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NASA Banned From Working With China

astroengine writes "In the wake of the Chinese cyber-threat and claims of espionage, a clause included in the US spending bill approved by Congress to avert a government shutdown a few weeks ago has prohibited NASA from coordinating any joint scientific activity with China. The clause also extends to the White House Office of Science and Technology Policy."

284 comments

  1. ha ha ha by roman_mir · · Score: 2, Insightful

    Yeah, if China was actually interested in hurting USA in one place, it would really hit hard, they'd just stop buying US bonds and also stop rolling over the ones they have already, and never mind NASA, US wouldn't even have money to run its military.

    1. Re:ha ha ha by antifoidulus · · Score: 3, Insightful

      And the Chinese economy would collapse as the $1.4 trillion of US debt that China currently holds would quickly become worthless. Sort of like ripping off the nose to spite the face.

    2. Re:ha ha ha by Anonymous Coward · · Score: 0

      A large sell of would simply devalue their assets before even 25% of them were gone, and quite possibly end up sinking them as well.

      Like it or not, US and China are intertwined.

    3. Re:ha ha ha by Anonymous Coward · · Score: 0

      Yeah, if China was actually interested in hurting USA in one place, it would really hit hard, they'd just stop buying US bonds and also stop rolling over the ones they have already, and never mind NASA, US wouldn't even have money to run its military.

      Here come the Sinophiles. Anyway, who said anything about China wanting to hurt the US? They just want to steal technology.

    4. Re:ha ha ha by Anonymous Coward · · Score: 0

      we would, of course, destroy their economy in the process. However, you have no concept of the magnitude of the extent of their cyber-attacks. Perhaps not giving them a direct vector to attack while doing research is a decent idea, and much lower cost than other ways to demonstrate that we notice their peevish behaviour.

    5. Re:ha ha ha by roman_mir · · Score: 5, Insightful

      And the Chinese economy would collapse as the $1.4 trillion of US debt that China currently holds would quickly become worthless. Sort of like ripping off the nose to spite the face.

      - what a huge misunderstanding of economics, that the education systems of the West have perpetrated upon their population. Very sad.

      Chinese economy is not about the cash, the money. Chinese economy is an actual real economy - producing economy.

      You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.

      When USA borrowed money in 19 century, it borrowed the money to build factories and infrastructure, and when it used the money to build, it started producing, and the products it built were then sold to pay off the debts. Today, when USA borrows money, it only uses the money to consume, and it consumes foreign made products.

      Irony is of-course that it borrows money from China and buys the Chinese made products, and the population of USA is convinced by their useless 'economists', who are really charlatans, that the US consumer is the actual engine behind this entire economic activity.

      No. What China needs to do is to let their currency appreciate, so that it becomes cheaper for Chinese to both: buy raw materials (as they are hit hard with price inflation, which in the case of producers follows immediately after the self inflicted money inflation) and it becomes cheaper for the Chinese to buy foreign products and their own manufactured products as well, and China has plenty of potential for consumption, they do have over a billion people after all.

      What is funny, is how Geithner calls China to let their currency appreciate, and it looks like he is just trying to play reverse psychology game (if he understands anything about economics at all), because either US dollar can be strong or Chinese currency can be strong, but they both cannot be strong at the same time.

      If China lets the currency appreciate, it will become nearly impossible for the US consumers to buy Chinese products. That's good for USA in the long run, because USA has to be hit with very high interest rates on their money, Americans need to start saving and creating capital that can be applied for building things again, so that it starts producing again. But in the short term it's going to be disastrous for USA, not for China.

      Sure, China will lose that debt. But it's going to lose that debt ANYWAY!

      Do you think USA can pay that debt back? EVER? :)

      USA doesn't produce anything of any value except for the raw materials, that Chinese would want to buy. USA can NEVER pay the debts back. These particular debts need to be restructured, but instead US Fed will keep printing, and all that useless paper, that ends up in Chinese banks, and causes the Chinese to print their currency as well only is hurting China right now.

      USA has it great as long as other countries keep buying its debt and keep printing their own currencies into oblivion and keep price inflation inside their own economies and don't export it back to US.

      However this will stop. Sure, many manufacturers in China and other exporting nations will cry murder, but they will have to deal with this, as their own currencies appreciate, they will start selling in the country rather than exporting so much. There will be some pain for China as well, but they have the production - which is what matters.

      Do not be mistaken - US debts will never be repaid in anything that's valuable. US can print the dollar and 'repay' in worthless paper, but that's just as much of a default as a real bankruptcy would be.

    6. Re:ha ha ha by whipnet · · Score: 2

      ha ha ha is right. China is not paying for our military. The U.S.'s economy is still MUCH larger than China. The U.S. still manufacturers more than China and unlike China, manufacturing is a very small part of the U.S. economy. As far as the bonds, the U.S. could make those almost worthless in seconds crushing China. A few protectionist laws and they're done too. China is rising, but they are still a leach economy to the U.S. To indicate they own us is simply without merit. * *

    7. Re:ha ha ha by roman_mir · · Score: 1, Informative

      ha ha ha is right. China is not paying for our military.

      - no? 40% of US gov't spending comes out of foreign debt.

      The U.S.'s economy is still MUCH larger than China.

      - really? Is that what the 50 billion/month trade deficit with China telling you? That, and all the money Fed prints monthly to buy 30% of all new debt that the US Treasury is issuing?

      The U.S. still manufacturers more than China and unlike China, manufacturing is a very small part of the U.S. economy.

      - again, trade deficit is 50 billion. US economy is not manufacturing anything, it's assembling parts made in other places. US even has trade deficit with CANADA, forget China.

      As far as the bonds, the U.S. could make those almost worthless in seconds crushing China.

      - what are you talking about, dog? US bonds ARE worthless today. Nobody can sell them without crashing them. Bill Gross sold 150 billion with a loss, he was the largest private holder, he got rid of 100% of his holdings. The only entities buying are foreign national banks and US Fed.

      A few protectionist laws and they're done too.

      - Yeah, too bad USA doesn't actually manufacture anything inside the country anymore. When was the last time you bought a pair of socks made in USA? Do you like having socks?

      China is rising, but they are still a leach economy to the U.S.

      - well, if your definition of 'leach' includes: provides the money AND the products for US consumers, then China is the biggest leach.

      To indicate they own us is simply without merit. * *

      - they don't own you, they just own everything you consume.

    8. Re:ha ha ha by Anonymous Coward · · Score: 0

      Yeah because America doesn't get involved in espionage or internationally illegal practices.

    9. Re:ha ha ha by mprindle · · Score: 2

      Sigh... There are to many statements in this that are way to true. I miss the day when the US was a production powerhouse. If you wanted something then you got it at your local store and it was stamped Made in America. Of all the times to not have any mod points....

    10. Re:ha ha ha by nedlohs · · Score: 1

      Except that debt has nothing to do with their economy. Having it devalued to $0 in the next five minutes would do exactly nothing to the Chinese economy.

      There is no factory that would suddenly shut down because an asset owned by the Chinese government dropped in value. Just as if it suddenly trippled in value in the 5 minutes it would be exactly nothing to the Chinese economy.

      Of course the follow on effects of the US not being able to fund their government defecit and either having to print money the more old fashioned way or dramatically raise taxes would destroy the US economy. That in turn would be a significant issue for Chinese exporters - but they do export to countries that are not America and the American economic destruction would see world demand (and hence prices) on their imports drop significantly, so while triggering a large recession would not be a complete collapse.

    11. Re:ha ha ha by maxume · · Score: 1

      Blah blah blah, the U.S. still has a bigger production economy than China, we just don't make as many doohickies and socks here.

      And I haven't checked that latest numbers, but it wasn't real long ago that Germany had a bigger export economy than China.

      So sure, the worlds most populous country is moving away from being a backwater, but things haven't exactly tipped yet.

      --
      Nerd rage is the funniest rage.
    12. Re:ha ha ha by Anonymous Coward · · Score: 1

      China isn't a nice country. Just ask any small business owner who, on a trip there, had to give trade secrets of the company he represents to the person he would be dealing with... or the whole delegation would face imprisonment on some trumped up charge. Choosing between handing over internal trade secrets, versus having their corporate officers waking up in pieces, Larry Niven style, companies pay China their homage, and any venture there has to be 51% owned by the Chinese.

      If someone thinks China isn't going to be a military power, they are deluded. The Foxconn plant can easily turn from production from iWhatits to UAV controllers. China has the largest, well-trained infantry on the planet, and the most sophisticated (and largest) manufacturing base. Once they tire of the economic game, they can easily expand into most of Asia without any real resistance, other than maybe a finger waggling at the UN.

      Fitting CAPTCHA: apostate

    13. Re:ha ha ha by silanea · · Score: 1

      As far as the bonds, the U.S. could make those almost worthless in seconds crushing China.

      Something tells me China is the one player in this game that stands to win no matter how it plays out. They could take those bonds and burn them in a bonfire right now and still be better off than the USA.

      --
      Rudolf Hess edited Mein Kampf. He was the very first grammar nazi.
    14. Re:ha ha ha by Anonymous Coward · · Score: 3, Interesting

      China's GDP is propped up by its constant construction projects that have no one to use them.

      http://finance.fortune.cnn.com/2010/12/21/ghost-town-mongolia-inside-chinas-empty-cities/

      China tells its districts/provinces/cities to increase GDP, so they do it the easiest way possible: Build more stuff.

      It's a problem of having something, but no one to use it. No one's visiting shops in these empty malls. No ones' buying these apartments in cities that have no jobs.

      It may implode, it may fix itself, but it can't last forever.

    15. Re:ha ha ha by MightyYar · · Score: 2

      Sure, China will lose that debt. But it's going to lose that debt ANYWAY!

      That's not the point. All those "cheap" products that China produces aren't actually so cheap. Without buying huge numbers of debt with imported US dollars, the dollar would fall in value.

      What do you think the Chinese would do with all of that "production" if they couldn't sell it overseas?

      The US and China are linked economically. There's no shame in that. China placates their population with jobs and develops their country and the US is happy to get physical goods in exchange for otherwise worthless paper. If not for the whole crushing debt and runaway inflation nightmare, it would be win-win.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    16. Re:ha ha ha by Anonymous Coward · · Score: 0

      You missed the part where China has produced a bare handful of meaningful technologies in the last hundred years. Viewing your youth as disposable assembly line workers is harmful to your long term growth. China gets around this by shamelessly stealing patents from the civilized world, if the innovators of the west stopped slitting their own throats for short term gain China would be dead in the water.

    17. Re:ha ha ha by whipnet · · Score: 1

      The U.S. manufactures more than China. I never mentioned trade deficit with China. The United States is the world's largest manufacturer, with a 2007 industrial output of US$2.69 trillion. In 2008, its manufacturing output was greater than that of the manufacturing output of China, India, and Brazil combined, despite manufacturing being a very small portion of the entire US economy as compared to most other countries.

    18. Re:ha ha ha by TheCRAIGGERS · · Score: 3, Insightful

      You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.

      I'd like to see how well an economy works when nobody buys anything it's producing.

      Currently, China holds power because of the gap between [how cheap they can make a product], and [how much we rich folk will pay for said product]. If we weren't around to buy their stuff, or if we didn't spend an order of magnitude more to buy it than they paid to have it made, their economy as we know it wouldn't exist either.

    19. Re:ha ha ha by cpu6502 · · Score: 1

      >>>US even has trade deficit with CANADA, forget China.

      Everyone in the US would be a lot better off if they were more like me (anti-consumer, anti-spending). Rampant borrowing and spending is destroying america. In fact I think it already has (hence the housing depression of 2007-09).

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    20. Re:ha ha ha by vlm · · Score: 3, Interesting

      USA doesn't produce anything of any value except for the raw materials, that Chinese would want to buy.

      From a consumer point of view, yes, absolutely. Aside from plastic trash from walmart, we vary from complete utter domination to merely being major players in aerospace, heavy construction, and especially weapons. There are still plenty of plants that OSHA and EPA and NAFTA have not managed to shut down yet, although our govt is trying their hardest to destroy our middle class.

      One Very important point you missed, is the US is the "saudi arabia" of food... we stop exporting and hundreds of millions will starve, probably mostly in Africa rather than China, but still... practically every nation either directly eats our food, or benefits secondarily from other folks eating our food instead of us. Its a simplification, but block the Mississippi river, or do the same thing by screwing up the economy so we can't export, and about 2 billion of the world's poorest will pretty much starve to death as a result... How that benefits China is not entirely clear, it might even be mostly neutral.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    21. Re:ha ha ha by Anonymous Coward · · Score: 3, Insightful

      You realize that China relies on artificial currency manipulation - which it achieves by buying up tons and tons of US dollars, right? How well do you think China's production economy would fare when suddenly its goods are as expensive in Europe and America as European and American goods?

      Without the US dollar, China's economy implodes. That's why they're panicking about QE2; they're terrified the US dollar will weaken.

      PS: Almost all of our debt is from the economic recession and the wars. These are all temporary. Economic growth reduces the debt even if you don't pay on it (ty inflation). And finally, we do have the lowest taxes in more than a half-century. If millionaires have to return to a 90% tax rate, cry me a river.

      Our debt is not a problem, but good job on playing Chicken Little.

    22. Re:ha ha ha by TheCRAIGGERS · · Score: 1

      Of course the follow on effects of the US not being able to fund their government defecit and either having to print money the more old fashioned way or dramatically raise taxes would destroy the US economy. That in turn would be a significant issue for Chinese exporters - but they do export to countries that are not America and the American economic destruction would see world demand (and hence prices) on their imports drop significantly, so while triggering a large recession would not be a complete collapse.

      All of the models I've seen paint an extremely dire picture if the US folds in on itself. It would be a ripple effect- you can't just say "oh, it would only effect China a little bit because they can sell their product elsewhere". Those other places would be hit hard too. The small shops that are the majority would die first, which would create huge layoffs, which would in turn impact the large shops.

      You can't look at something as huge and interlinked as the world economy one small slice at a time- you need to look at the big picture. Even my explanation above, as generalized as it is, is way too simple. There is a reason foreign fat cats keep lending us money.

    23. Re:ha ha ha by whipnet · · Score: 1

      I'm completely with you. And a trade deficit means other countries depend on us to buy their crap. As I mentioned above, a few protectionist laws would cause much harm to other countries. *

    24. Re:ha ha ha by vlm · · Score: 2

      US not being able to fund their government defecit and either having to print money the more old fashioned way

      What exactly do you think the recent "quantitative easing" programs have been, if not that?

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    25. Re:ha ha ha by whipnet · · Score: 1

      And if you want to talk about trade deficits, that just means we buy more crap from other countries than we export. (Again has nothing to do with manufacturing output) Having a large trade deficit with China simply means they depend on us to buy their crap. A few protectionist laws (they don't even have to be as severe as China's protectionist laws) and China goes bye-bye. I heard all of this same crap back in the 80's with Japan "dog". *

    26. Re:ha ha ha by countertrolling · · Score: 1

      Trade and production are two different things... And their military? Well, we discovered how the government exaggerated the Soviets' abilities... I'm not gonna sweat the small shit... I don't think you're aware of what the Americans are capable of.. unless you have some kind of security clearance we don't know about.

      --
      For justice, we must go to Don Corleone
    27. Re:ha ha ha by The+Dawn+Of+Time · · Score: 1

      Everyone in the US would be a lot better off if they were more like me

      You just summed up 90% of the posts I've ever read on Slashdot. It's the unsung geniuses like you that make me proud to be an American.

    28. Re:ha ha ha by roman_mir · · Score: 1

      I'd like to see how well an economy works when nobody buys anything it's producing.

      - yeah, because people are spirits and they are not physical beings who actually need real physical things to survive.

    29. Re:ha ha ha by Anonymous Coward · · Score: 0

      Really, the crazy troll spouting nonsense is +4, Informative?

    30. Re:ha ha ha by roman_mir · · Score: 1

      What do you think the Chinese would do with all of that "production" if they couldn't sell it overseas?

      - oh, oh, can I, can I?

      They will consume the stuff they produce themselves, because they have over a fifth of the planet's human population.

    31. Re:ha ha ha by Anonymous Coward · · Score: 1

      You missed the part where China has produced a bare handful of meaningful technologies in the last hundred years. Viewing your youth as disposable assembly line workers is harmful to your long term growth. China gets around this by shamelessly stealing patents from the civilized world, if the innovators of the west stopped slitting their own throats for short term gain China would be dead in the water.

      You missed the part where China is the original source of many things on which modern society depends: paper, printing, gunpowder and ramen noodles.

      You also missed where all of those top grad students inventing things in universities and starting new businesses these days are Chinese. They do that in the US rather than China because of better infrastructure.

    32. Re:ha ha ha by roman_mir · · Score: 1

      utter domination to merely being major players in aerospace, heavy construction, and especially weapons.

      - I grant you weapons. But aerospace and heavy construction?

      Boeing is heavily subsidized and helped via political power by US government, it's not standing firmly on the ground with both feet, and heavy construction is done around the world. Maybe you didn't notice, but China actually builds rail roads, skyscrapers, bridges, roads, tunnels... As to weapons - yes. As long as USA has Chinese footing the bill that is.

    33. Re:ha ha ha by Anonymous Coward · · Score: 0

      How much of imported goods can be deemed "necessary" for survival?

