Free Trade Destroys Our Educational Systems

 

Picture 8Free trade is destroying America.  The statistics supporting my statement are many.  It is painfully obvious that the flood of red ink is destroying our collective finances.  There are many other aspects to this which are equally deadly.  One was, the flood of funny money via the Japanese carry trade which inflated our real estate markets and loaded our corporations with unsustainable debts in the hedge fund ‘buyout’ business.  But there are other, even more insidious dangers.  Like, the destruction of the US ability to do science and technology.  

First, I wish to discuss a delusional article in Forbes Magazine. Forbes is useful, like the Washington Post and the New York Times, it is a window onto the group mind-think of the ruling elites.  And frankly, they are happy as pigs in a pigsty, with the results of free trade.  It gives them increased wealth and power.  At least, temporarily.  Heh. Now, they are going bankrupt and losing power.  But they cling to free trade because they think, they can regain the status quo again.

 

Forging A Second American Century – Forbes.com

 

The 20th Century is often called the American Century, marking the U.S. rise to global pre-eminence. Manufacturing powered our ascendance, factories created our prosperity.

HAHAHA.  So, how do we explain the 50 year plan to destroy both?  

But the American Century is nearly a decade gone, manufacturing jobs are dwindling, and the future promises fierce competition from the new industrial giants of China and India (and the old giants of Europe). The recession drags painfully on, and dozens of other competitor countries target what they sense is a new U.S. vulnerability….

The Forbes writer should pause for one second and wonder, why are all the OLD GIANTS in Europe doing the same as the new giants in Asia?  Oops.  This raises an important question.  Why is Europe still industrialized but the US is deindustrializing?

 This paragraph even mentions ‘fierce competition’.  HAHAHA.  Duh.  We are competitors.  This is a struggle for power and dominance and we are losing it, not winning it.

First, the good news. The United States remains the world’s largest manufacturing nation, accounting for more than 19.5% of global manufacturing output. In 2007, the U.S. produced more volume of products than ever before, and manufacturing represented $1.6 trillion of our economy, or about 11.6% of gross domestic product.

OK: here is the severe problem with talking statistics. Note that this writer doesn’t mention what the US manufactures.  The bulk of our manufacturing is more and more, for the military/industrial complex.  The money spent on this manufacturing is US tax dollars.  And there is a severe shortage of US tax dollars so this manufacturing is supported by borrowing money from China, one of our fiercest competitors!  So, of that $1.6 trillion of all manufacturing volume in this country, about $400 billion is for the Pentagon and is paid for via debts we owe to China.  And is being used to kill people in distant lands and terrorize the US public via say, tasering great grannies at traffic stops.

Manufacturing in the United States accounts for more than 12 million jobs and supports millions more in other sectors. And manufacturing jobs are among the most highly compensated in the nation, paying on average about 20% more than those in other sectors.

Now that the UAW is dead, this is no longer true.  Yes, many people working in the military production lines still get paid better than the civilians being taxed to support these industries but everyone’s wages are going down, not up, so being 20% better off when wages are declining isn’t much to boast about.

Yes, we are shedding manufacturing jobs. Unlike China.  In the U.S., manufacturing has lost some 1.5 million jobs since the current downturn started, continuing a long-term trend that dates back at least until the early 1980s. But to concentrate on aggregate job losses masks a more profound trend–vastly improved productivity. Americans are making a lot more stuff with a lot fewer people. This increased productivity is largely due to continuous innovation in the manufacturing sector and high investment levels in new technology….

The editorialist doesn’t wonder why this dynamic began in the 1980s.  Usually, when countries have more robots or better tools, industry EXPANDS, not contracts.  The US has been contracting and running in the red.  And importing civilian manufactured goods while producing war goods.  A very bad combination.

Down in Pittsboro, N.C., a former hosiery mill where 400 laborers once worked on looms is now home to a biotechnology company, Biolex Therapeutics, where 90 workers use advanced laboratory equipment to develop a drug for a serious liver ailment. Even the lowest paid of the lab technicians earns far more than the seamstresses in the old hosiery mill….

