Here's a relevant passage from an article in the current New Yorker:

Every working day, we borrow more than three billion dollars from foreigners, notably the central banks of China and other Asian nations, in order to pay our import bills and keep our interest rates low. Nouriel Roubini, an economist at New York University, calls this “vender financing.” The Chinese lend us cash; we buy their goods. ( 060206ta_talk_cassidy )

Someone else on the board suggested that all we need to do is wait out the economic storm and export our culture, because after the workforces of nations with developing economies achieve the same lifestyle as the workforces of first-world countries we'll be able to compete again. That may well be true, but I sure don't expect to live long enough to find out -- there are more than 2.3 billion people in China and India alone, and plenty more in the rest of the world. And if we visualize money as a liquid asset, we can expect that, like water, incomes will seek their own level in a globalized economy. That will be good for workers in countries where the average wage is currently $2,000 per year, but a disaster for those who are currently earning an average of $35,000 per year.

And Bush's concern about oil? That was just SOTU happy talk -- the very next day his energy secretary and national economic adviser said that he didn't mean it. (And heaven forbid that the concept of confronting the problem of a dwindling resource by consuming less would ever be floated as part of a solution!)

My conservative parents learned the value of conservation during the Depression and WW II; those lessons have been ignored for too long, at our peril.

Yeah, I'm a worried, simple fella too.

On Feb 2, 2006, at 3:35 PM, Gary Hurst wrote:

how does an economy that makes nothing survive? I'm a simple fella and that
question has me worried

On 2/2/06, Loren Faeth <[EMAIL PROTECTED]> wrote:

I think the race is on. Will China end up owning the rest of the world,
will Wally mart own China?

At 12:24 PM 2/2/2006, you wrote:
R A Bennell <[EMAIL PROTECTED]> wrote: Put in your bid now. We might get sold
to China as they will soon have all
the money anyway.

Randy B in Canada

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