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Offshore economy will not let US off its knees
Published: 26 February, 2010, 09:55
Edited: 22 May, 2010, 23:33
TAGS: Manufacturing, Currencies, USA, Economy
According to Charlie Munger, long-time business partner of American investor Warren Buffett, the US economic empire is crumbling before our eyes, thanks to federal debt and poor planning.
Paul Craig Roberts, former assistant treasury secretary for President Reagan, told RT that Buffet’s partner focuses on long-term problems like national debt.
“US$60 trillion of unfunded liabilities is a problem, because Wall Street and the corporations have moved so many high productivity jobs offshore and with them the American technology,” reminded Roberts, “so that the economy lost the ability to create the kind of growth that would produce tax revenues that would make those “$60 trillion liabilities refundable.”
Paul Craig Roberts pointed out that, once the US moved a considerable part of its own gross domestic product overseas, it greatly affected the income of ordinary Americans and, therefore, their ability to buy products. This is the main reason why the stimulus program is still-born and the economy cannot restart.
“They do not address to what the problems are with the traditional remedies because so much of the American economy is offshore,” he concluded.
It is obvious that the short-term problem of the budget deficit will be resolved with commonplace money printing, went on the economist.
“When the rest of the world, the US creditors, perceives that, then the dollar status as reserve currency is in doubt and if the dollar goes, so does the American power.”
26.02.2010, 01:42
5 comments
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My advice to Russia , avoid the WTO unless an agreement gives no advantages to low wage countries and there is a guaranteed balance of trade with any nation you are trading with. Absolutely do not agree without equalization of wage scales through tariffs or your people will suffer. Also impose higher tax rates and punitive measures for any company moving plants out of the country. If trade agreements are not controlled your country will be gutted of all manufacturing capabilities. America as a country has not benefited at all from free trade, it has destroyed the middle class, raised debt to incredible levels and if we continue down this same path one by one all our institutions will fall. All this in the name of insatiable corporate greed. Best advice to Russia, trade only with countries that you can compete with.....Free trade is not free, check out America and don't make the same mistakes.
Americans have no idea how corrupt their government really is . The hypocrisy is astounding when I hear Hillary Clinton chastising Iran over enriched uranium and I keep reading stories of birth defects , stranges cancers , etc. from depleted uranium in Iraq . Why does America continue to produce weapons with depleted uranium , but criticize countries who want to use atomic energy for the domestic use of its citizens ? The only good jobs left in the U.S. are jobs in the Defense industry . The state of Illinois has over 2,500 defense contractors . That is just one state ! Many of these defense projects are intentionally spread out over several states to spread the jobs out and make it harder for any one state to object . No American politician wants to appear to be against job creation . So even if you consider weapon production to be immoral , you are seen as unpatriotic if you don't support those projects .