    34. Re:ha ha ha by Khyber · · Score: 0

      "One Very important point you missed, is the US is the "saudi arabia" of food... we stop exporting and hundreds of millions will starve"

      Nope, that begins to happen and I dump all of my research to those countries for free, and they will be capable of producing whatever they desire, leaving the USA in the shitter.

      The White House would love to stop me but they can't.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    35. Re:ha ha ha by roman_mir · · Score: 1

      And if you want to talk about trade deficits, that just means we buy more crap from other countries than we export.

      - no. It means USA is not producing ANY of those things it buys from foreign countries, because it is clearly impossible to compete for US internal manufacturers due to heavy government regulations, taxation, various laws and inflation of investment capital and high labor costs.

      Whatever there is WalMart, if it's made in China, you won't find an equivalent made in USA anymore.

      Having a large trade deficit with China simply means they depend on us to buy their crap.

      - what a stupid statement. CHINA does not depend on you buying anything. CHINA should let their currency rise, so that Chinese people can finally start buying all those things, that are outflowing to other countries.

      A few protectionist laws (they don't even have to be as severe as China's protectionist laws) and China goes bye-bye.

      - A few protectionist laws, and you won't be able to buy anything, as prices will outmatch your purchasing ability completely.

      I heard all of this same crap back in the 80's with Japan "dog".

      - yes, Japan. What a disaster. They followed Greenspan's and Bernanke's advicse and devalued their currency and caused huge inflation, which offset the huge deflation they were having, so the prices there didn't really move much, while they should have fallen dramatically, as Japanese Yen is constantly outperforming US dollar, even with the earthquakes and tsunamis and nuclear disasters combined.

    36. Re:ha ha ha by Anonymous Coward · · Score: 1

      I'd like to see how well an economy works when nobody buys anything it's producing.

      - yeah, because people are spirits and they are not physical beings who actually need real physical things to survive.

      You need a Thneed!

      Sincerely,

      The Onceler (with apologies to Dr. Seuss)

    37. Re:ha ha ha by Anonymous Coward · · Score: 0

      You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.

      I'd like to see how well an economy works when nobody buys anything it's producing.

      You may want to read up on the USSR. :)

    38. Re:ha ha ha by roman_mir · · Score: 1

      Trade and production are two different things...

      - the trade deficit with China and other countries shows one thing: USA is not manufacturing much of anything except bailouts for banks and aircraft carriers.

      The trade deficit of 50 billion with only China means that the products that are imported into US are absolutely not manufactured in USA, as it is impossible for a US based company to compete with Chinese manufacturer due to the rules and regulations and taxes and subsidies and monopolies and inflation by money printing, all the problems, all of which are created by USA government.

      Well, we discovered how the government exaggerated the Soviets' abilities...

      - US government was heavily invested in constantly overestimating Soviet military ability on purpose, to keep the military industrial complex going.

      What do you think the US government is overestimating and underestimating now? Well, now it's the inflation levels (waaaay underestimated), production levels (waaaay overestimated), unemployment levels (waaaaay underestimated), etc.

      I don't think you're aware of what the Americans are capable of.. unless you have some kind of security clearance we don't know about.

      - on Chinese (and other country's) dime, USA has the biggest military and offensive force. Much good will it do for US to wave that dick around. In today's world major countries do not attack each other in land wars directly, they have nuclear weapons for that. Everything else is irrelevant.

      However, are you implying USA would attack China if it stopped buying US debt? :) Well, hey, maybe that's possible. Not that it would help and not that Chinese would buy more US debt because of such an attack.

    39. Re:ha ha ha by TheCRAIGGERS · · Score: 2

      Contrary to many people's belief otherwise, I do not need a new smartphone to survive.

    40. Re:ha ha ha by roman_mir · · Score: 1

      Standard of living, standard of living.

      US will survive this, I never said it wont, but the standard of living will be diminished severely, as Chinese consume more and more of what they produce, their currency strengthens and the rest of the world is left without all those cheap products (until they are forced into saving and rebuilding their manufacturing themselves.)

    41. Re:ha ha ha by TheEyes · · Score: 2, Interesting

      Sigh... There are to many statements in this that are way to true. I miss the day when the US was a production powerhouse. If you wanted something then you got it at your local store and it was stamped Made in America. Of all the times to not have any mod points....

      America still produces more, both in raw materials and finished goods, than China (though this will likely be reversed in the next two years or so). What we don't produce here are the cheap consumer-level goods that places like China and Vietnam are currently specializing in, because we don't pay our workers $5 a day here.

      As China continues to modernize and the US continues to decline this dynamic will shift; their one-child policy will greatly increase labor costs in the coming decades, and the US's focus on tax breaks for the rich as economic stimulus will continue to cause median wages to decrease, as they have over the past decade, until Chinese workers and American workers are making comparable amounts of money. Times are changing, but for now it's still mostly true that if it has to work you build it in the US; if it has to be cheap you build it in China.

    42. Re:ha ha ha by roman_mir · · Score: 1

      One Very important point you missed, is the US is the "saudi arabia" of food.

      - only because it's subsidized... guess with whose money at this point?

    43. Re:ha ha ha by Yvanhoe · · Score: 1

      Banning US banks and institutions from deepening the debt of US toward China would actually be a good idea IMHO.

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
    44. Re:ha ha ha by Anonymous Coward · · Score: 0

      Economy is not driven by production, it's not driven by consumption. It's driven equally by both, because they are always exactly in proportion to each other at the highest level.

    45. Re:ha ha ha by Anonymous Coward · · Score: 0

      We are all going to die, I just hate like hell to think it will be because of China. Any one of those FUCKERS pushing the 'rain down' of fire button really pisses me off.

    46. Re:ha ha ha by countertrolling · · Score: 1

      The whole thing is bullshit.. designed to reduce the value of human time and effort... Government is nothing more than a private security service for big business.. The names 'China' and 'USA' are about as relevant as British royalty to the people who decipher the spreadsheets..

      --
      For justice, we must go to Don Corleone
    47. Re:ha ha ha by roman_mir · · Score: 0

      replying to an AC seems wasteful, but hey, somebody is modding you up, so.

      China does not manipulate its currency any more than US manipulates its currency, and US does real currency manipulation.

      US prints its fiat to pay interest on its debt and to fund its gov't, while China only prints its fiat to buy those worthless US dollars, that are brought to the banks by companies that operate in China. However, what would actually happen if the banks allowed the Chinese currency to appreciate? Thanks for asking, here is the answer:

      Chinese based companies would benefit from the stronger currency while buying raw materials from abroad, while they also would have a huge market appearing internally, because Chinese would gain so much purchasing power.

      The competition on the internal market would cause prices for the Chinese (in Chinese currency) to decrease (deflation, which is the natural preferred state of the competing market).

      Chinese workers/consumers would see a huge rise in their standard of living, they also would be able to buy foreign goods cheaper due to the exchange rate.

      Without the US dollar, China's economy EXPLODES, it grows faster and faster, as Chinese will have more purchasing power and more companies would appear inside China to cater to the growing internal market, and again, it's 1.2 or more billion people.

      As to QE2 - this is killing the US dollar, China holds too many of them and they know that more dollars will be chasing the same amount of raw materials, and China needs raw materials (especially metals and energy).

      What China REALLY needs to do is let yuan appreciate, let the market set the interest rate and the exchange rate, and China will see incredible rise in standard of living for its people and the prices for commodities will go down in yuan.

      Almost all of our debt is from the economic recession and the wars. These are all temporary.

      - 1. US debt is affected by wars, surely, but this is not the main reason for it. The main reason is inflation and investment capital flight.

      2. US wars are really not that temporary. What is temporary, if US can't leave Afghanistan for a decade and Iraq for near a decade as well?

      3. There is nothing US can pay the debts with - it has no manufacturing capacity left to be able to pay the debts.

      And finally, we do have the lowest taxes in more than a half-century.

      - and USA has the lowest manufacturing capacity since the 18 century.

      If millionaires have to return to a 90% tax rate, cry me a river.

      - you assume anybody is insane enough to pay that money (they never paid those rates even when the rates actually existed, that's what deductions and dividends are for), and they wouldn't pay now. It's much cheaper to buy your politicians than to pay those, and it is still cheaper to leave USA and to go to places that actually appreciate people with capital and businesses.

    48. Re:ha ha ha by Chowderbags · · Score: 1

      You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.

      China accounts for 19.8% of world manufacturing. The US is at 19.4%. We still produce a shit ton of stuff.

      Irony is of-course that it borrows money from China and buys the Chinese made products, and the population of USA is convinced by their useless 'economists', who are really charlatans, that the US consumer is the actual engine behind this entire economic activity.

      I certainly have no love for the consumer lifestyle of endless debt that seems to pervade American culture, but production without consumption is a waste of time. If you produce 10 times more frying pans than people could possibly ever or buy, you're not contributing extra to the economy.

      No. What China needs to do is to let their currency appreciate, so that it becomes cheaper for Chinese to both: buy raw materials (as they are hit hard with price inflation, which in the case of producers follows immediately after the self inflicted money inflation) and it becomes cheaper for the Chinese to buy foreign products and their own manufactured products as well, and China has plenty of potential for consumption, they do have over a billion people after all.

      I agree that China needs to let their currency appreciate, but the Chinese culture doesn't have the appetite for consumption that exists in the West (and the US especially). Not to mention, a lot of those billion people can't afford a lot of the things China produces.

      If China lets the currency appreciate, it will become nearly impossible for the US consumers to buy Chinese products. That's good for USA in the long run, because USA has to be hit with very high interest rates on their money, Americans need to start saving and creating capital that can be applied for building things again, so that it starts producing again. But in the short term it's going to be disastrous for USA, not for China.

      I agree that America needs a good slap in the face about saving money, especially considering that most people are theoretically supposed to be self-funding their retirement (even though most 401(k)s probably couldn't last a year or two, even if we didn't have a huge recession). However, this recession is hitting China just as hard as it's hitting the US. Chinese unemployment is rising, and college grads there can't find jobs either. With China's economy dependent on exporting goods (for the time being), they will suffer until people start buying again.

      Do you think USA can pay that debt back? EVER? :)

      In terms of the trade gap? Depends on if China lets the Yuan appreciate to it's real value. They're saying they might let it float more, but if they keep it undervalued it'll continue to cause a trade gap. Of course, it also doesn't help that the biggest Chinese companies are state owned and heavily subsidized.

      USA doesn't produce anything of any value except for the raw materials, that Chinese would want to buy. USA can NEVER pay the debts back.

      Eh, maybe, but once China actually lets it's currency float, it's good are no longer cheap, and who wants to buy their low quality goods if they're not cheap?

      Do not be mistaken - US debts will never be repaid in anything that's valuable. US can print the dollar and 'repay' in worthless paper, but that's just as much of a default as a real bankruptcy would be.

      We've got a large, relatively educated workforce and a decent chunk of world production. If people would stop putting everything on credit cards and taking loans for shit they don't need, we'd be a'ok. The economics are driven by cultural stupidity of spending beyond our means. Fix that and we can ride it out.

    49. Re:ha ha ha by Anonymous Coward · · Score: 0

      As Adam Smith said, if there is no one to buy your goods, there's no point in producing them. If the US economy collapsed and demand for Chinese-made goods stopped, the Chinese economy would collapse. Yes, China has a huge population, but their domestic consumption is only about $2 trillion, which is less than 20 percent of America's. That's given a Chinese population of 1.3 billion compared to America's 300 million. There is simply no way that China can make up the difference in the short term. That doesn't even begin to address the "Japan on steroids" scenario that many economists see when they look at China. The simple fact is that our two nations are joined at the hip.

    50. Re:ha ha ha by roman_mir · · Score: 1

      China accounts for 19.8% of world manufacturing. The US is at 19.4%. We still produce a shit ton of stuff.

      - US 'manufacturing' is a fancy way for assembly lines of parts, made elsewhere.

      If you produce 10 times more frying pans than people could possibly ever or buy, you're not contributing extra to the economy.

      - and that's the manufacturer's problem, who is forcing him to produce 10 times more frying pans than can be sold? Clearly that manufacturer is in the wrong business and will go out of business. Production without use - that's government job. Real production obviously has consumers in mind.

      However consumption without production is 0% likely.

      but the Chinese culture doesn't have the appetite for consumption that exists in the West (and the US especially). Not to mention, a lot of those billion people can't afford a lot of the things China produces.

      - oh boy, what are you saying, that Chinese do not like to buy stuff.

      Are we talking about the same Chinese here? You are full of shit on this, don't you understand? People want things. The only reason they don't buy - is if they do not have the purchasing power to buy. This happens in government manipulated economy, not in real economy.

      The reason Chinese are not buying is because they are robbed of their purchasing power by their government through inflation of money printing. When they stop this nonsense, they'll be buying plenty.

      However, this recession is hitting China just as hard as it's hitting the US. Chinese unemployment is rising, and college grads there can't find jobs either. With China's economy dependent on exporting goods (for the time being), they will suffer until people start buying again.

      - in China they are experiencing immediate affects of the monetary inflation - price hikes. Their food even went up by 15-25% last year. Obviously they are cutting down on other spending. The reason I already explained - government printing money to match US Fed printing.

      In terms of the trade gap?

      - that's the only real measurement. What would I care if you printed a bunch of green papers to pay back some debt, if they went down in value by another 99%?

      Of course, it also doesn't help that the biggest Chinese companies are state owned and heavily subsidized.

      - if that's their reason to prop up US dollar, then they'll have riots and revolutions on their hands, just like Middle East had.

      Eh, maybe, but once China actually lets it's currency float, it's good are no longer cheap, and who wants to buy their low quality goods if they're not cheap?

      - Fucking jesus. They have over 1.2 billion people, sitting there, waiting for their currency to start buying something. Give me a break, it all comes out of your idiotic: "Chinese do not want to buy stuff like Americans do" nonsense.

      We've got a large, relatively educated workforce and a decent chunk of world production. If people would stop putting everything on credit cards and taking loans for shit they don't need, we'd be a'ok.

      - and how are you going to do that exactly, if your government doesn't let the investment to actually stay valuable and instead prints the dollar like trees are going to disappear and has near the highest taxes in the world and has the most regulations in the world?

      Good luck competing with the world while you are promoting this anti-business agenda via government regulations, money printing, taxes, subsidies, monopolies, competition destruction, socialist programs and wars.

    51. Re:ha ha ha by roman_mir · · Score: 1

      Another economic idiot hiding under AC. Ben, is that you? How is the helicopter doing?

      The reason Chinese are not buying as much as they need to is due to their government printing their money into oblivion, and since they are a producing nation, which imports raw materials, they are hit with higher prices immediately, which is not the case for USA, who is not a producer, only imports ready goods and energy, and exports inflation (printed dollars and t-bills) to others, who are willing to import it.

      China does not need this hindrance of being joined to a brain dead, lazy sports fanatic.

    52. Re:ha ha ha by Gilmoure · · Score: 1

      If you have a loan with a bank for $100K, the bank owns you.

      If you have a loan with a bank for $10M, you own the bank.

      --
      I drank what? -- Socrates
    53. Re:ha ha ha by Reziac · · Score: 1

      When you're producing, you're also selling, which means you have money to buy and consume with.

      When you're only consuming, you lack income and you eventually run out of credit, and then you can't even pay off your debt because you're not producing anything to sell.

      That's the current positions of China and the U.S., in their respective nutshells. (It used to be the U.S. and Europe in those same nutshells.)

      And as I've said before, when that debt comes due, my guess is that D.C. will roll over and offer China a state... we're not really using Alaska or Hawaii anyway...

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    54. Re:ha ha ha by Anonymous Coward · · Score: 0

      I'd like to see how well an economy works when nobody is over-consuming, but -everyone- is consuming only what they need, or maybe a little bit more -- all while saving wisely, making good financial decisions, etc.

      IANAE, but I'll bet it works better for everyone for the long term, instead of just a few for the short term, even if we aren't growing at that magical threshold rate currently declared to be "healthy".

    55. Re:ha ha ha by jav1231 · · Score: 1

      Start taxing imports from China at the rates we're taxed back. We could pay them back in no time, I imagine. China sucks, period. That we still do any business with them at all is in itself an atrocity.

      Tienanmen Square meant nothing.

    56. Re:ha ha ha by Anonymous Coward · · Score: 0

      Drive around your town and local business district and tell me exactly how many empty office building and store fronts you see and them tell me who is propping up and economy with building useless buildings.

    57. Re:ha ha ha by Anonymous Coward · · Score: 1

      Yeah, if China was actually interested in hurting USA in one place, it would really hit hard, they'd just stop buying US bonds and also stop rolling over the ones they have already, and never mind NASA, US wouldn't even have money to run its military.

      • If I'm reading http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt and http://www.fms.treas.gov/bulletin/b2011_1ofs.doc correctly,China currently appears to hold about 8% of the federal securities. Why do you think that one such large buyer dropping out of the market would mean nobody would buy US bonds any more?
      • My understanding is that Chinese bond purchases were in part a strategy to keep their currency low against the dollar, thus making their exports more attractive to American consumers, and that a reversal of that policy would make US exports more popular to Chinese consumers, helping US businesses. I'm no expert and wouldn't claim to know the magnitude of such effects, but my impression is that there are experts in the area that think this would be a good thing.
      • Despite that, it's easy to imagine that a sudden change could upset plans of individuals and businesses in both countries.
      • Why would it be to China's advantage to do this, anyway?

