Wednesday, Jul 07, 2010
Let's have exports led growth instead of properties bubble led growth
Bloomberg: Obama Says U.S. Increasing Access to Export Financing
Obama created the Export Council in March, laying out a goal of doubling U.S. exports during the next five years to about $3.1 trillion by 2015, supporting 2 million additional jobs. He said today he wants the panel to send him a progress report in September, two months before the elections.
The president highlighted 18 trade missions coordinated by the Department of Commerce, loans from the U.S. Export-Import Bank that have helped support almost 110,000 jobs, and new agreements on exports of U.S. agricultural products.
The U.S. reached an agreement in March to resume exports of pork to China and in June to reopen poultry sales to Russia, two steps worth more than $1 billion in annual sales, according to the administration.
Posted by simon68 @ 06:17 PM (955 views) Add Comment
20 Comments
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1. braindeed said...
Time to play.
The 'boyz' will get their snouts into this latest tranche and be playing with it soon enough.....just call it QE2 - cruise anyone?
Re Captcha quipped increase..... :-)
2. mr g said...
I agree agree entirely that we need export led growth but where is it going to come from?
During a 45 year career in manufacturing I have seen that sector decimated and whilst there are still a number of excellent firms making things, there simply isn't the volume being produced to make a significant impact.
With regards to other possible exports:
Food? Possibly but not in large volumes.
Technology and "green" products? Not in large volumes
Which brings us to the "smoke and mirrors" world of the financial sector. Yet again, I cannot see this filling the gap.
I'm sorry to sound negative but I just cannot see UK plc having the means to create export led growth as we have now become such a service orientated economy. I don't see much demand for British EA's, hairdressers, nail technicians etc abroad.
ReCaptcha: Brezhnev winches ??
3. Crunchy said...
"Let's have exports led growth instead of properties bubble led "
That would make countries economically stronger and less able to be taken over by their national lenders the money changers.
Can't have that Old Blighty! Can you see what it is yet. Braindeed can. The world cruise.
Recaptcha "Rumba annual"
4. tenyearstogetmymoneyback said...
It is very disappointing that one of the Government cuts has been a loan to
Sheffield Steelmasters for setting up a new forge for making huge parts.
At present there is only one place in the world that can do this type of work and
that is in Japan.
5. tom101 said...
We're obviously not suddenly going to develop a manufacturing industry again. Surely UK's best bet is to take a punt on being extraordinarily business friendly. Slash tax rates, make it easier to 'officially' obtain working visa's.
6. 51ck-6-51x said...
It's not like the UK don't export merchandise, but we could do more...
As a proportion of GDP calculated by PPP we export more than twice as much as the U.S. but less than half as much as Germany.
10years said, "...for setting up a new forge for making huge parts."
- yeah they should've asked, I've got huge parts. Fnar fnar.
7. 51ck-6-51x said...
^^ Note I am only talking about merchandise exports (i.e. not including services!)
8. mander said...
OK, please everyone watch this movie "Dollar Devaluation" to increase exports of US of A. My experience tells me that it is all about value for money rather than a good directed movie.
Obama can't see the elephant in the room which is China but he does like the Europen model. And what we are doing here in the UK for exports? Nothing, we keep talking about property prices and Capital Gains Tax. Any measures to support exports in the Budget? No. CGT at only 28% was the only compromise.
9. Crunchy said...
Where is icarus?
All my favorite bloggers seem to vanish.
Recaptcha "said angrily"
10. drewster said...
666 and others,
Why should we export basic factory goods when we do so much better exporting services and high-value goods? We can sell Pop Idol to 28 countries. We can sell international financial & legal services, English-language services (still the international language of business). We can sell cutting edge medical and scientific tools. Over the last 12 months I've been working with a company which sells architectural & civil engineering designs around the globe - seriously high-value stuff. There's no point in the UK trying to become the world's biggest exporter of widgets; we're far better at other things.
11. tenyearstogetmymoneyback said...
drewster
I think what we really need is both. Also I wouldn't call a Jet Engine or Top Casing for a Nuclear Power Station a widget.
