Freethinker just wrote this on another thread. Proof free thinker and the socialist left has no idea about economics or how to govern a country. the taxpayer bails them out and this is the thanks we get: GM deal moves electric car development to China General Motors agreed in Shanghai today to develop an electric vehicle platform with longtime Chinese partner SAIC. It effectively moves GM's future electric vehicle development to China. http://content.usatoday.com/communi...ina-shakedown/1
Because the roi is still better than elsewhere. Take China's yuan, for example, allegedly undervalued.
I think you just made my argument. you would invest in china, holding other things the same, because you would expect its currency to appreciate.
What more do you propose the fed does? Interest rates are near zero, and QE 1, and 2 have already been proven to be a colossal failure. Maybe we should just blow another trillion dollars on QE3 just so that we can say the government is doing something, results be damned.
I note freehinker and the liberal press and perhaps even the dopiest liberal have used this piece of sophistry... "Its the fear of continued spending". if this were true it would show up in bonds as higher rates. what do we see? all time lows." Repsonse... Bond rates are low partially due to the fed spending trillions on QE 1 QE 2. So yes if you are in the market in which the Fed is intervening rates are low. But what about real money... private money which seeks security and profit. Have you tried to a get a commercial loan. Almost non existent because no one is willing to lend in this environment Million dollar home loan. 40% down and 6 to 8 percent if you can get it. Bridge loans are at 6 points plus 12 or 13 percent.
qe2 ended months ago and bond yields did not rise when it ended. have you found the time to think about this statement of yours and how wrong you are? "Quote from jem: a projected weak dollar also lets investors know their returns will suck relative to returns in other investments. If you project a weaker dollar at home.. you move factories, jobs and investments overseas. Just like GE did. "
So then why should the fed do a QE3? Clearly the quantitative easing has been a colossal failure, yet you question republicans when they tell the fed to stop blowing hundreds of billions of dollars on a failed policy.
Freethinker wants to keep spending because he doesnt have any children so that means if we keep spending he gets to live his remaining days in a somewhat functional system and not have to worry that his kids will have to pay back all his spending one day.
I pointed out how right I was. Would you make a 20 year investment in a country who was debasing its currency and spending far in excess of what it was taking in... with no end in sight. Please answer the question because everyone knows the answer is no... and that is why jobs are not being created here... they are being created in china. see your post on gm. I would like to see your twisted liberal logic. I also note, you did not acknowledge the true market rate for borrowing in this environment. If you did, you would know that the market has voted, and it does not trust the current economic policy. 6 pts plus 12 percent or more for short term bridge loans with a strong chance for a take out in about a year or foreclosure on an asset which the lenders figure is worth twice as much as they are lending on. That shows why the banks are not lending. No one is willing to make loans in this environment because the clowns in charge are not adults.
why would a company want to move a factory to a strong currency nation and try to export back to a weaker currency market? it would make their good non competitive. when you educate yourself about that question you will have your answer. companies are moving factories because of labor rates not because of currency. what you claim makes no sense.