John Deere, an agricultural machinery manufacturer is
moving the bulk of its manufacturing to Mexico, after more than a
century and a half, 187 years to be exact, of production in the USA.
Lack of demand and escalating cost were the reasons for the move. This
indicates that the USA is no longer the food basket of the world and
other countries like Brazil and Russia are muscling in on its turf.
As
more of such USA companies moves out to Mexico to take advantage of
cheaper wages and better demand, with Mexico becoming the upcoming
destination for investors, moving to China is no longer necessary. In
fact, Chinese companies have invested substantially in Mexico instead
over the years. And Mexicans do not have to suffer trying to enter the
USA as more jobs are created in the process, resulting in more misery
for USA farmers having to pay higher wages to local helpers. But as time
passes, and as Mexico's competition against the USA hots up, USA is
going to accuse Mexico of stealing USA jobs and paying slave wages. This
is a time-tested temp-plate that the USA used against China and Mexico
will not be spared.
For a long-established icon moving out of
the USA, the move runs counter to the in- shoring agenda of the USA and
indicates the folly of the USA trying to restart manufacturing amidst
escalating costs and diminishing demands within the USA.
Trump
is again rehearsing his rhetoric of threatening to slap tariffs of 200%
on John Deere's machinery if he is elected, which amounts to slapping
his own face by targeting his own USA company. Xi must be laughing
behind his desk and Putin grinning from ear to ear. This is sending a
signal to those unable to survive in the USA today from moving out and
forcing them to close shop for good. But either way, it means lots of
jobs will disappear for good. Self-foot-shooting is becoming the norm
for the USA Muppets.
Anonymous
There is much propaganda being used to fool the world that the demand for oil is slipping because China's economy is deteriorating or even collapsing. How true is that is analyzed by Kevin Walmsley on his site 'Inside China Business'. This is one site I would recommend to all having an interest in Global economic matters, with information culled from all over the world to support its writeup. Very informative, to the point, clearly narrated and no nonsense on issues.
ReplyDeleteChina's demand for oil is not slipping as alleged by the West and its manufacturing is not contracting. China's import of oil is now largely outside the monitoring of the USA and the West. Thus, with their own fertile imagination they are now assuming that the world demand for oil is moving downwards, taking into account only what they can monitor. The other part of the equation which China is dealing with within BRICS is outside the eyeballs of the USA due to the oil trading being done outside the US$. As an example, China is importing more oil than ever from Iran and the trade being done in Yuan, or even through barter. Therefore, for the West to assume that oil demand worldwide is faltering because of China is disinformation to carry an agenda.
This is the situation evolving today within BRICS, where countries doing trade in commodities, not just oil, do not have to go through Western Banks using the US$ and is therefore beyond the control of the West to monitor. Juvenile Trump, despite his spoilt brat tantrum, probably has a little bit of sense to fear the result of a de-dollarization tsunami if he is elected. The Chinese have the saying -'Smart in a moment, but stupid for life'. That is why he is threatening those countries joining de-dollarization, which means joining BRICS. He will not succeed.
Really Puzzling and Hilarious as always said by Li Jingjing.
ReplyDeleteOne one hand the West and their lackeys, cronies and doggies and papies wanted to demonise and wait for the downfall of China.
Then, on the other hand, they were terrified that with the downfall of China, the World's supply chains etc would affect the Global Countries.
Come off it you imbeciles!
Which paths you want China to be?
Destructions or Constructions?
Imbeciles
Without chaos, without instigation, without hyping up threats, how to have wars.
ReplyDeleteWithout wars, how can the USA war economy sell weapons. Without selling weapons how can the USA benefit?
As the world wise up, infrastructure development becomes more important than weapons for fighting against each other causing destruction. As de-dollarization picks up steam, and countries no longer feel safe with investing in US Treasuries, global production likewise no longer need the US$ for all trading activities. The USA needs to go back to basics to survive, which is by in shoring manufacturing. But they already do not have the logistics to do that and have to start from scratch. How can they compete knowing their industrial endeavor is already behind most others?
One alternative is pulling others down, so that they can go top again. Hence their campaign against anything Chinese to put China down to the stone age. It will not work.