Posted on 03/20/2008 2:56:09 AM PDT by Fennie
The Bush administration forecasts a $410 billion federal budget deficit for this year, an indication that, as the US saving rate is approximately zero, the US is not only dependent on foreigners to finance its wars but also dependent on foreigners to finance part of the US government's domestic expenditures. Foreign borrowing is paying US government salaries--perhaps that of the president himself--or funding the expenditures of the various cabinet departments. Financially, the US is not an independent country.
A troubled currency and financial system and large budget and trade deficits do not present an attractive face to creditors. Yet Washington in its hubris seems to believe that the US can forever rely on the Chinese, Japanese and Saudis to finance America's life beyond its means. Imagine the shock when the day arrives that a US Treasury auction of new debt instruments is not fully subsribed...
Ping
That's probably the worst characterization out of the article. The biggest benefit from free trade is for the poorest in the world (provided their governments aren't too corrupt). The rich generally don't do as well under free trade and the rich includes American union laborers.
How has free trade helped labor unions as millions of jobs both union and non-union have been outsourced to low wage nations around the world?
Damn but it’s early in the morning for this dumb ass labor bashing.Every sector of working households have suffered because of free trade.
How many agricultural innovations have been given away to other countries?
How many electronic innovations have been given away to other countries?
How many health/medical innovations have been given away to other countries?
Or at least sold cheap, fractions of pennies on the dollar.
America: The Freebie capitol of the world
My last post was in reply to Fennie. However, I didn’t post it in such a fashion.
from the rest of what he descibes, they'll be better off staying there anyway.
I feel strongly at this point that we need a big course correction. Whatever it is that we think we're doing is not working very well. It makes me wonder whether anyone has a plan beyond the next election, or the next business quarter.
” I feel strongly at this point that we need a big course correction. Whatever it is that we think we’re doing is not working very well. It makes me wonder whether anyone has a plan beyond the next election, or the next business quarter. “
Bravo!!
And that is a fault with American society and especially business. The farthest out our companies seem to be able to see is at most a year. Rather than plan for the long haul. Part of instant gratification I guess. On a more general note, sending the arabs living in Gaza 150 million dollars is not the way to get ahead.
And that's exactly why it's wrong, and why we should be against it.
Benefitting "the poorest in the world" is not the purpose of the American economy.
Saddam Hussein was trying to get OPEC to slow production before the War began. We would have been paying $5/gallon for gas 4 years ago if Saddam was still in charge of Iraq. Removing Saddam from power was to the US as removing Gray Davis from power was to Kalifornia. It bought us a few more years before inevitable progressive financial collapse. Basically the US is fighting wars for benefactors [House of Saud-Islam Rift, Japan-Oil Supply, China-Oil Supply]. These benefactors in return finance our progressive deficit spending. Stop the foreign funded wars, and the progressive DC gravy train goes belly up. This explains in part why our borders are so poorly defended and why our progressive cities are under siege from gang warfare. DC has to service its foreign debtors before it can service its domestic citizens.
“How many agricultural innovations have been given away to other countries?
How many electronic innovations have been given away to other countries?
How many health/medical innovations have been given away to other countries?”
Absolutely spot on. in a competitive world you have to benefit from what you do best. We don’t. For example, we spend billions and billions of dollars on research and development of drugs and biomedical devices in the US. Instead of making this a focus of US exports around the world, we let foreign governments turn a blind eye to (or perhaps participate in) blatant patent infringement. At the same time we decide politically that we need to take apart our medical system, which in large measure drives the innovations in the pharmaceutical and medical device sectors.
In general I think we have become self-flagellating apologists to the world and have stopped making the ongoing efforts that are necessary to protect ourselves against a world that has long been envious of us. Many have wanted us to fall for a long time. One of the best weapons they’ve had against us is our own sense of shame and guilt. It’s gone too far and has to stop.
End the corporate tax (enact the fair tax) and stand back and watch us grow out of any debt problems. They will be beating down our doors to bring manufacturing back to America. America has the second highest corporate tax rate among our trading partners. We’re shooting ourselves in the foot.
Of course the politicians would have to restrain themselves from going nuts.
It is early. American labor is rich by world standards, that's why they are losers in free trade. Not a bash, just a fact.
To me it’s very simple, buy quality American products. Instead many people will run out to buy a disposable DVD player from China. I say turn off the TV, buy an American tool and go work outside in the yard.
Free trade in respect to commodities, is discernible from free trade with respect to labor.
IMHO, US production is hampered by codified regulations in every aspect of our economy, which have prudent justification, but aren’t required to produce efficiently. This applies to labor and commodities alike.
Once those codes are in place, IMHO, it is a heck of a lot more difficult to politically justify their removal than their adherence.
Depending on the culture of the foreign developing nation, their laws will probably become more codified, but perhaps not identical to ours. Meanwhile, we’ll continue to lose marketshare due to our lack of competitiveness.
That may be, but that's not a political call. It's up to Americans as a whole to determine the purpose of the American economy. If Americans determine the purpose to be buying cheap disposable crap from China, that's stupid, but that's the purpose.
” I believe 40% of American workers ARE shareholders. “
I love you people who throw that number out as if it ends the discussion..
Let’s look at it —
It means that 60% (That’s a significant majority) of us are NOT shareholders — we’re down here on the streets paying the price - in stagnating wages and decreased purchasing power - of the manipulations of the vaunted 40%.
And of that 40%, the vast majority are NOT ‘active traders’, and are left holding the sack when the tottering edifice built by the ‘experts’ collapses under its own weight...
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