Re: Why back-shoring wont cut it



"Straydog" <asd@xxxxxxxxx> wrote in message
news:Pine.NEB.4.63.0606270818360.7902@xxxxxxxxxxxxxxxxxxx

I am going to demure on this just a little.

On Mon, 26 Jun 2006, Phil Scott wrote:

.
the net cost of doing business in the US is driven almost
exclusively by confiscatory direct and hidden taxes, used
to
fund an 80% bloated, largely bogus and self serving
government...retiring its own at 10 to 15 times what the
working tax payers retire at...and 15 years earlier.

CEOs are getting richer as every decade passes and this is
also a serious problem.


correct....however I think its nore of a symptom than a
cause... but still a key aspect of the cause in other ways,
bad managment taking care of itself at the expense of others
ruins a company even if the CEO's hadnt become rip off
artists.



thats just not viable/

accordingly we are not competitive in world markets...
those
with lower costs are eating our lunch... in the past Indian
engieers were lousy to say the least...today only some are
lousy, many are certifiably world class...

Its all in the exchange rates, you need to think about this.

I dont disagree... that is all a factor...in this case,
with US govt bloat, the exchange rate is as much driven by
that, as by artificially low exchange rates for yuan.




The exchange rates, way back, were based on _material_ &
_products_ and not labor. Now, the work can be moved much
more cheaply than materials and so the exchange rates favor
moving work. But, the system messes up the exchange rates in
such a way that nobody wants to readjust them.

yes...its messy...and I dont thing resolveable in context
with the difference in living standards and other issues you
bring up ..for instance about the dahlits etc.



tomorrow as american engineers lose skills from disuse, and
indian, chinese and russian engineers gain skills it will
be
these in domaninance.....even now many are eating us alive
in
the world markets.

Thats wby back source in the absence of a level tax base
playing field will fail.,, we will not have that parity as
long as we are tying to dominate the world militarily (and
provide our entirely corrupt military industrial complex
with
money)

Back sourcing is already happening if you read my FAQ of
offshoring failiure rates. Shall I post it again? I just did
yesterday.


I read it...I know back sourcing is happening...I just dont
think it will be the dominant trend... however if we dont
back source now and quickly I think the US will be entirely
toast.

I just dont think the base algorithm, that includes our govt
bloat, and other rot will enable much back sourcing over the
long haul... my estimate is that we will see 3x the out
sourcing as we see back sourcing, and that will not abate
until the US middle class is toast.


This is routine in world history... the military is 100%
non
productive... destructive in fact to our well being, as the
backlash from past CIA dirty ops comes home to roost...


This is a separate issue.

It is separate in many aspects...it is not separate in that it
is driving the cost of government to the stratosphere...and
debilitating our engineers. I know there are exceptions to
that..I spend a lot of time in the weapons plants and know the
spin off of that research to the private sector...however I
also got a full load of the dark side of that mess... at the
congressional hearing I was asked why I put my career up for
slaughter by speaking up...I said that the enforced corruption
of US engineers in these weapons plants and other govt would
decimate our innovative brain trust and destroy the nation....
there was no response...just blank looks and the next
question.... that was happening between 1991 and 1995.

now its a decade later...our brain trust is toast. Corporate
america has adopted the same corrupt approach to how it treats
engineers as the folks in the weapons plants ...and at NASA.



Trying to make the military a profit center by using it
gain
dominance in the oil field regions will likewise
backfire...because it is unjust... that always
backfires...as
we see today quite clearly despite the level of luducrous
lies
from government on the issue. There are now 2 billion
muslims
that hate our guts with good justfication, and another 2
billion non christians in sympathy with those.

Historically this has always been the path to total
ruin...the
US is solidly on that path now, especially since the
election
of George W Bush.



I'm not in favor of the war, either. But, every country has
its own "non-productive" military.

I dont recall the figures but the US spends more than all
other nations combined I believe, by a huge factor, maybe 5 to
1 or some such. It is not the spending that is the issue...it
is the percentage of a nations GDP that goes to the military
that is relevant.

Ours is much higher than announced... the 'black budget' its
called. and absolutely corrupt to the core.




As far as indian infrastructure short comings are
concerned...that hurts them in manufacture, but not
engineering. The eningeering can be done from a hut with
a
high speed internet connection.

The chinese have overcome their infrastructure problems
enough
to have dominated.,... dominated... many formerly US
industries, such as appliances, and home electronics...now
moving into automobiles...as the US auto mfgrs are
scheduling
to shut down 75 million square feet of plant capacity over
the
next 2 years.

none of that will 'back shore' worth a damn...not even
faintly.



Its already happening. Its in my most recent post on
offshoring failure rates.

The same was said when we first started offshoring steel
production...'we will keep the engineering, finance, and R and
D...only dirty industry will be offshored'... and that was
*true...for about 10 years....now we have lost huge chunks of
those brain trust professions....

I am sure that we will back shore a few million jobs...I just
think that we will offshore twice as many more...not forever
though, just until the US middle class is down to 100 lbs, and
wearing sandals to save on the cost of shoes.





That business, equipment, infrastructure and brain trust
will
be gone forever unless we cease trying to force american
labor
to compete with slave labor living in barracks conditions
in
asia...and buying those goods, at the expense of our
industrial infrastructure... and over taxing our people so
that their wage demand is non competitive in the world
markets... over taxation will not abate until govt shrinks
80%... govt will not volunteer to shrink itself to any
significant degree.... the same with any cancer...its
founding
algorithm is parasitic.



Phil, the problem is in the exchange rates. They have been
set up decades ago and are obsolete when you consider
material/products compared to services before the internet
vs. after the internet.

I would like to say that the exchange rates are in fact a
crucial aspect of the problem... but still only part of the
problem.. the grossly bloated cost of US govt, mostly wasteful
or even destructive to US enterprise and its entrepeneurs is
perhaps the driving force behind the bogus exchange rates ..
thats a more complex analysis.





Phil Scott







.

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