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We are selling more of U.S. assets, companies and banks, to other
countries. Kinda like colonial days and we are the colony. The
smart folks in government, in the banking industry, and among
multinationals produced this result.
When you buy too much and sell too little, you have to sell off
parts of the farm to pay the bills. Our $800 billion 2006 deficit
set a record. The sell off of U.S. companies and banks to others
is also setting records.
Citigroup, Merril Lynch and
Morgan Stanley arranged international transactions for huge up front
fees, they bought into subprime mortgage instruments, and invested
internationally for themselves and their customers. Now they have
had staggering losses and have sold parts of themselves to foreign
governments' Sovereign Wealth Funds.
The press is reporting on the U.S. sell off more, with a Washington Post article today.
Private
foreign firms' purchase of U.S. assets is caused by the trade deficit
which tanked our manufacturing and agriculture, leaving our economy
floating on the vapors of low interest rates, subprime mortgages, and
government/health care/service jobs. The vapors disappated, and
we have little true productive wealth to underpin our historically
strong, diverse economy.
The big Kahuna is the
foreign Sovereign Wealth Funds which are the biggest money pots in the
world. China's currency-manipulation fueled trade surplus
generates its government fund wealth, and the Middle East oil sales fuel those
countries' fund growth.
Its as if the Federal Reserve and
the Pentagon owned investment companies and trolled our country and the
world for deals, buying up ports, companies and banks. Socialism!
Communism! But its ok if they do it, apparently.
Trade is
good. It should be balanced. It is a tool for countries to
develop themselves. It should not be a weapon. It should
not produce the "natural resource curse" as in African countries with
oil or diamonds exploited by some to stomp on the necks of the
rest. Trade should foster the incremental development of all
countries' citizenry, economies and self sufficiency.
Only voters can change this. We need to change Congress.
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