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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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Anyone (or no one),
I command an understanding of money. I do not understand the double speak generated by people such as the people speaking in these REAL NEWS reports on the subject of China.
Therefore:
A. Quote words spoken.
B. Decipher the meaning of the words spoken.
C. Propose a possible reason why these people say these things.
D. Begin to understand the double speak generated by people such as the people speaking in these REAL NEWS reports on the subject of China
Before doing that I am going to restate my own understanding of money as it relates to politics and economy.
Power produced into oversupply reduces the price of power while purchasing power increases because power reduces the cost of production.
If any group of people anywhere on the planet decide to organize and agree to produce more and more power, invest the power they have to the job of creating more physical power, such as electricity, for example, then those people will reduce the price of power for themselves.
Money is purchasing power. Money is purchasing power or it isn't money.
Money can then be created and employed toward the work of making more power, such as electricity for example, and people organized, polarized, and working by this creation of money for this specific purpose can BOOM the electricity production market and do so to such an extent that electricity is so abundant that the price of electricity is at the lowest possible minimum price, a price comparable to the price on clean air.
Tide power, solar power, alone, without any other probable methods of generating more electricity suffice to illustrate the point and suffice to do so to defeat the argument that production of more power generators produces more pollution, CO2, etc.
Adding Modular Vertical Farming Units producing CO2 eating Algae based fuel reinforces the point and continues to defeat the arguments claiming that increased productivity, and increased industry, necessarily increases pollution, Climate Change (formerly Global Warming), etc.
Money creation begins the process - out of thin air.
Money is then focused on the work of producing more power, electricity suffices to exemplify power production, and CO2 eating Modular Vertical Farming Units add to the hypothetical exponential increase in power production.
Power produced into oversupply reduces the price of power.
At some point every home, every business, every place an electric generator can be placed is generating more power to a point where power is ubiquitous, and the price is then minimized.
Power produced into a state of oversupply reduces the price of power while purchasing power increases.
That sentence points the reader to the political or, if you prefer, the psychological aspect of power after that sentence reports on the economic or physical aspect of power.
Purchasing power increases. Money gains power.
Why?
Because power reduces the cost of production. When money is invested the result is more power. When money is squandered, there is less power. Power can be measured as surplus wealth. A silo full of grain. A store of Algae based motor fuel. Steel I beams. A warehouse full of unused Solar Panels. A stock of cattle. A high reservoir of clean water capable of pushing turbine wheels as the water flows down to thirsty living beings powered by clean water. A planet filled with oxygen. The Sun.
How much does each person spend in work hours just to pay the electric bill?
How much does each person spend in work hours, time and energy, just to pay the transportation fuel bill?
How much does each person spend in work hours, time, energy, blood, sweat, and tears, just to pay the interest on the home and business mortgage?
The only possible reason for power production to be throttled down, restricted, governed to less than full production is crime. Criminals can't allow their victims to gain power, the powerless victims would cease being victims.
Back to the REAL NEWS report looking for a decipherable quote:
the fact that we're importing so much from China, and so much of it is so cheap, goods in Wal-Mart and so forth. People cry foul. They say that the currency is undervalued and gives the Chinese an unfair advantage.
What does the term undervalued mean - in context?
The apparent meaning, in context, is such that blame is projected at the people in China who have control over the Chinese Monopoly Money supply for something bad.
The bad thing is ambiguous. The bad thing appears to be things in Wal-Mart; where the price of these things in Wal-Mart are too low.
How is that bad? I don't know. It is not said, yet. Assuming for the moment that it is bad, how does that bad thing turn out to be caused by the people who have control over the Chinese Monopoly Money supply?
Can it be known that at some point 1 US dollar can be worth 1 Chinese dollar?
What happens if that is the case and people in the US are still buying things made in China, and then suddenly, over night, or in a week, or a month, or a year, the US dollar is worth 2 Chinese dollars?
Will people buy more or less things from China at Wal-Mart?
What happens if the opposite occurs and 2 US dollars are worth 1 Chinese dollar; will people in the US still buy things in Wal-Mart made in China?