      In short: some kind of argument is needed.

    58. Re:ha ha ha by Anonymous Coward · · Score: 0

      And as I've said before, when that debt comes due, my guess is that D.C. will roll over and offer China a state... we're not really using Alaska or Hawaii anyway...

      Yes..lets give away one of our key oil producing states in Alaska and the home to the US Pacific Fleet in Hawaii. Yes this makes perfect sense. Now go back to your mom's basement you mouthbreather.

    59. Re:ha ha ha by Anonymous Coward · · Score: 0

      You do realize that many of these securities have to mature, right? You can't just decide one day to sell them (well, you can, but you'll take a loss even without the devaluation such a move would cause).

    60. Re:ha ha ha by Gilmoure · · Score: 1

      You do realize that the U.S. is the largest producer in the world, even ahead of China?

      But yeah, are totally spot on with consumption being a red herring. The more production there is, the more sales there are, regardless if any consumers are actually purchasing anything. Anything that's not actually consumed can be written down and then rolled into a psudo-security and sold a profit. Turns out, you don't actually have to produce anything in order to profit; just have to know how to spin the deal.

      --
      I drank what? -- Socrates
    61. Re:ha ha ha by Ced_Ex · · Score: 1

      I'd like to note that the Chinese are accustomed to living below their means and can adapt to disruption far better than the US economy.

      --
      Live forever, or die trying.
    62. Re:ha ha ha by Anonymous Coward · · Score: 0

      I have an account with Excellent karma to garner a karma bonus. I just don't like posting under it. At any rate, if my comments are modded up from 0 rather 1 or 2, that hopefully means they're high-quality comments more worthy of everyone's time. I hope it encourages people to browse at lower comment thresholds too - I browse at -1.

      Either way, you're entitled to your own opinions, but not your own facts. China is manipulating its currency, while the US allows the dollar to float. There may be some side effects of financial policies such as QE2 that can affect the strength of the dollar (not as much as people like you claim), but that is not the purpose of them. Moreover, basically every postindustrial country is doing the same things. China on the other hand, is deliberately, purposefully manipulating its currency. This is acknowledged even by the Chinese government. It was only under extreme international pressure that they agreed to let the yuan appreciate at all - although since then, they haven't actually done so. The yuan is 20% undervalued because of this manipulation.

      And seriously, what? If appreciating the yuan would be so wonderful for China, why are the adamantly opposed to it? I agree that it must be done and would be beneficial to them and the world economy in the long run. But China, right now, is in the middle of an unsustainable boom brought on in large part because of the weakness of their currency. China recognizes this and they don't have an easy way out anymore. If something happens to the dollar, China is screwed.

      On the other hand, I think you may be seriously out of your mind to begin with. Deflation is a horrible, horrible thing to happen to an economy. Unless you mean that commodity prices only will go down, somehow passing the rest of the economy by. Tell Japan how deflation is the natural preferred state of the competing market. Tell the Great Depression USA the wonders of deflation. If prices go down and keep going down, wages go down and people quit buying anything other than necessities (because why buy today when tomorrow Shiny Luxury Item will be less?) Why invest in anything when you can sleep on a mattress full of appreciating currency?

      I also question your claim that, even pretending it would somehow be good for the Chinese economy - which no one in China or the US government or the UN believes - that it would somehow be a rising tide, lifting all boats. There are hundreds of millions of extremely poor people in China. Why, exactly, are Chinese companies going to train and educate and hire all these people when they're being forced to cut prices?

      As for our manufacturing capacity being gone, that's preposterous. It's there. It's under-utilized, and a weakened dollar would be an enormous help in that regard as US products became more competitive abroad.

      And yeah, back in the day, all those tax loopholes didn't exist (okay - almost all). A lot of people really did pay very high taxes. One way they did get out of it though, was, for example, to hire more people or pay people better. After all, if you're throwing the money away anyway, might as well spend it on making your employees happier.

      And for the sources of our national debt - I'm not sure how you think inflation causes debt; it actually reduces it. This is how we escaped our extraordinary WWII/Great Depression-era debt, which was more than 100% GDP, IIRC. We didn't pay it off. The amount of debt simply became worth less relative to our GDP. I did make one mistake, though - the two largest sources of the debt are the Bush tax cuts and the recession leading the decreased tax receipts and increased spending on aid to states and unemployment. The wars come in third. Without them, we could have very well paid what debt we had off. And we'll still be perfectly able to when the recession and the wars end and the tax cuts expire (which we will hopefully wait until after the recession ends to do.)

      The debt is really truly Not A Problem. Of course, Americans will have to accept that someday

    63. Re:ha ha ha by Gilmoure · · Score: 1

      But, but, roman-mir said that consumption is not required; just production. I mean, China's building all those empty towns and malls and stuff and there's no consumers and they're doing well so Roman-mir must be right and Paul Krugman and other economists are all stupid.

      --
      I drank what? -- Socrates
    64. Re:ha ha ha by Anonymous Coward · · Score: 0

      China holds power because of the gap between [how cheap they can make a product], and [how much we rich folk will pay for said product]

      That is sort of the point. The U.S. are not rich enough to buy their dirt cheap products anymore, that is why they are borrowing money from them to do it.
      The U.S. needs the Chinese and the Chinese are currently content but can decide to stop lending money to the U.S. at any point and sell to markets that can offer them something else than worthless paper.
      Actually there is only one thing from the U.S. that the Chinese have any use for and that is the know-how. Stop the industrial spionage and the Chinese might very well decide that they no longer have any reason to lend money to the U.S. anymore.

    65. Re:ha ha ha by joocemann · · Score: 1

      I don't need anything from china to survive. My food, water, shelter, and basic medical aid is all right here.

    66. Re:ha ha ha by Anonymous Coward · · Score: 0

      I'm sorry. Are you seriously using iPad mobs to claim that the Chinese has an economy just waiting to boom? Because a tiny, microscopic proportion of rich Chinese mobbed a store for iPads? Seriously? Seriously? Are you out of your mind? A huge portion of the population lives in extreme poverty. College grads are vastly underemployed. Many people who do have jobs work for nothing - maybe they'll be helped, a little. But then, many of them have a job thanks only to Chinese make-work programs.

      Sure, Chinese people want to buy stuff. You'd better figure out quick how annihilating China's economic advantage on the international market is going to suddenly employ hundreds of millions of people at something better than barely-living wages allowing them to do so.

    67. Re:ha ha ha by NeutronCowboy · · Score: 1

      What China REALLY needs to do is let yuan appreciate, let the market set the interest rate and the exchange rate, and China will see incredible rise in standard of living for its people and the prices for commodities will go down in yuan.

      Yes, I'm sure those Keyenesian fanbois in the Chinese government are completely ignorant of what the impact of a strong yuan would be. Why don't you tell them? I'm sure they'd fete you as a hero on the level of Mao and Sun-Tzu. How does it feel to be that superior to the rest of the world?

      Oh, and how is Switzerland, your favorite political and social utopia faring on the production side of things? Last time I checked, they produced alpine milk, watches, snow and bank secrets. Yep, economic powerhouse right there.

      As I said before, the only thing that scares me about your opinions is how many people agree with it.

      --
      Those who can, do. Those who can't, sue.
    68. Re:ha ha ha by Anonymous Coward · · Score: 0

      You're right. They need to raise all these low taxes that the middle and lower classes are enjoying and then distribute that money to the top 2%. That way, the people who know how to handle money (hey, they're rich so they know what they're doing) will be able to put it to use. If you let the lower classes have any money, they'll just spend it on booze, porn, and tv. Finally, once all the money's sucked out of the poor people, ship them overseas, away from Manhattan and then build a moat around it so only rich people can live there. My God, it'll be wonderful!

    69. Re:ha ha ha by Omestes · · Score: 1

      Here, in Phoenix the land of the popping bubble, there are tons of empty store fronts... But most of these weren't empty until a couple years ago when things when bust. They wouldn't have empty either if the bubble didn't pop. People were building at the rate of estimated future demand, that demand dropped, so now we have a glut of space, more space than we can use. The cost of moving to a better location is very cheap now, so a lot of companies who were shackled by high prices have moved to better places, leaving a glut of empty real estate.

      They weren't, though, building for the sake of building (there is no economic sense for that, in our mostly private economy), they were building because the forcasted growth said that x spaces were likely to be needed in the future if growth continues at the current rate. The current rate changed, but people build for the future and not now, so we end up with tons of superfluous spaces.

      It is a very different scenario in China, since we're dealing with both public works, and the government forcing private building. Also your missing a matter of scale, in the US we have empty store fronts and office space, in china they have HUGE newly constructed empty skyscrapers, malls, and other entire edifices.

      --
      A patriot must always be ready to defend his country against his government. -edward abbey
    70. Re:ha ha ha by kevinNCSU · · Score: 1

      Or, as china becomes more modern and wages increase it will become more economically viable to start stabilizing and industrializing other countries that would be 'happy' to get 'low-paid' manufacturing jobs and the world-wide standard of living will continue to increase.

    71. Re:ha ha ha by moortak · · Score: 1

      In what way is the US not a production powerhouse? It is the single largest manufacturing country on the planet and in the top five or ten for many raw resources. If that doesn't qualify as a production powerhouse no one does.

      --
      Xavier Rabourdin for president 2012
    72. Re:ha ha ha by Anonymous Coward · · Score: 0

      What do you think the Chinese would do with all of that "production" if they couldn't sell it overseas?

      - oh, oh, can I, can I?

      They will consume the stuff they produce themselves, because they have over a fifth of the planet's human population.

      oh, oh, can I, can I?

      They would need to pay more so they could consume in mass. If they did that they would lose their production advantage.

    73. Re:ha ha ha by MightyYar · · Score: 1

      They will consume the stuff they produce themselves, because they have over a fifth of the planet's human population.

      Maybe they will someday be able to consume the stuff the produce, but today that is not realistic. They need the US and Europe as markets for their goods right now. If the US were to tank economically, so would Europe. With the US and Europe down, the Chinese would find themselves in possession of the worlds largest collection of idle factories.

      So let's stop with all of the nationalistic bravado and just admit that any economic war between the US and China would bring everyone pain and misery.

      IMHO, the current relationship is not sustainable, but can be salvaged. Eventually, the Chinese public will tire of absorbing the US's inflation. When that happens, the Chinese will have to stop propping up the dollar and the US will get it's inflation back. At that point, I'm not sure what will happen because of the uncertain US political landscape. I certainly hope the yahoos in DC can balance the books.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    74. Re:ha ha ha by CrackedButter · · Score: 1

      Thanks for the video in your blog, it would be a comedy if it wasn't so tragic.

    75. Re:ha ha ha by kevinNCSU · · Score: 1

      Boeing is heavily subsidized and helped via political power by US government, it's not standing firmly on the ground with both feet

      You're right, they aren't standing on the ground at all. $2.6 billion from NASA for research that the WTO is complaining about, and Boeing is flying high with in order backlog of $329 billion. Seems like chump change compared to the 20 billion in below-market-interest loans you EU folks gave to Airbus ;)

      Jibes aside, are you really going to go with a "but the government helps them!" argument against a US company when comparing our industry to China's? I'm trying to come up with an analogy that would be hypocritical enough but just can't do it.

    76. Re:ha ha ha by roman_mir · · Score: 1

      I have an account with Excellent karma to garner a karma bonus. I just don't like posting under it

      - so which account is it? Why aren't you comfortable posting from it? See, I post my opinions consistently, at least my stand is clear. As to /. moderation and other problems, I actually said something about it just a bit earlier. - I think it's wrong to have a moderation system that allows group think to down-mode certain unpopular opinions (just like my comment, that was a response to yours is now down-moderated with a 'flamebait', which it is not.

      China is manipulating its currency, while the US allows the dollar to float.

      - it's a floater alright. US Fed prints trillions, US Treasury issues trillions in bonds, US Fed monetizes that debt. That's a floater.

      There may be some side effects of financial policies such as QE2 that can affect the strength of the dollar (not as much as people like you claim), but that is not the purpose of them

      - purpose does not matter, only the outcome matters.

      Outcome: gold over 1450 USD, silver near 40USD, cotton over 220USD/pound, coffee, grains, oil, all commodities at their highs not due to any increased activity but simply as the consequence of money printing.

      . Moreover, basically every postindustrial country is doing the same things.

      - precisely. And all of them are failing economically. All socialist states are eventually becoming less and less socialist and their social obligations cannot be funded, and while they are funded, who is funding them? Productive nations like China, where people save for their own retirement, rather than robbing incomes of others just to buy votes.

      I suppose a totalitarian political system does not come without its share of useful things.

      China on the other hand, is deliberately, purposefully manipulating its currency.

      - no no no, you CANNOT have it both ways: want to be a reserve currency and then complain that people use your currency that way.

      China is keeping an artificial tie to the US currency, so do most other nations in the world, but USA is the real manipulator - printing, so that it doesn't have to return its debt in real money.

      The yuan is 20% undervalued because of this manipulation.

      - 20% ???? :))))

      You are at least an order of magnitude off here, AC.

      If appreciating the yuan would be so wonderful for China, why are the adamantly opposed to it?

      - your sentence is broken.

      Who is opposed to it? "the adamantly"?

      Anyway, the Chinese consumers HATE inflation their government forces upon them. The government continues printing for whatever reason, after all, they are totalitarian.

      the middle of an unsustainable boom brought on in large part because of the weakness of their currency.

      - what are you saying here? That Chinese will want to buy more than they produce? This entire NOTION that economy is booming in an unsustainable, manner, so that gov't must do something about it is ridiculous, to the point of being nauseating. There is no reason for a government to be in economy at all, it can't do anything useful for it, and all it ends up doing is destructive to the real economy - production.

      Unless you mean that commodity prices only will go down, somehow passing the rest of the economy by

      - no. All prices must fall in Chinese currency, when it will appreciate.

      Tell Japan how deflation is the natural preferred state of the competing market.

      -!!!!

      No no no no no no no no no no no no no no no.

      Deflation is what Japan SHOULD have. Instead they were (and still are) fighting it with infla

    77. Re:ha ha ha by toriver · · Score: 1

      Is that a corollary to the old Buddhist saying that if you own more than seven things then the things own you?

    78. Re:ha ha ha by roman_mir · · Score: 1

      Switzerland is doing OK. It's attracting people with capital and with real business sense, not your average Marxists, you can check the exchange rate, it's doing better than ever.

      As to my opinions and people agreeing with them - why, do you want everybody to be as brain dead as the rest of the Keynesian Marxists? Do you really want to live in your beehive utopia of group think? Do you enjoy being impoverished by your government? Do you really prefer to live in society that destroys wealth and punishes success?

    79. Re:ha ha ha by vlm · · Score: 1

      One Very important point you missed, is the US is the "saudi arabia" of food.

      - only because it's subsidized... guess with whose money at this point?

      Because we're corrupt, its our money. For now.

      The economics of why you have barges full of wheat, is not as important as the result of foreigners who must eat that wheat or starve.

      You can play games with the cause, maybe it'll be dollar trade, maybe we'll go to euro trade, maybe we'll barter for oil or gold, or really far fetched ideas of foreign military conquest of the USA. Regardless of the cause, the effect must be that the barges flow downriver; else the foreign masses starve.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    80. Re:ha ha ha by roman_mir · · Score: 1

      Are you seriously using iPad mobs to claim that the Chinese has an economy just waiting to boom

      - of-course.

      I am saying that Chinese are PEOPLE, like everybody else, and they want to spend and consume, no less than Americans are. Besides, this is crazy, there is a huge Chinese population in America. Aren't they consuming just as much as any other average Joe over there? Saying that a country is unwilling to consume for some moral reasons, all while relying on legal theft of income taxes and on panhandling from China (of both, money and goods) is preposterous.

      The reason China has poverty is specifically because it subsidizes the rest of the world.

      They really need to stop doing that and concentrate on their own market. They will have more companies catering to the internal market than they have companies today at the moment the government lets go of currency controls.

      China will have higher currency value and higher interest, and money will be flowing into it even more, as foreigners would want a piece of that interest pie. All this would allow enormous internal capitals to form, that would allow many startup companies, as well as allow current companies to increase production.

      They are on a verge of huge economic growth, and all it takes is to have the government removed from making the decision about the worth of their money.

    81. Re:ha ha ha by roman_mir · · Score: 1

      you are not following my logic. This massive foreign subsidy will stop. Now do you follow it?

    82. Re:ha ha ha by Iamthecheese · · Score: 1

      The only way to improve food production in Africa is a good number of well placed bullets. Start with the war lords, drug dealers, diamond tycoons, and the raping and looting semi independent armies. By the time you work your way down to the every day thug, implement massive cultural change, the concept of human rights, contract enforcement, and democracy you'll be 70% there.

      Then you can give them knowledge about how to produce food and expect it to work.

      --
      If video games influenced behavior the Pac Man generation would be eating pills and running away from their problems.
    83. Re:ha ha ha by roman_mir · · Score: 1

      There will be a standard of living collapse in US and many other Western nations before it will get any better, do not mistaken. The debts will not allow an easy way out of this. Of-course the debts will cause the US to print its way out, but the interest rates for the US bonds will go through the roof (I expect 30-50% long term interest rates), because the bond vigilantes will not let US to get away with this murder, of completely writing down the debts with devalued currency.

