(June 2012) – Dr. Susmit Kumar is the author of Casino Capitalism (iUniverse) and other litterature on the present global economic situation and Islam. Recently he talked to PROUT Globe about the deficits of countries in economic crisis.
PG: What is main cause of the current economic crisis in Europe?
SK: It depends on your perspective. Socio-economically speaking jobs disappearing overseas – "outsourcing" – is a main blight of those western economies that now find themselves in a severe crisis.
PG: Why are some countries in severe crisis and others not?
SK: One important difference between the countries that are still not in a severe crisis – Germany, Finland, etc. – and those already in crisis – Portugal, Italy, Ireland, Greece and Spain (PIIGS) and the US – is that the latter have been plagued by significant trade deficits for a number of years whereas the former have not yet generated significant trade deficits.
Over the last 6-7 years domestic and foreign banks in the crisis-stricken countries have invested heavily in non-productive sectors such as trading, finance and real estate. These banks invest to get maximum returns and they can get such returns in this type of risky markets. As a result of their hazardous investments, the economies of these countries typically boomed, or “bubbled”, thereby keeping their budget deficits artificially in check.
PG: What is happening now?
SK: Following the 2008 Great Recession, most western countries have suffered from the effects of the collapse in real estate. As a consequence their budget deficits have deepened further. The countries in such a severe crisis have been hurt the most however as a result of their losses in terms of jobs and of revenue collection due to massive outsourcing and subsequent capitalist madcap investment trends.
Pressure from the IMF has forced the PIIGS countries to start paying back their foreign investors who made loans to private sector operators in those countries, something that has caused further severe increases in their budget deficits.
PG: Why is the US still able to cope in spite of being the world's largest debtor nation?
SK: Let me give you a practical example. Although India along with many other countries never had the problem of budget deficits, it has been devaluing its currency at the rate of ten percent over the last twenty years in order to pay for its trade deficits. In 2011 the Indian rupee was depreciated by nearly twenty percent. Like all other countries, except the US, India is not in a position to print more of its currency to fund its trade deficit. The US on the other hand, taking advantage of its dollar being the global currency, has been printing dollars for the last 30 years to fund its budget and trade deficits.
Despite generating significant trade deficits, the US has seen its currency rise in value against all currencies, except the Chinese yuan and western currencies. Had the US dollar not been the global currency – “print on demand” – the US economy would have faced a crisis on a par with the current economic crisis twenty years ago, which would have then resulted in a crash of the US dollar.
PG: What may be the implications in other countries of all this?
SK: Again, India never had a budget deficit problem but its ongoing currency crash results in inflation causing an increase in both trade and budget deficits. India imports nearly 75% of its petrol. Hence an escalating crash of the Indian currency will cause petrol prices to shoot up, resulting in an avalanche of price rises across the board due to higher transportation costs. Hence there is an urgent need for:
- An immediate end to global speculative trading.
- A neutral global currency governed by a world finance body.
- Healthy investment policies focusing on local growth and local control of the economy.
PG: How long can the US dollar hold up, do you think?
SK: Not for very much longer, I'm afraid. I don't deal in forecasting or prophecies but I see no way the US economy can hold up for long. With its fall the entire global economy and world order as we know it will fall into disarray.
Read also: Susmit Kumar on Reaganomics – A Bogus Economics Paid by China and Japan
Visit Susmit Kumar's home page: www.susmitkumar.net
Dr. Susmit Kumar's Karma, Mind, and Quest for Happiness on spiritual science is available from Amazon and other bookstores.
One thought on “US Dollars “Print on Demand” and the Current Budget and Trade Deficits Drama”
Dear Mr. Susmit Kumar,
I am Romanian at origins, I lived in USA from 1992, and living here
I was hit by the so called Globalization! In need to observe my situation
from USA and as well the future of my Country Romania secured, I did
the utmost efforts and from May-2003 I informed top USA factors just
to emulate them along the only viable economic solution that exists.
Starting at the very reality that Globalization without Global Wages
cannot exist, I realized that as much USA bet its future on money prints
and refused the obvious from April-1999, after I first stated the solution
until now, the rest of the World must unite to adopt a common minimum
wage on which to achieve progressive increases based onto an “universal
recognition of the human effort” as valuable material-social contribution!
