- Posted October 9, 2013 by
This iReport is part of an assignment:
Shutdown over: What next?
State of the Economy/Shutdown
A common, popular thing to do these days is order product from overseas and then put your companies name on it as though you were the one who manufactured it.
We have a 3 point system here in the United States. Sales, Service, and Manufacturing. Any significant loss of any one of the 3 will result in an economic recession.
Think back to 2008 when the economy first collapsed. What we endured was not an economic collapse it was a permanent adjustment to the new global economy. A new global economy where foreign countries who pay inferior wages can take advantage of those countries who are at the top of the economic food chain.
Here we had reached 2008, and we had all this consumer credit spending, and all of this credit being issued across the board in the United States. The primary concern is that the back bone of any nations gross domestic product is what they can manufacture.
The United States has shifted towards a sales and service backed economy. An example of such would be the city of Buffalo, NY. Once a manufacturing powerhouse, Buffalo's number one source of employment is now collections agencies, which is a service oriented job that thrives under the conditions of a credit bubble collapsing.
The United States is not in a recession. We have endured a permanent adjustment to the Global Economy. The only true jobs increases you will see are the Walmart type jobs. The federal reserve is propping up the economy as it now sits. Pumping 85 billion a month into the markets, keeping interest rates low.
The U.S. economy is a house of cards, blow on it and it could collapse.
Give you an example: 11111111
The above is a pyramid. Number 3 represents manufacturing, number 2 represents logistics/distribution, and number 1 represents sales of the manufactured product. This is the ratio. Manufacturing creates jobs throughout the pyramid spectrum. Look at the pyramid below.
Remembering that the number 3 is manufacturing in the pyramid..... look at the number of one's. They decrease. When you decrease manufacturing you decrease the entire economy. Below is a pyramid of what began to happen during the economic adjustment in 2008.
There were not enough manufacturing plants to support the sales and service growth of the United States. Any way you want to put it speaking of housing market bubbles or anything else, that was not the true cause. The market will stabilize itself over time, and it does not matter who cheated who on interest rates.
Here we are now, with a large portion of the federal government shutdown. We have a republican party that has lost its way and popularity. The majority of the public are not rich and Republicans fail to recognize the interests of those people. Women think the party is insensitive to their needs and minorities fall into the same boat.
As I stated in my last writings, the republican parties strategies are seriously flawed. A majority of modern day republicans are the wrong type of republicans.
We are dealing with Obama care, and I do believe that if George Bush had done a better job that Obama would not have won the election. People were afraid in 2008, and they wanted to get away from the policies that hurt the economy as quickly as possible. And those fears were directed towards G. Bush and company.
Go ahead government, pass a budget, raise debt limits, and fund Obama care because if manufacturing is not brought back to the United States there are gonna be a lot of people who will be needing Obamacare.
American public, you are being lied to, sold out, and manipulated. The jobs reports are flawed. The only job growth we will see is based off of consumer spending confidence.
There is only one way to fix the economy at this point , and that is to bring manufacturing back to the United States. You can't just put tariffs on imports from China, you have to give the economy time to adjust....and it will. Introducing a 1 percent tariff that increases each year will give the economy time to prepare. The dollar will adjust, inflation will slow, and things will return to normal. The price for goods will increase with Tariffs, but as manufacturing returns the value of the dollar will increase and you will be able to buy more with a dollar.
There are American Economic consultants stating that opening trade with China benefits the economy here in the U.S. That is a lie.
The United States and its economy is being eaten from the inside out, the American Dollar and economy is under attack from foreign countries and greedy corporations. Whether or not those parties realize it, that is treason. It is treason and it is a very serious form of treason.