American Economics Thread

Discussion in 'Members' Club Room' started by Bernard, May 16, 2015.

  1. subotai1
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    subotai1 Junior Member
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    This whole "easy to win" Trade War, has long ago passed "balance things out", to straight up being about Trump's ego. And the entire country is going to pay (unless you were a multi-millionaire and got a tax break.
     
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  2. styx
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    styx Junior Member
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    Ok this is Trump's Bloody Nose
     
  3. Jura
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    Jura General

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    Friday at 9:29 PM
    now
    Dow tumbles 700 points after bond market flashes a recession warning https://us.cnn.com/2019/08/14/investing/dow-stock-market-today/index.html
     
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  4. styx
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    styx Junior Member
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    Lehman moment?

    https://www.ft.com/content/20c2e468-bf57-11e9-89e2-41e555e96722


    GE’s financials targeted by Madoff whistleblower Shares plunge on Harry Markopolos allegations that company calls ‘false and misleading’ Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Save to myFT Gregory Meyer and Mamta Badkar in New York 57 minutes ago Print this page 3 An accounting fraud “bigger than Enron and WorldCom combined” lurks inside General Electric, according to a whistleblower who raised flags about the Madoff Ponzi scheme, driving the industrial conglomerate’s shares down sharply. Harry Markopolos and colleagues released a 170-page report on Thursday alleging a $38bn fraud centred in GE’s insurance and oilfield services businesses. “I think that they’re a bankruptcy waiting to happen,” Mr Markopolos told CNBC. Mr Markopolos is known for his — largely unheeded —warnings about Bernard Madoff’s massive Ponzi scheme in the years before it imploded in 2008. His team provided an advance copy of the report on GE to a hedge fund and will share profits from any market moves it set off, it said in a disclosure. GE fell more than 14 per cent in New York to $7.68 following the release of the report. “While we can’t comment on the detailed content of a report that we haven’t seen, the allegations we have heard are entirely false and misleading,” GE said in a statement. “GE stands behind its financials. We operate to the highest level of integrity in our financial reporting and we have clearly laid out our financial obligations in great detail.” Mr Markopolos is also seeking compensation from the government, having submitted his report to whistleblower programmes of the US Securities and Exchange Commission and the US Department of Justice, which share any financial penalties that arise from investigations launched because of tip-offs. The report argued that GE has understated its liabilities in its insurance business, said its cash situation is worse than disclosed in its filings and that it has not properly accounted for its acquisition of a stake in oilfield services provider Baker Hughes, which was completed in 2017. GE began to sell down that stake in 2018. By referencing Enron and WorldCom, Mr Markopolos invoked two of the most notorious accounting frauds of the early 21st century, both of which resulted in criminal penalties against top executives.

    B
     
  5. Tam
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    Tam Captain
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  6. Jura
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    here's the CNN story of
    How Trump's tax cuts and the trade war have set the stage for a self-inflicted recession https://us.cnn.com/2019/08/23/business/recession-trade-war-tax-cuts/index.html
    :

    it's indeed interesting to make 1t deficit during a supposed economic boom
     
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  7. styx
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    styx Junior Member
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    Bad news for the almigthy dollar!!!!

    Mark Carney, the Bank of England governor, has said that the world’s reliance on the US dollar “won’t hold” and needs to be replaced by a new international monetary and financial system based on many more global currencies. In a speech at the annual Jackson Hole gathering of central bankers in the US, he called for the IMF to take charge of a new system of currencies, insuring emerging economies from destructive capital outflows in dollars and removing their need to hoard US currency. In the longer term the IMF could “chang[e] the game” by building a multipolar system, he said. Having served as the leading central banker of Canada and the UK over the past decade, Mr Carney has significant influence and is well-regarded by other policymakers. His speech, delivered to other central bankers, will be seen as an attempt to burnish his credentials as a possible future IMF managing director, appealing to emerging economies in particular. Mr Carney will leave the BoE at the end of January but, lacking support from Europe or the US, currently has little chance of securing the top job at the fund. He used his speech on Friday to lay out the problems of an over-mighty dollar for the global economy. The deficiencies of the international monetary and financial system have become increasingly potent. Even a passing acquaintance with monetary history suggests that this centre won’t hold Mark Carney The US accounts for only 10 per cent of global trade and 15 per cent of global GDP but half of trade invoices and two-thirds of global securities issuance, the BoE governor said. As a result, “while the world economy is being reordered, the US dollar remains as important as when Bretton Woods collapsed” in 1971. Movements in the US dollar are therefore fundamentally important to other economies even if they have few direct trade links with the US, he said. This means countries are forced to self-insure and hoard dollars to guard against potential capital flight, leading to excess savings and lower global growth. In turn, he said, this dysfunctional international monetary system contributes to lower global interest rates and has amplified the difficulties central bankers face in addressing downturns. In the short term, Mr Carney said that countries could do little more than “play the cards they have been dealt as best they can”, incorporating potential international spillovers into their monetary policy decisions and reacting to global risks. But this would not continue to work if the US becomes an ever smaller part of the global economy while the dollar remains dominant in the currency markets. He therefore suggested that in the medium term — alongside all countries seeking to reduce their reliance on hot money flows denominated in dollars — the IMF should set up a global fund to deal with capital flight. “Pooling resources at the IMF, and thereby distributing the costs across all 189 member countries, is much more efficient than individual countries self-insuring,” he said, calling for a tripling of IMF resources over the next decade to $3tn. Recommended Adair Turner Central banks have lost much of their clout In the longer term, Mr Carney said the solution was to create a multipolar global economy rather than waiting for China’s renminbi to challenge the dollar. For this, he suggested more thought should be given to creating a global electronic currency that could act as “synthetic hegemonic currency . . . provided . . . perhaps through a network of central bank digital currencies”. This could “dampen the domineering influence of the US dollar on global trade”, he said, meaning that US shocks would not reverberate around the world as they do now. “The deficiencies of the international monetary and financial system have become increasingly potent,” Mr Carney said. “Even a passing acquaintance with monetary history suggests that this centre won’t hold.”
     
