[Plantagenet]

Ben Bernake and the Fed are printing more money. What happens to that new money in the US economy? It drives US interest rates to record lows, allowing US companies to borrow money cheap. Then they say "Thanks Ben!" and use it to invest in new factories in China, thereby creating new jobs in China.

For instance, Dell Computer just borrowed money at low interest rates in the US market and then committed to spend 100 BILLION on building new factories and expanding in China.

Michael Dell to spend $100 BILLION expanding Dell Computer's operations in China

Only the morons at the Fed and in the Obama administration would think its a good idea to print more money to support US businesses in offshoring even more manufacturing and jobs to China!

[Sixstrings]

Yup, this is exactly what I said would happen.

QE money ends up in investors' pockets, and Asia is where they want to put their money not here.

[SeaGypsy]

Yup, this is exactly what I said would happen.

QE money ends up in investors' pockets, and Asia is where they want to put their money not here.

and so it will continue until it's worthwhile to invest in the USA again.

[eXpat]

What? wasn´t supposed to do that?

[Plantagenet]

Yup, this is exactly what I said would happen. QE money ends up in investors' pockets, and Asia is where they want to put their money not here.

and so it will continue until it's worthwhile to invest in the USA again.

The earliest that can happen is 2012...we're stuck with Obama and the dems in the Senate running things at least until then.

[ian807]

My first reaction when I read that headline was "No shit Sherlock"

QE will create jobs and investment - In China.
Tax cuts for the top 1% will create jobs and investment - In China.
Anything you do that frees money for investment will create jobs - in China.

Every other country makes it difficult to outsource. Our tax structure rewards it. Can't imagine how that happened since the conservatives got in during the eighties (Ahem).

Some silly folks want to change that (http://economictimes.indiatimes.com/news/news-by-industry/services/travel/visa-power/Tax-incentives-should-be-cut-for-firms-outsourcing-jobs-Obama/articleshow/6596515.cms)

[Livewire713]

Yup, this is exactly what I said would happen. QE money ends up in investors' pockets, and Asia is where they want to put their money not here.

and so it will continue until it's worthwhile to invest in the USA again.

The earliest that can happen is 2012...we're stuck with Obama and the dems in the Senate running things at least until then.

Republicans have no intention of investing in this country. They don't even want to spend money on infrastructure. So how are things going to change with Republicans in control?

[Plantagenet]

.. how are things going to change with Republicans in control?

Who knows? We don't even know who the candidates are yet.

But Obama's stimulus plan clearly didn't work, and QE 1 didn't work and I don't think QE 2 is going to work either. By 2012 we'll be doing QE 4 or QE 5 and maybe ready to try some new ideas.

[Livewire713]

.. how are things going to change with Republicans in control?

Who knows? We don't even know who the candidates are yet.

But Obama's stimulus plan clearly didn't work, and QE 1 didn't work and I don't think QE 2 is going to work either. By 2012 we'll be doing QE 4 or QE 5 and maybe ready to try some new ideas.

With a broke middle class and just a fraction of the industry we once had I don't see how were ever going to get back on our feet. If the only option is to print money then I wish they would invest that money in our infrastructure.

[americandream]

Ben Bernake and the Fed are printing more money. What happens to that new money in the US economy? It drives US interest rates to record lows, allowing US companies to borrow money cheap. Then they say "Thanks Ben!" and use it to invest in new factories in China, thereby creating new jobs in China.

For instance, Dell Computer just borrowed money at low interest rates in the US market and then committed to spend 100 BILLION on building new factories and expanding in China.

Michael Dell to spend $100 BILLION expanding Dell Computer's operations in China

Only the morons at the Fed and in the Obama administration would think its a good idea to print more money to support US businesses in offshoring even more manufacturing and jobs to China!

Investors and their bonus rewarded managers offshore your jobs, not taxpayer funded remedies designed to mitigate the excesses of their bi-partisan bubbles.