How about the scenario whereby the change in exchange rates occurs instantly, and in this case the US dollar suddenly is worth 2, not 1, Chinese dollar.
What happens?
I cannot, for the life of me, connect the dots between the currency exchange rate and the price of things made in China on the shelves in stores in the US; unless I follow the paper trail from the source of the paper.
In order for 1 Chinese dollar to suddenly change from being worth 1 US dollar to a new exchange rate of 2 Chinese dollars now being worth 1 US dollar, what changes?
Did The FED suddenly remove half of the dollars in circulation?
Did the people in control of the Chinese dollar suddenly double the number of Chinese dollars in circulation?
Either of those two actions could result in that change in that exchange rate - but it cannot happen over night, not suddenly.
I think I need to know more about the process by which the people who control the Chinese dollar manage the action called pegging. How is it accomplished? How does the Chinese dollar become pegged to the dollar?
All these question occur to me only because these people in that REAL NEWS report are speaking the words that they speak. To me the words they speak are words that are meant to confuse people.
The reasons for low prices at Wal-Mart in U.S.A. Inc. LLC, on products made in China, include the most obvious reason, whereby the people who make those products are paid almost nothing in a place where the cost of living is almost nothing.
The reasons for low prices at Wal-Mart in U.S.A. Inc. LLC, on products made in China, include another very obvious reason, whereby the people who set company policy in the companies producing those products set a policy whereby they do not expend costs that must be spent in avoidance of causing injury to the people in China - they pollute on purpose, for profit.
The cost of living for the Chinese people will go up as a result of that pollution, as more and more people suffer injuries associated with such damaging pollution as is the case in China - as far as I know so far.
Suppose there is a warehouse full of Chinese things ready for sale to a buyer for Wal-Mart in the US, and it is today, and today the US dollar is worth the same as a Chinese dollar 1 for 1.
The buyer at Wal-Mart asks: "How much for that warehouse full of things?"
The seller at the warehouse says: "100,000 yuan"
The buyer says: "Will you take 100,000 dollars?"
The seller says: "Sure, they are worth the same thing, the warehouse is sold."
The buyer says: "Great, ship them."
The seller says: "We don't ship, we sell things made in China."
The buyer says: "Right, I'll send someone to pick the things up, thanks.:
Now suppose a day goes buy, the guy didn't come and pick up the things at the warehouse yet, but suddenly the Chinese controller of the Chines dollar says that 1 US dollar is now worth 2 yuan, not one.
What happens?
If I were the guy who bought the things I'd be in a panic; because I just bought 1 warehouse full of things made in China for 100,000 dollars when 100,000 dollars was worth 100,000 yuan, but now, today, suddenly, 100,000 dollars is worth 200,000 yuan. I call the seller at the warehouse back up.
Owner (former buyer): "Hey, ah, remember that deal we were thinking about yesterday, where I was asking if I could buy that warehouse full of your things made in China.?"
Renter (former seller): "Your stuff is outside the warehouse taking up space, and you will be charged an additional 100,000 yuan if you don't get it off our property by tomorrow, we had to make room for more things made in China - business is booming - don't you know?"
Owner (former buyer): "Ah, my guy won't be there until next week, so, ah, can we make another deal?"
Dealer (former renter): "Sure, next week. No problem, I'll wave the rent charge."
The point here, from my view, is such that the workers are still being paid next to nothing in a place where it cost next to nothing to live and where those costs are going up because China is being BOOMED, on purpose, on schedule, and the point is that the things in the warehouse are the same things today, and they are the same things tomorrow, even if the people who have control over the Chinese dollar say that the Chinese dollar is worth half as much tomorrow, or twice as much today.
I am going to offer a term, now, that may help me untangle some of the confusion in my own mind, as I try to figure out what these people are saying, when they say such things as this:
the fact that we're importing so much from China, and so much of it is so cheap, goods in Wal-Mart and so forth. People cry foul. They say that the currency is undervalued and gives the Chinese an unfair advantage.
The term is PPP or Purchasing Power Parity
How about [url=http://www.google.com/search?hl=en&defl=en&q=define
urchasing+power+parity&sa=X&ei=8nQ9TZ6aB47QsAPT]Google [/url] ? I looked for a real time PPP converter but found only THIS
China isn't even on that table.