      I actually believe there is a high probability, that USA will spiral into hyper-inflationary depression, but the boundary between what's 'hyper-inflationary' vs what is just inflation that is very high is not very clear to me. If inflation runs 'only' 20% annually (as it can be calculated today), than is it not bad enough already? Does it have to go to 200% or 2000% or 2000000% / year (or a month) to be really bad? Because what' the difference between having to pay 200% vs 2000000%? At that point it could be 200000000000%, doesn't matter, nobody cold pay it.

    84. Re:ha ha ha by kevinNCSU · · Score: 1

      The trade deficit of 50 billion with only China means that the products that are imported into US are absolutely not manufactured in USA,

      I'm not sure how you reach that conclusion from a trade deficit, but if it is possible to come to such a conclusion in a roundabout manner I might suggest simply using the definition of "import" to do the same next time ;)

    85. Re:ha ha ha by gatkinso · · Score: 1

      You are a fool. Hell THAILANDS currency collapsed and almost took the world down with it. What would happen if the US dollar collapsed? Simply put, global economic Armageddon.

      --
      I am very small, utmostly microscopic.
    86. Re:ha ha ha by roman_mir · · Score: 1

      If they keep up this backlog thing, they'll be losing their accounts. However yes, the US government is making their bids. Presidents personally go to visits to other countries to sell Boeing's products.

      However Boeing DOES manufacturing in USA, and that's very good for USA.

      But aerospace does not employ the entire nation of US of A, does it?

    87. Re:ha ha ha by BZ · · Score: 1

      If China did this, then the value of the renmibi would immediately rise relative to the dollar; the only reason they're buying bonds is to hold the exchange rate down. This would have the effect of reducing Chinese exports to the US while making US industry more competitive.

      The result may well be a net win for the US. It's a bit hard to predict a priori.

      Also, just to put this in perspective, China bought about $250 billion of US bonds between Feb 2010 and Feb 2011. That's about 1/3 of total bond purchases by foreign governments over that time span (see http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt ). It's also about 10% of the total bond sales over the time period as far as I can tell (I haven't found a good authoritative source for this; just graphs). That 10% drop in bond purchases would be annoying, but not fatal.

    88. Re:ha ha ha by WaffleMonster · · Score: 1

      China isn't a nice country. Just ask any small business owner who, on a trip there, had to give trade secrets of the company he represents to the person he would be dealing with... or the whole delegation would face imprisonment on some trumped up charge

      Ok, which ones should I talk to?

    89. Re:ha ha ha by roman_mir · · Score: 1

      Maybe they will someday be able to consume the stuff the produce, but today that is not realistic. They need the US and Europe as markets for their goods right now.

      - no, they do not. There is not a single reason for the Chinese people in China to want to build products so that those products then could be exported to other countries, who give them back..... printed paper.

      That's crazy, that's not a fair exchange on the market from point of view of those, who produce. But it's great for those, who get subsidized with all that production, while themselves not having to produce anything to exchange back with that's of any actual real worth.

      So let's stop with all of the nationalistic bravado and just admit that any economic war between the US and China would bring everyone pain and misery.

      - I am not Chinese, if that's your question. However I see this as currency war and whoever wins that type of a war, wins misery for their people, who won't be able to buy anything with their worthless currency.

    90. Re:ha ha ha by Microlith · · Score: 1

      There are still plenty of plants that OSHA and EPA and NAFTA have not managed to shut down yet

      I know, we should just give power back to the corporations and let them pollute our environment and encourage unsafe working conditions, all for the sake of profits.

      although our govt is trying their hardest to destroy our middle class.

      Complicit with the corporations, I assure you. They benefit the most from NAFTA (fire expensive American workers, hire cheap Mexican workers,) and they benefit highly from shoveling jobs out to China and India (three cheers for poor worker and environmental protections!)

    91. Re:ha ha ha by Anonymous Coward · · Score: 0

      Oh, wait, *I* see the mistake you made...you assume that a huge percentage of those billion-plus people have something greater than a subsistence income at this moment in time. The problem is, they don't. Eventually, yes, your statement will be true, and China will be able to sell entirely internally. Today? Not so much.

      The US, on the other hand, can inflate out of our current debt, provided we get spending under control (and we'll have to, because eventually people will stop lending us money). This will be incredibly painful, but it's not going to destroy us.

      Also, China *just recently* - as in, less than a year ago - surpassed the US in terms of total manufacturing. We still "make stuff". Plenty of stuff. We would slowly and gradually switch back to making MORE stuff if China let their currency behave the way it should (it's the primary reason they're *not* letting their currency float, in fact).

    92. Re:ha ha ha by Anonymous Coward · · Score: 0

      If China lets the currency appreciate, it will become nearly impossible for the US consumers to buy Chinese products.

      Nearly impossible?

      Do you think USA can pay that debt back? EVER? :)

      Just to state the obvious: yes. Our taxation rate isn't particular high compared to our peers (http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP), and/or we could figure out how to cut spending. Political failure, rather than fundamental economic limits, would be a more likely cause of a default. I think it's more likely that our representatives will eventually bang out the necessary compromises. People actually betting their money on US bonds seem to agree.

      USA doesn't produce anything of any value except for the raw materials, that Chinese would want to buy.

      "Anything"? From http://www.uschina.org/statistics/tradetable.html, the US exported $90 billion worth of goods to China in 2010, with the top category "Electrical machinery and equipment".

      USA has it great as long as other countries keep buying its debt and keep printing their own currencies into oblivion and keep price inflation inside their own economies and don't export it back to US.

      Which holder of US debt is "printing their own currency into oblivion"? Most of federal securities are held domestically, and our inflation is historically low.

      How did this collection of unsourced hyperbole get modded up?

    93. Re:ha ha ha by Svartalf · · Score: 1

      Ah...but the reality is... If they can't afford to BUY the stuff to be consumed, then they won't.

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    94. Re:ha ha ha by Svartalf · · Score: 1

      It did it once before, actually. We're hanging on that same damn precipice and about to fall in the same hole- doing the same damn stupid things that we did back then.

      We can pull back from the crater that was the Great Depression but only if we disabuse ourselves of notions of "stimulus" spending, things like Obamacare, offshoring and a raftload of other idiotic notions we seem to have about things.

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    95. Re:ha ha ha by jbengt · · Score: 1

      - I grant you weapons. But aerospace and heavy construction?

      Heavy construction equipment, like Caterpillar, is one of the US' biggest export markets to China. How do you think China "actually builds rail roads, skyscrapers, bridges, roads, tunnels . . . "?

    96. Re:ha ha ha by TubeSteak · · Score: 1

      What do you think the Chinese would do with all of that "production" if they couldn't sell it overseas?

      The Chinese have a stated, long term goal of growing their middle class in order to increase domestic consumption and reduce reliance on foreign exports.

      With a billion people and massive natural resources, China has the ability to become mostly self sufficient in a way that the USA never can.

      --
      [Fuck Beta]
      o0t!
    97. Re:ha ha ha by roman_mir · · Score: 1

      Paul Krugman? Same Krugman who said on radio that having government coming up with projects, even if that's just digging ditches / filling ditches up is useful, because it puts people to work?

      Yes, that Krugman is an idiot.

      As to China building empty towns and malls and stuff - so? There will be loss of money in some of those projects, certainly. As long as the government does not bail out the companies who did that, it's all fine, it's just somebody didn't pull their investment out of that thing quick enough.

      --

      Production IS economy. Without production there is no consumption - 0 consumption. Consumption is consequence of production.

      iPads did not exist and there was no consumption of them. Suddenly Apple built them and now everybody must have one.

      Production comes first.

    98. Re:ha ha ha by roman_mir · · Score: 1

      Banning US banks and institutions from deepening the debt of US toward China would actually be a good idea IMHO.

      - ???? That's not how US dollars make it to China.

      Chinese exports their shit, US buys the shit and pays in US dollars, which were just printed and lent out by US government to the population in form of SS checks or other type of debt.

      Now Chinese exporter has all these dollars, he takes them to Chinese bank. The bank takes the dollars to the national bank and it gets back yuan. The national bank prints yuan to buy the dollars from the other banks, who got the dollars from the exporters, and then China uses these dollars to buy more US Treasury bills.

      That's how the debt to China grows and grows and how Chinese destroy their own currency, because they print the yuan and they keep a exchange rate.

    99. Re:ha ha ha by roman_mir · · Score: 1

      Start taxing imports from China at the rates we're taxed back

      - China gets what back from US?

      China imports raw materials mostly, so whatever their import taxes are, they are already part of the export cost of their finished products.

      USA does not export to China, not because US made products are too expensive for Chinese market but because US does not produce much of anything that can be imported into China (safe for weapons and airplanes. Well there is also GE, but I don't think they are now competitive on Chinese market either.)

      But US has 50 Billion/month trade deficit with China. That means that those products are imported from China because they are much lower cost than any domestic products, and likely there is nobody in US manufacturing the same stuff that is being imported.

      The only thing you'll get out of tariffs is higher prices.

      Of-course it's OK to do that, if you decided to fund the government that way and abolish income taxes. If USA does that (and abolishes business regulations and closes down government departments and gets rid of the main spending items: SS, Medicare/Medicaid/Wars), then USA may just gain enough advantage to invite the investment capital back into the conutry.

    100. Re:ha ha ha by roman_mir · · Score: 1

      That 10% drop in bond purchases would be annoying, but not fatal.

      - except that the consequence would be an appreciating yuan, this, coupled with the fact that US Fed buys 30% of all US Treasury issued debt now, would force interest rates up for US bond holdings.

      Also IF China off its bonds, do you for a second believe that other countries would KEEP theirs? :)))))))))))))

      God. This would mean 2 things:

      1. US Fed and Treasury default.
      2. Insane interest rates.

    101. Re:ha ha ha by Gilmoure · · Score: 1

      Everyone in the U.S. would be a lot better off if they were more like me (anti-people, live at least 2 miles away from the next person, never plays first person shooters, doesn't like broccoli, likes .45's over 9mm...).

      --
      I drank what? -- Socrates
    102. Re:ha ha ha by hey! · · Score: 1

      You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.

      This is balderdash, which is not to say there isn't a kernel of truth in it. That kernel is this: if there were no production there'd be no consumption. But it's just as true to say that if there were no consumption, there'd be no production. Not for long at least.

      For that matter, it might be better to say "production IS consumption", because you have to consume things like labor and materials in order to produce something. And there's the rub. If what you are apparently saying is true, a widget manufacturer could simply produce as many widgets as he physically could, and consumption of those widgets would happen as a "trivial consequence." And in a very restricted sense that's correct. Stuck with more widgets than he could sell at the current price, he'd drop that price until somebody took them off his hands. Then he'd go out of business.

      Now none of this has much relevance one way or other to the political debate about America's economic relationship to China. People feel it's important for a country like America to have a manufacturing economy. I tend to agree with those people, but if it's important, it's not important for *economic reasons*. The invisible hand doesn't give a fig for one country or another, it just cares about efficient allocation of resources.

      *We* think most Americans should be able to earn a middle class wage. We think that's very important. The market doesn't agree with our priorities.When trade barriers with China were dropped, probably most people thought that Chinese labor couldn't do the things that American labor did. They were wrong. Since Chinese labor was cheaper than American labor, the result will be downward pressure on American wages until they equalize, plus or minus some adjustment for which labor force is more productive. As our wages stagnated *despite* our increased productivity, we Americans continued our consumption habits by securing credit on the wealth we had accumulated in prior generations. When we found we'd miscalculated that, the results were predictably ugly. That shouldn't be surprising. The invisible hand has a lot more drastic tools at its disposal than than foreclosure, and is quite unmoved by an individual's aspirations to continue living in his house, or to continue living at all.

      We should not confound economic theory with our political priorities. The result will be bad theory and misplaced priorities.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    103. Re:ha ha ha by roman_mir · · Score: 1

      It's very simple: the Chinese products are cheap compared to any products that could be manufactured in USA.

      If the trade deficit is 50 billion, that's 50 billion of USD worth of goods, that are not manufactured in US.

    104. Re:ha ha ha by marcus+frost · · Score: 1

      It surprises me that someone so confident with their knowledge of economics could think that they can explain the dynamics of the US-China relationship in a few paragraphs on slashdot. I will attempt to do somewhat of the same, but this isn't a conversation that can truly be had with comments on this forum...

      Unfortunately you oversimplify, and underestimate grossly in your response.

      1.) China's main concern is not the value of their currency, but the industrialization of itself. Higher wages, workers rights, etc. This trumps any concern about currency, production, etc. In many parts of China factories are having to increase worker salaries by double digit percetages on a yearly basis. What happens when workers unionize? What happens when they demand more rights? All western countries have undergone this process but China is very, very different and the possibilities are endless. This single topic alone has greater ability to topple china than any discussion on currency valuation.

      2.) The idea that China owns the the "production" part of your equation is silly. The reasons for this are too lengthy to explain in this post, but you undermine just how well western countries are at producing goods when it is worth for them to do so. Germany is a fantastic example, and the US has a number of good examples as well. The other trump card in a lot of this is the IP (which I think we give way too much away to China).

      3.) The debt burden can achieve a number of leverage points that could benefit the USA, if it is done right. Demonizing it like we are doing helps motivate voters to demand politicians deal with it and make the changes that need to be made to big government to stop the excessive growth of debt. It is irrelevant that China owns or any other country owns our debt, what is relevant is that the debt debate be made to force legislators to deal with it and make the fundamental changes in how tax dollars are spent to reduce it. The debt will likely never get paid off, but this transition to reign in government spending has only started and from what I see - both democrats and republicans are being forced to deal with it head on. As long as voters continue to apply pressure, I think we have yet to see what this country can do.

      Above all, my hope is that in spite of a lot of the wrongs we have done and continue to do, that the voices of the people will actively continue to press for changes so that we can make it through this crisis and evolve to deal with the challenges facing the worlds sole superpower in the decades to come. We cannot maintain any defeatist attitude with these issues. As powerless as voters may sometimes feel, I don't think we need to look very far back (election of our current president) to see what the moving of the masses can yield.

      --
      "I do not have as much of a fear of dying as I do of not having lived."
    105. Re:ha ha ha by roman_mir · · Score: 1

      Oh, so you mean Chinese manufacturers of heavy machines and equipment like Liugong and Sany are NOT selling to the Chinese market?
      Riiiiight.

    106. Re:ha ha ha by KDR_11k · · Score: 1

      Meh, people won't stop lending you money for a LOOOOONG time. The most the US got against it was a "negative outlook" from Standard & Poor's for its AAA rating. Greece is down to B (barely above being considered junk) and still gets credit.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    107. Re:ha ha ha by MightyYar · · Score: 1

      There is not a single reason for the Chinese people in China to want to build products so that those products then could be exported to other countries, who give them back..... printed paper.

      Ask the factory workers if they would like to go back to subsistence farming. The printed paper that they get buys food and shelter, albeit at a lower exchange rate than they should be getting if their currency could float. Then again, they might not be at the factory if their currency could float, so... that's the quandary their government finds itself in.

      However I see this as currency war and whoever wins that type of a war, wins misery for their people, who won't be able to buy anything with their worthless currency.

      Indeed - I don't see how the current status quo can work out in the long run. All that borrowing leads to inflation. Right now it is in China, but that can't go on forever.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    108. Re:ha ha ha by MightyYar · · Score: 1

      With a billion people and massive natural resources, China has the ability to become mostly self sufficient in a way that the USA never can.

      I think you'll find that the natural resources available per person are much smaller in China than in the US. Just as one example, look at their oil reserves. The US has something like 210 billion barrels in proven reserves. China has 16 billion barrels. That means they will be even less "self-sufficient" than the US in terms of petroleum - which is not just used as fuel in cars. It is used for fertilizer and in plastics. Another example is food. China is not food-independent now, and their food imports will rise as their population gets richer.

      No country is self-sufficient anymore. Maybe you'll see less trade as oil increases in price, but I doubt we'll ever be back where it is particularly important to be "self-sufficient". I mean, if you are some country in Europe, are you going to forgo high-tech manufacturing just because you have no native source of titanium or some rare-earth metal?

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    109. Re:ha ha ha by KDR_11k · · Score: 1

      Their currency is pegged against the US dollar, it cannot increase.China could see inflation that would hurt their export ability but it's quite possible that a lot of their factories would migrate to another cheap country then.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    110. Re:ha ha ha by KDR_11k · · Score: 1

      It's not as easy as that, first there's demand, then there's production, then there's payment and then there's consumption. Miss any of the first three and you've got an economic failure.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    111. Re:ha ha ha by Concern · · Score: 1

      Ratings?

      Ratings?

      Please stop. All the laughing, it hurts.

      What were all those CDO's rated again?

      The ratings agencies just had to remind us all, starting with the audience of their congressional hearings, that ratings are a guess made by people with no accountability for whether they guessed right. Sort of like a weather forecast, except meteorologists are expected to at least get a certain percentage right. Or like if Arther Andersen's audits were still a basis of financial decision-making even after the Enron scandal.

