October 30, 2007
Elaine Meinel Supkis
Astonishing, isn't it? After all the bellyaching over the lead paint on toys, Bush wants to cut even more, the product safety and testing arm of our government! And even as the criminals in the White House allow a flood of defective and dangerous products into this nation, they are yelling about the cheap yuan yet again. Meanwhile, Ford announces they are moving their research and development to China as well as their factories. And Japan's depression deepens as the government turns the screws on the people in order to keep super-low interest rates going. Namely, inflation rages there in the lower levels.
The nation’s top official for consumer product safety has asked Congress in recent days to reject legislation intended to strengthen the agency, which polices thousands of consumer goods, from toys to tools.
On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.
Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistle-blowers and prosecute executives of companies that willfully violate laws.
It was obvious to me from the first day that the racket about China and the lead poison toys was pure propaganda. This racket, this cold-blooded scheme was supposed to cut back Chinese trade with the US but it backfired on Mattel, Disney and Sesame Street. I said back at the beginning, the US government and the US corporations making profits off of Chinese labor and Chinese contractors were 100% responsible for safety and regulations of materials, not the Chinese.
I even pointed out that Bush has enabled this sort of business and this was cheered on by the very same corporations who conspired to blame the Chinese. Now we see that corporate America and the GOP have zero interest in protecting the consumer and keeping our children alive. Coupled with Bush's veto of the Child's Health Bill and we can see where these criminals are coming from: hell. Eventually the government of China will do all the things our own Sovietized government refuses to do. Like any third world nation moving up the ladder, China doesn't have the same concerns we have. But eventually, they will get around to these matters.
Meanwhile, we move down this same ladder. The yelling about bad health toys was really an acknowledgement that we have lost control of production and the refusal to implement controls and testing of products means a continuation of the 'buyer beware' mentality of our ruling elites and the rich who run these corporations. The three child-selling giants all proclaim to be interested in the welfare of our children. But they cynically expose them to danger. All for a buck.
We owe the Chinese the same apology Mattel had to give. Shame on the USA. Bad, bad doggie. No bones for you.
From the NYT:
Tony Fratto, a White House spokesman, said that Ms. Nord had not coordinated her effort to kill the legislation with the White House. But he said that the administration shared many of her concerns and that Allan Hubbard, President Bush’s top economic adviser at the White House, was preparing to send a letter to Congress “that is probably even more forceful than Ms. Nord’s.”
Hubbard is a traitor. He and his ilk have opened the doors to tainted products. He is an advocate for 'free trade.' And what is this letter going to say? 'Not only won't we protect our children, we hope they DIE'?
General Motors announced Monday that it would build an advanced research center in Shanghai to develop hybrid technology and other designs.
It was the latest research investment in China by a foreign automaker despite chronic problems with purloined car designs.
G.M. already has a 1,300-employee research center in Shanghai with its main Chinese joint venture partner, the Shanghai Automotive Industry Corporation. The separate, wholly owned research center announced Monday, for the most advanced vehicle engineering and development, could help G.M. keep greater control over new technologies than through the joint venture.
Here is yet another sign that Chna, not the US, is in the driver's seat. China turns out far many more engineers and designers than the US. In the US, many of the graduates in these fields are now Chinese, anyway. IBM still hires some scientists in the US but they must go to China to do their work since the production is now in China. And all the mega-corporations in the US are tranfering not only their factories but now, their research facilities to China.
Not only does China produce many engineers and others in these fields, many of the graduates are of very high intelligence due to the very simple and obvious rules of evolution: the competition for slots in the universities and colleges are fierce and so this is a true survival of the fittest at work. Always, production is followed by research moving. We didn't move research to Mexico back when we moved our factories there and this was due to the factories being physically very close to the US and thus, easy to keep in a lesser role. China is on the other side of the planet.
Long ago, I explained this but the free traders who lusted for Chinese labor profits pooh-poohed people like myself. Remember all the lies about how we would work 'smarter' and hold 'higher-paying' jobs? This was based on the erroneous belief which is pure racism that the Chinese were inferior and couldn't compete with us for positions requiring intelligence and training! Right now, a Chinese rocket is surveying the possiblity of landing on the moon and exploiting lunar resources. Not that US readers have heard much of this!
China has wisely made it quite clear, they intend to be a top nation and to run things themselves. They are tapping into our free trade system and using it to strengthen China's industrial base and improve their infrastructure. And the end result is going to be them dominating the planet. And why not? After all, this is our goal! Why shouldn't it be theirs?
Honda, Ford, Volkswagen and other foreign automakers have all announced their own research centers in China in recent months, although none have been as aggressive as G.M. in transferring technology to China.
Monday’s announcement coincidentally came after the government’s National Development and Reform Commission disclosed Friday that it was drafting stringent local-content rules for alternative-fuel vehicles to qualify for expected subsidies. The rules will require that major components be made in China.
The Chinese government’s move is aimed partly at Toyota, which assembles Prius gasoline-electric hybrid cars in China but ships critical components in sealed boxes from plants in Japan.
The Chinese are very annoyed about this. They want us to move all our technology to China. The Japanese secrecy will, in the end, bite them in the rear as other nations rush to fill in where Japan refuses to go. The Japanese will find themselves cut out of the growing Chinese markets while others will play the Chinese game. Because Japan has decided to literally kill its next generation, I predict here that Japan's ability to produce innovation and outstanding products will begin to collapse in the nearer future starting in about 10 years (assuming we are talking about the Chinese 50 year plans here). The Chinese are in this aggressive Darwinian fight for positions while Japan is giving up the ghost at home, in the lower grades.
