3 Misconceptions about the US that need to die

www.fool.com...

I must say I was a little shocked at these misconceptions because I to believed the opposite. The article has sources and facts to back up the claims.

Misconception #1

Misconception: Most of what Americans spend their money on is made in China.

Fact: Just 2.7% of personal consumption expenditures go to Chinese-made goods and services. 88.5% of U.S. consumer spending is on American-made goods and services.

Misconception #2

Misconception: We owe most of our debt to China.

Fact: China owns 7.8% of U.S. government debt outstanding.

Misconception #3

Misconception: We get most of our oil from the Middle East.

Fact: Just 9.2% of oil consumed in the U.S. comes from the Middle East.

Just posted that for people breezing by, but I suggest reading the article because it is quite interesting.

Source of facts please, and misconception number 2 doesn't actually answer the question. It still is possible that China is the biggest creditor if every other source is below 9%

reply to post by stigup


Do also remember that for #1, "consumption" is rather... uh... gamed. See, our prison systems count as "consumption." Every minute you spend in a traffic jam adds to "domestic consumption." You know how so many food companies are having to recall their products lately due to E. coli? That counts as consumption twice. Those gigantic landfills you see dotting the country? Guess what, they also figure into consumption, as well as GDP. Yup, the more garbage we make, the higher our GDP figures get. In fact all these other things also count towards GDP. Did you know for instance, that the worse our national infrastructure gets, the higher GDP goes (At least temporarily) due to inefficiency driving consumption higher?

And these are the standards by which we judge our own prosperity as a whole.

reply to post by stigup


Number 1 is BS.

2.7%.....yea right.

So what do you make in america??? Apple phone..nope....macs....nope...tv's...nope...cars....nope.
Total nonsense.

EDIT: Look at this page...
www.made-in-china.com...

I think its fairly obvious that most products we buy are made in china...even here in the UK.

reply to post by stigup


I think they are all absolutely wrong and absurd.


Misconception 1.

Notice the little tag line "personal consumption expenditures". Basically, that equals to food, water, and fuel. It isn't included everything else such as electronics, clothing, vehicles, and the countless other things that are simply NOT produced anywhere in America. Basically they take a nice little CUT out of the overall picture and present it as the whole.

As far as their calculations on toys and clothing mostly being made in America, it is a dead set lie.

Misconception 2.

As someone already said, it doesn't say who the rest of our debt is owed to and therefore, if China is the highest, then we DO owe most of our debt to China. Considering that the argument is that we apparently "own" our own debt, which only in an insane institution does that make any sense whatsoever, China probably is STILL the biggest "foreign" holder of our debt.

Misconception 3.

On the books. Considering the US has a hand in nearly every oil baron country of the Middle East, I think it is safe to say that we have SOME stake in the oil. Perhaps we aren't importing the most from the Middle East, but what is the point? The oil sold from most of the Middle East goes to line the pockets of Americans in government anyway. Either way, the pooch is screwed in the end regardless of the "misconception" or not. There is no denying that the US has a hand in the Middle Eastern oil business, so it doesn't really matter which way it slides.


In summary, I'd say these "misconceptions" aren't misconceptions at all, but rather a lax of understanding to the details. Most of them are blanket statements that people don't understand or don't care enough to try to understand and will simply take what they hear at face value.

Originally posted by stigup
Misconception #1

Misconception: Most of what Americans spend their money on is made in China.

Fact: Just 2.7% of personal consumption expenditures go to Chinese-made goods and services. 88.5% of U.S. consumer spending is on American-made goods and services.

The article goes on to say:

The figure comes from a Federal Reserve report.

How can you go wrong with such a reliable source? After all, the Federal Reserve Bank is well known for its openess and honesty in accounting.

I have three more misconceptions about the US that need to die.

1. The United States of America is a free country. The rights of its citizens is protected by the US Constitution, and the government does not infringe on those rights.