      --
      Tired of Political Trolls? Opt Out!
    112. Re:ha ha ha by KDR_11k · · Score: 1

      Boeing has a TON of suppliers. High tech vehicles tend to require a gigantic network of companies to produce. Where I live most of the companies are focused on various goods and services that VW buys.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    113. Re:ha ha ha by KDR_11k · · Score: 1

      Food prices go up and people starve.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    114. Re:ha ha ha by Tailhook · · Score: 1

      cheap consumer-level goods that places like China and Vietnam are currently specializing in

      Nothing Apple makes is 'cheap.'

      Your understanding of the situation is badly out of date. China is forging the components of engines and drive trains and refining the ore to feed those activities. They're burning more coal than the US and that energy is going into HEAVY industry. The heaviest industries on Earth.

      GM is selling more cars in China than it is in the US. In case you really are as out of touch as you appear to be, GM is NOT filling container ships on the west coast of the US with new cars and shipping them to China. The cars are built IN CHINA. The Chinese won't tolerate any other arrangement.

      The Chinese consume most of the finished vehicles produced (18+ million in 2010), but components (engines, transmissions, etc.) are exported by the container ship full and many major auto manufactures are building heavy components there. The strikes that occurred in early 2010 were at Toyota, Honda and Ford subsidiary component plants, among others.

      They're also building airliners, nuclear reactors, earth moving equipment, ships, advanced warplanes and semiconductor foundries. The mines, forges, refineries and furnaces that make it all possible are Chinese as well.

      The US is where GE, GM, Caterpillar and Westinghouse executives keep their wives; a legacy industrial nation with lots of legacy capacity and negligible new development. And no, it isn't sustainable; we've got 2-4 years before the creditors put an end to the US debt circus, then we'll pull this.

      --
      Maw! Fire up the karma burner!
    115. Re:ha ha ha by BZ · · Score: 1

      > Also IF China off its bonds, do you for a second
      > believe that other countries would KEEP theirs?

      They would probably _increase_ their bond purchases.

      Other countries buy US bonds to to the extent that they have a trade surplus with the US. They're not buying them because they want to fund us; they're buying them because that's how they can prevent their currencies from appreciating too much against the dollar and the trade balance equalizing. If the yuan appreciates, we buy less from China, more from other countries, they have a bigger trade suprlus with us, and end up having to buy more bonds.

      I suggest reading http://mpettis.com/2011/04/chinese-recycling-and-us-interest-rates/ for an analysis of the situation that tries to actually consider what happens the day _after_ China stops buying US bonds, if that were to happen.

    116. Re:ha ha ha by sjames · · Score: 1

      One might think that, but consider, what changed when we had our little implosion? No resource was depleted, no production capability was destroyed. There was no wipeout of the labor force.

    117. Re:ha ha ha by roman_mir · · Score: 1

      It is as easy as: you let those who fail, fail, and never, under any circumstances 'bail them out' for any reason at all. Only then people would make sure that their investments are not going down the drain.

      As to your assumption that 'first there is demand' - I did show that it is wrong. First there is an IDEA for some product or service, then there is search for capital, then there is development and then, once there is a product it may sell.

      All of this is taking a HUGE risk, and if the product succeeds, then there will be enough demand to recoup the costs and make plenty of money on top.

      That's how they do stuff in real world - not this gov't BS., where presidents says: we will ensure you have a market for this technology that the market actually is not interested in itself.

      First there is production.
      Then there will be demand (money).
      Whether the demand is big enough to offset the costs and make money on top is called risk.

    118. Re:ha ha ha by hitmark · · Score: 1

      Dunno, seems Russia have much the same status given that the troubles in North Africa and Middle-East can be traced back to rising wheat prices that comes from a poor harvest in Russia and surrounding nations.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
    119. Re:ha ha ha by roman_mir · · Score: 1

      Of-course people buy because they have trade surplus. But you still don't get it at all, do you?

      If China sells its bonds, the interest rate on those bonds would HAVE to skyrocket, or everybody will sell them, because the price will crash.

      Do you understand the consequences of paying interest on, what is it, 13-14 trillion just now of those outstanding bonds, interest that's in double digits for example?

      The US Fed would likely buy all those bonds from China, instead of allowing them onto the market, but that would crash the US dollar. US will find itself with a dollar, that can't buy anything from anybody.

    120. Re:ha ha ha by roman_mir · · Score: 1

      Ask the factory workers if they would like to go back to subsistence farming. The printed paper that they get buys food and shelter, albeit at a lower exchange rate than they should be getting if their currency could float.

      - I think I'd rather ask them if they are interested in having inflation at 15-25% annually, as they just had last year, or would they rather prefer to be able to buy more of the products they actually build with their own yuan?

      What do you think they would tell you?

    121. Re:ha ha ha by roman_mir · · Score: 1

      Food prices will go up and there will be more incentive to produce more, there will be a spike in cost of food that will be due to lowering of the supply, but following that there will be a glut of supply coming to the market, as the futures markets would allow new capital to float into the food production.

      That's how it should be done and not with subsidies of any kind.

    122. Re:ha ha ha by roman_mir · · Score: 1

      if there were no production there'd be no consumption. But it's just as true to say that if there were no consumption, there'd be no production.

      first there is an idea.
      then there is search for capital.
      then there is development.
      then there is advertising and possible sales.

      if sales cover the costs of all previous steps, then you can start having positive cash flow and make some money.

      None of this is guaranteed to work, thus any new business is a risk.

      There must be no government involvement at any step, so that there is no skewing of the actual market, otherwise resources will be mis-allocated, wrong signals will be sent to the market, competition will be destroyed, etc.

      We* think most Americans should be able to earn a middle class wage.

      - I don't know who 'we' are here, but that's wrong way to approach it, whatever 'you' maybe felling.

      The correct way is obviously to let the market do the work, as USA had in 19 century and market was growing, the country was becoming wealthier (as China is becoming today), the population was getting wealthier, and wealth is not money.

      Wealth IS the production capacity, it is the products that are created by manufacturers. Wealthy society does not need to keep wages high at some arbitrary artificial level, it only needs to have efficient distribution of the produced wealth, and what I mean by this is obviously falling prices.

      19 century USA had prices constantly falling - something your Keynesian shamans of today will tell you kills economies, but they are only concerned with themselves, as they are sitting on top of the pyramid - printing money, borrowing money, and to them deflation is suicide, as they are stuck with the ever increasing bill for all that debt.

       

      . As our wages stagnated *despite* our increased productivity

      - this is a major misconception. USA does not have increased productivity, because increase in productivity comes out of capital investment, and USA has been driving capital investment out of its economy for a few generations, ever since the gold standard was abolished.

    123. Re:ha ha ha by roman_mir · · Score: 1

      China's main concern is not the value of their currency, but the industrialization of itself. Higher wages, workers rights, etc.

      - and the government should never be in business trying to model some form of economic development for the country, it does not work.

      As to 'higher wages' and 'worker rights' - this is all nonsense. There is no some arbitrary level that wages must achieve, and there must be no government involvement into what amounts to a contract between employer and an employee, that is if the society is interested in a working economy and not in something that will go up flames in just a few decades, like what the Western societies have achieved.

      This trumps any concern about currency, production, etc.

      - if that's true, then China will not stop devaluing its currency, then it is risking having a revolution on its hands, the kind that the world just observed in the Middle Eastern countries.

      Currency strength needs to be primary concern, as it literally is the purchasing power of the people, and this is especially important for those, with less resources.

      In many parts of China factories are having to increase worker salaries by double digit percetages on a yearly basis.

      - and this is due to inflation, and this will end badly if Chinese gov't doesn't stop it.

      What happens when workers unionize?

      - that's an easy one. Look at US industries - except government you don't see unions pretty much anywhere, that's actually because unions end up being the death warrant to the company, because the company cannot compete. OR the company decides to survive and leaves to other countries, in either case, the unions destroy themselves. Government unions do not have to produce, so they can be there as long as government can somehow force the taxes upon the population or keep borrowing/printing. Of-course when those crash, they'll crash even more spectacularly, with entire states and municipalities and hopefully even the federal government basically going out of business. I think it's fun to observe - death to socialism. I like THAT show.

      What happens when they demand more rights?

      - well, if they demand it from government somehow, then they set in motion the mechanism, that will eventually make their country uncompetitive relative to some other place. It's basic recipe for self destruction.

      All western countries have undergone this process but China is very, very different and the possibilities are endless. This single topic alone has greater ability to topple china than any discussion on currency valuation.

      - they will not invent anything new. Based on what we are observing with them, they will go the same route as everybody else, eventually destroying their own economy, but they will likely last at least twice as long as economies that are based in so called 'democracies', because one thing is true: totalitarian regimes do not let the mob set the rules, and the mob setting the rules is what kills democracies.

      The idea that China owns the the "production" part of your equation is silly. The reasons for this are too lengthy to explain in this post,

      - if you can't explain something in a paragraph, then you don't understand it.

      China does own production, because you can't outdo them in this one thing: copying. And it's part of their culture - to copy.

      The debt burden can achieve a number of leverage points that could benefit the USA, i

      - a bunch of shamanistic nonsense.

      In any relationship I rather be the creditor than the debtor. You never hear people say: wow, that's a great way to live, with so much debt, let's go THERE.

      No, people say: wow, that's wonderful to live being a creditor, with all that money working for you, lets go there.

      force leg

    124. Re:ha ha ha by RogerWilco · · Score: 1

      Presidents personally go to visits to other countries to sell Boeing's products.

      Nearly every head of state has representatives of their local industry in their entourage when on state visits. Prime Ministers, Presidents, Kings and Queens, even the occasional Dictator, they all do it.

      --
      RogerWilco the Adventurous Janitor
    125. Re:ha ha ha by RogerWilco · · Score: 1

      I don't think your solution will work. There will just be new thugs. What works is building institutions, rule of law and government.
      That's not the only thing, but in my view the thing that would make the most difference.

      --
      RogerWilco the Adventurous Janitor
    126. Re:ha ha ha by RogerWilco · · Score: 1

      Food production is more inelastic as you seem to think. Nearly all arable land in the world is being used. Only some of the stuff that's being used for bio-fuels and on which we built our cities and roads could be put in production. Maybe a couple of areas of rain forest.

      Agriculture is one of the big sources of renewable resources, but as non-renewable resources get more scarce, the pressures will increase to use agriculture for non-food production. Next to that climate change will have a big impact, as it makes weather and thus agricultural production less predictable.

      The USA used to be a big exporter of food, but this has declined a lot over the last decade, mostly due to the above reasons. Nowadays China goes to South America to get it's food. The result is less goes to Africa, the Middle East and other poor places.

      --
      RogerWilco the Adventurous Janitor
    127. Re:ha ha ha by BZ · · Score: 1

      I understand the interest rate situation, yes.

      The US dollar definitely needs to depreciate, though. The fact that it's as high as it is (artificially propped up by other countries in many cases) is actively bad for the US economy. The dollar falling would be a _good_ thing.

    128. Re:ha ha ha by roman_mir · · Score: 1

      The dollar falling would be a _good_ thing.

      - dollar is falling. Didn't you notice anything yet? Prices going up on commodities - energy, food, metals, everything? prices are going up on end products as well.

      Keeping currency valuable is hard.
      Destruction of currency is easy, and it's never a good thing.

    129. Re:ha ha ha by BZ · · Score: 1

      "Destruction of currency" when currency manipulators are purposefully propping it up is NOT easy and can well be a good thing.

    130. Re:ha ha ha by Anonymous Coward · · Score: 0

      Yeah, I'm sure that you have some magical research that will solve world hunger, but you are just waiting for the US to fuck up to give it to people.

      You are such a dumbass, troll harder.

    131. Re:ha ha ha by antifoidulus · · Score: 1

      Wow, you just showed that you have 0 idea what you are talking about in the first 2 sentences. You do realize that despite the "made in China" label, most of what is in your Apple computer is actually produced outside of China right? The Japanese produce the batteries and a lot of the parts for the SSDs(and to a certain extent the HDs), the Koreans make the screens, the Germans make a lot of the plastic that goes into the machine, the Americans make the software and fab the chips. The Chinese simply assemble the thing. They have done analysis on what countries get what part of your iPhone and China is pretty much on the bottom of the list.

    132. Re:ha ha ha by nedlohs · · Score: 1

      That's the slightly less old fashioned way, in which there's some pretending that it isn't just printing money even though it obviously is.

      The more old fashioned way is printing with no pretending.

    133. Re:ha ha ha by nedlohs · · Score: 1

      I said "large recession" which is hardly "a little bit".

      But no I don't think it will effect them as much as mainstream economics thinks - in fact I think the expectation that it will do so is likely to have a bigger impact than the actual effect.

      Foreign fat cats keep lending the US money because they believe idiot economists who didn't see the recent financial collapse coming, and because they have the money already and so keeping the status quo that has made them have that money is in their interest. It could last as is for another decade or more, or it could collapse this year - it's an unstable situation. Of course I expected the US housing bubble to pop in 2004, so given my record of such predictions this'll probably last another couple of centuries...

    134. Re:ha ha ha by Anonymous Coward · · Score: 0

      A real economy doesn't build massive apartment buildings and shopping centers and then have them sit abandoned for years:

      http://www.sbs.com.au/dateline/story/about/id/601007/n/China-s-Ghost-Cities

      There are serious questions about the sort of economy that China is building. The command-economy government is hiding the ledgers from the public and the international community. Current US federal debt is very large, but it is not a historically massive percentage of GDP (http://en.wikipedia.org/wiki/United_States_public_debt) and could be sustainable, though doing so could also be costly and may reduce future growth. The US economy is still absolutely massive in scope (>$14 Trillion US vs $6 Trillion China, which doesn't even address the enormous population difference) and far more diverse than the Chinese economy. To assert the the US economy is not producing anything anymore is a melodramatic misinterpretation. I recommend that you provide evidence instead rhetoric if you want your assertions to be credible. You could start by explaining why Keynesian economic models are "full of it" and why "Production IS economy".

    135. Re:ha ha ha by tk702000 · · Score: 1

      As sad as it is, being an American myself, your logic and references are both quite good.

    136. Re:ha ha ha by MightyYar · · Score: 1

      What do you think they would tell you?

      They will tell you that the price increases are a terrible burden, and it will be clear just by looking at them that the electronic do-dad they just assembled is a month's salary. They don't want inflation, but they want that factory job. The smartphone-in-their-Gucci-toting urbanites that you see on TV are not the ones building these products. There is a growing middle and upper class in China, and someday their economy may not be dependent on exports. But that day has not yet come - loss of the US would be devastating. Loss of the US and EU would be unfathomable.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    137. Re:ha ha ha by Anonymous Coward · · Score: 0

      No, because if you attend the first day in any economics class you'll learn that an economy requires both consumption and production. If I can produce 1 million buggy whips for a penny each, it won't help anyone. That's because no matter what my production capabilities are, it's worthless unless I produce something someone will buy.

      If we stopped buying from China today, they would either need to immediately switch from selling to us to selling to themselves or most of their factory workers would get laid off due to lack of demand. Over time, they can transition away from needing a consumer, but if you think a drastic action like cutting off their consumer doesn't send chills through their leadership, you're being naive.

    138. Re:ha ha ha by roman_mir · · Score: 1

      loss of the US would be devastating. Loss of the US and EU would be unfathomable.

      - wishful thinking. If the only value that is added by US and European countries is the printed currency, then there is nothing China loses, but it gains everything when it switches to its internal market.

      However China does have trade deficit with Germany, so they don't want to lose THAT market, because they get useful THINGS from it, not useless fiat.

    139. Re:ha ha ha by roman_mir · · Score: 1

      No no no, that is just a scenario where 2 (or more) deeply flawed paper currencies are losing value relative to one another.

      The REAL value of a currency is not how much of other currency it can buy. It's how much of things it can buy, such as commodities and finished goods.

    140. Re:ha ha ha by BZ · · Score: 1

      There is no such thing as "real value of a currency" in international trade. The amount of finished goods a currency can buy, for example, depends on the salaries, measured in that currency, of the people producing the goods, which depends on the exchange rate between that currency and whatever currency they're actually being paid in.

    141. Re:ha ha ha by roman_mir · · Score: 1

      The amount that anything costs goes up with every new printed unit of fiat garbage. That's why the gold, silver, oil, cotton, coffee, etc., go up in price - it's more and more dollars chasing the same number of resources (or it's when the number of dollars grows much faster than resources are growing, which is the same thing.)

      Again, when 2 currencies compete, on which one will be weaker - the one that wins, destroys purchasing power of people, who use it, nothing magical or good about it.

    142. Re:ha ha ha by KDR_11k · · Score: 1

      Greece is pretty close to defaulting on loans yet they can still get new ones. Better?

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    143. Re:ha ha ha by KDR_11k · · Score: 1

      By the time all that has gone though millions will have starved already.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    144. Re:ha ha ha by Concern · · Score: 1

      You mean, Germany can get loans on Greece's behalf? :D

      --
      Tired of Political Trolls? Opt Out!
    145. Re:ha ha ha by MightyYar · · Score: 1

      However China does have trade deficit with Germany,

      Which they fill with "useless fiat". They use the dollars and euros to pay Germany. They also have deficits with numerous other countries who export raw materials such as petroleum. Since they won't trade yuan, they pay with "useless fiat".

