China, Debt, and Housing

Secretary of State Hillary Clinton was in Beijing encouraging the Chinese government to buy United States' debt.

Translated, this means the U.S. wants China to keep loaning us money for our empire and we will continue to buy goods made in China.

Human rights groups lamented the lack of admonition by the U.S. to China about human rights violations. When one country needs credit and money they do not have the financial strength to make demands of their creditors.

As an aside, many white business owners hire minorities from Asia to produce their goods. This shows capitalism is not racist. Capitalism will seek the lowest cost of production. It does not care about the race or gender of the producers. The cheapest cost of production now is in some Asian countries and that is where the production goes. American labor unions and government regulations, such as the minimum wage, have driven up the cost of production. If women get paid less than men for the same work then businesses would be hiring only women, if the government would get out of the way.

It is confusing that Secretary of State Clinton would want to support China's production to sell us goods while our politicians and others complain about our manufacturing jobs going overseas.

You do desperate things when you are burdened with debt, as is the U.S.

California Budget-

When CA has an over supply of houses, why would the CA government offer a $10,000 tax credit (to buy a NEW house) that will encourage the building of more homes that are not needed? Ah, the wisdom of government tied in with the lobbying of the home builders.

Charles Tolleson
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http://activerain.com/blogsview/945742/California-New-Home-Credit-10000
Here is the summary of California's $10,000 Tax Credit for New Home Buyers:
The actual credit is 5% of the purchase price, up to $10,000.
"New" literally means new. It has to be new construction - never lived in before. (The rationale is that new homes are more advantageous to California's economy)
This must be your principal residence
The credit is spread over 3 years ($3,333) per year, starting in the year of purchase.
You must live in the house at least two years
California has only budgeted $100 million, once the money is gone, so is the credit (The credit officially starts March 1, 2009 and ends December 31, 2009)
If you qualify for the $8,000 federal credit, you can use both and receive a total of $18,000! See our blog at http://activerain.com/blogsview/935253/8000-Tax-Credit-10-Things-You-Should-Know
As always, tax laws evolve over time and there are always more details, so be sure to consult with your tax advisor and realtor before buying or selling real estate.
Nancy Moeller, CPA, Real Estate Broker
Seven Gables Real Estate
Direct: 714 276-7006