Saturday, October 23, 2010

Plan to Restore America

There is a lot of talk right now about introducing tariffs on China and goods imported from other countries. I’m far from an economist, but from everything I have read this would be bad for the country, especially at this point. We have a government that is purposely spending this country into oblivion. This country is in uncharted waters as far as the amount of debt. As of October 10, 2010, the Total Public Debt Outstanding was approximately 94% of annual GDP, ($13.616 Trillion). The amount of unfunded liabilities is approximately $130 trillion.

A large portion of American debt is owned by China. We know we have a trade deficit, and at first glance it looks like if we change that, the other things will come into line. We have only to look at the past and that tells us that tariffs rarely work.

Recently Obama threatened a tariff against Chinese made tires. China retaliated with a tax, or even a threat to stop to stop importing American Chickens. Right now China is negotiating from a position of power.

We have to start at the bottom to solve our problems. First and foremost, we have to eliminate debt without raising taxes. The only to do that is to cut spending. That alone will bring back some jobs, but it won’t restore America’s manufacturing base. The only way for that to happen is for government to get out of the way. We have to end many of the regulations that cost business billions each year. There are many regulations that are needed, but this is a time of crisis. There are OSHA, IRS, and EPA regulations that can be suspended until the manufacturing base is restored.

Next on the agenda is to begin negotiations with other countries that face the same trade imbalance problems. We need to work on new trade treaties that replace the old ones. We need trade treaties that replace the word “free” with “fair.” Trade partners should make their manufacturing facilities face the same restrictions as our own, such as environmental and wage restrictions. We need world pressure to force China to accurately value its currency.

Anything we do is moot unless we can revalue the dollar. As long as we have a government that is practicing Keynesian economics, that can never happen. Many believe this is an effort to bring the American economy down until it is small enough to be merged with the Latin American economies. Some believe this is a prelude to world governance. There is strong evidence that all of these things are happening.

I believe that tariffs would even further destroy the country. We have only to look at FDR and the Smoot-Hawley Tariff Act where he placed tariffs on 20,000 goods. This act helped push us into the great depression. Everywhere else in the world that period was only known as a depression.

This time we have an instruction manual of things not to do in a recession. All we have to do… is not do anything that Franklin D Roosevelt did. We have Obama and a progressive congress that is making all the same mistakes that FDR and the progressives of the 1930’s made, if they are truly made in error. In the 30’s we came very close to becoming a socialist nation with a dictator. We may have never turned back had there not been World War 2. There is a lot of evidence that Barack Hussein Obama wishes to be the next FDR. We have only to look at his policies, as well as his own words to see that is the truth.

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