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America Dominated - and Now Dependent on Others for its Standard of Living
Economy in Crisis
How can we call ourselves a "Super Power," if we can't even support ourselves?
America is now so wholly dependent on foreign countries to finance its government, its consumption, and its production that we are becoming utterly helpless against the cohesive planned economic attack being waged by these other countries. The result of this is the buying out of our critical industries and resources and the crippling many of our remaining American owned industries.
Total Foreign Control
Foreign countries own as much as 53% of our Government debt (Fed Reserve, Dec 2004) and are on pace to take control of over $700 Billion of US assets in 2005 alone (current pace of US trade deficit with rest of the world through first 5 months of 2005). On average, the IRS calculates that $1 in $4 spent in America on manufactured goods goes immediately to imports. Certain key chokepoint industries in this country are almost totally controlled by foreign countries (Cement Industry 81% - Movie Industry 70% - TV Industry 100%).
Buying Us Out With Our Own Money
As former Assistant Treasury Secretary under President Reagan, Paul Craig Roberts writes, the "result of many years of persistent trade surpluses with the United States, the Japanese government holds dollar reserves of $1 Trillion. China's accumulation of dollars is approximately $600 Billion. South Korea holds about $200 Billion."
These dollars are returning to this country to buy us out and to exert influence over our ability to control our future.
How does this happen?
- Other countries use cheap labor, subsidized loan programs, and advanced technology to make and sell us goods cheaper than we can make here in America.
- Free trade policies allow these countries collectively to target specific industries here in America and sell below cost. US manufacturers object but US consumers extol the ability to buy cheap foreign imports and temporarily improve their individual standard of living.
- Facing subsidized foreign competitors who themselves are protected in their home markets, US manufacturers go bankrupt or are forced to outsource to survive (e.g. Boeing's new 7E7 is 52% designed and manufactured by Japan, Italy, and other countries, General Motors routinely uses Honda engines in several lines).
- US loses its manufacturing base through the aforementioned bankruptcy or acquisition and this increases the dependence on foreign producers.
- Foreign countries use the American dollars earned from selling us foreign consumer goods to invest in US Treasuries and to buyout our remaining industry.
- American government becomes so dependent on foreign Treasury buyers that it can not object when foreign countries seek to buy out our core companies.
- American consumers feel no effects in the short-term because foreign purchases of US Treasury bonds keeps interest rates low and the money supply high.
- Meanwhile, very low savings, high borrowing and debt, and the hollowing out of American industry is leaving us with a very dim future.
Faced With Uncertainty
We need our leaders to immediately recognize the true state of our dependence on foreign money and foreign goods. We are fast losing our ability to take corrective action by failing to admit that there is a problem.
Please write your congressperson and the President your thoughts and suggestions.
SOURCE: Economy in Crisis
Articles:
Reflections On General Electric's Global Strategy
America Now Extremely Vulnerable
Will the US Need an IMF Bail Out?
China Leads U.S. in High-Tech Goods
Who Killed General Motors?
Are We Blind?
Bad for the Country
Bite the Bullet on Free Trade?
Selling Out
American Dominated - and Now Dependent
Specialty Metals Industry is On Offense on Defense
Can Globalization Fail? Lessons from History
Bush and Congress Ignore Security Warnings
How Can America Restore Its Industrial Self-sufficiency?
Saving this Presidency. . .Why Bother?
Buying CAFTA
Manufacturing Matters More Than Ever
Does Engineering Matter and is Free Trade Really Free?
Aren't We Fooling Ourselves?
Response to Letter Signed by CEOs of Worlds Leading Corps.
The Collapse of Globalism
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Copyright 2006 | jack@jackdavis.org