So, with thanks for your own findings I hope that you would establish
a complete resolution after you may fully read and analyze my proposals
addressed on May-25-2012 at the Obama Offices from Minneapolis, MN.
Valeriu Zamfir, June-08-2012.
Please be kind to reply by mail, so I keep my ideas for DFL:
854 Woodbridge Street, Saint Paul, Minnesota, 55117, USA.
Dear Mr. President Obama Barack, and Mr. Vice President
Joe Bidden, our Huge Outsourcing Problems Have Solution!
Ladies and Gentlemen from all Developed Nations Governments, our Economies suffered extensive negative transformations because huge Labor Costs Disparities existent between the Developed Nations and Poor Nations cannot allow a Chaotic Global Economy, nor a totally Free Trade. Producing abroad at 25 to 50 times lower labor wages than Companies that hire labor inside Developed Nations, top outsourced economic capacities forced their competitors to bankruptcy or to move abroad, triggering endless outsourcing effects which downsized our Economic Outputs, Profits, and Tax Revenues.
At lesser Wages from new Jobs and continuously decreasing numbers of Jobs inside the Developed Nations, USA alone dropped from its 19.76 % industrial production output available in 1992, to less than 9% industrial production output presently, unable to stop even future outsourcing effects. Borrowing and printing huge amounts of Dollars cannot be a Sustainable Solution, a Global Economy without Global Wages does not exist, so to restore and protect our Industries, Technologies, Jobs and Finances we must adopt and enforce identical minimum wages among the Developed Nations!
Under a Common Minimum Wages Policy for all Developed Nations we would mandate that any Company which belong to our Nations must pay at least Our Common Minimum Wages (as all Companies pay whenever they produce inside the Developed Nations) anywhere they hire labor in the World to produce their goods and services, if those Companies return such Products and Services into the Markets of the Developed Nations. So, the Companies that relocated into the Cheapest Labor Nations and bring Cheap Labor Products and Services for sale into the Developed Nations, must pay Our Minimum Wages anywhere they produced abroad if they sell them to our Markets, in respect of our Companies, Workers and Nations that desire to produce at home, because they cannot compete against Labor Costs that produce at 25 to 50 times Lesser Wages, and are repeatedly coerced to move Production and Services abroad, triggering Endless Outsourcing Effects.
The chaotic Globalization allowed to enlarge Multinational Private Fortunes, hit People and Governments in all Developed Nations with continuous outsourcing effects, and so confirmed that any Global Economy without Global Wages would collapse against our Nations, extinguishing our Industrial Prominence…
Loosing economic stability and significant industrial outputs from all Developed Nations, we lost good living conditions under huge loses of Jobs and Wages that are now used by Multinational Companies, foreign Nations and Populations, without to compensate for our lost, Outsourced Resources.
As we restored Democracy in more Nations, previous ambitions pushed the World into an old mold, propelling chronic outsourcing effects against higher Wages. If in 1992 USA had 19.76% industrial production output, in 2006 it had just 11.34% industrial output, and in April-2011 the USA Public Radio Station confirmed that our industrial output dropped under 10%!
Because outsourcing become a chain reaction that pushed abroad any production and services capacities in less than 2 years after a good start, due to mass producers that offer similar products and services at 25 to 50 times smaller labor costs than labor prices paid inside the Developed Nations, the USA industrial outputs would continue to decrease to as low as 3 or 4% if a common minimum wages policy is not enacted among Developed Nations.
Permanent erosions set against the income and living standards of all Developed Nations eroded products and production demand in our Nations! A negative economy trend fueled by continuous outsourcing effects cuts in our Jobs and Wages by moving our Industries, Services, Technologies, and Financial Resources, toward the “One-Dollar pay per Day Wages Nations”.
Because the greed of few deepened the losses of many by outsourcing our Jobs, Wages, Industries and Services continuously, the Governments of all Developed Nations must unite under legal protections that preserve and resettle enough Economic Capacities, to stay at home and to use our Labor.
Two decades of hardening outsourcing effects moved our best Jobs, Wages and Economic Capacities into the Cheapest Labor Nations, condemning the Governments of all Developed Nations at sizable reductions in Tax Collections, that produced unsustainable waves of Borrowed Money and new Money Prints.