      I agree that currency is a bad investment, and I agree that China is becoming a more developed market very quickly - but they simply could not function without exports (and imports!) right now. They aren't even food-independent anymore. They have made the decision to fast-track their industrial growth at the expense of a trade imbalance, which is pretty common. The route they are using is to artificially keep their currency low, which is good for exports, but terrible for inflation. Either way, it is impossible to keep up forever, and it will be rather interesting to see if a soft landing is possible, or if they will hit a prolonged period of stagnation like Japan.

      As an aside, India is right next door with a population almost as large, it has a very weak government by comparison. and none of the same kind of market interference. It will be interesting to see which country does better economically in the long run.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    146. Re:ha ha ha by KDR_11k · · Score: 1

      No, they actually boasted about getting a loan themselves at 4% interest.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    147. Re:ha ha ha by Concern · · Score: 1

      All the bullshit aside, the only reason anyone would loan them anything is the implicit guarantee of their non-basketcase EU neighbors.

      Sort of similar to a number of American financial institutions, and the U.S. government. :)

      --
      Tired of Political Trolls? Opt Out!
  2. This actually hurts NASA more than China by dbIII · · Score: 5, Insightful

    This actually hurts NASA more than China, and as NASA gets hurt and sheds jobs where do you think the best are going to go if they want to get paid? I really do not understand why some in politics are trying to replay the end of the cold war and get the USA to play the part of the crumbling USSR.

    1. Re:This actually hurts NASA more than China by Anonymous Coward · · Score: 0

      Because all empires have crumbled down and the US is no exception...

    2. Re:This actually hurts NASA more than China by CaptainLard · · Score: 3, Insightful

      The best will go to SpaceX or Boeing. Are you suggesting that Joe Engineer who has worked 20 years at JPL is going to pack up his family and leave the sun beaches and smog of Southern California for the smog and human rights oppression of Beijing?

    3. Re:This actually hurts NASA more than China by joebagodonuts · · Score: 1

      Because there is re-election potential in prolonging the Cold War paradigm?

      My first thought was the same as yours; This hurts NASA.

      However, I'm not sure this is really a hindrance to NASA. If we were to create a partnership with China, what would they bring to that partnership, that NASA doesn't already have? I'm having a hard time coming up with something other than "Money".

      --
      "Give a woman two glasses of wine and some pad thai, and they'll agree to just about anything." the Sports Guy
    4. Re:This actually hurts NASA more than China by cpu6502 · · Score: 1

      >>>really do not understand why some in politics are trying to replay the end of the cold war and get the USA to play the part of the crumbling USSR.

      Because they want the US to be replaced by the EU or China as the new #1 player. They want to "spread the wealth" around the world, rather than have it all concentrated in North America. It makes logical sense to weaken the US, if that's your goal.

      Vice-versa, I think the politicians are targeting the wrong product. Space is trivial. If they really want an impact on China, they should block importation of all products that come from factories with child labor, or where workers are forced to endure 60+ hour weeks. (Current chinese law forbids that, but the law is not enforced.)

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    5. Re:This actually hurts NASA more than China by jank1887 · · Score: 2

      forget about it hurting NASA, what does "also extends to the White House Office of Science and Technology Policy" mean for everything else under the executive branch? or is it just one particular executive branch office?

      a bit of googling:
      from Forbes.com:
      "Although the ban will expire at the end of the current fiscal year in October, Wolf will seek to make the prohibition on any scientific collaboration between U.S. research agencies and China permanent.... the Obama Administration has taken the position that the ban does not apply to any U.S. scientific interactions with China conducted as part of foreign policy"

    6. Re:This actually hurts NASA more than China by sznupi · · Score: 1

      "Human rights oppression" aren't really much of a concern for such workers; same as they don't have to concern themselves much with the fate of, say, underclass prison workers at home.

      --
      One that hath name thou can not otter
    7. Re:This actually hurts NASA more than China by countertrolling · · Score: 1

      So... you want to put Walmart, Apple, etc. out of business.. eh? If we want to bust China's chops, we can always start another opium war, just as soon as we finish the one in Afghanistan.

      --
      For justice, we must go to Don Corleone
    8. Re:This actually hurts NASA more than China by Chris+Mattern · · Score: 1

      "Human rights oppression" aren't really much of a concern for such workers

      As long as you don't try to post to the web anything containing the word "Jasmine." Or try to go to a park which is the site of an attempted protest. Or...

    9. Re:This actually hurts NASA more than China by sznupi · · Score: 1

      Hey, I didn't say free speech cages^H^H^H^H^Hzones aren't better...

      --
      One that hath name thou can not otter
    10. Re:This actually hurts NASA more than China by Anonymous Coward · · Score: 0

      They AREN'T trying to hurt China, they're worried about China hurting them. I'm not saying this is necessarily legitimate, but it might be.

      (P.S. If China DID steal something, where will they get the 50 year old machines to run it?)

    11. Re:This actually hurts NASA more than China by divisionbyzero · · Score: 1

      This actually hurts NASA more than China, and as NASA gets hurt and sheds jobs where do you think the best are going to go if they want to get paid? I really do not understand why some in politics are trying to replay the end of the cold war and get the USA to play the part of the crumbling USSR.

      Yes, I don't understand how ideology has trumped reality in the United States. I feel politics in this country has steadily become more partisan and ideological because we do not have an external "enemy" any more and we have turned on ourselves instead. We are so self-involved now that we don't see the rest of the world passing us by.

    12. Re:This actually hurts NASA more than China by drinkypoo · · Score: 1

      This actually hurts NASA more than China, and as NASA gets hurt and sheds jobs where do you think the best are going to go if they want to get paid?

      Are free thinkers really lining up to move to China?

      If these people will work for China anyway, where are they going to go that's not friends with the USA, that they will want to live?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    13. Re:This actually hurts NASA more than China by m50d · · Score: 1

      Are you suggesting that Joe Engineer who has worked 20 years at JPL is going to pack up his family and leave the sun beaches and smog of Southern California for the smog and human rights oppression of Beijing?

      If he thinks that's where he'll get to work on cool stuff then yes, yes yes. JPL types care far more for that than anything else.

      --
      I am trolling
    14. Re:This actually hurts NASA more than China by Anonymous Coward · · Score: 0

      No amount of money is worth working in that shithole. I mean Boeing, of course.

      - JPL Engineer

    15. Re:This actually hurts NASA more than China by Anonymous Coward · · Score: 0

      If SpaceX's market gets owned by Chinese launchers, and Joe Engineer can't make rent in Pasadena or Redondo Beach....

    16. Re:This actually hurts NASA more than China by AK+Marc · · Score: 1

      Why not? It's not like groping TSA USA is that good. And in China, foreign workers are treated highly. They will not have the problems of others. For one, if oppressed, they would just leave. That's an option the local workers wouldn't get. But the pay would be tricky. Americans working for an American company in China often get paid *more* than those in the US doing the same thing (think of it as hazard pay). But Chinese doing the same thing obviously get paid less. So I'm curious where the government or Chinese companies would pay in that scale to attract foreign workers. Or do they even bother, given the large number of educated people in China looking for work? Sometimes it's worth it to pay twice as much for the guy with twice the experience - but you have to have experience to even know that...

    17. Re:This actually hurts NASA more than China by dbIII · · Score: 1

      The ideology has actually turned into a parody of itself where promotion of the opposite of the pretended ideology becomes the goal. In the name of patriotism they kick the country in the balls. In the name of Republicanism they had the audacity to install something closer to a hereditary monarch with a useless vacationing Prince in charge of it than any hardline Royalists would have dared in the earliest days of the USA. Maybe with Obama they will grow up and learn that it's not a good idea to try to turn the Presidency into a Monarchy because they might get a King they don't like - but I doubt they will learn that unless Obama abuses his power far more than Bush did.

    18. Re:This actually hurts NASA more than China by dbIII · · Score: 1

      Are free thinkers really lining up to move to China?

      No, but the ones who expect to get paid for thinking will. Free thinking doesn't pay the bills.

      For your second point they just have to avoid those places where leaders were not too scared to meet with the Dalai Lama because they were not afraid of offending China and endangering trade. I think it's a very short list - two or three countries.

  3. Too late for that... by Haedrian · · Score: 5, Insightful

    The US already made china the next superpower. It doesn't need to steal US research, it can do everything on its own in probably a more efficient manner.

    This way the US cripples its research, and we'll cut off another reason for the US to exist for this economy.

    1. Re:Too late for that... by Infiniti2000 · · Score: 2

      [China] doesn't need to steal US research....

      Then, why does it? For shits and giggles?

    2. Re:Too late for that... by CaptainLard · · Score: 1

      Right. A few months ago when GE made that deal with china to basically hand over all of their latest jet engine technology, the overall response was "they're giving copycat china 20 years worth of technology for a .5% share bump in Q2! Wall street only bleeds us dry and China only steals technology!" What happened in the past few months? Is everything different because this has to do with research and not profit?

    3. Re:Too late for that... by Anonymous Coward · · Score: 0

      Because it is cheaper to let others do it.
      Where have you been for the last century?

    4. Re:Too late for that... by Zontar_Thing_From_Ve · · Score: 4, Insightful

      I would say that while the US certainly helped make China the next superpower, and unwittingly helped it a lot, we need to give China credit for having leaders able to recognize an opportunity when they saw it and being able to take advantage of it. I'm not in any way suggesting that China is a perfect society though. I know people who live in China who certainly feel that things could be a lot better there in the lives of ordinary people and who feel that the government cares too much about making money.

      US research could certainly be better but China for the most part is in the position of "steal and copy" rather than producing original research. I have to grudgingly admit that costs are probably a lot lower if you just let the US develop it and pay someone to spy and send you the information so you can create a knockoff later.

    5. Re:Too late for that... by Anonymous Coward · · Score: 0

      We stop getting research and cheap labor from China, China continues to get our data and gets all the bilingual scientists. Good call.

    6. Re:Too late for that... by Richard_at_work · · Score: 1

      For the same reason the US spies on Chinese industry - to see where the competition is at.

    7. Re:Too late for that... by green1 · · Score: 4, Interesting

      How long can the US count on this though? The education system in China isn't THAT horrible, they are bound to produce some brilliant minds, and China has proven time and time again that they can apply themselves to a problem when faced with it. If anything, limiting collaboration with China may be what causes China to start a major shift towards research and innovation. If they have the ability to come up with the ideas, and we already know they can implement them, what does that leave for the US?

      The US has for the past few years been betting everything on "Intellectual Property" because in a lot of ways it's the only export the US has left, but if China decides it no longer needs US "IP" then what does the US have left? And if the only answer is "consumers" then the US is in a worse position than most people want to believe.

    8. Re:Too late for that... by Anonymous Coward · · Score: 0

      This topic is full of ironies, including your ""steal and copy"" argument. Who was the first director of Nasa? Where did the rocket technology got copied from? German scientists/engineers who where told basicly, either you work for us or you'll be tried for war crimes.

    9. Re:Too late for that... by joocemann · · Score: 1

      You can say they don't 'need' to steal the research, but the evidence of Chinese born espionage in the US is blatant. And if you follow corporate and government level espionage in the news you would know that you would bet China if betting your life on who did it.

      http://www.pbs.org/wgbh/pages/frontline/shows/spy/spies/

      http://www.cbsnews.com/stories/2009/11/19/national/main5708534.shtml

      http://www.popularmechanics.com/technology/military/news/3319656

      http://www.zdnet.com/blog/foremski/chinese-spies-use-cyber-hacking-and-sexual-blackmail/1104

      http://articles.orlandosentinel.com/2008-02-12/news/shuttlespy12_1_space-technology-military-technology-republic-of-china

      http://www.haohaoreport.com/ChinaNews/Chinese-spy-gets-more-than-15-years-in-prison

      http://www.independent.co.uk/news/world/americas/fbi-arrests-chinese-spies-over-theft-of-military-data-781090.html .............

      Seriously, just open your eyes or start paying attention. NASA has been infiltrated by Chinese spies on several occasions. This policy is rational and safe and is a better/safer choice than any potential 'crippling of research' as you put it.

      But go ahead pretending this isn't real... go ahead.. I only copied the first few things I looked up, but the truth is about every 3-4 months I read about another Chinese spy in the US. Yet it takes years before I read about ANY OTHER NATION spying (or getting caught at least).

    10. Re:Too late for that... by gatkinso · · Score: 1

      The copious amount of Chinese espionage would seem to contradict your assertion.

      --
      I am very small, utmostly microscopic.
    11. Re:Too late for that... by GPLHost-Thomas · · Score: 1

      The US already made china the next superpower.

      Tsss... Americans... You guys always think that without you, earth would stop turning, rain stop falling, etc. What makes you think that it is US that made China the next superpower is a mystery to me, just like what the rest I just stated.

    12. Re:Too late for that... by jafac · · Score: 1

      . . . and by "efficient", you mean, using slave labor, no environmental regulations, and an entrenched oligarchy of priviliged business interests to centrally manage distribution of resources. Much like the direction the US economy is headed.

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    13. Re:Too late for that... by Haedrian · · Score: 1

      "Hey look ! Cheap labour! Lets open a ton of factories there and employ a ton of people to do industrial jobs"

      They basically pushed a ton of money into the chinese economy in this manner. Think of all the 'made in china' stuff you find. Meanwhile the money which was going to American industry workers is going to China. So American companies ruin the home economy but get cheaper products.

      And now China are going to have stealth and high-altitude bombers. Good going.

    14. Re:Too late for that... by Anonymous Coward · · Score: 0

      Goes to show how stupid patents are in the first place. If China can ignore our patents, and make a profit selling to their own people, then what validity do patents or IP have in the first place. Just because someone thought of an idea first, does not mean another person will think about it later on, and if they face no repercussions from using it, then what protection is there really.

      Perhaps it's time to go to a system that says if you do not produce it, then you can not hoard the patent. Might fix the issue of Oil companies buying up patents on battery technology.

    15. Re:Too late for that... by GPLHost-Thomas · · Score: 1

      The fact that Chinese labor is cheap has to do with monetary policy. It's working well, because the government in China well understood it a long time ago. In USA, you have a private-owned central bank, which the only goal is to please the shareholders and wall-street (when the People's bank of China reports directly to the central party). That makes a huge difference, and this has nothing to do with non-patriotic American companies.

    16. Re:Too late for that... by neilharvey94044 · · Score: 1

      China is stymied by lack of freedom. Innovation can only exist in a free society where ideas are valued and allowed to flourish. That's why they need to steal our IP. Until it changes they will continue to follow rather than lead in technology, and probably everything else as well.

  4. And so by Dunbal · · Score: 3, Insightful

    China says: and nothing of value was lost. "See Yu onna moon, sucka!"

    --
    Seven puppies were harmed during the making of this post.
    1. Re:And so by Anonymous Coward · · Score: 0

      And the US responds "we came. We saw. We left because it turns out that a big rock in space is still just a rock."

  5. Re:Racism by ganjadude · · Score: 1

    and how my friend do you come up with that answer? why does everything have to be about race these days? dont agree with the president? you MUST be racist. Dont want to work the a country that has horrible human rights record? known to have stole technology from you? MUST be racist.. Heres a clue, not EVERYTHING is about race, I have come to realize that those who scream racism at every corner are usually themselves the biggest racists

    --
    have you seen my sig? there are many others like it but none that are the same
  6. Why should anyone be surprised? by elrous0 · · Score: 1, Insightful

    NASA's "science" has always been heavily politicized. The same sort of thing went on with the Russians back during the Cold War. They even used to coordinate their launches with anniversaries of Soviet space accomplishments just to try to show up the Russkies (they even held the first space shuttle launch back just so they could have it coincide with the 20th anniversary of Yuri Gagarin's first man in space flight). NASA has ALWAYS been more about politics than science. And now China are the new "bad guys."

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:Why should anyone be surprised? by internerdj · · Score: 2

      I work in a town with plenty of NASA engineers. The difficult part of working for or contracting to NASA is not solving some of the toughest engineering challenges in the world; it is putting your passion into a project for 4 to 8 years only to have it all your work scrapped after an election swings an office from one party to the other.

    2. Re:Why should anyone be surprised? by Anonymous Coward · · Score: 0

      I work for NASA. I've seen people work 80 hour weeks, have their spouse divorce them, make something that fails, work hard on it, fix it, and finally get it to WORK...and then have the program canceled. It's a terrible thing to do to someone, truly terrible, to ask them to work for their country (most of them could earn more in the private sector with their education and experience) ask so much of them with so few resources (NASA gets 0.5% of the federal budget, whereas NASA in the Apollo era got over 4%) that they end up working those 80+ hour weeks, and then yank their lifework out from under them.

  7. Re:Racism by RazzleFrog · · Score: 1

    It would be racism if they didn't allow Chinese-Americans work for NASA either. This is about politics - not race.

    And Chinese isn't really a race anyway. It's a nationality.

  8. Great Idea by bistromath007 · · Score: 1

    Now we'll never have to worry about the Chinese stealing all our secrets that cost ten dollars and a ball of pocket lint to make.

  9. What?? by Anonymous Coward · · Score: 0

    Let me see then, its alright to take China's money to keep us afloat, but we can't work with them on anything non-political.