[Fiddlerdave]

Republicans have no intention of investing in this country. They don't even want to spend money on infrastructure. So how are things going to change with Republicans in control?

Why would Republicans want to invest any money in the ship they are sinking by stripping it bare?

[americandream]

Republicans have no intention of investing in this country. They don't even want to spend money on infrastructure. So how are things going to change with Republicans in control?

Why would Republicans want to invest any money in the ship they are sinking by stripping it bare?

Social democrats, liberal democrats. Blah! All the same.

[PrestonSturges]

The last 10 years sure seems to suggest tax cuts for the rich sends jobs overseas in a hurry.

[Livewire713]

The last 10 years sure seems to suggest tax cuts for the rich sends jobs overseas in a hurry.

When Reagan cut taxes back in the 80's it did have a positive effect but things are different now. Back then we had industry here in the US and we didnt have free trade. So at that time corporations and the rich did invest in American products and services. Now those days are gone and giving tax breaks or QE isn't going to help the common man or this country.

[americandream]

The last 10 years sure seems to suggest tax cuts for the rich sends jobs overseas in a hurry.

Tax cuts are designed to minimise the tax burden of the rich and to maximise their profits. Offshoring is another matter. There, the savings are in the other costs of business, like labour, premises and resourcing. Of course, offshoring destinations also sweeten these destinations with reduced witholding which is a double tax bonus considering that the repatriated profits further enjoy concessions in the home jurisdiction. It's a win win situation in a world designed to secure maximum profits for the owners of wealth. Workers are a mere resource in this equation. They have their uses as consumers and thats where credit plays its part.

[dsula]

. Workers are a mere resource in this equation.

They are more like a liability. Endless demand for higher pay, paid vacation, paid sick leave, paid maternal leave, health care benefits, vision care, dental care, stock options, profit sharing, education assistance, social security taxes, unemployment taxes, employment fees, worker's comp, 401k. Do they ever ask what more they can do to help the business that feeds them?
Thank God there's automation.

[pup55]

Workers are a mere resource in this equation

I agree. Workers=customers

People do what they do until they can't and then they do something else.

[americandream]

. Workers are a mere resource in this equation.

They are more like a liability. Endless demand for higher pay, paid vacation, paid sick leave, paid maternal leave, health care benefits, vision care, dental care, stock options, profit sharing, education assistance, social security taxes, unemployment taxes, employment fees, worker's comp, 401k. Do they ever ask what more they can do to help the business that feeds them?
Thank God there's automation.

There, right there is the reason why American nationals export capital to China. Now this is an objective fact that should NOT elicit rage as this behaviour is a FUNCTION of capital management and entirely natural. Instead, one should ask onself, is this state of affairs the desired state for me and my kinfolk.

Depending one one's answer, one thus acts accordingly, either adapting to the new paradigm, or seeking to change it in a manner that is truly representative of your expectations.

However, to expect favours of an investor who is only accountable to the return on his capital, is naive and unreasonable,frankly.

[Sixstrings]

There, right there is the reason why American nationals export capital to China. Now this is an objective fact that should NOT elicit rage as this behaviour is a FUNCTION of capital management and entirely natural. Instead, one should ask onself, is this state of affairs the desired state for me and my kinfolk.

Yup, you're right. It is entirely natural to screw one's fellow countrymen over if you can get away with it. It's also human nature to lie, cheat and steal.

And that's the ideal purpose of a government, to provide just enough regulation so that individual greed and avarice doesn't overwhelm and destroy the society as a whole.

It's also the role of government to play referee between capital and labor so that a balance can be maintained and we can all enjoy decent communities to live in. When government comes under the overwhelming control of either capital or labor, that's when things get out of whack. At the moment, bankster corporatist globalist capitalism is in 100% control of our government. That's why workin' slobs are getting screwed.

Unfortunately, things will have to get a lot worse before the people will be willing to risk their safety and what little they have left to form unions, take to the streets, and force some "change you can believe in."

[Blacksmith]

Thank your president that gave China most favoured nation status. Anyone care to guess who it was?