Let's look at fairly recent history:
In 1980, the U.S. was the largest creditor nation on the planet - by far. We also had a tremendous manufacturing base and very healthy exports. We provided things of "value" to the rest of the world.
In 2008, the U.S. is the largest debtor nation on the planet - by far. Our manufacturing base that produces things of "value" has largely been sent overseas. We have turned into a consumer nation that mainly employs "service-based" industries. Therefore, our exports have become worthless for the most part and our imports have skyrocketed as we consume more and more trinkets produced by areas of the world with extremely cheap labor.
In return, we send other countries our Treasury Bills as IOU's for the junk that they send to us. They (China for instance) have used this money to build their infrastructure and to slowly increase the standard of living for their population.
Now, here's where it gets really bad. What happens when China discovers that its population has a high enough standard of living to buy the things that China produces for us?
America will go into economical meltdown.
I say, it’s time to take a stand.
We need to become b*stards about American trade policy.
Immediately.
No more Mr. Nice Guy. No more putz.
Open your markets 100% immediately. Or you’re shut out of the American market, completely.
There can be no middle ground. We must take a stand.
We have become a “consumer debt” economy. Burger flippers buying luxury cars and McMansions on heavily leveraged debt.
I am a little shocked to hear you say that the USA was the largest creditor nation in the world as recently as 1980. It just seems so long ago that were were not in hock to our eyeballs to Japan, China, the Saudis and the rest of the world. 28 years from solid gold to a pile of rust. Sad.