Your next SUV

If you need a full sized SUV in the ‘entry level luxury’ class, it will likely be a GAC GS8, marketed in China under the ‘Trumpchi’ brand – (that name will be changed when it is introduced here in late 2018/2019).  It’s a bit under-powered with a 2.0l turbocharged gas engine putting out 201 hp, but the huge upside is that it will retail for about $25,000.  You can buy three or four for what an upscale SUV cost now.

They have a mid-sized SUV which I’m looking at, the GS7.  $10,000 less than some Subaru Foresters.

Before you go ballistic about Chinese junk, almost everything you own is Chinese.   Before that it was likely Japanese and now Korea is coming on strong.  The most reliable cars are Japanese and Korean…unless you like Buick’s Envision which is made in China…or you have a Volvo S60 or S90 which are both made in China (Volvo is owned by a Chinese company).

Chinese cars are going to be really cheap just like all of the Japanese and Korean cars were until they established themselves here.  Before them, German cars were cheap…no more, of course, and they aren’t as good as they once were, either.

So what else is outsourced (mostly to China)?  iPhones and iPads of course. All of our optics (including Meade & Celestron telescopes and all binoculars and riflescopes), Most of our pharmaceuticals. Donald Trump’s clothing line.  Barbie dolls (and everything else Mattel sells). Fisher-Price toys.  Huffy and Schwinn bicycles. Nike, Converse, New Balance, Levi Strauss, L.L. Bean, Rawlings sports equipment, Samsonite luggage, Ray-Ban, Brach’s candy, Fender Stratocaster guitars, Dell (and all other) computers, Black and Decker, Dremel, Craftsman (and MOST hand and power tools, industrial machines, even heavy equipment),  Ford  (the new Ford plants are going to China instead of Mexico), Chevy, RAM 1500 trucks (Chrysler is owned by Fiat), Gerber foods, 99% of everything Wal-Mart sells, and on and on.  Are Texas Instruments products manufactured in Texas?  Not so much.  Mostly China, Taiwan, Japan, Malaysia….

Here is something you don’t know:  China owns twice as much US debt as the Federal Reserve.  Since private banks own the Federal Reserve, and China is incrementally acquiring stakes in them, it can begin to influence the FED, which controls the US money supply.  China has tried to buy the Chicago stock exchange several times but has been rebuffed by the government. Still, China has spent over $300 BILLION in recent years acquiring US corporate properties. Now the US is talking Trade war with China over steel and aluminum. It would have been a good idea in the 80s, but its way too late.  China owns so much US debt that it can tank the US economy in 24 hours if it wants to.  Remember 2007?  The US economy didn’t come within an inch of tanking because of badly packaged mortgages.  It almost tanked because China sent a message.  And we listened, and China reciprocated by continuing to buy US debt to keep us afloat.  A trade war won’t affect that.  Trade wars are politics in this century, not business.  But bluster aside, the US can’t push a serious trade war or military confrontation with China, Russia or even North Korea (which China keeps as its chained pit-bull to bark and snarl at the US).

We don’t have the clout anymore because we no longer have the national will to be a great country.