Saturday, April 23, 2011

We Dug a Hole That Went Clear Down to China

jg bennet ~ writing comments to David Frum's article
Click here: Why Main Street Takes Trump Seriously FrumForum#comments
and to the comments it elicited in FrumForum:

Apr 21, 2011 at 9:55 am


we are already in a trade war with china and losing badly!

perhaps you are too naive or free trade propagandized to see that we are in a war? well open your eyes and put down the free trade kool-aid and if you have the courage to accept your error read this it is from the horses mouth.

we are losing the trade war big time!!

china has already decimated our manufacturing base and you know what? that is how wars are won.

once a nations manufacturing base is destroyed it is to the victor goes the spoils. look at the south in the civil war they lost largely because the north had ten times the manufacturing base. we defeated germany by destroying their manufacturing base it is old school how to win a war 101…..

According to Forbes, the United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001. Hundreds of formerly thriving industries in the United States are being totally wiped out. China uses every trick in the book to win trade battles. They deeply subsidize their domestic industries, they openly steal technology, they blatantly manipulate currency rates and they allow their citizens to be paid slave labor wages. So yes, the products coming from China are cheaper, but in the process tens of thousands of factories in the U.S. are shutting down, millions of jobs are being lost and the ability of America to create wealth is being compromised.


Times are changing and like it or not free trade has terminal cancer.

A New Economic Paradigm

04/20/11 Singapore, Singapore – Since the 1980s, a culture of debt has arisen in the United States. That change was the consequence of a misguided trade policy that gave rise to a current account deficit of unprecedented size. Between 1982 and 2008, the United States imported $7.4 trillion more than it exported. It financed the shortfall on credit. That credit transformed the structure of the US economy.

Every country’s balance of payments must balance. Thus, between 1982 and 2008, $7.4 trillion in foreign capital entered the United States to finance that deficit. That amount was considerably more than the entire amount of US government debt held by the public at the end of 2008, $5.8 trillion. As the money flowed in, it created a credit-fueled economic bubble—just as foreign capital inflows blew Latin America into an economic bubble in the 1970s and the Asian crisis countries into economic bubbles in the 1990s.

In the process, the structure of the US economy changed. The manufacturing sector was decimated when exposed to ultra-low-wage foreign competition, while the service sector came to dominate the economy and employment as credit-driven asset price inflation created the wealth that made many of those services profitable.

Consequently, over less than three decades, as the US trade deficit grew to previously unimaginable levels, the country’s economic growth model became one of credit-financed consumption that depended on ever-increasing amounts of credit each year to sustain it. In 2008, when the private sector could no longer bear the burden of so much debt, that economic paradigm collapsed.

That paradigm of debt-fueled consumption can never be resuscitated. The US economy is now on government-funded life support that cannot be paid for over the long run. The limited nature of government resources makes it inevitable that a new economic paradigm will emerge over the next five to ten years. The future of the United States—and the rest of the world—will be determined by the form that new paradigm takes.



china will cave because their leaders are basically the mafia not patriots and could care less about their country/people or global politics and more about their personal fortunes………….

WikiLeaks: China’s Politburo a cabal of business empires

China’s ruling Politburo is a cabal of business empires that puts vested interests over the needs of the poor and curtails media freedoms to avoiding having shady business deals exposed in the press, according to a leaked US government diplomatic cable.

The damning description of China’s secretive leadership machinations also described how the descendants of China’s Communist revolutionaries – known as “princelings” – derided officials from less august revolutionary backgrounds as mere “shopkeepers”.

The assessment of what motivates China’s opaque top-level decision-makers was relayed to Washington in July 2009 in one of the 250,000 cables published by the WikiLeaks website.

“China’s top leadership had carved up China’s economic ‘pie,’” the US embassy contact said, “creating an ossified system in which ‘vested interests’ drove decision-making and impeded reform as leaders maneuvered to ensure that those interests were not threatened.” The US embassy contact also asserted there were no “reformers” within the top Communist Party leadership, only competing factions that sought to protect their business empires from attack by in-coming leaderships.

The source said that it was “well known” that former Chinese premier Li Peng and his family controlled China’s “electric power interests” while the country’s security tsar Zhou Yongkang controlled the state monopoly of the oil sector.

The wife of China’s premier Wen Jiabao, a popular figure in China often affectionately referred to as “grandpa Wen” for his feelings for the common man, is said to control China’s “precious gems” sector, while Jia Qinglin, ranked fourth in the Politburo, has “major Beijing real estate developments”.

the rest of the article is here

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