China Hurts U.S. Jobs

Americans have been lulled into a false sense of security and friendship with China. We keep buying all its products, most of which are inferior to ours, while we compete for commodities throughout the world.

China owns a large portion of our national debt, thanks to consumers. And, on top of that, our capitalist representatives keep sending jobs to China at the expense of the American worker.

There is no mistake about it: China is a Communist country and it plays hardball. We have been at war with that nation twice; Korea and Vietnam.

Further, it’s clear that the recent skirmish involving North Korea against South Korea was instigated by China to obscure our main focus – China. Every dollar we spend on Chinese goods helps fund its oppressive Communist regime and military.

China has the second most powerful military on Earth and the second largest economy on the planet (after us). And, based on GDP forecasts, it will likely be No. 1 within a decade!

The Wall Street Journal last December noted China cut its first half (of 2011) export quotas of rare earth metals by 35 percent, after having cut 2010 exports by 72 percent.

To put this into perspective, China controls 95 percent of the world’s rare earth metals. Uses for rare earth elements include a variety of imaging electronic components.

For example, cerium oxide and related products are frequently used as polishing additives in toner formulations. These materials also are used in semiconductors and displays.

Trade Balance Needed

WMB believes we need to halt the current trade surplus to help create employment in the United States. China does not compete fairly on many levels.

Examples include the foreign exchange rate, government-subsidized state industries, and the illegal use of intellectual property from U.S. patents.

At the rate we are going, America will lose all our manufacturing jobs to China which will likely lead to a depression for which there will be no recourse except war.

Communist China is unhappy with our recent monetary policy to purchase long-term U.S. Treasury bonds to reduce long-term interest rates to stimulate our economy and create jobs. (Obviously, interest rates can’t go any lower).

The consequence is a weaker dollar, but our exports will be more attractive offshore.

China is upset because it has a huge trade surplus with America, and a weaker dollar will help to reduce that surplus. Also, China will likely complain about the Fed policy because China has been accused of keeping its own currency artificially weak to maintain a surplus.

But it is possible that buying T-bills may help allay ongoing complaints about Chinese currency manipulation, since the trade imbalance will improve as a result of these actions.

What We Can Do

WMB believes U.S. companies must create new industries and products which can compete on a global basis. Products must be unique to this country; Made in America needs to be more than just a slogan.

After all, we have the best schools in the world and many of our institutions are spawning ideas that create ventures in the States.

Sure, many of the students are from foreign countries, but the U.S. government needs to make it attractive for exceptional students to stay here and help create leading technology and jobs.

The biggest consumer market is here. We are the ones buying goods and services, thereby creating millions of jobs not only in China but around the world.

It’s time we take control of our domestic dilemma.

The government needs to impose tariffs or some other mechanism, like the current monetary policy, in hopes of restoring our integrity and position in the world economy.

Wars aren't fought just on military fronts.

TechMan