‘It has been said that there are two ways to
conquer and enslave a nation. One way is by using the sword, and the
other is by using debt. Fortunately, America
is not in danger of being conquered by the sword right now, but America is being conquered by debt. The
borrower is the servant of the lender, and today we owe China more than
a trillion dollars. By running a gigantic trade deficit with us, China has been
able to become incredibly wealthy. We have begged them to lend us back
some of the money that we have sent them and this has made them even
wealthier. Now China
is gobbling up U.S. real
estate and U.S.
assets at an astounding pace. In fact, some cities are in danger of
becoming completely dominated by Chinese ownership. One of those cities
is Toledo, Ohio. In many "rust belt"
areas, real estate can be had for a song, and the Chinese are taking full
advantage of this. America was once the wealthiest nation on earth, but
now we are drowning in debt and we are being sold off in chunks to the highest
bidder. Is this the legacy that we are going to leave for future
generations?
According
to a recent Fortune article, Chinese investors
have been very busy purchasing distressed commercial real estate in Toledo lately....
In
March 2011, Chinese investors paid $2.15 million cash for a restaurant complex
on the Maumee River in Toledo,
Ohio. Soon they put down another
$3.8 million on 69 acres of newly decontaminated land in the city's Marina District,
promising to invest $200 million in a new residential-commercial development.
That September, another Chinese firm spent $3 million for an aging hotel across
a nearby bridge with a view of the minor league ballpark.
Toledo is being
promoted to Chinese investors as a "5-star logistics region".
From Toledo it is very easy to get to Chicago, Detroit, Cleveland, Pittsburgh, Columbus and Indianapolis.
With
a population of 287,000, Toledo is only the
fourth largest city in Ohio,
but it lies at the junction of two important highways -- I-75 and I-80/90.
"My vision is to make Toledo a true
international city," Toledo's Mayor Mike
Bell told the Toledo
Blade.
For
some reason the Chinese seem to be very interested in that area of the
country. Last month, I wrote about how one Chinese group plans to develop
a 200 acre "China city" just 40 minutes away
from Toledo....
A
Chinese group known as "Sino-Michigan Properties LLC" has bought up
200 acres of land near the town of Milan, Michigan. Their
plan is to construct a "China
City" with
artificial lakes, a Chinese cultural center and hundreds of housing units for
Chinese citizens. Essentially, it would be a little slice of communist China dropped right into the heartland of America.
This "China City"
would be located about 40 minutes from both Detroit
and Toledo, and it would be marketed to Chinese
business people that want to start businesses in the United States.
But
it is not just the rust belt that is being bought up by the Chinese. A
recent Forbes article documented several of
the huge real estate deals that the Chinese are doing in New York right now....
According
to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and
are planning to spend hundreds of millions of dollars on commercial and
residential projects like Atlantic Yards in Brooklyn.
Chinese companies also have signed major leases at the Empire State Building
and at 1 World Trade Center, the report said.
In
addition to real estate, the Chinese are also buying up businesses and natural
resources all over the United
States.
For
example, the Dalian Wanda Group recently bought U.S. movie theater chain AMC
Entertainment for 2.6 billion dollars.
Also,
the Obama administration has been allowing companies owned by the Chinese
government to gobble up U.S.
oil and gas deposits worth billions of dollars.
On
top of all that, the Federal Reserve recently announced that it will now allow
Chinese banks to start buying up American
banks.
So
how in the world did we come to be so completely and totally dominated by China?
Well,
the key to all of this is the trade deficit.
Most
Americans can't even tell you what a trade deficit is, but it is at the very heart of our economic problems.
Basically,
we buy far, far more from other countries than they buy from us.
Most
Americans don't realize this, but the truth is that the United States
has a trade imbalance that is more than 5 times larger
than any other nation on earth has.
Overall,
the U.S.
has run a trade deficit of more than 8 trillion dollars with the rest of the
globe since 1975.
If
you go into a Wal-Mart of a dollar store today and you start looking at product
labels, you will notice that hundreds of products say "made in China" and
very few of them say that they were made in this country.
Every
single month, China
sends us gigantic mountains of plastic crap to sell in our stores and we send
them gigantic mountains of our money.
The U.S. trade deficit with China during
2011 was $295.4 billion. That was the
largest trade deficit that one country has had with another country in the
history of the planet.
Sadly,
so far our trade deficit with China
in 2012 is about 12 percent larger than it was last year.
So
things are getting even worse.
To
get an idea of how far things have come, let us take a look back at the 1980s
for a moment.
Back
in 1985, the U.S. trade
deficit with China
was only 6 million dollars for the entire year.
All
of this imbalanced trade is absolutely killing us.
Today,
the United States spends about 4 dollars on goods and
services from China for
every one dollar that China
spends on goods and services from the United States.
So
why doesn't China
buy more stuff from us?
