Can Blogs Save the World?: 11/01/2011

I will try to keep this as short and sweet as possible. The cause of the crisis is simple, and if you really think about my theory, you should also understand that it's really just a matter of common sense, and you’ll ask yourself why our politicians are not talking about it publically and also why this has been going on for so many years and no one has tackled the problem.

The simple version of the American - European Crisis is that American and European private sector factories have been closing down for years and consequently private sector tax paying jobs have been and are being lost in the process. Simultaneously there has been an expansion of government programs and jobs that are replacing the lost private sector jobs. One reason this truth has been hidden for years is because the true unemployment numbers have been hidden due to government jobs being silently filled over time by the private sector jobs that were lost. There is a transfer of wealth from the United States and the Europeans directly to China. Their private sector "taxpaying" jobs are building up while the private sector here in the United States and also in Europe is in decline. Consequently, the strength of China's economy is directly supported by the United States and Europe. Their incomes and way of life are improving and our incomes and way of life are declining.

An analogy for transferring wealth between countries is as simple as two people exchanging money. It's easy to understand that if I give you $100, then you have $100 more and I have $100 less than I did before the transaction. Now consider that analogy on an international level. Every product that you buy that is made in China (or any other country who's labor prices are far less than the United States or Europe) represents a factory and jobs in that particular country. Let me repeat that statement because it is very important that you understand it. EVERY product that you purchase off the shelf here in the United States or in Europe that is made in China (or any other country who's labor prices are far less than ours) represents a factory with employees in THAT particularly country (not our country). When you purchase that product, your money (at least a good portion of it) goes to that country and is "directly" supporting the growth of industry and tax paying jobs in that country instead of your own. I keep mentioning "tax paying jobs" which is important because every "taxpaying job" that is lost in our country means less money going into the U.S. Treasury and also less money going into the Social Security Trust Fund. It's also important to understand that as government programs and jobs are increasing in numbers at the same time the private sector tax base is in decline, it makes the national deficit grow at an increasing rate. It's also just as important to understand that at the same time the private sector tax base is decreasing, and at a time when President Obama decreased the social security tax a year or so back by 2% and at a time when a great number of the baby boomers are retiring. At the same time the baby boomers are retiring, many of their jobs aren't being replaced which means less people are paying which further covers up the "true unemployment numbers" of the private job sector size decreasing. In other words, their private sector jobs WILL NOT be replaced as the private sector continues its downward spiral. Also, maybe you've noticed a great swell in fast food restaurants and casino's over the years and a great push politically for casinos, bingo halls, etc. Yes, these are yet more jobs that replace "product" type factory jobs. These jobs are more consumer "luxury" type positions and when things get really tight, many of these jobs will disappear as well, as people will not have money to gamble or eat out as much, but they do somewhat temporarily "fill the void" because even though they are not high paying positions, they at least contribute somewhat to the U.S. Treasury in the form of taxes. The truth is, politicians need the unemployment numbers to remain low, so look for more "creative" job positions to surface as the struggle to keep people working continues.

So the dynamics that are helping create the slow and painful death of our factories and consequently our taxpaying jobs in the United States and the European countries is directly connected to the cheaper labor from other countries which create unfair competition. It's very important that you understand this, because it's killing our economies. The strength of our country lies in the private sector, NOT government jobs, because it's the taxes that are paid by private sector factories, industries and private businesses that pay 100% of every government salary that is in existence. This includes our politicians and our military. Sales tax on products and fuel tax are the only taxes I can think of that do not necessarily apply to that statement, but most sales taxes are localized in the communities they are collected and fuel taxes do go towards maintaining our public roads which is a very small portion of our government.

There is also a wealth of misinformation distributed through different outlets, but this hidden truth has not been discussed in an outright and honest fashion. The very fact that it has been covered up and not addressed for many years either leads us to believe that there is much ignorance, apathy and/or incompetence in our federal government or there is something else going on that lends towards some of the conspiracy "one world government" theories. For the life of me, I can't imagine that degree of ignorance coming out of the best and the brightest our political arena has to offer, which makes me consider some of the conspiracy theories about the new world order and also ask myself how many of our presidential administrations had such big ambitions in the world wide political arena that they basically defecated on our countries best interests in order to "balance out the world economy" and gain international political favors.

Because in the world arena, wealth is just like pouring water from one glass into another, the liquid in the one decreases and the liquid in the other glass increases and at some point, they will even out and in theory that is all labor costs balance out (with our wages being lowered and China's being increased) and we will be able to start supplying products to China, India and the other countries, but what was the cost to get us to that point and who will be the victor when we get there? Also, there are dire consequences and serious defects in the theory that this will be just as good for us as it is China.

