posted on October 29, 2003 09:29:45 AM new
“In August 2003, US sales for the Big Three Automakers -- General Motors, Ford, and Chrysler -- fell to a record low of 57.9%.”
But as the U.S. car industry was a step away from becoming scrap metal, China’s automaking business was swiftly becoming the King of the Road:
----“China’s car sales soared 60% last year, making it the world’s fastest growing major car market. “
---- “China’s State Statistical Bureau said car inventories rose more than 6000 units in the first seven months of 2003, a rise never seen in any comparable period.”
----“China has been riding an automotive boom in recent years as a growing middle class and easier access to bank finance have helped average citizens to trade up from a bicycle to an economy sedan.”
So, with China stepping into the driver’s seat of the car making industry, the big guys in big trouble with their U.S. operations started shouting “Shotgun!”
The October issue of the Elliott Wave Financial Forecast (EWFF) points out the following detail from the September 19th issue of the Wall Street Journal:
“…GM, Ford, Toyota, Daimler Chrysler and Volkswagon have all invested billions in Chinese auto plants over the last year.”
In fact, according to a recent report, “General Motors Corp said that its sales in China outperformed business growth in key regions, including the U.S. and Europe this year.” GM now makes most of its cars in China at its sprawling Shanghai plant. At a recent Congressional hearing, one witness testifed that US corporations can not stop moving production to Asia because that is where the profit for the whole of operations is coming from. In other words, the Asian operations are the only viable profit making ventures the corporations have.
Any concerns about the private plans of local manufacturers, supply gluts, capacity exceeding sales, even a repeat of the Brazilian fiasco -- Some years ago, the whole car industry ran to Brazil, hoping that the market would equal 200% -- come second to the expectations of success.
In the words of one managing director at Volkswagon, “We all agree the upcoming opportunity in China outweighs the risks… Everyone’s piling in, everyone wants a piece.” Another top executive adds, “What we say about Chinese growth is not a question of if, but it’s simply a question of when.”
Everything anyone needs to know about deflation and its potential in coming months and years is contained in these stories about U.S. automakers going abroad. While over capacity may seem unbelievably remote with the potential markets in Asia, the wealthiest market in the world, the US market, must collapse as jobs continue to race to low wage/cost regions.
posted on October 29, 2003 11:03:47 AM new
i kept saying this and posting info for months about outsoucing and the way things are happening, doesn't surprise me, and the US economy is on the verge of collaspe, watch..........and no, i am not being doom and gloom, just pointing out a reality that a lot of people know in the money market....buy gold and silver, and sell everything you got that isn't worth keeping, I blame a lot of this on Bush and gang, and anyone with a thinking brain can figure it out, when you take money out of your economy and spend elsewhere and return nil back, what is the result?
Also, Bush pis*ed off a lot of the world who were trading with US and these same countries are now sticking that middle finger up and saying ok, i will shop elsewhere, and i will use the euro as my main currancy, to hell with the greenback.
Plus I believe a lot of companies that are outsourcing are figureing out that that the North American economy has been used up, time for new fertile grounds, like China and India, 3 billion consumers, i see North America being the New Poor Nation, but time will tell.
A lot of people knew that when you go to war it is damn expensive,and again i say, only a handful will make money on this war AKA Bush and Gang, the rest of us will suffer
posted on October 29, 2003 11:28:04 AM new
I recently read that only 10% of all US consumed items will be produced in the US in the year 2010.
It maybe similar to Japan producing cheap toys after WW2 but they got better and better and then Korea got better and better then Malaysis got better and better and now it's China's turn. When it was only cheap toys nobody cared and laughed at the situation but now it's most electronics and many other consumer segments.
I can see a large and permanent loss of quality jobs that the US will never be able to replace due to overseas outsourcing. That will have to at least somewhat cripple the US economy.
At what point did the British Empire cease to be the most powerful country/empire? Is the US approaching the same crossroads? I thinks it's coming.
-------------- sig file ----------- *There is no conclusive evidence that life is serious*
posted on October 29, 2003 01:47:57 PM new
i heard they are running out of us ribeye steals in beijing hotels.
dont forget our farmers can feed the world.
-sig file -------The thrill is gone!!
posted on October 29, 2003 03:20:17 PM new
stopwhinning said " dont forget our farmers can feed the world "
i beg to differ on that point , that statement was correct for the 50's , 60's, 70's 80's and early 90's, but now Europe and the sScandinivia countries and Russia, and Canada, are now the main producers, plus there is a huge controversary on genetic modified crops, which the US farm corperations are getting into ,and a lot of countries will not accept, these GM crops.
Payrolls plunge 93,000, but unemployment rate edges down
WASHINGTON — Employers cut jobs in August at the fastest pace since March, the government said in an unexpectedly downbeat report Friday showing that businesses are continuing to cut jobs even as some areas of the economy are recovering.