Whoopee.  400 people with normal jobs at normal pay are replaced by 20 scientists and a dozen secretaries, several supervisors, the head boss and the 30 assistants [I am assuming, the bosses want as few as possible] and the cleaning lady.  The secretaries, the assistants and the cleaning lady have low wages.  The 20 scientists [I am being generous here, probably, it is 3 or less] and the bosses get all the real pay.

A 2008 study by National Association of Manufacturers affiliate organization The Manufacturing Institute and the Manufacturer’s Alliance/MAPI compared the cost of manufacturing in the U.S. to a group of nine industrial nations including Germany, Japan, China and Mexico. Because of higher taxes, energy and regulatory costs, U.S. manufacturers face a 17.6% structural cost disadvantage when competing against firms from these nine countries. But progress is being made. The same group estimated that just two years earlier, in 2006, American firms faced a 31.7% structural cost disadvantage.

 

 

Germany has low regulatory costs?  HAHAHA.  Talk about mixing up things!  Japan and Germany have the same or higher costs in this area than the US.  They are not allowed to pollute the home base anymore because this is seen as suicidal.  China and Mexico, on the other hand, do pollute the home base.  Bundling up Germany and Japan with China and Mexico is quite dishonest.

 

In Germany, Canada, Japan and so on, they have national health care systems.  True, the  one in Japan is collapsing due to LDP corruption.  But the US has a totally different system and we are now devolving into no system at all.  Secondly, the author is very clever, like a little gnome, that he leaves out several important statistics.  First, no one pays the real taxes and costs.  He is using the theoretical figures, not the real statistics.  Secondly,  even with this differential, it is easy to fix by putting up tariffs and barriers to even out things. So a no-tax state can suck down all our financial systems, just for one glaring example.

 

His data, in other words, calls for an end to free trade.  This, of course, is not the point of the article. It is merely one of zillions of identical articles using statistics to lie and misinform.  Instead of trying to see the truth, they are trying to marshall data to deceive. I found this wonderful book in 1959 which I basically memorized:  How to Lie with Statistics.  You might say, it is my Bible.

 

How to Lie with Statistics is a book written by Darrell Huff in 1954 presenting an introduction to statistics for the general reader. It is a brief, breezy, illustrated volume outlining common errors, both intentional and unintentional, associated with the interpretation of statistics, and how these errors can lead to inaccurate conclusions. It has become one of the most widely read statistics books in history (even though Huff was not a statistician), with over one and a half million copies sold in the English-language edition[1]. It has also been widely translated.

Themes of the book include “Correlation does not imply causation” and “Using Random Sampling“. It also shows how statistical graphs can be used to distort reality, for example by truncating the bottom of a line or bar chart, so that differences seem larger than they are, or by representing one-dimensional quantities on a pictogram by two- or three-dimensional objects to compare their sizes, so that the reader forgets that the images don’t scale the same way the quantities do.

The original edition contained humorous illustrations by artist Irving Geis.

 

Like my other Bible book, The Rise and Fall of the Great Powers  by professor Kennedy, this book was very popular and a deserved best seller.  Yet, it, like the Kennedy book, seems to not have informed the people at the top.  Or rather, they viewed both books as an excuse or a helping hand in telling them how to lie, cheat and steal.  Even if 10 million people read both books, comprehended both books and then pushed hard to change things, based on both books, this is a very small minority in the US population, not to mention, the world.

 

So those of us who read and comprehend these books sit here, today, gnashing our teeth as our rulers and the media merrily go about, violating every single rule of honesty.  Instead of using statistics to understand, they use them to lie.  Below is some interesting statistical material from the Federal government and the Federal Reserve.  Both show that something is very, very wrong with free trade and on top of that, something is massively wrong and is literally destroying us.

 

Foreign Inc. – fedgazette – Publications & Papers | The Federal Reserve Bank of Minneapolis

 

You might not be able to spot foreign-owned firms in the district, but they add local jobs and some nuance to the globalization debate.

 

Colbey Sullivan – Contributing Writer
May 2005

 

Picture 8

 

This is a disturbing graph from 2005.  It clearly shows something went very, very wrong from 1996 to 2000.  The US was absolutely flooded with amazing levels of foreign investment outlays.  Secondly, we see clearly that before 1991, these foreign investment outlays, both established and acquired, were very, very small and the same volume, too.  Half and half.  Suddenly, beginning in 1992, the acquired foreign investment outlays begins to double each year.  What happened?

