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Chinese Investing in US railroads.

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Posted by Kyle on Wednesday, September 24, 2014 6:26 PM

schlimm

Euclid

Patrick,

This is the blog piece by Fred Frailey where he seems to advocate China expanding our railroads:

http://cs.trains.com/trn/b/fred-frailey/archive/2014/09/20/should-the-chinese-expand-u-s-railroads.aspx

I don’t think Fred has made it clear what advantage this would offer us or the terms under which it would be done. 

The article that Kyle linked in the OP is about China asserting itself in disputed territory in the South China Sea.  Perhaps the point is that Fred’s piece seems to assume that China might help us because they are our friend.  The linked article about the South China Sea casts some doubt on our friendship with China. 

The bulk of this thread is both off-topic (foreign policy and economic policy) and political.   

Well, if this thread is off topic than Fred Frailey's blog post is off topic as well.  This involves RRs too, as the main point is weather the Chinese should be allowed to expand US railroads.  The majority of Americans and I feel that we should not.  When envolving foreign policy and economy, politics come along with this.

 I bet Fred Frailey knew very well what he was getting into when he wrote that blog post.  He wrote about foreign and economic policy, and any good journalist should know that will always involve politics.   

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Posted by schlimm on Wednesday, September 24, 2014 6:01 PM

Euclid

Patrick,

This is the blog piece by Fred Frailey where he seems to advocate China expanding our railroads:

http://cs.trains.com/trn/b/fred-frailey/archive/2014/09/20/should-the-chinese-expand-u-s-railroads.aspx

I don’t think Fred has made it clear what advantage this would offer us or the terms under which it would be done. 

The article that Kyle linked in the OP is about China asserting itself in disputed territory in the South China Sea.  Perhaps the point is that Fred’s piece seems to assume that China might help us because they are our friend.  The linked article about the South China Sea casts some doubt on our friendship with China. 

The bulk of this thread is both off-topic (foreign policy and economic policy) and political.   

C&NW, CA&E, MILW, CGW and IC fan

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Posted by dakotafred on Wednesday, September 24, 2014 5:38 PM

gardendance

dakotafred

well, that's more U.S. treasure transferred to their account

Please explain this? Are we offering them subsidized investment? Despite Kyle's entreaty I didn't read the article, but as long as their investment is at market prices I don't see how it's US treasure transferred to their account, any more than if a US resident, or corporation, invested would be US treasure transferred to the resident's or corporation's account.

Just as when China sells us a shirt or pair of shoes, the money earned for building additional capacity for a U.S. road would leave the United States instead of sticking around to recirculate, as would happen with a U.S. contractor or if the railroad did the job itself.

The United States is currently on the short end of international trade to the tune of almost half a trillion dollars a year. This horse hockey has been going on for 30 years, with the blessing of all learned economists and the leadership of both political parties (but not of millions of Americans who have been beggared in the process).

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Posted by Kyle on Wednesday, September 24, 2014 4:56 PM

I added the link to Fred's blog post in the OP as well. I encourage everyone to comment on it, and rate it a one star (Unfortantally there is noting lower).

The link I gave explained how China is being very aggressive to it's neighbors.  There was also a part about how a Chinese amphibous ship ordered the USS Cowpens to stop in international waters, and dangerously cut in front of the Cowpens which resulted in the USS Cowpens having to take evasive maneuvers to avoid a collision. It is very interesting and I highly recommend you read it.

Personally, I think that if every American would spend a few bucks more to buy something make in the USA, more factories would come back and the wealth would stay in the United States instead of going over to Chinese factories.  

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Posted by Euclid on Wednesday, September 24, 2014 3:32 PM

Patrick,

This is the blog piece by Fred Frailey where he seems to advocate China expanding our railroads:

http://cs.trains.com/trn/b/fred-frailey/archive/2014/09/20/should-the-chinese-expand-u-s-railroads.aspx

I don’t think Fred has made it clear what advantage this would offer us or the terms under which it would be done. 

The article that Kyle linked in the OP is about China asserting itself in disputed territory in the South China Sea.  Perhaps the point is that Fred’s piece seems to assume that China might help us because they are our friend.  The linked article about the South China Sea casts some doubt on our friendship with China. 

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Posted by Norm48327 on Wednesday, September 24, 2014 3:10 PM

Patrick,

Do you think the Chinese are NOT going to demand a return on their investment? That would be profits going overseas.

Norm


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Posted by gardendance on Wednesday, September 24, 2014 2:52 PM

dakotafred

well, that's more U.S. treasure transferred to their account

Please explain this? Are we offering them subsidized investment? Despite Kyle's entreaty I didn't read the article, but as long as their investment is at market prices I don't see how it's US treasure transferred to their account, any more than if a US resident, or corporation, invested would be US treasure transferred to the resident's or corporation's account.

Patrick Boylan

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Posted by carnej1 on Wednesday, September 24, 2014 11:27 AM

dakotafred

The other Fred seems to think there is something magic about the Chinese ability to build rail lines. In China, absolute rule helps. Here, their projects would find themselves bucking the same tortuous gauntlet of NIMBYism and regulatory hurdles as domestic builders. To the extent they succeeded ... well, that's more U.S. treasure transferred to their account with which to buy more missiles pointed at us and our Pacific allies.

Off topic

I like the Chinese government not at all, but what many Americans fail to grasp and the Chinese do is that the 21st Century will be dominated by Economic rather than Military power (which is not to say that I don't take Russia and China's missile capabilities very seriously).

 But your point about why China can essentially build any infrastructure their leadership wants is a good one.

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Posted by dakotafred on Tuesday, September 23, 2014 8:16 PM

The other Fred seems to think there is something magic about the Chinese ability to build rail lines. In China, absolute rule helps. Here, their projects would find themselves bucking the same tortuous gauntlet of NIMBYism and regulatory hurdles as domestic builders. To the extent they succeeded ... well, that's more U.S. treasure transferred to their account with which to buy more missiles pointed at us and our Pacific allies.

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Chinese Investing in US railroads.
Posted by Kyle on Tuesday, September 23, 2014 5:21 PM

I would describe Fred's most recent blog about the having the Chinese government investing in US railroads as "foolishness  disquised as journalism".

I would like to ask you all to take a little bit of time and read this article:  http://www.bbc.co.uk/news/special/2014/newsspec_8701/index.html 

As you can see the Chinese don't play nice.  I think Fred's idea on having the Chinese government invest in US railroad is very high on the list of idiotic ideas.

Edit: Link to Fred's blog post http://cs.trains.com/trn/b/fred-frailey/archive/2014/09/20/should-the-chinese-expand-u-s-railroads.aspx?pi683=3#comments

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