Our major producers survived a fierce labor competition by lowering labor costs under coercive outsourcing effects that hit their mass-production and services, triggering an endless chain reaction toward new losses of Jobs and Wages. In the absence of realistic protections for our Jobs, Services and Industries, (allowed to free fall under utopist free trade policies inspired by Britain) total outsourcing effects fueled insufficient Tax Collections, Higher Social Costs, Harsh Unemployment Rates, and record National Deficits that hit USA in recent years with more than 1.5 Trillion Dollars per year, even the price of our War efforts did not surpassed 650 Billion Dollars per year.
Greedy pushers integrated our Economies in sticky global trenches to cut Labor Costs into the Developed Nations, but instead they triggered new looses of Industries, Services, Jobs and Tax Collections, fueling continuous displacements of Economic Capacities, Budget Deficits, and Higher Social Costs, under wages disparities exploits that hit Rich and Poor Nations alike.
Global Economy without Global Wages fuels Continuous Outsourcing:
1). Pushed by Financiers that followed course on tacit Japanese initiatives and ambitions meant to bring most Japanese Economic Capacities at World Dominance, prolific economic factors resisted against Cold War guidelines and moved mass production in Poor Nations, to survive a fierce competition against 1$ Daily Wages and to avoid paying 60$-80$ Wages in our Nations.
2). Because we cannot drop our income at the Poorest Nations Wages, and we need to keep our Labor Pay and Power to Buy above prior earnings to avoid harsh Tax Increases and monstrous Budgets Deficits, our High Wages Nations must avoid the outsourcing effects dictated by Slave Labor Wages!
Inspired by the Economic System of Mandatory Minimum Wages introduced in USA during the Presidency of Mr. Roosevelt, the same Minimum Wages Policy for all Developed Nations would protect our People by extending trade abilities between Developed Nations, before the Wages of all Poor Nations would improve to get closer to our Wages.
3). Adopting Mandatory Minimum Wages with all Developed Nations as standard protections for all economic activities born in our Nations, we would secure firm Economic Protections at Fair Trade Relations. Under a Common Minimum Wages Policy, any of our Companies that bring to sell Products and Services into the Developed Nations, would have to pay “our minimum wages” in whatever Nation they produce them, just to protect our remaining Economic Capacities, Producers and Workers as a lasting barrier that prevents total outsourcing effects.
As Companies that sell their Products and Services in our Nations would pay and obey our Mandatory Minimum Wages anywhere in the World, our Companies would be so discouraged to move abroad if they must pay nearly 10$ per hour as Minimum Wages Abroad, and those Economic Protections would help all Developed Nations to grow again.
If we implement such minimum wages adopting the same amount as Standard Policy, every Western Economic Capacity would start from home at equal chances with any Developed Nations Competitors, activating fair interactions in their Economic Exchanges on all Labor Markets, even if few Production Capacities would still be abroad! Enforcing Standard Minimum Wages with all Developed Nations on any Labor Markets for all Companies that sell Products and Services in Countries that adopted together Mandatory Minimum Wages, the Developed Nations can secure competitive protections that are able to slow and stop the exodus of their Jobs, Wages and Industries.
The mandatory provisions of Standard Minimum Wages for employees hired in Developed Nations Companies, can discourage their Manufacturing and Services to move abroad, would pay good wages to the workers of other Nations that still get our production capacities or services, would keep more of our People employed, and would not depress the prices and power to buy inside Developed Nations against efficient economic activities or exchanges.
4). For an effective Minimum Wages implementation for all workers hired by Developed Nations Companies in foreign Nations, we can set a transition of 5 to 6 years grace period, to allow 2 or 3 steps toward a 8+ to 9$ wages per hour adopted as our Common Minimum Wages Policy!
As in the first 2 years all our Companies would pay 2,50$ per hour abroad, paying 4,50$ per hour in the next 2 years, and 8$+ after 5 to 6 years, to pay the Standard Minimum Wages adopted by all Developed Nations, our Companies would enter a path of warranted protections that establishes and extend economic stability under Fair Labor Wages!
5). If our needs to preserve Jobs and Industries exceed the 8+$ per hour abroad, to maintain more Jobs and Industries in all Developed Nations, our Countries would meet periodically to adopt whatever amount of Minimum Wages can be reasonably enforced, protecting our Economies against total outsourcing effects for any Jobs and Wages that can produce in our Nations.