Why?
A usable chart
U.S.A = 47,000
China = 7,000
I have an idea about this relative measure of life on Earth between living in the land of the dollar and living in the land of the yuan.
If a person worked an average job for one year in each country, and in each country the person consumed the bare minimum while saving the most possible amount of savings, in money, not buying valuable things, which person would have more valuable things at the end of the year, and where would that person buy those valuable things.
Someone else, thinking along with me, might ask: what valuable things?
How about an ounce of gold
Enough Solar Panels to power one average home in America
Enough clean water for one person for one year
Enough food for one person for one year
I see a need to change the question.
How much time would it take for an average (by median earnings calculation) person in each country to work and live with minimum consumption and maximum savings to buy the above list from the same minimum cost place on Earth?
In other words a person in the USA begins working and consuming the bare minimum, at the average pay rate, and time passes until that person can afford to buy that list of things from the least expensive seller on Earth selling those things on that list, and at the same time a person living in China starts working the average job so as to eventually earn the same purchasing power, and the question asks: what is the percent difference in time required to arrive at the level of power required to purchase the list of stuff?
And the answer appears to be, if I have the PPP measure understood, the percent difference between 47,000 and 7,000 provides a workable percentage rate difference.
7,000 is roughly 15% of 47,000
If the list of stuff could be bought by the person working at the average job in the U.S.A. in one year then at that rate the person in China has only 15% of the purchasing power earned after 1 year.
How many years are needed for the person in China to work long enough to earn the purchasing power to buy the list of stuff earned in 1 year working in the U.S.A.?
Roughly 6.7 years.
I just realized that the math needed here is a ratio, 47/7, or 6.7 to 1.
If the people who have the power to peg the Chinese dollar to the The Fed dollar declare that the Chinese dollar is worth twice today or half tomorrow that application of that power can't, really, change that ratio of 6.7 to 1.
The things that change that ratio of 6.7 to 1 are such things as infrastructure.
Example:
1. A well maintained highway
2. An electric power distribution grid
3. A communications network
4. Ready access to purchasing power by people who will invest that power and in so doing more power is produced over and above the power consumed during production.
5. Limitations of access to purchasing power by people who consume, waste, or use that power to commit crimes whereby innocent productive people are injured and thereby rendered less capable of investing available power and turning available power into more power.
Those things lead to the average person in either place on earth lowering the number on their side of the ratio.
U.S.A. - China
1----------6.7
There are many other things that can be added to the list. Declarations concerning the legal value of a unit of legal currency relative the declarations of the legal value of a unit of currency produced by a competitor isn't on that list.
If Chinese people lower the amount of time it takes the average person working toward the goal of increasing their power to purchase a better life, lowering their cost of living, working less for more in exchange for their labor, they must finance productive activity and avoid financing crime.
They can't expect to lower their work load, and increase their wealth, by transferring the power they have to criminals, where the criminals then use that power to commit crimes.
The result of such folly is readily apparent in the U.S.A. as the productive people are now being indebted and the criminals are now being financed, with the obvious result of productive people having to work more and more for less and less.
And the responsible, and accurately accountable people orchestrating that transfer of wealth, in the U.S.A. are the people who have control over the dollar issue of legal currency.
If those criminals, who can commit billion dollar frauds, and then be rewarded with billion dollar bail-outs, complain about competition, as they complain that "the Chinese currency is undervalued and gives the Chinese an unfair advantage", then my guess is that the complaint is at best half true.
Are the Chinese people capable of moving the power to purchase to the people who will use that power to produce more power or will the Chinese people allow that power to flow to criminals?
Why not speak in simple language, meaningful language, and why don't people find good cause to unravel the tangled web of deceit?
What, on Earth, is preventing the truth from flowing quickly all around the globe, like sunshine dawning on a cool summer morning?
When will people declare a war on falsehood and when will people stop electing torturing mass murderers as their leaders, by whatever means they manage to accomplish that amazingly stupid feat?
I see a need to return to the REAL NEWS report and post this progress.