/biz/ - Business & Finance

>>319132

Look. I realize you are so embolden with your way of thinking that most of what I point out will be refuted with something.

However can I point out a big elephant in the room?

What will the US do about China if the US goes pure free market capitalist and China keeps going state capitalist.

Considering that if we go back to the gold standard or let deflation happen, then that means lines of credit dry up right because the money supply goes down.

Most businesses will have to look elsewhere for lines of credit... Say a state that does this for its own companies.

And why stop there... This country can simply create as much money as it needs to be liquid and invest in foreign companies. Since there are no government regulation in the USA, these companies can simply be bought out.

I mean since our currency is now valued so highly and has little liquidity now, than makes the other nations labor much more less expensive encouraging even more outsourcing to China. This spurs more economic development in China while simply draining more dollars from the US system.

Then flush with the US Cash it earned from all its cheap labor it starts buying US companies left and right (say like Smithfield Foods which is now owned by a State owned Chinese business).

Then again I suppose there is nothing wrong with letting most of the US businesses be owned by Chinese companies. They seem to have a pretty good grasp of economics for them to grow as much as they have in the past 30 years.

Most of their ruling class are PHDs and engineers. Something the US should mirror.

China buys US debt in order to make its currency less valuable so it can remain an exporter to the United States and that its labor remains cheaper than ours. They only own a fraction of our debt so its no big deal.

If they stop buying our debt it means the Yuan will rise in value making their factory workers more expensive for us to employ.

They don't want that.

>>300156

I didn't say it was morally superior to Western Capitalism.

It royal sucks to be a Chinese peasant or factory wage slave especially with all the corruption and pollution.

However, State Capitalism is beating our free market capitalism (well we aren't really true free market capitalism as we have plenty of state interference, but we don't have state owned companies other than say General Motors and the military).

I mean for fucks sakes. A Chinese state owned company bought Smithfield foods. Seriously, the ham beast feeder Smithfield foods.

They are building cities in Africa to colonize it. They are building vast infrastructure in Greenland to extract its resources. Its buying up all the mines in South America.

They have more billionaires than the US now.

Sure it sucks to live in it, but the system is slowly beating ours.

Eventually when its legalized for the Chinese to lobby our Congress it will be over.

>If, in fact, China is "dumping" billions of people on to the labor market, then the market price of labor (ie wages) is being artificially driven down, and will rise back to prior levels once they run out of people to put to work.

I don't really buy the argument that prices and wages are artificial.

The current prices and wages are in reality exactly what they are. The market won't automatically adapt and say that prices must rise because the current price is artificial.

When people say a price is artificial it says to me that they just don't like the price.

Cheap labor in China can continue to exist as long as China devalues its currency. Considering they can print as much as they damn well please it can be basically as many zeros as a computer can have.

Therefore markets are manipulated into being certain prices. These prices are not artificial as they the exact prices the market has.

It can rise and fall depending on changing conditions, but its not because the market is correcting.

I don't know. The American Dream has turned into a Capitalist Nightmare.

You can succeed today but you need to learn to be a sociopath and do unethical things like steal idea from someone and make a website and make bank with it.

For every 1 successful entrepreneur there are thousand of failures. Statistically you will fail.

But its not to say there is money to be made.

You just need to fight the right people to help you do the wrong thing like selling overpriced under performing securities to dolts is an example. Running a spam like email campaigning is another. Shilling is a great profession as well. There is no room for ethics in modern society.

The key is that when you follow down this dark path, you don't break the law. That's when they take your money away. Its tempting but it always ends badly.

Also the future is in China. Learn Mandarin.

So I got one more semester at this community college and then I go to real school.

I have two choices I have been looking at.

A business and somewhat prestigious school but private and expensive and then an OK but not noteworthy public university.


Now I have a 4.0 average so I could get into both no problem, however to go to the private school I would need to take on some debt. About $100,000.

However, I can basically pay for the public school out of pocket if I sell all my gold and stocks and retirement account.

I can probably get some scholarships which I will do regardless because I'd rather not sell my investments if I have too.

So should I go to the better school and take on debt and try to get financial aid and scholarship to pay or just get an OK degree.

I'm going for a finance degree if that matters.

I mean it would be nice to have a prestigious degree, but having $100,000 debt on something other than a house just seem dumb.

Even with a 4.0 average and that is if I can keep that because I have a feeling that they give A's to anyone who actually puts forth a little effort in community college, then maybe I could get a good deal of financial aid to pay for the prestigious school. I mean how realistic is that?

I was looking at Ford bonds when GM went bankrupt. Of course all the GM bond holders lost all their money.

However, Ford bonds were at an all time low and they survived and now I would have made 200% or more if I had bought, but there was that risk they could have went the way of GM.

Yeah. I was reading on the banking. Apparently state run banks charge negative interest for the sake of safely holding your money and there are laws to prevent you from having a bank account outside the country as a private citizen.