 

Well, I look at foreign lands and I see something rather obvious: the Japanese bubble burst.  But there was all this trade money flowing into Japan via the US.  As it increased, the Japanese parked their profits here since Japan was in this depression.  All the US media talked about this Japanese depression.  But didn’t make the connection to this foreign investment outlay explosion in the US.

 

During the Asian currency crisis, this outflow leveled off briefly.  Then, it shot to the moon.  In just three years it went from slightly over $50 billion to over $300 billion.  

nikkei bubble

 

So, I said to myself, time to look at the history of the Nikkei!  What do we see?  The same graph, actually.  As it went into decline in Japan, the money the flooded the Japanese Nikkei simply shifted.  The US suddenly saw an immense bubble forming here.  

 

The DOW shot up to record highs, very fast.  The Japanese carry trade took off during this decade, too. The US went hog-wild.

 

I still remember the stupid article in Atlantic Monthly, predicting the DOW would hit 36,000 and we were in a new world economy that would see everyone at the top, get very rich.  

 

I would suggest, the money bubble in Japan simply shifted itself several time zones to a new locale.  This is why the US markets suddenly and seemingly inexplicably, took off.  

 

When the DOW fell, this bubble simply shifted from stocks to buying debt instruments like that huge flood of CDOs, OTC deals and interest rate swap contracts.  Has this bubble vanished at last?  

 

My theory is, no.  It moved to governments which caused the money supply to balloon.  Government debt is the new bubble and is about to pop, too.  Normally, after a major bubble pops, the leveraged players all go bankrupt and that ends it all.  But obviously, they didn’t go bankrupt.  Japan saw a flood of bankruptcies but not a drop in export markets.  This took off.  All export markets took off because Japan unleashed an unprecedented flood of funny money via lending when its immense bubble burst.  The banks in Japan made profits, selling these debts to non-Japanese!

 

This is because the government of Japan protected the bankrupt banks and enabled them to lend money despite all the bankruptcies of Japanese property owners and businesses owing money to the banks.  And what capitalized this?

 

The trade surplus with the US!  And when Japan lent to the US, the US bought more Japanese goods which then circulated back to the US in the form or easy lending. So, thanks to the magic of banking lending money on a very small capital basis, $10 billion of US trade dollars could trigger $1 trillion in lending.  What is worse, Japan continues to do this and is most anxious to restart the carry trade business.

 

Relaxed FSA Banking Rules Kept Y839bn Out Of Bad-Loan Category

 

(Nikkei)–The Financial Services Agency on Friday disclosed that eased standards for evaluating outstanding loans kept 839.8 billion yen from being classified as nonperforming in the three months ended March 31.

The financial watchdog revised its oversight guidelines and inspection manual in November as part of efforts to facilitate lending to smaller businesses. Previously, a loan was generally deemed nonperforming if a bank extended the repayment period or waived interest payments. The new rules enabled banks to keep loans out of that category as long as the borrower was seen capable of following through with its business rehabilitation plan within 10 years.

The tally for the January-March quarter accounted for 45% of the outstanding lending balance that would have been nonperforming under the prior rules. For major banks, 187.2 billion yen of their loans benefited from the relaxed standards, representing 54% of the total using the previous standards.

 

See?  They are doing it again!  What is worse, the US is doing this too!  This is a crime.  It screws up the entire world’s finances.  It is also dishonest.  Pretending deadbeats might pay in 10 years is pure, barking insane.  For example, Mr. Andrews married a deadbeat hausfrau.  This woman always overspends.  So, he is now bankrupt. But hopes, in 10 years, to earn lots of loot like Jon and Kate Who Hate and by selling off his family’s story to the highest bidders and making a spectacle of himself, he hopes to pay off loans he should have never taken on, in the first place.

 

So, we will see the bankers, wishing for lots of fees and other goodies, lending money they never had to a bunch of deadbeats. And worse, will pretend this army of deadbeats are solvent even as nothing is flowing back into the system, the money has vanished and become part of inflation.  For prices of food and fuel have resumed climbing again.

