% of China's outstanding loans at its banks are non performing. China has invested very heavily in duplication and financially unproductive assets because of the non financial character of Chinese business (that is, who you known not the economic feasibility of the project). China also has a huge number of peasant farmers who have been displaced from their land to make room for these unproductive factories and who have not been compensated for their land. This is mostly because the money that was issued by the central government to pay the peasants was stolen by lower level bureaucrats before it reached the farmers. China has a long history of unhappy peasants revolting and replacing governments. It has historically been China’s method of government change. What is happening in China today appears to be very much like what happened during the Asian Crisis. She needs phenomenal growth rates to support her unproductive assets and it appears that the rate of her oil consumption increases are falling. Indicating a decline in industrial growth. Although the media likes to talk like China is some kind of industrial miracle, she is more likely a huge, bloated paper tiger.

.

[frankthetank]

$this->bbcode_second_pass_quote('', 'N')EW YORK (CNN/Money) - The nation's trade gap soared to record levels in 2005, as the December report on imports and exports showed the third largest monthly deficit, topping Wall Street expectations.

The Commerce Department reported Friday that U.S. imports outstripped exports by $65.7 billion in December, up from the revised $64.7 billion in November. Economists surveyed by Briefing.com were forecasting the gap would rise to $64.8 billion for the month.

The December report brought the full-year trade gap up to $725.8 billion, up from the previous record of $617.6 billion set in 2004. That gap works out to came to an average of $2,448 per American, which is up from $2,103 per American in 2004.

[markam]

Apparently, the entire world is so desperate to keep their citizens employed that they will continue to collect and exchange our money and pretend that it is actually worth something.

I wonder if America can just officially become the the world consumer? We all retire and just buy stuff. All the other citizens of the world are happily employed, and everybody just pretends that the dollar is a valuable asset.

I am willing to do my part and start buying more stuff.

[UIUCstudent01]

$this->bbcode_second_pass_quote('markam', 'I') wonder if America can just officially become the the world consumer? We all retire and just buy stuff. All the other citizens of the world are happily employed, and everybody just pretends that the dollar is a valuable asset.

I am willing to do my part and start buying more stuff.

[PWALPOCO]

I , in the UK , am willing to work to be paid , and make you "stuff".

The stuff may be costly in dollars as it has to be exchanged for GBP but no worries , things will become easier as and when the GBP also collapses.

May the status quo prevail.

Paul

[SinisterBlueCat]

$this->bbcode_second_pass_quote('markam', 'A')pparently, the entire world is so desperate to keep their citizens employed that they will continue to collect and exchange our money and pretend that it is actually worth something.

[PrairieMule]

Ha!Ha! 愚笨的yankees 我们窃取你的工作。保留买材料 从目标在你的信用卡Jon Bon jovi 是方式凉快人!

Translation of Chinese perspective on trade deficit to English(via google tools):

Ha!Ha! stupid yankees we steal your job. Keep buying stuff from target on your credit card. Jon Bon jovi is way cool man!

[lotrfan55345]

thats cool

[smiley]

$this->bbcode_second_pass_quote('', 'I') have a feeling the party is ALMOST over

[mekrob]

Does that only include goods, or does it also include services? A little hope...maybe.

[Tyler_JC]

$this->bbcode_second_pass_quote('mekrob', 'D')oes that only include goods, or does it also include services? A little hope...maybe.

[Doly]

$this->bbcode_second_pass_quote('Tuike', '
')I wonder how long this can keep going until crash? No one knows.

[Tuike]

$this->bbcode_second_pass_quote('', 'A')ccording to the Commerce Department, the shortfall, which includes trade figures as well as money flows, surged 20% to $804.9bn (£463bn) last year.

The deficit was 6.4% of the total value of the US economy, the world's largest.

[Clouseau2]

And once this house of cards folds, it takes the rest of the world economy with it, which is the only reason it keeps going in the first place.

It's like the local drug kingpin terrorizing the community. The residents know where he lives, know what crimes he is committing, but don't turn him into the police because they need their drug fix.

[oilfreeandhappy]

The sad thing is that we had a Budget Surplus in 2000.
Jim Gagnepain
http://home.comcast.net/~oil_free_and_happy/