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Jack Davis narrowly lost to Tom Reynolds in New York's 26th
Congressional District in 2006. Reynolds is a wacko free trader,
and Jack Davis ran primarily on trade policy change. He owns a
successful manufacturing company in the region.
No word as to whether Davis will run again. Alice Kryzan (D) has announced against Reynolds.
Davis has remained very active since in working for better trade policy. His op-ed appeared in the Buffalo News this weekend.
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U.S. must prepare for day of reckoning
By Jack Davis - SPECIAL TO THE NEWS
Updated: 01/13/08 8:59 AM
Asian leaders who dupe our leaders and take advantage of our free trade
policies with their predatory trade policies are draining the United
States of its economic wealth. The communist Chinese leaders take
offense to our superpower status and show hostility to our naval fleet
in oceans bordering their shores.
China does not have to fight a
war to have the fleet go home. It is much easier and less costly to
mislead and deceive our government officials into making decisions that
destroy our wealth-producing manufacturing capacity. Cheap labor, the
visions of large markets and the greed for profits have seduced our
transnational corporate owners.
They outsource labor, capital, technology, research and
development, manufacturing know-how and trade secrets. They are
dismantling our wealth-producing industries. These owners and managers
have no loyalty or allegiance to the United States. As our economic
strength declines, so will our Navy’s presence in the Pacific and our
ability to defend our country.
The Chinese already have accomplished so much economic damage, it is dangerous and frightening.
We had a total trade deficit of $764 billion in 2006 — a new
record. With China, the trade deficit was $233 billion — the largest
ever with a single country. For the last five years, the U.S. trade
deficit with China has increased by 20 percent each year.
Trade is necessary for America to prosper, but it must be balanced trade. (read more)
Our total national debt is $9 trillion. About $5 trillion is owed to
foreign countries and $1.3 trillion of that to China. All three numbers
are pointing to economic crises.
The United States is living beyond its means — borrowing $2
billion a day from foreign countries to maintain our standard of living.
A nation with a large trade deficit is similar to a person
living above his means. If you have a successful career but lose your
source of income, you still may have credit available on credit cards
and ownership in your home and car. Thus, you can continue to maintain
your standard of living for a while by increasing debt on your credit
card or refinancing or selling your home and car.
But just as a person cannot continually increase debt, neither
can a nation. The key difference between a nation and a person is that
a nation can print money and delay the day of reckoning. Eventually,
foreign countries will not accept pieces of paper with pictures of our
past presidents on them of decreasing value for their products or in
payment of debt.
The U.S. dollar in the last seven years has lost 50 percent of
its value in relation to the euro and will continue to decline in
value. At some point, the U.S. dollar as the world’s reserve currency
will be replaced.
In addition to the $5 trillion we owe foreign countries, they also own
or control more than 8,000 U.S. companies with a value of $8 trillion.
Many of these companies were bought with the intent of gaining global
control of key technologies and raw materials needed to produce
advanced weapons, such as airplanes, computers, satellites and
intercontinental ballistic missiles.
When blindly following the ideology of free trade, many Americans fail to see the connection
and damage caused by the predatory trade policies that result in huge
trade deficits and a huge national debt — a portion of which is owed to
foreign countries.Most Americans believe we are a superpower. It is
only our military that is a superpower. Our economy is second- or
third-world class. Most Americans don’t see or understand the emerging
economic disaster.
Our government officials continue to encourage companies to offshore research and development, engineering and manufacturing.
The Wall Street Journal reported on Dec. 20 that the U.S.
Treasury Department once again declined to designate China as a
currency manipulator. All of the numbers indicate the yuan is 20
percent to 50 percent lower than its true market value when compared to
the U.S. dollar. This is no accident. The Chinese are currency
manipulators. This provides exports from China with large price
advantages when competing with U.S. companies. This causes many U.S.
companies to fail or be so weakened they permit foreign companies to
buy them at a large discount.
China also promotes exports and discourages imports. It keeps
wages low, rebates value-added taxes on its exports and charges
value-added taxes on imports. It counterfeits and steals copyrights,
trademarks and patents. It provides domestic industries with local tax
incentives, offers special financing and charges tariffs on imports. It
targets specific industries to monopolize.
No U.S. company can compete with these predatory practices. All
of the above violate the World Trade Organization regulations. Even
with what appears to be numerous violations, the U.S. Treasury and
Commerce departments fail to take action against China.
American politicians made a terrible mistake in 1996 when they
voted to join the WTO. They gave Third World country bureaucrats
control of U.S. international commerce.
It is very difficult for the United States to win a case at the WTO.
Most foreign Third World country bureaucrats dislike the United States.
Also, many are as corruptible as the bureaucrats at the United Nations
have proven to be. The chances of the U.S. getting fair treatment at
the WTO are remote.
The U.S. Constitution states: “Congress shall have the power to
regulate commerce with foreign nations.” But Congress gave control of
foreign commerce to the WTO. Congress must do what the people elected
its members to do, and what they were sworn to do — “regulate commerce
with foreign nations.”
Congress must immediately cancel U.S. membership in the WTO. If
it doesn’t, Asian countries will continue their predatory trade
practices, continue destroying or buying U.S. companies, continue
financing our debt, and continue buying our country. They will do this
until we have nothing left to sell — no industries, no real estate and
no natural resources.
The U.S. government will then have additional trillions of
dollars of debt. If a government could be bankrupt, it would be. Social
Security, Medicare and pensions will be without funds. All of our
wealth-producing industries, mines and farms will be foreign-owned. The
government’s ability to tax will be significantly reduced along with
its ability to defend our country.
The career politicians we sent to Washington still don’t see or understand the coming
economic crisis. None of the leading presidential candidates from
either party seems to be aware of the coming economic crisis.Wake up
America, our day of reckoning is coming.
Jack Davis is the founder and owner ofI Squared R Element Co.,
the largest U.S. manufacturer of heating elements .He has 53 years of
experience in manufacturing and foreign commerce.
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