Our Administration Barks

I find it interesting to watch our present administration as they attempt to blame other countries for problems that are clearly the fault of the current and past administrations.

Specifically, while the administration and congress blusters to China with threats of tariffs if they don't let their currency float against the dollar Dr. Allan Greenspan has this to say.

From the link:

A move by China to revalue its currency "does not follow that that will lower our overall trade balance," Greenspan said. "Indeed, it's probably quite unlikely."

That's because companies are likely to turn to other countries, such as Thailand or Malaysia for goods, rather than U.S. producers. "So essentially what we will find is we're importing from a different area, but we will be importing the same goods," Greenspan said.

As Dr. Greenspan points out, the only thing that will help the US trade deficit is for Americans to buy less imports and more American products. Not very likely, especially given that America doesn't manufacture much of anything anymore.

It is interesting to note that Dr. Greenspan realizes that Americans will buy from any other country rather than from American manufacturers.

As I see it, there are either of two scenarios that are likely to unfold: American jobs and manufacturing will continue to be exported and the trade deficit will continue to grow until foreign countries cut off our credit - Mr. America, your card has been declined, or there simply won't be enough people in this country able to buy anything from anywhere because they have lost their jobs and are broke. In either case, the exportation of jobs and manufacturing will not stop until a state of equilibrium has been attained. I've mentioned this before. It means the average income and standard of living of Americans will decline as the average income and standard of living of their counter-parts in China, Mexico, etc., increases. This process is well under way. Welcome to the New World Order.

Not only are jobs and manufacturing being exported but also the R&D is being outsourced. This means that products will and are being completely developed overseas from concept to finished product and then imported and sold under an American label while the American companies lay off "non-essential" personnel to save costs and boost their stock price. But the day will come when those doing all the work realize they can go direct to the American consumer and the rest of the world as well, and cut out the middle man i.e. the American corporation who bought into the whole idea of outsourcing leaving them with no reason for being. Now that's the definition of justice.