March 2, 2012

Losing The War With The World

In a grim assessment, entitled "Global Trends 2025: A Transformed World", comes from the National Intelligence Council, an independent government body. The report concludes that by 2025, "The U.S. will remain the single most important actor but will be less dominant."

If we are going to prevent this from happening we must stand united. We cannot sit back and leave it in the hands of our government. We as a nation and as individuals must demand results.

If we are going to correct our economic problems, we must address our trade imbalance with China. One reason why China is able to sell products cheaper than American businesses is that China artificially holds down the value of its currency. They do this by printing more Yuan and buying U.S. debt with the money. As a result, more and more debt is financing our standard of living.

We the people must find true grit.

China loans us money to buy more of their products. This in turn keeps our interest rates lower than they should be and creates a situation where domestic business cannot compete. Free trade is good for everyone as long as everyone is playing by the rules.  The problem is that China is not playing by the rules and this must change if we are going to repair our economy. Otherwise, we will keep shipping our wealth to the mid-east for oil and to China for their subsidized goods and services.

This problem is not even on the radar screen of our politicians. We are the strongest military power in the world. Will we lose are ranking in the world because we lose the economic war?

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