Chinese leader Xi Jinping knows something Barack Obama doesn’t: America is finished. The U.S. economy is an ocean liner holed below the waterline. In the stateroom, the band plays on – but, on the bridge, the outcome is clear. With the arguable exception of the late-era Soviet Union, America is sinking faster than any Great Power in history. As a proportion of national output, America’s foreign debts are already now larger than those of any Great Power since those of the egregiously corrupt Ottoman Empire a century ago. For anyone who needs reminding, the Ottoman empire, which had flourished for more than six centuries, was then within a decade of final collapse. Because every dollar of current-account deficit (the current account is the largest and most meaningful measure of trade) represents an extra dollar that has to be funded from abroad, America’s foreign indebtedness is now accumulating at a rate of more than $1 billion a day. This is not to suggest that American brands are absent from China. Actually they are everywhere. But virtually all American-brand goods sold in China are made there. American corporations have been offered a deal: if they want to sell in China,they have to manufacture there. The effect on America’s job base is devastating. But this is not the half of it: China insists that U.S. corporations bring their most advanced production technologies – knowhow that the American nation has taken generations to build up. In an egregious sell-out of the American national interest, U.S. corporations have complied.
Posted on: Wed, 12 Nov 2014 17:10:22 +0000
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