Prompting 8+$ to 10$ per hour, in few steps that discourage more economic activities from Developed Nations to move in Countries that attract investments under Dumping Labor Prices, a coalition of willing Developed Nations would adjust periodically their Common Minimum Wages Standards, to prosper again or protect their People and Nations.
As any original Minimum Wages would gradually reach at 10-12$ per hour, to secure fair chances for our Companies and discourage them to move abroad, Our Common Minimum Wages Policy would preset Fair Global Exchanges and a good integration among the Developed Nations, to lead the Poor Nations at progressive minimum wages alignments, able to lower the labor costs disparities which hit everyone by exploiting Slave Labor Wages.
The decision of what Minimum Wages Amounts serve our Member Nations to preserve enough Jobs and Industries for all Developed Nations, would be adopted in sessions of Members-debates that adjourns to request Higher Minimum Wages for all, against any trends of Negative Economies.
6) Totally different than Mr. Dick Gephardt when he decided in 2003 to adopt a Mandatory Minimum Wages Policy along the entire World Trade Organization, (to pay better all the World instead to allow pauperization in USA) a Mandatory Minimum Wages Policy enacted among all Developed Nations would slow and stop the Exodus of Industries, Jobs and Wages from all Developed Nations, to implement Solid Rules of Fair Trade in Free Trade Policies, able to restrain the excruciating effects of dumping labor prices…
As shortages of raw materials and combustibles hit large Populations, the World need to unite and secure enough for all needs under Fair Trade. With more money at more People, products demand would grow to prevent the conditions of Economic Depressions by producing new Jobs and Wages, safer Tax Collections, Balanced Budgets, and to improve National Security.
Nineteen years ago I was told that USA and all Developed Nations achieved Higher Wages at home from high productivity levels, and now the same Industries, Production Capacities and Jobs that improved their Living Standard through superior Productivity, Equipments and Technologies, have identical or better results but manufacture at under 4$ daily wages abroad, for the same labor that paid 65+$ at home before the Jobs were outsourced!
As productivity remain identical for our Technologies, Machineries and Industries that moved abroad to produce in China, India, Malaysia, Indonesia, etc., the conflicts of wages skyrocketed, so we condemn this form of exploitation because it diminishes our People, Governments, Nations, and Economic Stability… As we question unfair practices of Trade and Labor induced to exploit and control the Labor of all World, our Nations need now more than ever, real and effective protections…
We consider the outsourcing of Wages, Jobs, Industries and Investments as new exploitation, because we continually loose good paying Jobs toward Slave Labor Nations that use our Equipments and Technologies to produce at 25-50 times lesser wages than anything paid to us before, which preset impossible obstacles against our remaining Companies and Jobs. At unfair labor competition we have the right to question any sells of cheap Products and Services in our Markets, because they destroy our remaining Industries Services and Jobs, cutting Wages and Investments in all Developed Nations.
Identical Productivity and Labor results produced with our Investments, Machineries, and Technologies in China, India, Indonesia, Malaysia or any other lowest Labor Costs Nation, must be rewarded at closer if not identical Labor Payments, or they would force our new Companies to move abroad as soon as possible, suppressing our Labor and Living options as an voracious buffer that cuts our Wages and Jobs, forcing our People into Unemployment.
Forced to accept impossible terms of Labor and Economic Competition against People and Nations with no options but to accept Labor Pay at Slave Wages of under or near 1$ wages per day, our People got legitimate reasons to request and apply solid Legal Protections against any oppressive regimes.
That is why our Governments are responsible for a proper order in the World as well at home, and they must deter the Slave Labor Prices effects that minimized our Wages, Jobs and full Industries in all Developed Nations.
A Common Policy of Minimum Wages among all Developed Nations would preserve new Jobs, Industries and Investments at home without to stop the imports of products and services made outside our Companies, this Policy can maximize Trade among our Countries, and would encourage Poor Nations to align with us in progressive steps, adopting their Minimum Wages Policy.
Let’s not forget that more producing Nations can compete against the Developed Nations at the bottom of Slave Labor Prices by using their own Technologies for several years, so cheap products will abound if not flood our Markets, but in few steps along a Common Minimum Wages Policy, the Industrial output of all Developed Nations can restore our Industrial Status.