  10. Lots of Weasel Words by mbone · · Score: 1

    I don't remember this level of exclusion even in the bad old days of the USSR. I would also remind

    I wonder, though, what this will actually stop ? For example, the Chinese are apparently expressing some interest in participating with the ISS (the space station). Is that a " bilateral policy, program, order, or contract" ? No, it isn't. It is multinational and multilateral. Any Mars mission (the Chinese have an orbiter, Yinghuo-1, on Phobos-Grunt), likewise. And, who decides whether a visitor is "official" ? Well, the bureaucracy does; no visitor (except maybe for the President or Premier) has to be official. So, if the NASA administrator wants to do something. I am not sure this would stop him.

    I would also remind Rep. Frank Wolf (R-VA) that we fought World War II with Stalin, although that was of course a multilateral program.

    1. Re:Lots of Weasel Words by Hartree · · Score: 1

      "I don't remember this level of exclusion even in the bad old days of the USSR."

      I do. Maybe not to the letter, but in the general relationship, certainly. The US relationship with China is downright cuddly compared to that.

      The US and USSR both did some of the silliest episodes of, at best, tit for tat, and at worst raw spite throughout the cold war.

      ASTP changed some of that in the space area when Nixon was using it as part of his general detente with the USSR.

      This is pretty much symbolism in its effect on China. They already just go direct to the companies doing the work they're interested in. It's likely to hurt NASA more.

    2. Re:Lots of Weasel Words by CaptainLard · · Score: 1

      I would also remind Rep. Frank Wolf (R-VA) that we fought World War II with Stalin, although that was of course a multilateral program.

      Things change. We also fought wars against Britain, Spain, put Saddam in power etc... If the Chinese truly wish to advance science we should clearly be working with them scientifically. If they want to steal secrets now to screw us in 10 years then we shouldn't be working with them. And if this policy is truly a disaster put in place by "teh TeaBaggerz" then we'll get it sorted out during the vote on the debt ceiling...or the next presidential race...or whenever.

    3. Re:Lots of Weasel Words by mbone · · Score: 1

      Oh, I was just responding to his quote about Stalin, reminding him (on the off chance he reads Slashdot), that we did have programs in place with Stalin, when they suited our purposes.

      I live in Virginia, and know (distantly) Frank Wolf. He may be many things, but he is no tea-bagger. In fact, he got a primary challenge from a tea-bagger. Now, as to whether that has softened his brain, I wouldn't know.

    4. Re:Lots of Weasel Words by mbone · · Score: 1

      Yes, as to the lack of cuddliness. However, we both participated in IGY, we shared data through COSPAR, we went to each other's meetings, we even shared lunar samples (and ranged the Lunakhod LLR retroreflectors). Later, when things warmed a little, there was also the US tracking of the VEGA mission and the VEGA balloon.

      So, while there was lots of tit-for-tat, some very stupid (my favorite was denying Kruschev a visit to Disneyland, ostensibly for security reasons!), I am not aware of any blanket ban on science.

    5. Re:Lots of Weasel Words by ColdWetDog · · Score: 1

      Things change. We also fought wars against Britain, Spain, put Saddam in power etc... If the Chinese truly wish to advance science we should clearly be working with them scientifically. If they want to steal secrets now to screw us in 10 years then we shouldn't be working with them. And if this policy is truly a disaster put in place by "teh TeaBaggerz" then we'll get it sorted out during the vote on the debt ceiling...or the next presidential race...or whenever.

      True enough. And this is just one paragraph stuck in a completely orthogonal bill that can be nullified by another paragraph in another irrelevant bill. I hate when they do that but it's mostly a tale told by an idiot, full of sound an fury, signifying nothing.

      --
      Faster! Faster! Faster would be better!
  11. when fell the ban on the USSR? by kubitus · · Score: 1

    was it during the Mercury or already the Apollo program?

    1. Re:when fell the ban on the USSR? by Alex+Belits · · Score: 1

      There was a joint Soyuz-Apollo project. Mostly symbolic, but it had some practical value -- it standardized docking equipment and procedures, made it possible at least in theory, for USSR and US spaceships to be used to rescuing crew from each other in case of emergency... Too bad, US ended Apollo soon after that, and placed all its effort into that fat Concorde-shaped thing.

      --
      Contrary to the popular belief, there indeed is no God.
    2. Re:when fell the ban on the USSR? by Anonymous Coward · · Score: 0

      We still worked with Russia though. And kids born after 1979 (like me) have never been at war with Russia. My only knowledge of Russia growing up was the development of the ISS.

      Now, instead of getting China involved as partners in Space, they could be competitors...

    3. Re:when fell the ban on the USSR? by KingArthur10 · · Score: 1

      Apollo-Soyuz was the big joint mission between the two powers.

      --
      I came, I saw, She conquered.
  12. kool aid by poptones · · Score: 0

    You're swallowing his kool aid. The fact is without US technology and US raw materials China would have a LOT less to produce. China is two decades away (at least) from having trees to support its production of lumber, furniture and other such goods. They're also dependant upon western (often american) technology which they essentially clone and sell domestically. They have demonstrated a great ability to produce but little in the way of useful original ideas when it comes to those gadgets and geegaws.

    A trade war with China would hurt them way more than us. We do still have factories sitting idle, and we have workers without work. There's also an entire globe for each of us to compete in. Just wait til Brazil gets rolling in another decade or two... China who?

    1. Re:kool aid by Bill_the_Engineer · · Score: 4, Insightful

      You're swallowing his kool aid. The fact is without US technology and US raw materials China would have a LOT less to produce.

      US technology doesn't originate from the US government. It originates from bright individuals that live in the US. They can migrate to other countries, just like they have all their technology mass produced in other countries.

      China is two decades away (at least) from having trees to support its production of lumber, furniture and other such goods, They're also dependant upon western (often american) technology which they essentially clone and sell domestically. They have demonstrated a great ability to produce but little in the way of useful original ideas when it comes to those gadgets and geegaws.

      Lumber is available from Russia. As for technology, you have South Korea, Japan, Great Britain, and Germany to name a few. I think you don't grasp the gravity of the situation.

      --
      These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
    2. Re:kool aid by vlm · · Score: 1

      They have demonstrated a great ability to produce but little in the way of useful original ideas when it comes to those gadgets and geegaws.

      ... little in the way of quality control.

      There is huge variation. Some of their industries like consumer electronics can give the legendary Japanese a run for their money, some industries like Chinese machine tools and especially related consumables are pretty much a laughingstock.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    3. Re:kool aid by chill · · Score: 1

      Two decades is nothing. If you don't think the Chinese can deal with a little economic pain, you need to read up on "the Great Leap Forward". Death toll estimates range from 16 to 46 MILLION people from that little project. Compared to that, some economic squeezing is nothing.

      Look at where China was in 1950, 1970, 1990 and where it is today, and tell me you feel comfortable with them being "two decades away" from anything.

      --
      Learning HOW to think is more important than learning WHAT to think.
    4. Re:kool aid by Khyber · · Score: 1

      "The fact is without US technology and US raw materials China would have a LOT less to produce"

      That's why China currently has a stranglehold on the rare-earth materials market, yes?

      No, not even close.

      Perhaps you should actually look into China's natural resources.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    5. Re:kool aid by Anonymous Coward · · Score: 0

      As for technology, you have South Korea, Japan, Great Britain, and Germany to name a few.

      However, US academic institutions are still, by informal convention, the world hub of science, attracting world talents eager to prove themselves. Technology is just applied science.

    6. Re:kool aid by JosKarith · · Score: 3, Insightful

      "They can migrate to other countries,"
      Up until some bright spark in the legislature realises what's happening and then suddenly people who are deemed to be a National Resource find themselves unable to travel out of the country.
      After all you've already been softened up to the idea of people being on a list that they don't have the right to know if they're on (and asking about it will get you on said list) that means you are basically denied the right of free travel.

      --
      'Don't worry' said the trees when they saw the axe coming, 'The handle is one of us.'
    7. Re:kool aid by oh_my_080980980 · · Score: 0

      Ummm...here's the thing....THE US ECONOMY IS NOT BUILT ON US ACADEMIC INSTITUTIONS.

      Thus, it doesn't matter if students from China come here to go to college. They invariable go back to China and start their own businesses.

      Do you even have a freakin' clue how the global economy works.

    8. Re:kool aid by grouchomarxist · · Score: 1

      They have demonstrated a great ability to produce but little in the way of useful original ideas when it comes to those gadgets and geegaws.

      That's the same thing people said about Japan. I think it amounts to wishful thinking. People are people. Ultimately the Chinese are just as smart (or dumb) as the rest of the human race.

    9. Re:kool aid by Anonymous Coward · · Score: 0

      However, US academic institutions are still, by informal convention, the world hub of science, attracting world talents eager to prove themselves. Technology is just applied science.

      But China and India are calling their brightest US educated people home to teach and spread that capability there. Meanwhile, the US is pushing more standardized education with more focus on academics and less creative endeavors. i.e. we're swapping educational models with China. Creativity is what fosters innovation, not high test scores in math and science, and we're dumping that at an even faster pace now that school districts are facing the economic stress.

      The problem I see for China is that creativity goes along with free thinking and free speech. That goes against some of their policies. On the other hand, they are coming from the side of suppression and can see where they might benefit from loosening up. The US is coming from a position of freedom and people trying to suppress that without any clue what's most important.

    10. Re:kool aid by poptones · · Score: 1

      [i]US technology doesn't originate from the US government. It originates from bright individuals that live in the US. They can migrate to other countries, just like they have all their technology mass produced in other countries. [/i]

      Yes, and we see that happening now in droves. I'm sure that will happen in even greater numbers when the economy of china has stagnated.

      I think you just want something to worry about.

    11. Re:kool aid by poptones · · Score: 1

      You rant as if this is something new. "Deadbeat dads" (and moms, and it's very easy to become one) have been denied that right since the Clinton administration. If you owe child support, you get no passport. This works especially well when one has opportunity to work abroad (and, thus, to pay that child support) but cannot work abroad because one is denied rights explicitly granted under the 14th amendment.

    12. Re:kool aid by poptones · · Score: 1

      Name a Chinese technology that has become a world standard. Who are the power players in blu ray? HDTV? Operating systems?

      Look at all the game clones. Great at copying, lousy at innovating.

    13. Re:kool aid by poptones · · Score: 1

      Wow, more kool aid for you.

      The US long ago STOPPED mining those rare metals because it was "cheaper to buy them from china." IOW they adopted the wal-mart mentality and treated selenium and barium like air conditioners and tube socks.

    14. Re:kool aid by poptones · · Score: 1

      Japan isn't governed by a totalitarian regime that explicitly enforces conformity. So I guess when China finally undergoes that NEXT revolution (that would be their sixth in less than two centuries) I'm sure they'll then be a force to be reckoned with...

    15. Re:kool aid by grouchomarxist · · Score: 1

      Well, Japan isn't governed by a totalitarian regime, but it does have a culture of conformity. However, despite that there is a lot of originality in Japan. China has a semi-capitalist system, and there are plenty of opportunities to become wealthy and from what I've seen the Chinese embrace wealth to a much greater extent than the Japanese. The desire for wealth will be a force for creativity in China much like it is in the rest of the capitalist world.

    16. Re:kool aid by jbengt · · Score: 1

      You're swallowing his kool aid. The fact is without US technology and US raw materials China would have a LOT less to produce.

      US technology doesn't originate from the US government. It originates from bright individuals that live in the US.

      What brought you to that non-sequitor? poptones didn't even mention the government.

    17. Re:kool aid by roman_mir · · Score: 1

      Oh, do you just expect the young to stay and continue paying into the bankrupt SS scam, which will keep them poor for the rest of their natural lives?

    18. Re:kool aid by Qzukk · · Score: 1

      US academic institutions are still, by informal convention, the world hub of science

      Not for much longer if the Republicans have anything to say about it!

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    19. Re:kool aid by KDR_11k · · Score: 1

      And where would they go in order to avoid paying into a social system?

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    20. Re:kool aid by KDR_11k · · Score: 1

      Also totalitarian regimes don't prevent creativity, Nazi Germany invented a lot of things that are still in use today.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    21. Re:kool aid by roman_mir · · Score: 1

      Well, the important thing is to find a place that is not bankrupt already, that has a booming economy, rather than a dying one, so this excludes USA, UK, most of Europe.

      The rest of the world may have some forms of so called 'social security', but there are places where it's really spectacularly sane, like Hong Kong, you pay just a bit over 1500 dollars a year, regardless of your earnings.

      But again, the important thing is not to be in the system that has all the insane taxes and destroys business at the same time, like US does now.

    22. Re:kool aid by bluemonq · · Score: 1

      That totalitarian regime isn't so looming when you get out into the hinterlands in the western and southern parts of China. Incidentally, that happens to be where a lot of grey-area extreme capitalism is going on.

    23. Re:kool aid by Bill_the_Engineer · · Score: 1

      What brought you to that non-sequitor? poptones didn't even mention the government.

      My point was that unlike the US government, the innovators are mobile and can move to a different country. Poptone asserted that the innovators of "US technology" weren't mobile or this technology was somehow tied to the US.

      BTW while we are nitpicking... it's spelled "non sequitur" and I did not state a logical fallacy.

      --
      These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
    24. Re:kool aid by cusco · · Score: 1

      Indeed. The Chinese pretty much expect a major economic/political crisis about once a generation. If they decide to collapse the US economy there will certainly be a period of hardship and readjustment, but they're used to that. They'll adjust, the same as they have every few decades since the Warring States period. Americans on the other hand have no concept of what is coming. Almost no one still alive today was an adult during the Great Depression, and we're likely to see hyperinflation as well this time. When it becomes impossible to buy meat or eggs or gasoline I think we'll find out which of our neighbors own guns.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    25. Re:kool aid by Khyber · · Score: 1

      I actually hold futures and stock in the rare-earth materials market - do you?

      I've been to China. The sheer amount of untapped resources they have dwarfs the USA by far.

      The USA will never be able to regain a good foothold in that market, not for decades.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    26. Re:kool aid by antifoidulus · · Score: 1

      You are missing a crucial fact, the only reason the Chinese Communist Party remains in power is that they are the ones keeping the economy running and people employed. You put a bump in that and the chances for a major revolution, civil war, etc in China skyrocket.

    27. Re:kool aid by cusco · · Score: 1

      Who cares about the Chinese Communist Party? I'm just saying that the Chinese society will come through in far, far better shape than the Americans, and probably better than most of Europe, whatever form the subsequent government takes.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    28. Re:kool aid by WindBourne · · Score: 1

      You are not paying attention. China has more. That is true. However, America, Canada, and Australia are all about to produce large amounts of RE. In addition, all 3 have large enough quantities that the west will not be buying from China in about 2 years for at least the next 100 years. The fact is that we were not mining because China was dumping on the global market to gain control. Then they took actions that made MS look positively angelic.

      We are about to see some major changes in the USA and the west.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    29. Re:kool aid by Khyber · · Score: 1

      "However, America, Canada, and Australia are all about to produce large amounts of RE."

      My industry contacts show no major RE operations gearing up in USA or Aus. If they were, I'd be watching, as my LED business depends VERY heavily upon it.

      Canada isn't in my market, yet, so I haven't been watching them.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    30. Re:kool aid by treeves · · Score: 1

      Selenium and barium are not rare-earth metals, and selenium is not a metal of any kind.

      --
      ...the future crusty old bastards are already drinking the Kool-Aid.
    31. Re:kool aid by Anonymous Coward · · Score: 0

      haha so not europe or the usa. ok so pick your favorite of the BRICS or move to communist china where the average salary is $100 a week.

  13. Re:Racism by jellomizer · · Score: 2

    Well this is institutionalize racism not individual racism.
    Why is it as a culture we accept immigrants from Europe much more favorably then from China or India?
    I have seen commercials where they say in pride they they got some guy from Europe to work on this.
    While if they are from China or India, they give them americanized names and make sure their accent is a clean as possible, as well as people debating if we should let these people immigration or not.
    Done fool yourself racism is still here. It has changed but it is still there.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  14. Stupid git by Anonymous Coward · · Score: 0

    I just bought 3 pair of socks this winter that were made in the USA.

    1. Re:Stupid git by roman_mir · · Score: 1

      Doubt it. Who is the manufacturer? There was a story on 60 minutes last year - they couldn't find American made socks, and some AC on /. did?

    2. Re:Stupid git by Jibekn · · Score: 1

      Ide wager a random person is more resourceful than most TV personalities, especially the idiots on the news these days. 60 mins used to be respectable, they're just puppets now.

    3. Re:Stupid git by moortak · · Score: 1

      http://www.americansworking.com/socks.html less than 30 seconds on google

      --
      Xavier Rabourdin for president 2012
    4. Re:Stupid git by roman_mir · · Score: 1

      Oh, good, so when was the last time you bought those 12.99-29.95/pair socks?

      Also, Vincere Sports, one of the companies I clicked on in that list - they say they 'design' the socks.

      You want to make a bet on whether the socks are actually manufactured in US?

    5. Re:Stupid git by toriver · · Score: 1

      Hand knitted socks from some Amish village, I guess.

    6. Re:Stupid git by moortak · · Score: 1

      I never claimed to buy such socks, but if 60 minutes or you can't find them it reflects more on you. Frankly I'm thrilled that basically the lowest industrial task of textiles is someone else's problem.

