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07 December 2012

Comments

JesusBetterman

Taught today, math classes no less (sorry Greg) and I was inspired to ask if anyone knew the significance of December 7.

None of these 7 graders did. None. I bring it up as it looks like the situation described above may be our economic Pearl Harbor.

Russ Steele

As the China vs US trade war heats up, Apple has decided it is time to reduce it’s dependence on doing business in China. Apple recently announced they will soon be opening factories in the US. That may be signaling the direction that American businesses are going to take to reduce their business exposure in China. Coming home to the US. California may benefit as Apple had a manufacturing plant in Elk Grove, which could be reactivated. However, given the increasing tax structure in the state, it would be more likely that Apple will use the new campus in Austin, Texas, or some other lower cost of business state.

If the US and China decide to have the emerging trade war, much of that trade would have come through CA ports in Los Angles and Oakland, with some in Seattle. That could have an impact on CA's economic recovery.

With Apple making a move, who will be next?

George Rebane

But in the larger scheme of things, we don't want China to weaken its commercial and economic ties to the US. There is nothing like trade to keep the peace between countries. As someone said long ago - if goods don't cross borders, armies will.

JesusBetterman

That's a "Like," George.

TheMikeyMcD

One of you best George.

Like the has-been-30-somthing still trying to get free drinks for being a quarterback in high school...

Bob Hobert

George, do you subscribe to D'Souza's premise that Obama believes America is the last of the world's evil colonial powers and thus his policies are deliberately designed to reduce American wealth and power?
Looking at his 'achievements' so far certainly supports that premise IMHO. Obama is neither a socialist nor a Islamacist, but an anti-colonialist who is fighting the same anti-colonialist battle his father did in Kenya, according to D'Souza in The Roots of Obama's Rage - a fascinating insight into our president.

George Rebane

BobH 802am - Yes, but he has a greater reason to reduce America into compliant peerage on the world stage, and that entails his vision for a global order. Recall my long held assessment that he is the first President to view the American presidency as a stepping stone to a higher position.

Bob Hobert

Yes, there seem to be no boundaries to his self image and sense of righteous infallibility. I believe most Americans completely misunderstand him. D'Souza provides some very keen insight.

Brad Croul

The Regional Comprehensive Economic Partnership, keyword-regional, (a China backed initiative) should clue the reader as to why the United States would not be included in that particular partnership.

The RCEP and the TPP are two different (but similar) things. Therefor, I think the "cataclysmic rejection" characterization is overblown.

"The notable absence of the United States should not signal alarm. The RCEP permits external countries to join later and does not prohibit members from acceding to other free-trade groupings, such as the Trans-Pacific Partnership (TPP) agreement in which the United States is active." -
http://csis.org/publication/asean-and-partners-launch-regional-comprehensive-economic-partnership

As for the TPP, it predates the Obama administration. Some folks don't seem very impressed with the shenanigans surrounding that proposed partnership,

http://www.thestar.com/business/article/1299311--secrecy-the-standard-as-canada-enters-trans-pacific-partnership-talks-geist

Sounds a bit NAFTAesque, eh?

George Rebane

BradC 1231pm - good points, but the RCEP name was not presaged, nor was the organization according to what the administration claims to have known. Its regionalization was ordained unbeknownst to Obama, who probably would not have shown up with his TPP agreement in hand had he known the real reason for the meeting. Obama expected to come home with the first stake in the ground for his 'Asian Pivot'.

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