In six years, more Western Companies can produce back home at high productivity rhythms, to grow efficiently without Wages decreases that skyrocketed our Budget Deficits against our People and Economies.
7). The Policy of Standard Minimum Wages for all Developed Nations can work for any other Nations, because would encourage more Nations to align along realistic Labor Prices, and would provide decent wages for any Labor hired by Western Companies into the Poor Countries exploited against us.
Pressured by realistic progressions in Labor Pay to align at Western Minimum Wages Standards along a path able to induce and integrate efforts and Resources from compatible Countries, the Management and Companies from Poor Nations would accept to pay better Wages for their Employees!!!
The wait for investments from Developed Nations it was often a costly mistake for many Poor Countries, but at firm knowledge that Developed Nations cannot invest for them, new Groups of Poor Nations can invest in cooperation along their parities in Wages, Economic and Social conditions.
8). To have a stable World that provide access from Market to Market, the present Globalization should be manageably controlled to benefit all Nations, so a similar Minimum Wages Policy as we want in Developed Nations can be progressively applied by the World Trade Organization Nations, under motivated diligent efforts and honest principles of help.
Providing long-term cheaper loans from more Banks of the World for Poor Nations, instead to forget their Debt as Economic means afforded to help, more Poor Countries would buy Factories from Developed Nations to serve their National needs and to export in closer Underdeveloped Nations.
Paying their Debt through exports of quality goods sold at superior prices when the price of labor would top everywhere in the World, it is a better option for any Underdeveloped Country and Poor Populations!
To discourage the Establishment of totalitarian State Properties in any place of the World, the Banks and other Lenders must receive Governments warranties from each Government loan receiver. Obliging those Government Buyers to sell at Private Investors of their Country the Production Capacity acquired under special Loans in max. 15 to 20 years after such purchases, such obligations must be clearly controlled and certified under the WTO.
To ensure Productivity and Profitability, the sellers of new Production Capacities and Major Equipments should coordinate new installations and production abilities for as long as they teach the natives all there is needed to know in order to operate, maintain and service each Factory sold to them.
A body of World Development Projects must establish a Commission that supervise and mediate such transactions, to protect buyers and sellers against any hidden details with full warranty for any Production Capacity, ready to examine the suggestions and complaints from both parties of a sale.
As the Mandatory Minimum Wages for all Workers hired by Companies from Developed Nations would lift the Human Rights and Human Integrations at significant levels of Progress for the benefit of all Nations, World Finances would be better secured under effective means of control that can minimize looses and restore enough Economic abilities for a True World Economy.
9) With more money at hand, more People from Poor Nations that labor for minimum Western Wages at home would buy more products manufactured by them, and some products manufactured by the Developed Nations! In this way, the WORLD can record a surplus of Products Demand and Exchanges under a superior Power to Buy preserved better than now, through the Rich Markets that would be able to serve better, Producers and Consumers alike.
From more Economic Activity and Products Exchanges at stable Prices, our Prosperity would enhance the Laborers of Poor Nations without to harm the People of Developed Nations, to access at a Prosperous Global Economy that can positively impact any Nation for a realistic Progress together, able to avoid Chaotic Globalization effects under true and realistic Global Wages.
10) Finally but not in the last place, the World would solidify conditions
for the Top Performance, in exchange of stable transitions against wider Crises of Raw Materials, Combustibles and Financial Resources that diminished in affordability, hitting harder the most Populous Nations!
Preserving the top performance onto a wider production pyramid from healthy Markets for Products, Wages and new Jobs, our World can achieve positive interactions along inner circles dissipated in groups of Countries affiliated to Labor Costs parity, instead of human obstacles placed along impossible borders of interests, that exploit harsh Labor Costs Disparities preset against the Poor and Developed Nations alike.
Simply said the Poor Nations can grow above their economic means to live around Rich Nations instead to push against them, and the Rich Nations can together improve, to hold a solid financial balance under wiser rules than “the big fish eats the small ones”. When all Nations achieve enough gravity to bring more People and Countries together, they would achieve prosperity from the top performance of everyone, prospering again into a better World!