Well,
there are a whole lot of reasons. One of the main reasons is that they
slap huge tariffs on many American-made goods.
For
example, according to the New York Times a Jeep Grand
Cherokee that costs $27,490 in the United States
costs about $85,000 in China
thanks to all the tariffs.
So
why do we allow China
to keep doing this to us?
That
is a very good question.
Meanwhile,
China
is continually getting wealthier and we are continually getting poorer.
All
of the money that is leaving this country and going to China could be going to U.S. businesses and U.S. workers instead. In
turn, those businesses and workers would pay taxes on that money to support the
government.
Instead,
we have to go beg China
to lend us the money that we just sent to them.
At
this point, China now holds
approximately 1.17 trillion dollars of U.S. government
debt.
None
of this ever had to happen.
But
it did happen because we were stupid.
Now China has
mountains of money to literally buy us up.
But China is not
the only country that we have an imbalanced trading relationship with.
For
example, the new "free trade agreement" between the United States and
South Korea that Barack Obama has been touting went into full effect on March
15, 2012.
So
how has that "free trade agreement" turned out so far? The
following is from a recent article by Pat Buchanan....
The
U.S. trade deficit with Korea tripled
in one month. Imports from South Korea
jumped 15 percent to $5.5 billion in April, while U.S.
exports to South Korea
fell 12 percent to $3.7 billion. Suddenly, the U.S.
trade deficit with Seoul
surged to an annual rate of $22 billion.
Shades of NAFTA. When it
passed in 1993, we had a $1.6 billion trade surplus with Mexico. By
2010, our trade deficit with Mexico
had reached $61.6 billion.
Ouch.
The
truth is that these free trade agreements are not fair and balanced.
U.S. workers
end up competing for jobs with workers in countries where it is legal to pay
slave labor wages. And other countries often have far fewer rules and
regulations to follow as well. In his recent article, Buchanan described
why all Americans should be economic
nationalists....
Global
free trade means U.S.
workers compete with Asian and Latin American workers whose wages are a fraction of our own and whose benefits may be
nonexistent. Global free trade means U.S factories that relocate to Indonesia or India
need not observe U.S.
laws on health, safety, pollution or paying a minimum wage.
Global
free trade means that companies that move factories outside the United States can send their products back to
the United States
free of charge and undercut businessmen who retain their American workers and
live within American laws.
Free
trade makes suckers and fools out of patriots.
Unfortunately,
both major political parties in the United States are absolutely
married to the one world economic agenda that the elite are pushing.
So we
will continue to bleed wealth, businesses and jobs at an astounding pace.
You
can get a really good idea of the horrific manufacturing job losses in the
United States over the past 40 years by checking out this map right here.
Overall,
the United States
has lost a total of more than 56,000 manufacturing
facilities since 2001.
According
to the Economic Policy Institute, since 2001 America
has lost approximately 2.8 million jobs due to our trade
deficit with China
alone.
There
seems to be absolutely no concern with protecting American jobs these days.
If
you can believe it, Chinese corporations are even building our bridges.
The following is a brief excerpt from a recent ABC News
article....
In
New York there is a $400 million renovation
project on the Alexander
Hamilton Bridge.
In
California, there is a $7.2 billion project to
rebuild the Bay Bridge
connecting San Francisco and Oakland.
In
Alaska, there
is a proposal for a $190 million bridge project.
These
projects sound like steps in the right direction, but much of the work is going
to Chinese government-owned firms.
"When
we subsidize jobs in China,
we're not creating any wealth in the United
States," said Scott Paul, executive director for the
Alliance for
American Manufacturing.
Americans
need to start understanding that our trade deficit is causing us to lose
massive numbers of businesses and jobs and that this is making us poorer as a
nation.
As I
wrote about the other day, the median net worth of families in
the United States declined "from $126,400
in 2007 to $77,300 in 2010" according to the Federal Reserve.
Even if you take away the effect of the housing
collapse, household net worth still declined by 25 percent between 2005 and 2010.
A lot
of that decline in wealth was due to the recent recession, but the point I am
trying to make is that we are getting poorer as a nation.
A
decade ago, the United
States was ranked number one in average
wealth per adult. By 2010, the United States had fallen to seventh.
And
when you factor in our debts, we are a complete and total mess. U.S. consumers
are more than 11 trillion dollars in debt and the federal government is nearly
16 trillion dollars in debt.
We
are getting deeper in debt at the same time that our ability to service that
debt is declining.
The
reality is that our economy is completely falling apart and it no longer
produces enough jobs for everyone.
In
fact, it isn't even close.
Right
now there are about 3.7 workers that are
"officially" unemployed for every single job opening.
So
what we are doing right now is clearly not working.
We
need to fundamentally change direction as a nation.
Unfortunately,
that is not going to happen any time soon.
So
where do we go from here?
