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Sawasdee Krup
A Country That Lost It's Soul & Put on a Fake Smile
Permalink : http://blog.nationmultimedia.com/dalmasian
Friday , October 21 , 2011
US Politicians Love to Point Fingers at Others When They Themselves Have to Blame for the Problems They Created for Amerika
Posted by Dalmasian , Reader : 1391 , 00:12:34  

Yes, pointing fingers at escape goats to protect one's backside must be the favorite past time for all Amerikan politicians. Just consider their recent passing of a new law in the Senate accusing China ofcurrency manipulation andto force China to revalue it's currency.

Before I discuss this topic in more detail, first let us consider the following comments by Khun Alien in one of the recent blogs here by Khun Piset:

" . . . Dal - the U. S. has a huge "rare-earth" mine in California it shut down only because China was undercutting them in price. i saw a story years ago that warned that it needed to be reopened so China couldn't dictate the market and the pricing. Probably no one paid attention . . . "

There seems to bea widespread notion that when Amerikan businesses become uncompetitive, it is always the fault of their competitors, like Khun Alien writing about the rare earth mine in California being undercut by Chinese producers. I would like to raise several questions here on this matter:

(1) Why is the California mining company not competitive?

(2) What could they have doneto become more competitive?

(3) Why are they blaming others for their uncompetitiveness?

In the real world of business,only the fittest survives. If you know that you are uncompetitive, then you must change the way you do business in order to become more competitive. God gave the California mining company the resources in the location(s) that they own and operate in Amerikafree of charge, just as He gave Chinese mining companies the resources in the location(s) that they own and operate in China. Every other elements in the cost equation and factors of production at both locations are man-made, which can be changed, if necessary. It is up to management to instigate changes for the benefit of the company in terms of lowering production and marketing costs to drive profitability.

Let's turn the table around for a moment and pretend that it was a Chinese mining company that has become uncompetitive because they were being undercut by Amerikan producers of rare earth minerals. Should the Chinese Government enact laws and regulationsto force Amerika to revalue the U.S. Dollar so that the Chinese producer can become competitive? How would the Amerikan Government react to such actions by the PRC People's Congress?

To my simple mind, the whole concept of accusing other countries of currency manipulation is totally silly and unfounded. Why doesn't the American mining company reduce it's production and other costs by cutting labor costs, mining costs related to exploration,ore extraction, ore transportation, ore smelting, finish product sales and marketing, etc. so as to bring these down to such a level as to be competitive with Chinese producers?

Why can't the Amerikan Government reduces their taxation and other legislative burdens on the California mining company so as to equalize the company's government-related costs to that in China? These are the things that are fully under the Amerikan's control. What happens within China is none of their bloody business and not under their control, just as they will not allow China to meddle with their business activities and government affairs.

But then, of course, it is far easier to point fingers accusing others for causing problems that the Amerikan Government created for themselves in the first place, isn't it?

Going back to the main topic of this blog, I would like to direct your attention to an excellent article by Mr. Ashish Advani at the MoneyNews.com web site.


Among other things, Ashish wrote ". . . and to add fuel to a simmering fire is the hair-brained logic of our Congressional members. For them, the fault almost always lies with China.

"Every time they are faced with crisis at home, they love to point fingers to the outside and blame others. For several years now, they have wanted to label China as a currency manipulator.

"As per the U.S. Congress: The deficit problems in the United States are the fault of China. The fact we overspend is Chinas fault. The fact we bought McMansions, Hummers, yachts, overspent on almost all aspects of our lives are all faults of China.

"And so the U.S. lawmakers would like to punish China by imposing levies and taxes on China.

"Obviously, China is not taking this new round of attacks lightly. Chinese officials have appealed to the World Trade Organization (WTO) and in turn are accusing the United States of the same fault of currency manipulations. Their claim is that the U.S. dollar is falling due to the irresponsible behavior and relentless printing of money that the Federal Reserve has unleashed on the world.

"One must not bite the hand that feeds it. Or at least if you must bite it, make sure that you have a fall-back measure that will sustain you. And by challenging China, the United States will turn away the largest holder of its debt and the continual buyer of U.S. debt. Annoy China too much and the consequences can become even more stifling. In an environment where the growth has stalled at best, is this the wisest way of spending your political capital?

"Even with growth in Asia slowing,they still have between 69 percent growth rates. Here in Americait is 1-2 percent and inEurope it is 0.5 percent to 1 percent. As the U.S. dollar decline begins again, we will see capital go back to Asia where it earns a decent return."

Food for thought.