  8. Hendrik_2000
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    Hendrik_2000 Brigadier

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    Lat night I watch documentary "American Factory" On Netflix It tell the story of Chinese owned Glass manufacturer "Fuyao" based in Fuqing , Fujian province.
    https://en.wikipedia.org/wiki/Fuyao
    It show the decline and devastating impact of plant closure on the community. Then come Fuyao to reopen the shutter GM factory and transformed into glass manufacture but with no Union and lower pay. But at least they get their job back. Chinese worker would just thanks for the food on the table But American demand all kind of wages rise and Union, contrasting attitude and culture toward work and loyalty. The film make no judgement or demonize the Chinese. Good film if you can catch it. I guess the good ole day when a high school graduate can work in factory and lead a middle class life is long gone. This is the one that give rise to Trump frustration. well welcome to globalize world. This film is made by Obama wow good for him
    Near the end of American Factory, Chairman Cao strolls outside a glassy, pillared mansion that contains what looks like a shrine to himself. "The point of living is to work," he says. "Don't you think so?" It's hard to think of a sadder, or scarier, line in any movie this

    Work Cultures Clash When A Chinese Company Reopens An 'American Factory'
    https://www.npr.org/2019/08/23/7531...a-chinese-company-reopens-an-american-factory
    [​IMG]

    American workers Jill Lamantia and Bobby Allen struggle to adapt to the expectations of Chinese management in the documentary American Factory.

    Steven Bognar /Netflix
    In the 1960s, there was a terrific comedy in which a teenage Maoist scrawls a bit of graffiti that would become famous: "CHINA IS NEAR." Half a century on, China is here. It's here on our screens, where Hong Kong protests domination by the Communist mainland. It's here in the tariff war between President Trump and Chairman Xi. And, of course, it's here inside the cell phones we all worship.

    China's arrival in the American workplace is the subject of a fine new Netflix documentary American Factory by Julia Reichert and Steven Bognar, who've spent years chronicling blue-collar lives. Set on the outskirts of their home city of Dayton, Ohio, this measured, deeply moving film takes a familiar idea — the notion of an American factory — and shows how tricky that concept has become in today's globalized economy.

    [​IMG]
    BUSINESS
    A Chinese Company Brings Hope To Former GM Workers In Ohio

    The story begins with a 2008 prologue in which General Motors shutters its Moraine, Ohio, plant, chucking 2,400 union workers out of work and into years of desperate struggle. Then, in 2015, comes hope. The Chinese company Fuyao, which makes glass for automobiles, decides to reopen the plant and hire 1,000 locals. Led by its self-made billionaire owner, Chairman Cao Dewang, Fuyao brings along 200 experienced Chinese employees to oversee production.

    At first, the film shows things going OK. True, a worker like Shawnea Rosser is making only $12.84 an hour, way down from the $28 she earned at GM. And true, the Chinese are frustrated that the Americans work so slowly — "They have fat fingers," one says. Still, everyone wants the factory to succeed. Furnace supervisors like Rob Haerr and Wong He become friends, while others seek to understand their cultural differences. When it comes to work, these are profound.

    Michael Moore polemic. It's an old-school observational documentary in the very best sense of the term. They don't approach the Fuyao story with a thesis, don't dehumanize the Chinese, don't tell us what to think. Working with 1,200 hours of footage — heroically edited by Lindsay Utz — they have amazing access to a complex economic reality that is touchingly hard on workers.

    Eventually, many of Fuyao's American workers get fed up with the factory's cramped, hectoring conditions. I won't say what happens, but watching events play out is an education in the workings of the global economy. From the factory floor to the boardroom, everyone is caught in the logic of the market, which defines everything in terms of the bottom line. If you don't help maximize profit, you're gone. We're not surprised when Cao starts to replace his workers with robots.

    Reichert and Bognar capture a reality facing millions of Americans. Even as their wages go down and they long for the comfortable lives folks like them once could afford, workers in China — whose low pay has driven down wages all over the Western world — enjoy a prosperity they've never known. Life's looking rosier for them. Their 12-hour work-day, without time off or benefits, represents the rising model of labor in 21st century capitalism.

    Near the end of American Factory, Chairman Cao strolls outside a glassy, pillared mansion that contains what looks like a shrine to himself. "The point of living is to work," he says. "Don't you think so?" It's hard to think of a sadder, or scarier, line in any movie this
     
    #578 Hendrik_2000, Aug 24, 2019
    Last edited: Aug 24, 2019
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  9. Hendrik_2000
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    Hendrik_2000 Brigadier

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    Here is the trailer
     
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  10. styx
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    styx Junior Member
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    americans wants "la bella vita" (this is italian expression that signify being lazy and dump money in futile way) they are not hard workers ( most of them are very fat also) they are not prepared for war. My good friend has been in america for work, he said that the american factory worker he looked after are often overweight and very slow also for italian standars (we are quite fast but not very well organized) work organization in US doesn't match neither european standars
     
    #580 styx, Aug 24, 2019
    Last edited: Aug 24, 2019
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