Nothing New Under the Sun

From the link:

The gap between US exports and imports hit an all-time high of $671.7bn (484bn euro) in 2004, latest figures show.

The deficit with China, up 30.5% at $162bn, was the largest ever recorded with a single country.

Democrats claim the administration has not done enough to clamp down on unfair foreign trade practices.

Absolutely. For once, the Democrats get something right. Foreign country corporations don't operate under the same conditions as those in the U.S. They don't have to deal with the taxation, environmental regulations, labor laws, or labor unions that raise the cost of doing business astronomically.

So while the Dem's have the right argument, it's for the wrong reason. They maintain:

For example, they believe China's currency policy - which US manufacturers claim has undervalued the yuan by as much as 40% - has given China's rapidly expanding economy an unfair advantage against US competitors.

The gist of this statement is correct except that there's nothing "unfair" about a country establishing a policy that maintains the value of its currency in direct proportion to that of the U.S.

The following may be absolutely the most inane statement uttered in recorded history...

Meanwhile, the Bush administration argues that the US deficit reflects the fact that America is growing at faster rate than the rest of the world, spurring on more demand for imported goods.

Duh! Why doesn't America's fast growth rate spur demand for domestic goods?

Now, here's a question to ponder...why is it that the U.S. government ONLY allows foreign countries to return their dollar surplus to the U.S. by purchasing U.S. treasuries?

Answer: Because they would own this once great country lock, stock, and barrel. But since they can only use their U.S. dollars to by our debt (Treasury bonds), they continue to finance our current life style of manic consumption. Can you say "dollar hegemony"? It is truly a house of cards.

Lastly, there's good news and there's bad news. The good news is that the major Medicare reform isn't going to cost the estimated $400 billion to implement.

The bad news is the latest figures just released are estimated at $700 billion to $1 trillion and they haven't issued dollar one for a prescription yet.

Check out this link for an audio interview with Laurence J. Kotlikoff. Scroll down to the Real Player or MP3 links on the left side of the page to listen to a shocking discussion. Truly a voice in the wilderness.

Wake up America!