Saturday, July 27, 2013

Why is foreign investment found money?

Trade.

Over investment is where it goes wrong. Over investment (outsourcing) destroys existing markets without replacing them with any that are viable.

Market research guarantees 'found money' and reduces risk.

Third World countries are high risk, even China, because they have no residual Middle Class and their products are sketchy in quality. High risk. China's imports have been very high risk to investment.

When a First World country such as the USA opens markets with Third World otherwise called Periphery Countries, the USA has to bring sophistication to that Third World country before products are imported. One of the first products that were immediately available for trade coming from Japan and China were 'native plants' to those countries. They are beautiful and coveted by landscapers to sell in their nurseries and use within their craft. It was a good beginning at the time. However, in the year 2013 those same species are now 'invasive species' and crowding out our own Native Species in the Wild. That being the case the invasive species are starving wildlife and game animals because they don't thrive on them.

Invasive species also cause environmental problems and destroy forests; ie: Kudzu. Ultimately destroyed forests cause soil erosion, ask the US Forest Service, they can attest to what happens when forests disappear.

"Found Money' in foreign investment is usually and 'at first' is found with the wealthy of that nation. If the wealthy can import all their luxuries they will never have a reason to increase their brain trust or grow their Middle Class. There will be no reason to invest in their own countrymen to have home grown products. Forever, the American Middle Class will disappear.

This is not Earth shaking information, but, it hasn't been visited here before and needs a revitalization to bring focus to the Chinese economic problems and the ultimate leaning that will be sought from the USA Treasury. China has plans to grow their Middle Class, but, they also need to expand their brain trust to provide for Public Health. In that lies the willingness for other nation's imports. The products have to be safe. Unfortunately, that was never valued at the time the banks made the investment into cheap labor. The changes needed in China and other nations won't happen overnight. Oops.

"Third World Happiness is Low Expectations." I don't want that in the USA. I don't poverty. I don't want my countrymen to be victims to Wall Street.

I don't want the USA used as a warrior culture blazing the trail for Wall Street profits.