The Japanese and Chinese have a long history of pushing each other down. They are very competitive and quite aggressive about this. Right now, the Japanese and Chinese are playing a currency game involving the world's #1 and #2 FOREX reserves. The Japanese want the yen to run at 130 to the dollar and it is now at 114 to the dollar and the Chinese keep raising the value of the yuan step by step. They plan to make the yuan rival the dollar and the euro as a world currency in the end but not because this will be bad for trade but because they will rule the planet. The fact that the US deliberately wants a weak dollar is a sign that we gave up this role.
The United States is strongly committed to a strong U.S. dollar and financial markets there are recovering from the subprime crisis, some quicker than others, U.S. Treasury Secretary Henry Paulson said on Tuesday.
Paulson, speaking at a forum in the Indian capital of New Delhi, also said while innovation in U.S. capital markets had contributed to the subprime crisis, innovation was desirable and a contributor to growth in the world's largest economy. "I'm strongly committed to a strong dollar," he said in a moderated on-stage interview at the Fortune Global Forum, adding that currencies should be set in open markets based on economic fundamentals.
We now know that the US was pushed by the other G7 dwarves to make the dollar stronger. The Japanese certainly want this! The other 5 dwarves wanted Japan to strengthen the yen, too. But both the Japanese and the American dwarves refused. This irritable battle has pushed Goldman Sachs into mouthing platitudes about a stronger dollar while the US does everything in its power to kill the value of the dollar and kill domestic markets. Heck, kill small, teething babies. Why leave them out? And what is this about 'innovation in US capital markets?
That, alas, is mostly attempts by a bunch of fraudsters and criminals to circumvent both Great Depression banking and finance rules and evading product safety rules! All these products mainly produced two major goods: a gigantic trade deficit and an even bigger mountain of debt! Trillions of debt dollars! Which are part of the flood of US dollars that are now making the dollar as weak as a peso.
Paulson, who was not speaking from prepared notes, said China still had some work to do to get to a market-determined exchange rate, and needed more yuan flexibility in the meantime.
And here it is: HAHAHA. Belly laugh time. Paulson wants a strong dollar but also wants even more, a stronger yuan which means a weaker dollar! The G7 dwarves certainly can be entertaining. They want the Chinese to be stronger but they also need the US dollar and the Japanese yen stronger. I would kindly suggest they give it up. The G7 are not on the same team or the same side or sane. Either they finally admit we are in a dog-eat-dwarf world or rather, a dragon-eat-dwarf world or they throw in the towel and admit that all that stupid propaganda about capitalism is all lies.
Except the Chinese believe in capitalism and are practicing it! Ruthlessly! Will wonders never cease? They will even make poisoned toys for the US tots if US corporations want this! The illusion of cooperation the Bilderbergian rules project is all fake. They want a controlled environment whereby they can milk whatever cows they wish and get filthy rich, to hell with everyone including our planet. But they do NOT want ANY real competition or other ways of doing things or other entities in control. Just as Britain is now kow towing to Saudi Arabia, so does the US. This is because SA has sovereign wealth. I wonder when Hu will visit us again? Last time around, the US rulers were very contemptuous.
Now, they will be forced to sing another song. Or maybe not! Maybe now the plan is to milke the Chinese cow while tasering it with electric cow prods? And pray, how long with that work? The answer is obvious.
Japan's wages fell in September as an extra holiday in the month shortened working hours. Summer bonuses dropped, sapping household buying power and sentiment.
Monthly wages, including overtime pay, fell 0.5 percent from a year earlier, a ninth decline in 10 months, the Labor Ministry said today in Tokyo. Summer bonuses, which typically amount to about 10 percent of a worker's annual income, declined 1.1 percent, the first drop in three years.
The Bank of Japan, which is expected keep interest rates unchanged at 0.5 percent today, has said demand for workers should drive pay higher, stimulating consumer spending and sparking inflation. Unemployment climbed for a second month in September and the number of jobs for each applicant fell, reports showed yesterday.
``It's extremely difficult to be anything but pessimistic about consumption,'' said Glenn Maguire, chief Asia economist at Societe Generale SA in Hong Kong. ``The entire notion of the virtuous cycle of production, wages and consumption is completely unraveling.''
The yen traded at 114.76 per dollar at 11:04 a.m. in Tokyo from 114.69 before the report was published.
Wages have declined about 10 percent, or about 400,000 yen ($3,500) over the past decade. The end of tax breaks in June and higher prices of gas and staples such as bread and instant noodles have also eroded disposable income and damped consumer sentiment, which is near a three-year low.
Indeed. Now everyone knows that Japan has inflation. The fake inflation information put out by the criminals running the Bank of Japan and the obvious criminals running the LDP can be safely ignored. Japan's disgusting need to have near zero interest rates for industrialists is beginning to seriously bite into the lives of the people of Japan. Unlike the Chinese who are seeing some rise in income and buying power despite inflation of food, the Japanese are being ruthlessly depressed. Unlike China which has sovereign wealth, the Japanese have massive debts.
The Japanese desire to hold all the cards and treat China as a junior partner is doomed to fail. The US/Japanese desire to keep China below them is doomed if both base this on weakening their own currencies all the time. Eventually they will both have to hand over all world power to China if they both want weak currencies and no responsiblity over the quality of what is sold in their countries. Eventually, just as Japan used to be code for 'cheap and lousy' but now is seen as high quality, so it is with China: they are aiming to be the quality producers, not the cheap sellers.