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Posted: Sunday, December 30, 2007

By: Dave Retz (Expired article)

Solvang, CA -

It doesn't take a Ph.D. in economics to see something is awry. The National Debt is increasing at a rate of $1 million a minute. This is a combination of the fiscal government deficit and the trade deficit. In 2006, our deficit with China alone was $700+ billion.

A deficit means we're buying $700 billion more from China than they are buying from US. But wait - there's more! Even though we export to other countries, the total deficit in 2007 with all other countries is about $703 billion. That means other countries get $703 billion dollars every year from us, and they can turn around and buy stuff here. (See: americaneconomicalert.org)

What stuff? Well, they've started with US Companies. How about RCA, Zenith, Lucent (Remember Ma Bell?), Chrysler, Bestfoods, MCA, etc. Not all unfriendly countries; the French bought RCA, the British Bestfoods, the Germans Chrysler. But the list, alarmingly, goes on - and is about 14,000 entries long (since 1978). Needless to say, we have very little manufacturing capability anymore, with virtually all of the steel business going to Japan and India. China could currently purchase GM with about 2% of the cash they have on receipts from their deficit with us.

The economic experts of the past 20 years praised our transition from a manufacturing to a "service economy". Read that: a "servant economy". Our great hope is to become manager of a food service chain. Our "Hi Tech" advantage, spawned from Sputnik: the Internet. Yes, we invented the Internet; now, every invention created is transmitted online in milliseconds worldwide. Every high-tech advantage is passed on instantly to every other country in the world. If royalties were badges, to quote the famous line in the movie Blazing Saddles, "We don't need no stinking badges!".

What's next? Well, it's that thing you can't print any more of: LAND. Of course, foreign interests have been buying our soil for the past 30 years, but just wait until foreclosures and the "real" real estate bubble bursts (and, lets face it, it's coming). They are waiting with baited breath to nab everything from farmland to houses. Consider this a threat to our "middle class": foreign investors will be the ones to buy repossessed homes, then happily rent them back to us. That isn't just doomsday talk, but just look at the reality of the numbers.

We may protest and say: "you can't buy our land!" Sorry, any attempt to impose protectionist policies - be they for land or lead-laden toys for kids - will be met with: "what do you expect us to do with these dollars? We EARNED them the old fashioned way!" Are we going to tell the foreign investors they can't do with their dollars what any American would? If so, they would demand payment in some other currency that would be good for something. Wouldn't you? It's already happening with oil.

This might mean a tremendous test of our social character. As the saying goes, character is like a teabag: "revealed once immersed in hot water".

Please hope for a Sputnik and some way for us to wake up before the bubble does burst - and it will if there isn't a drastic change in our policies. Happy New Year. For information, go to: Concerned Citizens, LLC.

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