Negative Economies and Wiser Globalization demand Global Wages:
Continuous erosions in our Economic Structures downsized Economies in all Developed Nations through harsh reductions into our Industrial Output and Services, deeper Negative Economy Trends outsourced any of our Jobs lowering our Economic ability, and so reduced our Health Care Resources, Retirement Funds, many Government Programs, and our National Security.
Invoking Global needs, major Corporations used technicalities to invest and move their Cash, Technology, Machineries, full Industries and Services into the lowest Wages Nations, but they talk kindly about this harsh Global Economy that strikes at home, without any financial initiative able to replace their prior economic input in our Country, unable to compensate our People.
The erosion of Industries, Jobs and Wages inside our Markets lowered our People’s Power to Buy, eroding their demand of products made at home.
During the Cold War Era most Developed Nations could not integrate their Economies in full just because their differences in Wages and Jobs availabilities mismatched any parity in general Exchanges of Products and Workers, such disparities minimized Specialization and Production abilities against expensive Labor Wages, so the extensive Labor Costs Disparities must be erased by International Rules that can progressively set Global Wages.
Allowing unprecedented pressures against normal and humane Labor Wages, because our Products and Services were forced to enter and stay on all Markets at lower prices that fuel an impossible Labor-Costs-Competition through Labor-Costs-Disparities exploited to outsource our Technologies and Capital against new and remaining Economic Capacities that are hit by chronic financial losses given to unfair labor competition, our Governments lost previous Tax Contributors, and the chance to Balance their Budgets.
Coerced by repeated losses under a Chaotic Globalization that forced our People and Nations to impossible terms of competition established by Slave Labor Wages started by Japanese Companies against the High Labor Wages of most Developed Nations, our new Products and Producers were forced to move their top Productions, Technologies and Equipments into the cheapest Labor Nations as well, in order to survive against such competition.
As the core of our Labor Force become symbolic in most Companies born and specialized in Developed Nations because they put their production abilities into the cheapest Labor Nations, and more Companies maintain just insignificant administrative or research abilities at home, such Companies do not employ even 10% of their Work Force at home, and cannot replace the previous Tax Contributions lost into the hysteria of Chaotic Globalization…
In most instances, the Capital lost through the displacement of our Production Capacities, Jobs and Wages, created at times with heavy public contributions, cannot be replaced and fuels a harsh, terminal Labor Costs Competition that forced our Labor, Investments and Economic Stability to decrease, stagnate, or enter Bankruptcies. Scruples Multinationals push with maximum influence to exploit and maintain Slave Labor Costs Disparities, falling harder against the People and the Budgets of all Developed Nations.
The Trend in which Segments or full Industries moved manufacturing and services abroad become a permanence that tormented our Governments, Nations and Populations with repeated Economic Crisis. Inducing Jobs and Tax Revenue losses which are pushing our Taxation levels to unprecedented highs in parallel with higher Social Costs and larger payments at Immense National Deficits, a Continuous Outsourcing Trend become a Permanent and Cruel Public Enemy that hit and downgraded most of the World.
Any Multinational Companies that set abroad their Mass Production abilities to keep at home just their Sells, stirred maximum legal influences to extend this chaotic outsourcing process against our Services, Industries and mass Populations from all Developed Nations. Whenever major Companies expanded their Business in the World but lowered constantly the number of Jobs in their native Country to enter the Markets of any Nation at pretenses that requested and received Tax Reductions able to maintain higher profits, the Higher Labor Prices of Negative Economies and their Companies are forced to new cuts in their Jobs, Wages, Industries and Financial Resources.
Because robotics and automatic processes from the Companies that outsourced top Technologies, Equipments and Production abilities into the Slave Labor Nations, introduced just a limited number of good paying Jobs in other Nations, they don’t help receiving Nations and Governments, using populous Nations like China just to dictate lower Labor Prices to all Nations.
So the Poverty of Underdeveloped Countries cannot be surpassed at even heavier losses for the Developed Nations, because the cheapest new products made with Top Technologies at the cheapest, Slave-Labor-Prices hired abroad, destroy any profit gains for the Enterprises that manufacture and operate Services at normal Labor Wages inside the Developed Nations.
When People within all Developed Nations loose good and very well paid Jobs, they cannot buy new Products and Services, and in more than half Cases they need or qualify for Government support, becoming a burden that spends resources, adding new debt at the existent State and Federal Deficits!