 

More about Foreign Direct Investment Funds from an article by a gnome:

 

FDI_Trends

 

Foreign Direct Investment Trends

February 2006

By Daniel Kah, Research Director

AngelouEconomics

 

Foreign direct investment (FDI) is the underlying driver of many key U.S. economic issues including offshoring, the trade deficit, job creation, the current account deficit, and even interest rates. FDI is a domestic firm investing in a foreign market and vice versa. A GE call center in India and Toyota truck plant in San Antonio are both FDI. Firms seeking to invest in foreign markets have two options: build from scratch, often called a greenfield investment, or invest in an existing operation through a merger or acquisition.

Firms invest in foreign markets for three reasons – to serve the local market, increase efficiency, or natural resource access….

Picture 9FDI flows moved back to historical norms in 2004 after a few volatile post-bubble years. Investment peaked in ’99 and ‘00 with over $1 trillion invested both years, and while the $650 billion invested in 2004 is below these peak years, foreign investment remains higher than any year previous to 1999. Historically low interest rates and strong equity markets provide the necessary means to raise capital for new investment and cross border mergers and acquisitions. The United States returned to a leadership position as the world’s leading source of FDI and destination for FDI. Investor confidence continues to increase, especially with respect to the world’s strongest economies, those of the U.S., U.K., and China….

This was written in 2006.  The US and UK are now going down in flames after allowing this flood of foreign money to flow all over the place and then, down the sewer.  

States that aggressively recruit foreign investment see the dividends in investment and employment. Foreign investment accounts for more than 20% of manufacturing employment in a handful of states including Kentucky and South Carolina.

This is a fancy way of saying, foreigners own our work force.  In 1950, for example, they owned less than 1% of our workforce.

On the other side of the issue is investment abroad by U.S. multinationals. Not only is the U.S. the 

Picture 10world’s largest recipient of FDI, but it is also the largest supplier of foreign investment. American companies invested $229 billion abroad in 2004. Although offshoring receives the most attention, over 75% of this investment is directed at the local market. In 2002, only 11% of sales from U.S. corporate international operations were directed back to the U.S.

Most manufacturing was for outside the US.  But a significant and GROWING amount was aimed for return to the US.  Also, this guy doesn’t say if NAFTA outsourcing is part of his statistics.  

Put another way, the large majority of U.S. investment abroad is not offshoring; rather, firms are pursuing revenue opportunities in other markets. HAHAHA.  Storyline here is simple: did the US manufacturers go offshore to provide stuff they provide here?  The answer is no.  They went offshore and not only did they import these goods BACK to the US but everyone who was competing did the exact same thing!  This is why we were flooded with goods we easily could have manufactured here, ourselves!

 The 11% of sales focused on the America market is still a significant number and has begun to affect the trade deficit. According to a recent McKinsey study, 32% of the U.S. trade deficit is created by American firms trading within the corporation. But that’s a story for another article.

Hooray, he mentioned a tiny truth and then, ran away.  Why talk about that statistic that makes total mush of all his previous, arrogant statements?

So, our corporations make profits here and then…ship it overseas.  Japan’s depression has meant, Japan’s people live in less and less comfort, have less and less job security and are now vanishing as a people as everyone is giving up, even reproducing.  Oh, the birth rate actually went up from 1.32% to 1.37%.  Isn’t that wonderful?  Way below replacement levels, of course.

 

Talking about lying with statistics, here is a grotesque article from the US Chamber of commerce that lies about rail road facts via using statistics in a creative and childish way:

 

American Chamber of Commerce in Paris France

Picture 11

Transportation/Infrastructure: Of the top ten economies in the world by GDP, the United States has the largest roadway system, railway network, number of airports, and quantity of Internet hosts. Five of the top ten airports by air cargo volume are in the United States including the busiest cargo airport in the world. A number of the world’s busiest ports for international bulk cargo and container traffic are also in the United States.

HAHAHA.  They compare MILES of rails of huge countries to physically small countries!  Since this was published, China just increased milage hugely so the stats here are now wrong. 

The US has miles and mile of tracks that are one of the crummiest on earth.  We have more miles of rotting tracks than Africa?  And this makes the Chamber of Commerce happy? 

