Sinking Currency, Sinking Country

World Net Daily ^ | 11/02/07 | Pat Buchanan

[Thorin]

The euro, worth 83 cents in the early George W. Bush years, is at $1.45.

The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.

Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800.

Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years?

Nope. The dollar has plummeted in value, more so in Bush's term than during any comparable period of U.S. history. Indeed, Bush is presiding over a worldwide abandonment of the American dollar.

Is it all Bush's fault? Nope.

The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.

[texastoo]

Maybe I missed it but I don't see where Boeing is going to move their final assembly to China.

This post says it all!

[1rudeboy]

Well, that’s a pretty good argument in favor of a free trade agreement with China, but I’m not willing to go that far. Care to take a stab at my question?

[RSmithOpt]

As I see it, passing of NAFTA did nothing much for the Mexican worker.....it gave him a job, but their standard of living hasn’t come up much as pro-NAFTA politcoho’s gushed about. It just made some US companies more profitable by reducing their labor costs.

[Toddsterpatriot]

There would have been if China didn't enter the picture.

How long was NAFTA in place before China "entered the picture"?

[Mase]

Assembled here baby.

And if you were a Boeing exec would you assume the risk and cost of moving all that production to another country? Especially when a weaker dollar is making your product more competitive than your only rival?

Cheaper labor as in way cheaper labor.

Why is their labor cheaper and ours more expensive? Do you understand anything about productivity? If labor cost is the only consideration why do we still manufacture more here today than at any other time in our history? Why hasn't all our manufacturing moved overseas? Why do so many foreign manufacturers choose to locate here? Is it our cheap labor?

Opening any new manufacturing plants in China lately?

To do business in some countries and continents you have to physically be there. Not all companies can export their products and be successful. That's pretty basic and common knowledge. Were you aware that about 60% of what China exports comes from foreign owned firms? Should we ban our companies from locating in China and just cede that emerging market to the Europeans, Japanese, Koreans and others? The left in this country would like to have that power and would love it if more big government conservatives, like Pat Buchanan, would lend them a hand.

[am452]

One reason why are standard of living is higher today is the dual incomes. Most married women in the thirties did not work outside the home.

How many families today would live like they do if you took the wife's income out of the picture?

[1rudeboy]

Are you proposing to make dual incomes illegal? Please elaborate.

[am452]

Are you proposing to make dual incomes illegal? Please elaborate

Not at all. My wife works. AC was making a blanket stament that things are better for the average American family versus the 1930's but he does not consider or mention other factors such as the dual incomes which has enabled families to have more disposible income. You cannot compare the past lifestyle with todays. They don't compare apples vs apples.

[1rudeboy]

You cannot compare the past lifestyle with todays.

Sure you can. If you want to live in a bungalow with no garage, air conditioning, or even washing machine, just tell your wife to quit her job. That standard of living will be well-within your reach. (At least it should be).

[Alberta's Child]

That’s a valid point, but even if every married woman with kids gave up their job outside the home our standard of living would still be several orders of magnitude higher than it was back in the 1930s.

[OB1kNOb]

Thus a weak dollar is GOOD for our economy.

So by that logic, when the dollar is worth nothing, we'll live in Utopia and have all we need? I can't wait!

[1rudeboy]

You’d best not toss around the word “logic.”

[am452]

How long was NAFTA in place before China "entered the picture"?

China started to really enter the picture in the late 90's. After Nafta was pased in what '94? Do you think most companies were going to start building plants in Mexico the next day? No. Nafta was something new. Most companies did not know how to proceed to another country and were cautious.

Most were watching to see what other companies were going to do...and how they did it. Building a new plant in another country does not happen overnight. Or companies were waiting to see if Nafta was going to stand and not be repealed or amended and then their plant in Mexico would bhave been a bad business decision. Just as many companies have watched how other companies that have moved to China have done it and took their time moving over there.

[RSmithOpt]

We have a lot more McDonalds, Wendy's, Dollar Stores, food stores, Wally Worlds, etc. strip malls, than ever before all employing 98% part-time 36-38 hr / week workers as not to have to pay (even offer) full-time benefits, on and on.

You know any construction workers or factory floor workers? Doubt it.

The illegal immigration flood has had the effective result of keeping those wages depressed for years now.

To me, I knew once when the average American could raise a family on those types of jobs, have medical coverage, and pay for a home.

Not any more.

Laugh at this:

Sources: Congressional Budget Office; Department of Labor, Bureau of Labor Statistics.

Note: The vertical bars indicate periods of recession as defined by the National Bureau of Economic Research.

The manufacturing sector of the U.S. economy has experienced substantial job losses over the past several years. In January 2004, the number of such jobs stood at 14.3 million, down by 3.0 million jobs, or 17.5 percent, since July 2000 and about 5.2 million since the historical peak in 1979. Employment in manufacturing was its lowest since July 1950 (see Figure 1).

Source:http://www.cbo.gov/ftpdoc.cfm?index=5078&type=0

Sorce:http://www.census.gov/population/www/pop-profile/natproj.html

So, with 77 million baby boomers retiring soon (born 1946-1964), which is 22% of the entire population, and millions of manufacturing jobs out the window, I guess your interpretation and thinking is a results from your outcome-based education and embracing of the recent "NEW MATH" paints a rosey picture forever with a $9.2 trillion total debt?

The middle class will soon disappear.

[am452]

That’s a valid point, but even if every married woman with kids gave up their job outside the home our standard of living would still be several orders of magnitude higher than it was back in the 1930s.

You are doing it again. We were going through a depression back in the 30's. I would venture to say that if all wives left employment today are standard of living would be more like the 50's. How's that?

[Mase]

But there wasn't. Thanks for a little truth. It's a nice change from you

Do you think he's aware that manufacturing jobs and wages both increased in the years following the passage of NAFTA.

[Toddsterpatriot]

China started to really enter the picture in the late 90's. After Nafta was pased in what '94?

NAFTA passed in December 1993. Perot said the jobs losses would be so fast and so massive, you'd hear a giant sucking sound. So you're admitting that there was no giant loss to Mexico by the late 90s? That Perot was wrong?

[discostu]

Still pretty crappy actually. The average house was half the size we have today, most families had one vehicle, TVs and other household devices we take for granted today were luxury items. No thanks.

[Mase]

Thanks for admitting your article doesn't say anything about Boeing moving their final assembly elsewhere. My article, however, says there is a good chance that much of their parts manufacturing could be moved back to the US to be nearer their final assembly.

Don't let the good news make you constipated.

[am452]

There you go again twisting staments. Where did I say there were no job losses to Mexico? Where did I say Perot was wrong? The only thing with Perot is he did not anticipate the mass loss of manufacturing jobs to cheaper labor China instead of going to mehico.