Because our huge National Deficits cannot surpass treacherous limits without to hike our Taxes above critical proportions, and because we cannot afford Deficit reductions through fewer Jobs and Tax Collections, we must eradicate such Negative Economy effects, preserving imperative numbers of Services and Manufacturing Jobs at Home at any time or Economic Trends.
A damaging attitude from Political Leaders and Capital Owners encouraged the creation and perpetuation of National Deficits in any Country just to maintain a higher demand for top currencies, but such proliferations hide the volume of easy profits, and huge money prints! If this concept worked satisfactorily during tariff barriers, now not one single Nation can repay its Debt without the potential of their Jobs and Industries lost as Tax Contributors after harsh losses forced their new Companies to move abroad as well, fueling imbalances against their Government Budgets.
The Companies that transfer Business toward the Slave Labor Wages pressure their competitors to enter the same changes, and are all pressured to reject Wages raises even for their cheapest Employees into the Slave Labor Nations, because other Top Companies use lower labor expenses that make highly competitive Products under top and efficient Western Technologies. So, what outsourced Companies did and mostly do is to pay higher Wages for some management employees, and to bribe certain Government Officials from the Country that adopted their Western Company and its Technologies.
Without Global Wages, a false Global Economy (with disparities solidified between the Developed Nations and the rest of the World at a steadily impossible rate of more than 50 to 1, or 60+$ per day versus 1$ per day Slave Labor Wages) created impossible barriers for Companies that use our Labor, so they cannot compete against Companies that placed their full Production lines at top Technologies into the cheapest Labor Nations and manufacture their top Products at almost free Labor Costs!
Forced by their competitors, new Companies have to move abroad or would die before to get any money for their newer Products, Technologies, and Machineries. So, the hope to create good paying Jobs for our People cannot materialize, new Services overlap old Services that collapse in 8 to 20 months if there are not outsource-able, forcing our Nations at Economic Depressions, Downsized Industries, low Labor Prices and Living Standards.
Our People can compete against the best Workers of the WORLD, but not against our Top Technologies moved so easy in almost Slave Labor Nations. Reserving our Markets just for Sells and to Buy Top Tools or Equipments, Top Producers estranged their Capital and Technologies against the Developed Nations…
As we all know “the World it never acted as one”, and major Nations suffered violent convulsions under a harsh dependence of foreign influences and Capital Owners, whenever their National Interests and Mass Populations were disregarded and diminished inside the Developed Nations. The interest paid at National Deficits lost dramatically its affordable proportions in USA, so above the Government Programs of all sorts, they are hitting the Middle Class and Poor People with sudden and deeper cuts in their Living Means.
When Young People are obstructed, ignored, or cut from employment for inexperience or lesser connections, being laid off within the first Groups of People during stagnant or poor Jobs Markets, the new Generations hit the streets at a wild age when anger would surpass protesting traditions! Most Jobs Creation efforts cannot match uninterrupted outsourcing effects in any Developed Nation, because dirt-cheap Top Products flooded our Markets, our Industries were Downsized, sold to China or Multinational Companies, and we lost Large Tax Contributors that moved abroad, like never existed…
Powerful Circles of People active in Multinational Companies united their top secret efforts and influences to enhance consensus at the limit or against National interests, so they pushed discretionary economic relations that stepped against Legal and National boundaries everywhere. Fueling an impossible competition their abusive practices hit the profits of Downsized Producers from Nameplate and Prolific Developed Nations Companies alike.
Dumping Labor Prices cannot be controlled without Global Wages into any Global Economy, the pain of chronic Economic Crisis is fully known by Developed Nations and Creditors, so is bad to Outsource Economic Resources than Borrow from China against our Present and Future Unemployed Workers, because Fewer New Jobs cannot match our Present and Future Needs…
With gratitude for your time, my efforts are meant to encourage Good Leadership, so I urge USA to unite the Leaders of all Developed Nations and Safeguard our People and Governments under the Only Existent Solution!!!
*Valeriu Zamfir, April-05-2011*
Please be kind to reply by mail, so I keep my ideas for DFL:
854 Woodbridge Street, Saint Paul, Minnesota, 55117, USA.