And in Paris?  HAHAHA.  I wonder how the Europeans greeted this article. Laughing to death?  Maybe.  Here is another stupid series of stats from the same webpage:

 

Foreign Direct Investment Creates New Jobs: U.S. affiliates of foreign companies (majority owned) employ over 5 million U.S. workers, or 4.4% of private industry employment. An additional 4.6 million U.S. jobs indirectly depend on foreign investment in the United States. Between 2002-2006, nearly 2,900 new projects were announced or opened by foreign companies, yielding $82 billion in investment and about 170,000 new jobs.

Foreign Direct Investment Boosts Wages: U.S. affiliates of foreign companies tend to pay higher wages than U.S. companies. Foreign companies support an annual U.S. payroll of $335.9 billion, with average annual compensation per employee of over $65,000. Average compensation per employee within these companies has risen every year since 1992. U.S. subsidiaries of foreign firms pay 32 percent higher compensation than the private-sector national average.

Foreign Direct Investment Helps U.S. Companies Penetrate International Markets and Increase U.S. Exports: U.S. companies can use multinationals’ distribution networks and knowledge about foreign tastes to export into new markets. Approximately 19 percent of all U.S. exports ($169.2 billion) are generated by U.S. subsidiaries of foreign companies.

 

Picture 12

Foreign Direct Investment Contributes to U.S. Tax Revenues: In 2003, foreign affiliates paid $19.1 billion in taxes, which represented 11 percent of U.S. corporate tax revenues.

We see from the pie chart here, that foreigners do pay taxes. This is, of course, a minor amount.  Due to all the tax breaks US government and localities give these foreign powers so they can build factories here!  On top of this, many of these were located here for political purposes.  The only reason Toyota has factories here is so they can continue to import cars with impunity and never face any tariffs or barriers to this very uneven trade.  

 

The flood of foreign funds which were created, over time, by the US allowing a trade deficit to grow, has some very bad side effects.  I decided to poke around government sites to see how our own government is talking about these side effects.  The National Science Foundation was set up in 1950, the same time I was born.  Before WWII. a flood of refugee scientists fleeing the insane Nazis, poured into the country.  After WWII, a flood of Nazi scientists also came in, courtesy of Operation Paperclip.

 

So, I visited this site to see if our own government is even dimly aware of the problems free trade is causing us in a very important sector.  Remember: our scientific community had a sudden surge of European and Chinese scientists during and after WWII and they are now all dying of old age [most never retired, really].  

S&E Indicators 2008 banner image.
S&E Indicators 2008 – List of Figures

Picture 4After 2005, we lost immense hunks of our high-tech manufacturing.  Or, we sold it to the Chinese.  The graph, which shows it leveling off in the US, would, if we did one today, show that the US is collapsing.

 

 

The Science and Engineering indicators study is from 2008 but the stats are old, old, old.  So the steep declines barely register.  Do note that China, at the bottom, takes off like a rocket.  And Japan is falling, fast.
This loss of manufacturing is leading to a loss in all related fields.  In the area of science and research, this is a deadly combination.  
In figure O-49, we see how China’s dominance in that field is coming down the modern rail lines China is busy installing.  The G7 nations in this graph all saw flat numbers or slight rises.  China, on the other hand, passed the US back in 2005 which was 4 years ago.  They are probably far above us today.
The next graph shows Natural Sciences taking off in China, again, like a rocket.  It is actually declining, in the US.
O-11 is interesting: the EU was the major exporter of high tech.  And where did they export to?  The US!  Asia, by 2006, passed the EU. Mostly due to China.
The other graph, O-12, shows how manufacturing exports in by the EU, US and Japan, namely, the G7 nations, is collapsing.  And shooting off in China and even, all of the rest of Asia.

 

Picture 7

picture-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

These graphs show that the US, far from being some sort of technological giant, is actually losing not only the manufacturing race but also the mental race.  Our educational systems are rotting away even as we frantically spend money on schools.  Much of this money is on frills or being used as a means for enriching publishers, for example.  All of Asia is very rapidly moving towards using computers for teaching while we are mired in the past.  California may break this dam of inertia do to the collapse of funding for these wasteful and stupid teaching tools.  We are in a deadly battle to see who will be the future power.