2. The United States is a democratic republic. Citizens elect representatives who work in the best interests of their constituents, and the law applies equally to everyone. Our form of government is a shining example of liberty and justice for the rest of the world.

3. The United States military is actively involved in protecting the rights, freedoms, and security of American citizens.

The oil one is correct. Venezuela, America and Canada are the largest providers of crude oil to america.

Originally posted by DoctorSatan
The oil one is correct. Venezuela, America and Canada are the largest providers of crude oil to america.

They import 58% of their oil, most of this is allegedly from countries in the western hemisphere.

Saudi Arabia sends 360,934,000 barrels of oil per year (989,000 barrels per day), 20 percent of its total oil exports, to the United States, according to the EIA. Saudia Arabia’s economy is fueled by oil, which accounts for 90 percent of the kingdom's export revenues and 45 percent of its GDP, according to the CIA World Factbook.

Iraq exports 163,684,000 barrels of oil per year to the United States (448,000 barrels per day), worth over $9 billion in 2009, according to the EIA. This makes the United States Iraq’s number one oil export partner.

The only thing I can conclude is that the opening poster just now put up his source. Had it been available for people to look at before they posted responses, none of the things that have been said would have been said.

If the source has been up there all along, the posters should be mightily embarrassed.

reply to post by stigup


Interesting you should bring this up. I have a friend who thinks he has the solution to all the economic troubles here in the US. If within the next 5 years everyone traded their foreign automobile and bought an American car America would be back in the drivers seat so to speak and not so dependent on good from China or anywhere else.

His simple plan to rescue the USA.

Everyone within the next 5 years - buy an American Car.

reply to post by newcovenant


Buy an american car......because they are renowned for their quality.....LOL


If american made cars were so great...wouldnt people already be buying them over foreign manufactured cars??

EDIT: Most electronics are manufactured in china, so most of the car would still be chinese anyways

No. 1 is BS.

The article fails to identify between durable goods versus non-durable goods (food, gas, utilities like water, electricity, etc.) Durable goods like electronics are still nearly entirely made in China and to a lesser degree Japan/Singapore.

There's also a major issue with "Made in China" and "Made in USA" labels. It's not nearly as cut and dry as it once was. "Made in USA" labeled goods still have major portions and components made in China, but isn't labeled.

A company can claim the lofty title of "Made in the USA" if it has it's R&D here in the US, but still uses 100% of it's manufacturing in China. The newer signs are also now showing the traditional R&D is also flocking to China to be closer to it's manufacturing base, meaning high-tech jobs are leaving the US as well and not just the lower-end labor jobs;

R&D Following Manufacturing to China
China close to catching U.S. in manufacturing
How U.S. Surrendered Manufacturing Base to China
Is ‘Made in China' avoidable? - Business - World business

Business leaders know "Made in China" labels hurt US sales, so now the rule-bending subversion of labeling rules kick in and "Made in USA" no longer means what it used to.

And don't forget the Chinese Economic Zones proposed for the United States, where China will acquire 50 square miles of land as sovereign territory for manufacturing centers to be populated with Chinese nationals - so their merchandise and products will be able to reach our masses without the hassle of having to ship it here...

China plans special economic zones in the US
China's first special economic zone in the USA
China Wants To Construct A 50 Square Mile Self-Sustaining City South Of Boise, Idaho

Thanks to the trillions of dollars that the Chinese have made flooding our shores with cheap products, China is now in a position of tremendous economic power. So what is China going to do with all of that money? One thing that they have decided to do is to buy up pieces of the United States and set up "special economic zones" inside our country from which they can continue to extend their economic domination. One of these "special economic zones" would be just south of Boise, Idaho and the Idaho government is eager to give it to them. China National Machinery Industry Corporation (Sinomach for short) plans to construct a "technology zone" south of Boise Airport which would ultimately be up to 50 square miles in size. The Chinese Communist Party is the majority owner of Sinomach, so the 10,000 to 30,000 acre "self-sustaining city" that is being planned would essentially belong to the Chinese government. The planned "self-sustaining city" in Idaho would include manufacturing facilities, warehouses, retail centers and large numbers of homes for Chinese workers. Basically it would be a slice of communist China dropped right into the middle of the United States.