The best example I can give is the textile industry. If you have two similar quality t-shirts and put them on a rack at a store for sale, we can quickly surmise that the cheapest shirt will in all probability sell first. If one of those shirts sell for $15 and it is made in the United States (or Europe) and the other shirt sells for $8 and it is made in China (or India) then we see that the $15 shirt represents a factory which represents American (or European) jobs and the $8 shirt represents a factory which represents Chinese (or Indian) jobs. Here lies our problem and is proof of this transfer of wealth and jobs that I am speaking of: Unfair competition is causing a major transfer of wealth and power, the proof lies in common sense and discerning what is true and what is just misinformation coming from the powers that be. Common sense tells us that the majority of people will buy the cheaper shirt and common sense also tells us that the other company that creates the more expensive shirt will struggle to stay in business. We have to compete, but how can we compete with the $8 shirt? We either have to automate and lay off excess workers, pay cheaper wages to the workers we have which lowers the standard of living and lowers the taxes our government receives, or we have to lay off most of our employees and subcontract to the Chinese factory, purchasing t-shirts from them at bulk pricing and still put our "made in America" logo on them.

Some will argue with you that trading with China is fair and that there is a huge market in China, a country that has more than four times the population that we have, but again, common sense rules the day and pushes all of that nonsense to the side. The fact remains, if Americans and Europeans can’t afford to purchase products made in America or Europe, but buy Chinese products instead, you can bet that the lower salaried Chinese people are NOT buying the higher priced American and European made products. Keep in mind that they were more expensive to begin with before shipping charges and you can bet that the Chinese media is not encouraging people to “buy American”.

Many people have noticed the middle class shrinking and believe it's because the rich keep getting richer and the poor keep getting poorer, but I say it's because almost every American (and European) salary has been gradually going through a "shrinking stage" for quite a few years now. If you do not believe me what I am saying, then maybe you can check on the history of the standard of living and wage increases in China and compare it to your country. China's salaries and minimum wage have been increasing and because of the law of supply and demand, factories are prospering and the population of China is increasing at a faster rate than here in the United States, and that is true even though China has very strict "one child policy" per family.

So there you have it. Private sector jobs is what pays taxes and produce results and government jobs, even though they do pay taxes, they still create a net "tax loss" because the taxes they pay do not even pay their own salaries, much less pay for the building space they are in, the insurance and benefits they receive, or in some cases, the car that they drive.

This did not happen overnight. It has been happening for years. Do not believe the misinformation that is handed out to us that this one world economy is a good thing because it is lowering our standard of living while increasing the standard of living for the other countries. That is good for them, but not us. We are accustomed to a certain standard of living. Our main streets are congested with restaurants, we love football, we love all these things, but our politicians have sold us out. Only when our salaries can compete with the Chinese will factories balance out and trading is fair, but what have we gained in the process? What have we lost? The idea that things will be great when that occurs and that we can all live in a world full of harmony working together ideally sounds quite delicious, but in reality it is impossible. Politicians will not easily delete all of those extra government jobs and programs that were added as our factories closed down because of the public outrage. EPA helped put extra strains and regulations on the very factories that closed down because they already could not compete with China, so one analogy is that those factory workers went to work for EPA, FDA, and Homeland Security etc. Quite simply, our private sector tax base is shrinking at an expanding rate, and but government jobs, salaries and buildings that require upkeep are not, therefore the national debt will continue to grow out of hand because no politicians are willing to put their necks on the lines and give us the tough love this country needs so they will continue to expand and spend the little money that remains until there is no choice but to raise our taxes so high that most will not be able to make it. We will have to sacrifice some things and it's going to hurt. There will be chaos.

This is not mainstream press, but if the public ever really wakes, our politicians who have known these things for many years will finally have to confess this truth, or at a minimum "pretend" to send harsh words to China. Political posturing and exaggerated words will not fix the problem however, although creative speech may get someone elected, we are getting to the point that China will not easily accept the changes that are required to be made because in order for our factories to rebuild, many of their factories must close down. Also, creating an atmosphere here to rebuild American factories, whether we add extra taxes on imported goods or decrease regulations on American factories so that we can compete with unfair competitors is a good start, but imagine how many years it will take to slowly rebuild the private sector so that the $8 t-shirt is the same price as the American $15 t-shirt. The other major problem in turning this pattern around is that as we have been buying those $8 t-shirts, our salaries have been decreasing to the point where we can no longer afford the $15 t-shirt and fuel prices have been up since 2008 robbing so many people of their extra available income. China will not be happy about it, and diplomatically there will be some sharp dialog from them towards us, so very strong leadership is required to get our country moving in the right direction again and I'll admit, I see the problem, but I do not see an easy solution. We can only hope, but I am worried that the most important truth of the century will be lost and the struggle will get much worse and I am not looking forward to the chaos that will come.

You might consider that one day, there will be a lot more people protesting in this country and Europe than the current occupy movement, but if they don't wise up, they still won't really understand what got them to the point of why they wanted to protest to begin with. You see, it's the private sector that truthfully runs the economy, not the banks. The banks, rich investors and corrupt politicians are just the gnats sucking blood from the wounds. The wounds are a failing private sector and consequently a diminishing economy. The national debt is swelling government and a dwindling tax base.

Matthew 12:25 (NIV)
25 Jesus knew their thoughts and said to them, “Every kingdom divided against itself will be ruined, and every city or household divided against itself will not stand.

Can Blogs Save the World?

Saturday, November 26, 2011

The Cause of the American - European Crisis

Tuesday, November 8, 2011

Index for Books of the Bible

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