Quote:
Originally Posted by Ptmcbriz
Since it will hurt the economy, I hope not. There are far more negatives to it, than the positives of higher bond rates. Hoping for high interest rates because of the bond market is flat out selfish in my opinion. We all know the negative impact of high interest rates that ripple through our society and it won’t be pretty. However, I’m not seeing anything planned or happening that is going to turn it around. The administration seems to be roaring down the train tracks full speed ahead, knowing the tracks go over a cliff. Yet, there is no change in direction.
I heard a recent plumbing company who sells a custom part manufactured in China recently ask at a conference that if they brought their manufacturing back to the US and built a plant and manufactured the part here it would be $285, vs their competitors that keep manufacturing theirs in China that cost $153, which will they buy? Of course, the majority said the $153 one. That is what we are up against. Manufacturing will never come back to the US unless it’s something highly specialized high tech. Until that’s realized we are in a forced unnecessary economic decline that never needed to happen.
|
As to "we are in a forced economic decline". The economy cycles between boon and bust every 10 to 15 years. Nobody and no ONE factor determines a recession, depression, or boom years. We ALLOWED China to become a dominant world power when around 1975 we decided to offshore manufacturing to make a FEW corporations rich and eliminate Labor Unions. They succeeded, China succeeded, but the American middle class began to fail. We are NOTHING without a strong middle class. Our income tax system began in 1975 to de-emphasize the middle class with changes in the tax brackets and outsourcing. We began emphasizing the upper classes. Today, the reason the US Government NEEDS to bring back manufacturing is to have a strong military. We need to stay ahead of China in modern warfare capacity. We also need to have citizens with the educational skills to help the US stay ahead of China in advanced manufacturing techniques that MIGHT be needed in case of any conflict. As to the statement, " we are in a FORCED economic decline". In reality, any DECLINE in American productivity or GNP would be because of internal US self-inflicted problems, not problems caused by outside entities.