Today's Big Stories for September 24, 2012

Island controversy, China as a jobs' bogeyman, coal mines, lower forecasts, automotive dealer plight, and iPads for students.

1. Japan PM says dispute with China could hurt economy

Noda, who is scheduled to make a speech to the United Nations General Assembly this week, addressed reports that Japanese companies are facing economic harassment in China, telling the Journal that "recent delays in customs and visa issuance are of concern." He said damaging economic ties between the two nations could hurt the global economy.

2. New Romney Ad: Obama afraid to 'stand up to China'

For the second time in as many weeks, Mitt Romney's campaign released a new television ad blasting President Barack Obama as weak against China on trade. "Fewer Americans are working today than when President Obama took office," the ad's narrator says. "It doesn't have to be this way. If Obama would stand up to China."

As I post previously today, China isn't the problem when it comes to American jobs. I guess China's still the jobs' bogeyman (for both candidates). Oh well. 

3. 22 trapped in three col mine accidents in China

Three separate coal mine accidents over the weekend left 22 miners trapped in northeast and east China, according to local government sources. Eleven people were trapped after a fire broke out Saturday morning in a coal mine in northeast China's Heilongjiang Province. The accident that occurred at the Longshan coal mine in Youyi County of Shuangyashan City was previously reported to have happened on Sunday as a result of the mine owner's attempt to cover up, the rescue headquarters said.

4. Asia mostly lower as commodity firms weigh

China’s GDP growth outlook was cut to 7.5% from 8%, while Japan’s forecast was lowered to 2%, South Korea’s cut to 2.5%, and Singapore’s trimmed to 2.1%, the credit-rating firm said in a statement. “Our lower forecast for China recognizes that the central government had elected not to inject an economic stimulus of a size and speed necessary for an 8% growth rate,” S&P credit analyst Andrew Palmer said in the statement.

5. Car dealers see market shift to lower gear

Car dealers nationwide have begun to experience life in the slow lane after government policies to spur sales ended last year. Also putting the brakes on sales were ownership restriction rules starting in late 2010 that were intended to ease traffic congestion in cities such as Beijing and Guangzhou. In addition, the economy has slowed this year, exacerbating the plight of dealers. "For some car brands, we have inventories on hand of up to four months worth of sales," Pang Qinghua, chairman of Pang Da Automobile Trade Co. Ltd. said. "The normal stockpile lasts for one and a half months."

6. Chinese high school gives free iPads to senior students

And the schools are making sure the students are focused on homework, too, by locking out popular social networking apps and other time wasters.

China isn't the problem

It's campaign season and that means renewed attacks on China from both sides of the American political aisle. The thing is, China is not the main driving force in inhibiting American job creation. That's what I've believed for a while and now comes this article from Peter S. Goodman at The Huffington Post which follows pretty closely my own thoughts. From his article:

Inevitably and regrettably, China has landed in the middle of the American presidential campaign. Both candidates are now laying claim to credentials as the ultimate guardian against the supposed job-killing, prosperity-destroying juggernaut across the Pacific.

This is inevitable because China's rise and its implications for global commerce are never far from any conversation about lost American jobs and diminishing middle-class opportunities. It is regrettable, because -- as both candidates know well -- "getting tough on China," as the tiresome mantra goes, will accomplish little if anything in terms of restoring vigor to a chronically weak American economy.

He continues...

If China is genuinely breaking international trade commitments in its production of auto parts, as the Obama administration alleged last week in fresh WTO cases, filing such complaints is a legitimate means of seeking redress. Ditto, the cases filed in other industries, not least in the manufacturing of gear for renewable energy production, a key emerging pursuit.

But anyone who suggests that these sorts of actions are going to fix what ails America is either naïve or disingenuous. If we were to magically remove China from the global economy, laid-off textile workers in the Carolinas would not suddenly get new jobs again making cotton T-shirts (though we might significantly hurt sales of American cotton, a highly subsidized commodity, which now gets purchased in great quantities by yarn factories in China). We would not suddenly resume building personal computers in California. (Though we might severely disrupt a global supply chain that has made a lot of people very wealthy in Silicon Valley, which in turn has fueled a consumer boom that's also enriched vintners, contractors, landscape architects, art dealers, lawyers, insurance salesman and, for that matter, taco stands, dry cleaners and every other part of the economy.)

These traditional pursuits would simply get dispersed, shifting from China to Vietnam, or Mexico or Turkey -- a shift that is already happening as Chinese wages climb.

He argues the main cause of manufacturing job loss in the US is not China but "the shift of production to lower-wage countries and the rise of automation." These are items that will not magically reverse if the US and US businesses suddenly cut all ties with China. What the US needs is more investment in education and science, not the hyping of a non-existant Chinese bogeyman. 
 

What if America was actually run like a business

Brilliant and absolutely true.

American Olympian opening ceremony outfits made in China. Controversy ensues.

Inevitable...

“I think they should take all the uniforms, put them in a big pile and burn them and start all over again,” Senate Majority Leader Harry Reid, D-Nev., said when asked by ABC News today, “If they have to wear nothing but a symbol that says USA on it, painted by hand, that is what they should wear.”

Where do we stop? Why don't we require all American Olympians to only use equipement made in the USA? What if an American Olympian wins a gold metal using a kayak, sneakers, racket, fencing sword, or goggles made in a far off land such as Canada, Mexico, India, China, or China? Is it unAmerican to compete on behalf of America in an international sporting competition while using equipment produced in another country, even if the company producing that equipment is American? And isn't this much more important than the opening ceremony outfits as athletes' equipment has a direct effect on the performance of the athlete? 

Also, even if the outfits are made in America, how do we ensure all the materials and fabrics used are also from the US. If a blazer is sewn together in the US, but all the threads, fabrics, and dyes are produced abroad, does that really make the blazer a true American product? 

Why isn't it required that congressmen and women wear suits, clothing, and shoes made in the USA? Aren't they also representing the US, just like the athletes? If they wear an American flag pin on a suit made in Paraguay, does it make the suit more American, or make the pin less so?

If the American Olympic team steps into the London opening ceremony stadium wearing, as Senator Reid prefers, nothing (I'm assuming naked) and simply has the letters USA hand painted onto their chests, will we really feel that much prouder of our athletes?  

If I decide to buy a Ford in China, and I make this decision because Ford is an American company, but the Ford I'm buying has been produced in a Chinese factory, does that make my initial decision to by a car made by an American company completely pointless and useless? Doesn't most of the money I'm paying for the car make its way back into the hands of Ford's American corporate executives, not the poor Chinese laborers working on the manufacturing line? 

What if the American Olympians' opening ceremony outfits had been produced in the US and not China, might some of these same people (who are currently calling for the burning of the clothes) have complained that the clothes were being made in sweat shops right here in the USA? 

One last question - Was Harry Reid wearing clothes made in America when he made the above statement? And does he clean those same clothes using a washing machine made in America? Why didn't a reporter ask him this? Oh, right... 

Because no one cares and this is a stupid time wasting conversation.