      --
      Xavier Rabourdin for president 2012
  15. race by Anonymous Coward · · Score: 0

    Yeah... that's not racist.. way to go America.. national security is hindering science they have already banned all scientists from pakistan from working on scientific projects in the US now packistani scientists are working in time share and retail.. wont be longbefore other contries ban americans from working on well paying jobs

  16. Re:Racism by RazzleFrog · · Score: 2

    I am guessing you live in the Midwest because on the coasts Indian and Chinese food, culture, religion, etc is very much accepted and embraced.

    And the US doesn't Americanize names anymore. The people choose to do that themselves to make their lives easier.

  17. How about a project like Openstack? by GPLHost-Thomas · · Score: 1

    Openstack is slowly becoming THE cloud project for IaaS. Now, NASA is clearly involved in the project, and has written some part of the code, and obviously, will continue. Does this mean that if a company in China decides to contribute, NASA will have to stop any work on Openstack? Or does this concern only space, and open source projects are not included in the ban?

    1. Re:How about a project like Openstack? by DrWho520 · · Score: 1

      Hey everybody! There is a novel, technical question over here! Could we stop the political rants for a second and ponder this one?

      --
      The cancel button is your friend. Do not hesitate to use it.
  18. Irrelevant by camperdave · · Score: 1

    It doesn't matter. If necessary, NASA can just as easily be exempted. After all, according to legislation, NASA was prohibited from cancelling contracts related to the Constellation program, even though the Constellation program was cancelled. This same spending bill released them from that obligation.

    There are two things that are really worrisome to me. First is the power that individual senators have over NASA. Senator Hatch dictated that NASA had to use solid rockets, much to the delight of the solid rocket manufacturers based in his state. Now Senator Wolf's computer gets hacked by some Chinese bot and poof, NASA can't play space with China. This seems awfully dictatorial and arbitrary to me. These are National programs being manipulated. Isn't there some sort of democratic process that should come into play here?

    The second thing that worries me is this whole concept of riders. Clauses can be added to bills that have no relation to the subject of the bill, so that when the bill becomes law, so does the rider. It's Trojan horse politics, and it should be banned. If something is important enough to be a law, then it should get its own bill. If it doesn't have the merit to stand on its own, then it has no business becoming law.

    --
    When our name is on the back of your car, we're behind you all the way!
    1. Re:Irrelevant by ColdWetDog · · Score: 1

      There are two things that are really worrisome to me. First is the power that individual senators have over NASA. ...

      The second thing that worries me is this whole concept of riders. ...

      Exactly. This is the sort of sausage politics that gets everyone nowhere. Even though the committees do have to vote to get these idiot concepts on the bill and the bill has to be cleared by both houses (and often gets further amended) the practice of putting in bits that have nothing to do with the original bill really should just be banned. Unfortunately, everybody does it so no one is particularly interested in stopping the practice.

      --
      Faster! Faster! Faster would be better!
    2. Re:Irrelevant by Anonymous Coward · · Score: 0

      If something is important enough to be a law, then it should get its own bill. If it doesn't have the merit to stand on its own, then it has no business becoming law.

      Thank you! Thank you! Thank you! Thank you!

      For years I have felt like I seem to be the only one who thinks this... If nothing else, it's nice to see I'm really not alone!

      Elimination of 'Trojan Horse Politics' is probably one of the few political goals that would cause me to abandon my political apathy...

  19. Laugh... by koan · · Score: 1

    I'm pretty sure the Chinese have whatever secrets they want already, at least those that are stored and accessible via the Internet.

    --
    "If any question why we died, Tell them because our fathers lied."
  20. Meanwhile in China by Anonymous Coward · · Score: 0

    Meanwhile in China...work with NASA continues.

  21. Re:Racism by MBGMorden · · Score: 1

    And Chinese isn't really a race anyway. It's a nationality.

    Indeed. Chinese is a race about as much as Norwegian is a race.

    There's too many -ism's floating around today anyways. It's gotten to the point where if you dislike any group for any reason someone else is ready to strike at you with an accusation of some -ism. In the real world there ARE real reasons to dislike certain groups, and a country spying on you or engaging in sabotage is a perfect reason to start disliking them.

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  22. Space Race 2 by doti · · Score: 1

    And the new space race officially begins.

    --
    factor 966971: 966971
    1. Re:Space Race 2 by toriver · · Score: 1

      But the race has other participants than before. The U.S. are decommissioning the space shuttle program with no real replacement, which means brisk business for the rocket-using services of Russia, Japan, Europe - and China. India have plans of a space program as well. Private initiatives like Space-X are not at a sufficient capacity to take over for NASA's satellite business.

  23. Do we want friends or foes? by Anonymous Coward · · Score: 0

    We could have it either way, but it looks like we don't have enough "enemies", so yeah let's go ahead, cut the ties. 'Cause who needs friends in this world anyway?

    *Beware: Sarcasm! *

  24. Should have done this almost 20 years ago by Anonymous Coward · · Score: 0

    We should have done this almost 20 years ago, instead of selling/giving them rocket technology in the 90s.

  25. Government policy in spending bill by Anonymous Coward · · Score: 1

    This is the kind of crap that gets me upset. Those politicians stick random bits of policy like this into a spending bill that everyone knows "has to be passed" to avoid a government shutdown.

  26. Their commies are better than our commies by Baldrson · · Score: 1
    The Chinese commies are good at being commies.

    The USA's commie bureaucracies, such as NASA, don't actually have to work in order for society to function, so they can just run pursuing uneconomic launch systems like the Shuttle for decades, generally leaching off the taxpayer, putting private launch service companies out of business while claiming to "help" them, etc.

    Marx actually had some insights into capitalism's weakness and it may very well be that China has been exploiting those weaknesses quite effectively -- helping the USA's capitalists fall into the failure modes most obvious to Marx. Don't underestimate the Chinese.

  27. Hardly an answer to the qurestion by gr8_phk · · Score: 1

    So even if we entertain the idea that guys from JPL will not suffer any human rights oppression in China, do you still think they'll go there vs moving to SpaceX or Boeing, or someplace else in the US? I think they'll be quite happy in the US but not at NASA.

  28. Uhm, not much standard about Soyuz-Apollo by slew · · Score: 1

    There was a joint Soyuz-Apollo project. Mostly symbolic, but it had some practical value -- it standardized docking equipment and procedures, made it possible at least in theory, for USSR and US spaceships to be used to rescuing crew from each other in case of emergency... Too bad, US ended Apollo soon after that, and placed all its effort into that fat Concorde-shaped thing.

    I probably need to read some more history books, but as I recall this mission was totally political/symbolic. There was no standarization of anything. A specially made dongle was made to connect the spacecrafts (the APAS or the so-called Androgynous Peripheral Attach System). The apollo-soyus mission was flow w/o the lunar module and the APAS was stored in it's place. This also meant that like the lunar module, the dongle/dock wasn't connected at launch, but needed to be extracted from the base of the last stage of the rocket (the TD&E manuever, or Transposition, docking and extraction). This particular APAS system (APAS-75 the "75" being the year it was used) was only used on that mission and no other mission.

    There were two main reasons for the adapter dongle: First, they wanted to try docking both ways (each ship in the active/passive roles, hence the androgynous part of the name). Second was you needed airlocks to go between the ships as it was Nasa's practice to pressurize with 5% pure oxygen (see apollo 1 for a discussion why), and the Soviets pressurized to to near ground level with oxygen and nitrogen.

    The Soviet space agency eventually used APAS-89 which also happend to be use on the US Space Shuttle for connection to MIR (I believe the space station uses a later varient APAS-95, but I could be wrong).

    Of course in typical NIH fashion, since APAS was mostly a Soviet/Russian invention, NASA went and developed Yet-another-dock, they called Low-impact-docking-system (or LIDS) for the now-cancelled Orion project, which is a simplified APAS, but of course totally incompatible.

    As a result of this mess the international space community finally recently (last year) created the InternationalDockingStandard which is basically a hybrid between APAS-95 and LIDS and of course not implemented by anyone yet...

    Of course if your mission doesn't fly with the right APAS, there's theoretically no way to dock which means in practice, there's no way to rescue a crew w/o using an airlock (which you would have to do anyhow if the pressurization was different between the two ships).

    1. Re:Uhm, not much standard about Soyuz-Apollo by Alex+Belits · · Score: 1

      Of course in typical NIH fashion, since APAS was mostly a Soviet/Russian invention, NASA went and developed Yet-another-dock, they called Low-impact-docking-system (or LIDS) for the now-cancelled Orion project, which is a simplified APAS, but of course totally incompatible.

      As a result of this mess the international space community finally recently (last year) created the InternationalDockingStandard which is basically a hybrid between APAS-95 and LIDS and of course not implemented by anyone yet...

      Of course if your mission doesn't fly with the right APAS, there's theoretically no way to dock which means in practice, there's no way to rescue a crew w/o using an airlock (which you would have to do anyhow if the pressurization was different between the two ships).

      Well, this is what you get when you suddenly have an end of a project, attack of patriotism, NIH, movie-prop-driven engineering and your military insists on some seriously impractical requirements for the new generation of spacecraft. My point is, however little immediate effect the project had, it involved co-operation between politicians much further apart on then-current political spectrum than modern US and China, and if US chosen more rational approach to spaceships development, it would allow more immediately practical uses.

      --
      Contrary to the popular belief, there indeed is no God.
    2. Re:Uhm, not much standard about Soyuz-Apollo by slew · · Score: 1

      My point is, however little immediate effect the project had, it involved co-operation between politicians much further apart on then-current political spectrum than modern US and China, and if US chosen more rational approach to spaceships development, it would allow more immediately practical uses.

      Since Soyuz-Apollo had essentially no immediate effect, and if you think co-operation has more immediate practical uses and more rationality, how do you explain the enormous practical impact and rationality of the highly cooperative International Space Station enterprise?

      AFAICS, the only benefit of these non-scientific space programs is continued gainful employment of (in the earlier case of the Space Shuttle) US aerospace engineers, and (of the latter case of the ISS) ex-soviet aerospace engineers. I don't see how co-operation really changes things and make things more rational or immediately practical.

    3. Re:Uhm, not much standard about Soyuz-Apollo by Alex+Belits · · Score: 1

      I don't understand what your argument is. US space program suffered from poor choice of direction in 80's, and USSR/Russian one suffered greater damage in 90's due to massive damage to the economy and neglect from politicians. Plenty of things that would be useful otherwise, were placed on hold until ISS, and plenty are still not being developed or not being used to their potential. This does not mean that it was a bad idea to work on them in 70's, it means that value of that work was at large extent destroyed by different people making different decisions at a different, much later, time.

      --
      Contrary to the popular belief, there indeed is no God.
  29. Does it look trying to give an "answer"? by sznupi · · Score: 1

    Just pointing out how the mentioned "problem" of Beijing is much less of an issue (maybe even particularly with people working on rockets; possibly proportionality unlikely to, say, protest the whole fabled military-industrial complex and its actions in the first place?)

    Then if the money's good...

    --
    One that hath name thou can not otter
  30. NASA is no exception in that by Anonymous Coward · · Score: 0

    I once thanked a guy for helping me get a job - while we were working late on a Saturday. We worked hard on a very interesting project that was going to help a lot of people. It was the kind of thing you can really get caught up in. 6 months later the company who owned everything pulled the plug on our employer and chose another development partner and I was on the street. This was completely non-government work. From what I hear, it happens a lot more in government so you should be *more* aware of that possibility and less likely to be personally invested in it. I've also seen it happen in plain old automotive developments too. Don't think you're special because you're at NASA.

  31. And? by jav1231 · · Score: 1

    This doesn't bother me at all. We should expand that to the rest of the government and the private sector. I'm a capitalist but I draw the line at dealing with nations whose systems of government are rife with human rights atrocities. And yes, I'd include many middle-eastern nations as well despite their oil.

    We long lost the ball on the notion that exporting capitalism would induce democracy. The Chinese have done one thing too well, managing to hold capitalism in a box and make it produce nice things for it without having it overly-influence it's populace. The game's over. Stop doing business with them and have some ideological fortitude.

  32. re: no quality control by King_TJ · · Score: 1

    Yeah... the lack of quality control is a huge problem in Chinese factory production today, but that's bound to improve. Japan used to have the exact same issue, and back then, Americans kept using that as the reason why "Japan won't be relevant!". Within less than 10 years though, they got their act together and started selling cars to us that were better than anything our U.S. factories could produce, quality-wise.

  33. Banning Space Science with China by hackus · · Score: 1

    LoL!!!

    Yeah, the Chinese are just so missing out. They are reconstructing a space program around a very generous budget, and the same sorts of goals and ambitions they are using with the building projects in their own country, many of them of a size and scale never before done by mankind.

    Yeah, I bet they are just wailing in the streets over there.

    By the time the Chinese get done with us, they will own half the moon and our private industry the USA is working on will still be sending up tinker toys.

    The only reason why they are cutting the space program in the USA, is because the wall street bankers need more money to cover all of their criminal activity with state pensions, mortgage fraud. After all, it is more important that JP Morgan wall street investment bankers get those 300 dollar hamburgers and 150K wrist watches than some ole space program.

    Everyone here knows that.

    -Hack

    --
    Got Geometrodynamics? Awe, too hard to figure out? Too bad.
  34. Re: no quality control by rhyder128k · · Score: 1

    Doc: Unbelievable, that his piece of junk could be such a big problem. No wonder this circuit failed... it says, "Made in Japan."
    Marty: What do you mean, Doc? All the best stuff is made in Japan.
    Doc: Unbelievable!

    --
    Michael Reed, freelance tech writer.
  35. Generally right, but still wrong. by mosb1000 · · Score: 1

    USA doesn't produce anything of any value except for the raw materials

    This is wrong. The industrial output of the US is still the largest in the world, and it produces quite a bit more than china. While it's true that the US produces a lot of raw materials, they also produce high-value items like aircraft, specialty chemicals, electronics, cars, pharmaceuticals, and a lot of other things I haven't listed here. The idea that the US doesn't produce these things has traction because most of it's economy (when measured in dollars) comes from hand-wavy products like financial services. But even if you cut out all that fat, there's quite a bit of meat left.

    The reason the US is taking on debt while China is taking on monetary assets is an excess of consumption, not a deficit of production (when compared with China). The idea that the US is somehow incapable of paying back one and a half trillion dollars in real items it pretty silly. Think about it this way, a new 747 costs $260 million which means that our entire debt to China is equivalent to about 5,000 747 airplanes. The US is certainly capable of 5,000 747s. That means it's also capable of building other goods that would represent an equivalent value to pay back the debt. The only reason this hasn't happened is the US hasn't been put in a situation where this is necessary.

  36. generality by Anonymous Coward · · Score: 0

    Interesting that most comments are more generally encompassing than mere specifically about NASA.

    The Chinese have done pretty well in their weapons program despite western embargo on weapons technology after Tiannamen Square.
    I don't think they're going to be losing too much sleep over this one.

  37. wealth=creativity? by poptones · · Score: 1

    In what world? The pursuit of wealth drives creative ways to make something for nothing. Creativity derives from a culture of creativity (which the japanese have in spades) not from a culture of "work harder and steal the opposition's ideas."

    1. Re:wealth=creativity? by grouchomarxist · · Score: 1

      I never said wealth is directly equal to creativity, I said that desire for wealth can be a force for creativity.

      Here we go back to the point I was originally making. Back in the '70s and '80s people were saying the Japanese were not creative, only robots who were just copying ideas from the rest of the world. When your economy and technology are behind the fastest way to catch up is to copy what successful people have done before you, but once you catch up then you need to innovate to get ahead. This is true of Japan and will be true of China.

    2. Re:wealth=creativity? by poptones · · Score: 1

      if japan were china, china would have stopped invading the place centuries ago.

    3. Re:wealth=creativity? by grouchomarxist · · Score: 1

      I have no idea what you mean by that.

  38. Hahaha by jdc18 · · Score: 1

    China already stole everything they needed, I think at this point, from a mutual cooperation at least the US can get input instead of output of information. You can't stop China from getting what they want, if they want secrets, they will bribe, steal, spy or do what it is needed to get them.

  39. LOL by WindBourne · · Score: 1

    China can not afford to do that. If they do that, without freeing up their yuan, then inflation, MASSIVE INFLATION, will hit them the second that they quit buying these AND the yuan will rise massively against all other currency. You see, because they do not allow their yuan to float, then they HAVE to do something with it. They can not sit on all those dollars.

    Now, US needs to quit importing so much esp. from China, and we need to balace the budget. But the good news is that if China decided to not buy our bonds, other nations are likely to step forward on it. And even if not, we could finally balance quickly.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  40. What I want to know by Anonymous Coward · · Score: 0

    The short two sentence clause was included by Rep. Frank Wolf (R-VA) to prevent NASA and OSTP from using federal funds "to develop, design, plan, promulgate, implement or execute a bilateral policy, program, order, or contract of any kind to participate, collaborate, or coordinate bilaterally in any way with China or any Chinese-owned company." This clause would also prevent NASA facilities from hosting "official Chinese visitors."

    This clause was surreptitiously slipped in by ONE GUY, how is this democracy? We desperately need to get rid of riders.