Back to one of my usual gripes watching the news last night (showing lots of police activity) was like an advert for Volvo cars.
Would anyone take British architecture seriously or hire British Architectects if buildings like the Gherkin were designed abroad ?
12. simon68 said...
To: 51ck-6-51x
United States does have aggregate Exports of USD 1,057,700 (millions) more than UK’s USD equivalent of USD 351,000 (millions). UK is just a bit better than the tiny dinky Hong Kong. Hong Kong’s Exports figure is USD 330,000 (millions).
Even if we adjust the figures using PPP conversion rate, it won’t make a big difference. PPP conversion rate is USA (1.034671533) and UK is (1.608742934).
http://img710.imageshack.us/img710/6264/countrybyexports.gif
13. simon68 said...
As regard legal services, I learn that Wall Street Lawyers are flocking to Hong Kong China sitting for Hong Kong Bar Exam but never heard of British Lawyers doing the same.
In respect of financial innovation (scam banking), I don’t see foreigners would be interested in buying CDO, CDS such kinds of scam products anymore after 2008 Financial Tsunami!
14. simon68 said...
Wall Street Lawyers Take Hong Kong Bar for China Fees
July 06, 2010, 12:24 AM EDT
(Adds International Chamber of Commerce Arbitration court comment in tenth paragraph.)
By Debra Mao
July 6 (Bloomberg) -- William Barron, who advised Industrial & Commercial Bank of China Ltd. on the world’s largest privatization and Cnooc Ltd. on its 2005 attempt to buy Unocal Corp., qualified to be a Hong Kong lawyer this year.
The 53-year-old partner in Davis Polk & Wardwell LLP’s Hong Kong office and 16 of its other 24 lawyers in the city took the exam as law firms bet that the special administrative region of China is the key to future fees from the world’s fastest-growing major economy.
Beijing-based firms including King & Wood have opened in Hong Kong, where the number of international law firm offices has almost doubled to 69 since 2004 as Chinese companies’ share of Hong Kong’s market capitalization has risen to half from less than 5 percent in 1993. That’s a challenge to London-based firms in the former British colony, the only part of China where foreign lawyers can advise on local law.
http://www.businessweek.com/news/2010-07-06/wall-street-lawyers-take-hong-kong-bar-for-china-fees.html
15. simon68 said...
As regard architectural & civil engineering designs, Chinese isn’t bad.
http://img196.imageshack.us/img196/9016/louvre.gif
http://img149.imageshack.us/img149/8573/leohmingpei.jpg
16. simon68 said...
To: tenyearstogetmymoneyback
Volvo has been sold to China's biggest privately-owned car firm, Geely, from US car giant Ford for $1.8bn (£1.2bn).
17. braindeed said...
11. simon68 said...
In respect of financial innovation (scam banking), I don’t see foreigners would be interested in buying CDO, CDS such kinds of scam products anymore after 2008 Financial Tsunami!
CDO, CDS?...agreed, they're old hat...no, the point I was making is that we're due for a big pile of 'NEW' polished turds, and in the game of pass the parcel, everyone makes money until the muzac stops. It's the only game in town now.
WOW!!! ReCaptcha....horseman transporta
18. tenyearstogetmymoneyback said...
simon68 I knew that.
The point that if a Police force buys a Nissan Primera for say £15K then it creates (finger in the air time here) £7K of work
in the U.K. which at current tax rates means 3K in Government receipts and has little effect on the balance of payments etc.
If they buy a Volvo the that is £15K gone from the country + the cost of paying people dole money etc.
The final point is that it must create a very bad impression of the UK when it looks as if we are incapable of building
cars for our Police Force. Can you imagine the French Police being allowed to buy Volvos, BMWs (or Jaguars) ?
19. simon68 said...
National Police (France)
Cars
While the vast majority of vehicles are screenprinted French brand (mainly Renault, Citroen and Peugeot), some service vehicles are provided by Ford and Opel. Plain clothes officers or specialised branches use vehicles from a variety of builders.
20. simon68 said...
Peugeot will set up a production line in China...........
http://www.the-sun.on.cc/cnt/finance/20100708/00434_019.html