 

The US thinks, if we control the Middle East, we control the world. But the real battle is here in these charts and graphs.  The people who control the technology coupled with understanding how trade and finance works, will rule the world.  The US can’t do this if we are deluded and try to pretend, there is some other sort of system available which will allow us to be behind the times in technology, stupid in school, running a vast train system that is rotted to the core and filled with hubris and noses in the air, striding about like gods at home and then crawling on our bellies before the Dragon Throne, begging for hand outs…good grief.

 

This is not going to work, is it?  

Picture 6One last graph:  In the 4th grade, our lovely children are outstanding in math and even more, in science.  Then, in 8th grade, scores drop because the tests are harder, I am assuming.  The US still is outstanding but on a lower level.  Then, by high school, it collapses!

 

OUCH.  This, of course, compares us to the world at large.  Not to China or Korea.  Korean and Chinese kids push very hard in high school.  Their science and math abilities easily outstrip the general US school children.  I went to school overseas. I saw this first hand.  I went from feeling like a genius in the US to feeling like a dummy in Europe.  It was most embarrassing.

 

The Asian system is extremely competitive.  This is evolution at work.  The Asians are beating the US because they have a fierce system at work.  And this forcefulness infuses all other systems!  These are our ‘competitors’ the first article above, mentions!  And they are not playing this game so we can rest on our laurels and order them all around.  It isn’t going to happen.

 

Time for us to prepare for the next battle.  And putting ourselves deeper into debt is exactly the worst tactical move to make.  But then, how can we have a strategy when we use statistics and graphs to lie to ourselves?  Honesty is the first step on the road to recovery.  Just like in the Alcohol Anonymous meetings.  Maybe I could start a similar organization.  Have everyone stand up and sob, ‘I thought we were winning the trade war but in reality, I was destroying America, not making us stronger.’

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13 Comments

Filed under .money matters, Free Trade

13 responses to “Free Trade Destroys Our Educational Systems

  1. cgar

    Not a comment but a question.What type of system are the Asians using to teach?How are they using computers?

    I ask because I have girls going into 5th grade and want to ensure a quality education for them.

    In fourth grade they only had four days of math a week and whenever they had standardized testing or special events in school they sacrificed math class.I was appalled.We are going to be working on math and science over the summer and could use good material and methods.

    cgar

  2. emsnews

    Cgar, the place Asian parents are going for computer teaching is the after-hours schools. They call these ‘cram schools’.

    At home, the best thing I can recommend is using the computer data base for home schooling. The best way to make kids look into math is to make it interesting.

    For example, when I ran my own home schooling, I had children [I taught other kids, too] figure out how many pennies would make a glacier in upstate NY in the Ice Ages. Then, we went to where glaciers actually scraped rocks and we photographed pennies on the rocks as a scale. Then, we made charts and graphs, showing relative scale of pennies versus glaciers.

    See how this works? If you tie on math with real things, kids get excited. If, for example, you compare something with ‘how many will it take to get to the moon?’ then you can talk about how the moon isn’t x number of miles away because it doesn’t have a centered orbit.

    This leads to talking about the orbit of the planets, how we can observe this with the moon and how the galaxy is lopsided, too. On and on, one can explore any level of things using the internet.

    A lot of amazing data is here. Teaching children how to access and then, judge this data is good training, too. I put my kids online as fast as possible, when they were young. And sat next to them, on my own computer while we did things in tandem, for example. Competitions to see who could run down the most data, for example.

  3. zip

    nice example of stats fooling juries

  4. David

    Elaine:

    “So, we will see the bankers, wishing for lots of fees and other goodies, lending money they never had to a bunch of deadbeats. And worse, will pretend this army of deadbeats are solvent even as nothing is flowing back into the system, the money has vanished and become part of inflation. For prices of food and fuel have resumed climbing again.”

    As more an more jobs are outsourced and downgraded into cheap labor occupations…the government and corporatists and bankers are all faced with a dilemma.

    How in the hell do you get money in the hands of consumers so they can buy all of the products that are being imported so the banks can skim their percentages?

    You print lots of money or create it with computer bits and bytes and then you make generous loans of this money to consumers who don’t stand a snowball’s chance in hell of ever beginning to pay it back because they are underemployed and unemployed.

