India and China sign deals worth $25 Billion

Discussion in 'Politics Discussion' started by Fredrick Jones, May 24, 2015.

  1. Fredrick Jones

    Fredrick Jones Well-Known Member

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    I am not sure what impact this will have on investors. USA's crazy foreign policy is pushing traditional enemies like India, China and Russia together to forum economic alliances. Probably in the long term it will not be good for American business. China is already starting to force American businesses out of their traditional areas including regions like South America.

    http://www.bbc.com/news/world-asia-china-32762930
     
  2. AtlantaSports

    AtlantaSports Senior Investor

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    America just needs to stop pissing other countries off and we'll be fine, economically and politically.
     
  3. gracer

    gracer Senior Investor

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    I've also watched a report regarding the planned merger between China and India before. Now that it's happening there would surely be an expected growth in both countries' markets. China has the cheap manpower and India has the technological skills and needless to say "English" skills. With China's efforts on strengthening their military defenses and facilities too, am I seeing indeed a rise to power of the sleeping giant?
     
  4. CarpeNemo

    CarpeNemo Well-Known Member

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    Well, that's a concise way of putting it, at least.

    You can't forget that countries like India have absolutely enormous populations, and even with all the jokes about the country their standard of living and even wages are rising every day. These are people who are making money, and have access to luxuries that would have been unthinkable even two years ago.

    Couple that with the decline in US manufacturing, especially the manufacturing of luxury goods, and China becomes a smart option for India. China is closer so shipping costs with be lower, and they produce most of the things Americans like and buy. So India is getting the best possible deal out of this, and it makes sense to sign deals. They're only developing their country further. As more money and goods flow into India, it becomes a more desirable place to live and more money will flow in, causing infrastructure to expand and improve. Things that we consider indispensable (like running water and plumbing) still aren't super abundant there, but as the country grows and people's quality of life improves, soon enough they'll be an honest first world country. They have the labor force for it, at least, and other countries are keen to export labor there.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    We've seen a serious weakening of the US on the world's stage in the last few years that has to be deliberate and is a huge mistake IMO.
     
  6. Fredrick Jones

    Fredrick Jones Well-Known Member

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    Exactly. Until 400+ years ago, India made up 20%+ of the world's total GDP. China is a similar story. Their huge GDP was mainly to their huge populations. 400 years ago the population of both India and China was approximately 200 million each. So a huge number multiplied by a really small number is still a really big number.

    The great wall of China,the Taj Mahal and other Indian temples where constructed by sheer brute force and masses of labor. For the Great Wall of China the emperor just decreed that 20% of the population had to help build the wall. So you get 40 million Chinese each carrying 5 blocks a year to the site, that is 200 million blocks a year.

    I disagree with JR Ewing saying it is deliberate.

    We've seen a serious weakening of the US on the world's stage in the last few years that has to be deliberate and is a huge mistake IMO.

    I think it is sheer stupidity and short sightedness. China and India have been traditional enemies for at least 1000+ years. The reason why China occupied Tibet is because it is a gateway to attack India. So I guess USA is helping traditional enemies become friends.
     
  7. Sunflogun

    Sunflogun Well-Known Member

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    With the Ukraine situation Russia has shown clearly that they don't need the US and European support in economic terms, that they manage along fine with China and the rest of Asia. The future will tells us what comes next...
     
  8. Fredrick Jones

    Fredrick Jones Well-Known Member

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    Germany is trying to become energy self sufficent by investing heavily in alternative energy projects. But most of the other European countries seem to have their head in the sand. All Putin has to do is turn off the gas and oil pipelines to Europe and their economy will stop. Russia no longer needs European markets they can export their oil and gas to India and China.

    In India even if only 1 out of every 5000 people can afford to buy a car, that is a huge market for gasoline. The power of numbers.
     
  9. CarpeNemo

    CarpeNemo Well-Known Member

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    I wouldn't call his opinion stupid - he's just saying that the US has weakened its stance on the global market by becoming more or less a consumer of goods. We're not even producing the educated workforce we used to. With the export of our jobs (which some might argue is the reason India, China, et al, are expanding) we're reducing our impact on the market and reducing the amount of jobs here, which is going to hurt our future. We're already seeing a trend where our teenagers can hardly get a job flipping burgers anymore because older adults are having a hard time being employed, or need more than one job to make ends meet.

    The interesting implications is that as China and India grow, they too will become consumers of luxury goods, instead of just producing them. As the standard of living rises, people will immigrate their for jobs in lucrative sectors like architecture and computer infrastructure, and we'll see India shift fully into the first world, which I think is long overdue as it's a culture that has a long standing tradition of hard work and moral/family duty.
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I don't think Frederick was calling my opinion stupid. I think he was saying that our current admin's weakening of US foreign policy was what is short sighted and stupid.

    But I do believe it to be deliberate - and no I don't mean just that we've become just "more or less a consumer of goods".

    What it is is an ideology that people like Obama, Jarrett, and much of the far left have that the US is too strong and is to blame for one reason or another for much of what is wrong in the world. It's a very dangerous and incorrect ideology IMO.
     

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