-- Dalmasian

Read comment

comment 6
Ian date : 22/10/2011 time : 20.32

Dal, the real solution is to move away from rare earths and into organics. You may know that many cuttle fish, jelly fish and deep sea fish communicate with colored lights, organic lights.
We now have green glowing cats
comment 5
Dalmasian date : 22/10/2011 time : 16.56

Ian (c3),

Thank you for your comments. On the rare earths issue, I would suggest readers read this article.


There are many other artices dealing with pollutions that results from mining, smelting and processing rare earths, not only in China but everywhere these activitied take place around the world. Just do a search using Bing, Yahoo or Google on the Internet.

It is true that there is a very visible lack of pollution control commitment on the part of the PRC Government, both at the central and local levels. There are myriads of anti-pollution laws passed during the last two decades but their strict implementation and enforcement leave much to be desired.

Lately the PRC Governmet has come to realize their past mistakes and negligence and appears to be on the mend, tghtening restrictions on mining activities related to rare earths minerals to reduce pollution, which is good. I certainly hope that they will continue on this track diligently into the future.

I think they should severely restrict the production of rare earth elements and imposed a very, very high export tax on their exports as well as equivalent levies and environmental clean-up taxes on their local sales. In other words, make it extremely expensive to customers whether local or foreign. A Huge amount of funds must be raised within the very limited time available in order to genuinely clean up the environment over a very wide area, and mitigate the effects of past failures to do so. Just think about the water pollution created by these mining and refining activities and how much/how long ot will take to clean up the water supply. And that is just the tip of the iceberg of the pollution problem in China.

I also want to see other countries, like the U.S.A., Japan, South Korea, U.K., Germany, France, etc. stat producing their own supply of rare earths and become self-sufficient and I want to see them deal with the pollution they generate in their own backyard. No more "not in my backyard attitude". No more taking advantage of les-developed countries to do all the dirty work so that the developed countries can enjoy all they want cheaply.

-- Dalmasian
comment 4
Piset date : 21/10/2011 time : 22.42

Here is an article with details of one of the most frequent manipulators of its currency, the Japanese government. http://www.forexblog.org/category/japanese-yen

When will the US Congress impose some punitive import duties on this country?
comment 3
Ian date : 21/10/2011 time : 08.26

A general blog, which I will not argue with, but a specific example (rare earths), that I will argue about.
Rare earths are so named not because they are rare in nature, but because they are very difficult to refine, hence rare in availability.
Current extraction and refinement methods are very environmentally destructive, so where a country has a strong environmental lobby and environmental protection laws, production costs can become prohibitive. China was able to undercut other producers simply because it has no environmental conscience.

I really think wch should stop trying to push his distorted view of history and of the Roman language. The Latin word for salt is sal. The most probable origin of the name Gaul is that Gauls called themselves Gauls, from 'gal' "brave". the same root as gallant.
comment 2
wch date : 21/10/2011 time : 08.07

If deeply American history, the trade paranoia has prevalied. The first cause was taught by Britians by salt.
Britains were salt proffesionals and Caesar named them first 'Gaul' meaning in Latin, salt.
British industrial revolution started by salt mining and refining skill by own huge coal mines and enjoyed the salt monopoly over the opposite continent, later badly new-born repulic, United States who kicked out British colonial power, because of blood-squeezing salt import tax. Unioniests quickly built salt mines and dug the salt canal - Erie canal.

Ever since, their trade balance tactics is manipulating trade taxes and FTA is one of such tactics. FTA tactics is new strategy to build greater empire by choosing only needed partners into the empire and using the new members, they take offensive to the 'enemy' like China.

China's strategy is not less though, (little clumsy though). They are ready to dump ASEAN but Thailand and Philippines.
comment 1
iceberg date : 21/10/2011 time : 06.28

It is kind of hard to know which way is right until after the fact.

I think the main problem in the mind of the American is that the Chinese wont let the free market determined the value of the Yuan which in my opinion in a current evaluation should be about 1 Yuan to 1 Dollar. If what I said is true and if that ever come about, the whole California real estates could possibly be gobbled up in a second by the Chinese investors.

However, with 1 Yuan is equal to 1 US dollars, I still dont think that it will make the American made consumer products more competitive in the market. This, as you said, due to the many impositions the US government is placing on its own industry and not to mention the strong labor unions, whom put many elected officials into power. Furthermore, as everyone can see it, there are still abundantly supply of Chinese labors who are willing to work for less money & benefit.

In my humble opinion, the only way out for the US is for its citizen to have come to a conclusion that we are not the only super power in the world.
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