    And so the banks can continue to foreclose on homes and repossess autos and garnish wages if there are any wages.

    But, this is a totally self defeating proposition. If many of the potential consumers have lost their homes and have no net worth, the banks and financial empires are sitting on top of a mountain of foreclosed assets, but these assets are worthless because nobody wants to buy them if they have no money.

    Something is worth only as much as someone is willing (AND ABLE) to pay for it.

    Also, as John Ruskin once noted that if the wealthy have vast holdings, but nobody is willing to work to keep those holdings up, these deteriorating assets become a massive drain on the resources of the wealthy….

    You see, Banks holding title to a home where the home buyer is working at a viable job and is paying to keep the mortgaged home up is a good deal for bankers, but the bank owning a home that nobody can afford and that is deteriorating from a lack of maintenance is a bad deal for bankers.

    The Bankers and corporatists thought that if they could destroy unions, they would have it made, but by outsourcing jobs to destroy unions and so they could avoid taxes and regulations and so on, they also destroyed their markets….and the viable consumer base that is the foundation of their own business in the first place…..This is so g..damned stupid it is unbelievable.

    I fear this economy cannot fix itself under the present system. There has to be a collapse, and the government has to take over the banking system.

    Then, we need tariffs on imports and we need to convert weapons production to domestic production and we need to create huge numbers of jobs….except that there is little money for doing this….and nobody wants to lend to us without importing to us and creating more debt and destroying more US jobs.

    So as mildly as I can put it, even I who have limited financial sense, can recognize that we’re fucked….big time.

    Even if foreigners buy into the US, these will be losing propositions until the masses can be put back to work at livable wages because the costs of maintaining an protecting such assets will be prohibitive if the homeless are wandering around creating havoc….and if they are rounded up and put in refugee camps, someone has to pay for feeding them…so it becomes an impossible situation.

  5. nah

    if the US controls the US we control the planet… we produce ‘albeit with a funktified economy’ all the best hi-tech… we are not down and out… but our markets are worn… if i were looking for an investment i wouldnt choose banking
    .

    .
    PrON

  6. PLovering

    Teach moral cultural.

  7. Steve

    The Onion (video): “Autoworkers Compete to Keep Jobs, Livelihoods on New Reality Show” http://www.theonion.com/content/video/autoworkers_compete_to_keep_jobs

    Like most Onion stories you have to laugh at it or else you’d fall into despair.

  8. Paul S

    It used to be taken as a given in the US of A that you ALWAYS wanted to see your customer get a pay raise. The obvious reason being that if your customer has the money, YOU will still have a customer. But then Jack Welch and his kind came along with this phony baloney Six Sigma BS and changed everything. Now the American business attitude is to outsource and ‘race to the bottom’. To hell with patriotism. Of course, American corporations are still “patriotic” enough so they still want the US Navy’s 6th fleet–along with Marines– to protect them from takeovers of their businesses in foreign countries. Oh, and ‘American’ corporations still love a big court system to help them enforce the patent/copyright laws. Kind of un’free’ market of them, don’t you think?

  9. emsnews

    Correct, Paul.

  10. PLovering

    @Paul

    The Harvard Business School had a case study on outsourcing of U.S. auto production in 1950.

    The Lizards have been looting our auto industry ever since. And now they feast on the corpse.

    Murder foretold with delicious finesse.

  11. Paul S

    In the long run, “Free” trade also destroys companies, contrary to what some believe. I worked for quite some time at a major corporation, so I have seen how this works. When a company has a strong focus on headcount reduction, EVERYBODY gets nervous, especially the managers. How does this become a negative for a company? Managers don’t sit around a conference room table and evaluate their employees productivity to determine which employees are going to be downsized. All too often, managers other issues come into play. Such things as a manager getting rid of on employee who could do the manager’s job. Downsizing is an effective method for a manager to get rid of his/her job competition. Or, an employee is kept because s/he has some sort of personal realtionship with the manager. So, after a while, the better people have been let go and the brown nosers and the fools are left to staff a department, because the manager wants to enhance his/her job security. Productivity is not the priority; protecting one’s job becomes the manager’s priority.

  12. emsnews

    The Peter Principle at work. 🙂

  13. Paul S

    Or the law of unintended consequences at work.

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