This is a repeat of the Special Economic Zones China has put to great use (for itself) throughout Africa - they've taken hundreds of square miles of Africa in said fashion.

Buy an american made car? What car; Toyota,Subaru,Nissan,Etc. all made in america from foreign produced parts.Ford, Gm, made in Mexico.Ford is sending all it's engine manufacturing to China. What American cars would we be talking about????

Originally posted by newcovenant
reply to post by stigup

 

Interesting you should bring this up. I have a friend who thinks he has the solution to all the economic troubles here in the US. If within the next 5 years everyone traded their foreign automobile and bought an American car America would be back in the drivers seat so to speak and not so dependent on good from China or anywhere else.

His simple plan to rescue the USA.

Everyone within the next 5 years - buy an American Car.

That's one of those conundrums where not enough people have the money to trade up to a new car or truck.
The country needs the jobs to get the money, but needs the money to get the jobs started.

Originally posted by newcovenant
reply to post by stigup

 

Interesting you should bring this up. I have a friend who thinks he has the solution to all the economic troubles here in the US. If within the next 5 years everyone traded their foreign automobile and bought an American car America would be back in the drivers seat so to speak and not so dependent on good from China or anywhere else.

His simple plan to rescue the USA.

Everyone within the next 5 years - buy an American Car.

New Car...........

I can't even afford the insurance, new starter, or gas, to put in the one I'm driving now.

Originally posted by whaaa

Originally posted by newcovenant
reply to post by stigup

 

Interesting you should bring this up. I have a friend who thinks he has the solution to all the economic troubles here in the US. If within the next 5 years everyone traded their foreign automobile and bought an American car America would be back in the drivers seat so to speak and not so dependent on good from China or anywhere else.

His simple plan to rescue the USA.

Everyone within the next 5 years - buy an American Car.

New Car...........

I can't even afford the insurance, new starter, or gas, to put in the one I'm driving now.

No but within five years you could make the decision to swap your foreign junker for an American one.

It isn't mandatory of course. Only if you wanted to do something pro-active and not just complain about your poor economically depressed country. I think my friend had an excellent and simple plan.

Originally posted by newcovenant

Originally posted by whaaa

Originally posted by newcovenant
reply to post by stigup

 

Interesting you should bring this up. I have a friend who thinks he has the solution to all the economic troubles here in the US. If within the next 5 years everyone traded their foreign automobile and bought an American car America would be back in the drivers seat so to speak and not so dependent on good from China or anywhere else.

His simple plan to rescue the USA.

Everyone within the next 5 years - buy an American Car.

New Car...........

I can't even afford the insurance, new starter, or gas, to put in the one I'm driving now.

No but within five years you could make the decision to swap your foreign junker for an American one.

It isn't mandatory of course. Only if you wanted to do something pro-active and not just complain about your poor economically depressed country. I think my friend had an excellent and simple plan.

Why did you make the assumption it's a foreign junker? Actually it's junk made by Chrysler from St. Louis.

We used to make steel in America now we make "happy meals" ...........why?

Corporate greed motivated by profit and the consumer be damned. That's not gonna change.

It's a brave new world; welcome to the monkey house.

reply to post by loves a conspiricy


Actually, number one is correct:

Yet America remains by far the No. 1 manufacturing country. It out-produces No. 2 China by more than 40 percent. U.S. manufacturers cranked out nearly $1.7 trillion in goods in 2009, according to the United Nations

link

The US manufactures planes, appliances, trucks, fertilizers, cosmetics, and pharmaceuticals, computer chips, and machine parts.

reply to post by loves a conspiricy


How much they export does not equate to the same number that is imported.

How old is Number Three? Seems we been acquiring the worlds oil reserves as fast as we can lately?