The number of workers on U.S. payrolls outside the farm sector slid 93,000 in August after dropping 49,000 in July. Economists had expected a modest increase.
UEMPLOYMENT
Even as the jobless rate edges lower, companies are slashing jobs.
August was the seventh consecutive month of cuts in payrolls, a survey of businesses showed, indicating continuing weakness in the job market.
But according to a broader survey of U.S. households, the overall unemployment rate fell from a seasonally adjusted 6.2% to 6.1% of the labor force.
Labor Department analysts believe the survey of businesses provides a more reliable picture of the jobs market than the household survey.
"The unemployment rate seems to be more of an aberration than anything else," said Steve Gallagher, economist at SG Cowen Securities.
The survey of businesses showed job cuts were heavy again in manufacturing, a sector that has suffered the brunt of the economic downturn that began in March 2001. President Bush on Monday announced he was creating an assistant secretary of Commerce position to focus on revitalizing that part of the economy.
The White House said Friday it saw "promising" signs of economic growth despite the jobs report.
"There are are number of promising signs in the economy. ... But there is more we need to do to get the economy growing even faster. The president is not satisfied," White House spokesman Scott McClellan said.
Hiring in health care and construction helped offset losses in factories and other industries, such as information, professional and business services and government, Friday's report said.
Friday's reports no longer reflected a cyclical economy trying to add jobs after a recession — "which is depressing," said Sung Won Sohn, chief economist at Wells Fargo.
Deeper concerns now are focused on long-term structural problems in the economy, such as a flood of U.S. jobs going overseas. "We have simply seen the tip of the iceberg," Sohn said. "I think it will get worse, not better."
Some reports estimate 5 million jobs — many high-paying — will be lost to other countries by 2015. The economy is growing, but demand is being filled from overseas, Sohn said. Also, because of that increasing global competition, businesses are holding down costs by not hiring U.S. workers.
If hiring doesn't improve, the recovery could be in jeopardy because consumers worried about job prospects will stop spending. Consumer spending has been the driving force in the U.S. economy.
Treasury Secretary John Snow said the jobs report signals the need for Congress to step up efforts to give employers the confidence to hire workers.
"Today's unemployment numbers mean we need to do more to strengthen the environment for job creation," he said in a statement.
President Bush wants Congress to pass energy legislation and provisions left out of this year's tax cut bill. The president has also said limiting damage awards on civil lawsuits and making tax cuts already enacted permanent will create new momentum for hiring.
Last month, the number of people in the labor force remained largely unchanged, with just 10,000 giving up on job searches. The labor force is comprised of those working or looking for work.
Nearly 2 million people in August were unemployed 27 weeks or more, representing nearly 22% of jobless workers. Those figures were similar to July's numbers.
The number of worker hours averaged 33.6 a week in August, same as in July. Analysts were expecting the average workweek to rise to 33.7 hours.
Lack of growth in the workweek is a disappointing sign for the future. When companies are poised to hire, they often increase the hours of workers currently on staff.
A recent string of better than expected data on retail sales, durable goods, consumer sentiment and housing had led economists to believe the tough labor market might start to improve.
The Labor Department said the Aug. 14 electricity blackout, which hit the Northeast and upper Midwest United States during the survey week, probably had little impact on the numbers.
posted on November 11, 2003 07:09:32 PM new
On the steel trade wars, I'd read an article a while back that said the Bush administration had been reconsidering it's stand, as while it was intended to help those in PA it was causing other problems. And that they were 'thinking' about changing their position at that time. So...many this will speed things along.
posted on November 12, 2003 06:25:35 PM new
There was an excellent article in our paper on how US factory workers who produced RCA TV's made $16.00 an hour. The jobs moved to mexico where they made $2.50 an hour, and NOW they are made in china for $.16 and hour! Its only a matter of time until something will need to be done. Prices on health insurance, utilities, and even beef are going up, while the wages are going down. The politicians wont raise the minimum wage a nickel, but gave themselves a hefty $20,400 raise over the next few years.
posted on November 12, 2003 06:52:20 PM new
Sounds like an excellent article, Blairwitch.
Wish we could vote ourselves a raise. One step in that direction is to get rid of the Bush administration.
posted on November 12, 2003 07:01:21 PM new
On one of his shows, Michael Moore said that the chairman of GE, receives a salary of about US$94_MILL annually.
They (big corporations) go O.S. and we are told to ‘buy domestic’.
With the loyalty to our nations that some of these big corporations show;
Surely all have to doubt their intended influence with their massive ‘political contributions’.
Meanwhile the US farmers (the people) that actually ‘till the soil’ often show growing contempt of Aust farmers and viseversa.
I don’t understand why, in a democracy of ‘the people’, a self-interested single corporation (ie. ‘legal entity’ NOT ‘people’) should be permitted to potentially have such large political influence.
