The United States Faces Ignored Challenges by Paul Craig Roberts!
(2023-08-02 at 00:28:22 )

The United States Faces Ignored Challenges by Paul Craig Roberts!

For the longest time, Bureau of Economic Analysis jobs reports show that industrial and manufacturing jobs-jobs that have high value added and produce good incomes-are declining in the United States.

For some time United States corporate profits have been based on sending Americans jobs to Asia where labor costs are lower. The stock market boom was a product of low interest rates, which meant Federal Reserve liquidity, and reduced labor costs from offshoring. It was not a sign of a vibrant United States economy.

Today and for a couple of decades the United States exists as a market for foreign made or offshored goods of United States corporations. Americans have been separated from the income associated with the production of the products that they consume. This is the avenue to Third World Existence.

United States corporations, always short-term in their outlook because of quarterly performance bonuses, have destroyed the United States of Americas economic future.

For years I reported the payroll jobs reports, pointing out that there were never any jobs gains of noticeable magnitude in industrial and manufacturing jobs where wages are good. Year after year United States job gains, if they were real, occurred in retail sales, social assistance, waitresses and bar tenders, and government where high value added is not present.

The neoliberal economists, termed correctly "junk economists" by Michael Hudson, could not be bothered to notice the ongoing destruction of the United States economy. Instead the bought-and-paid-for-economists promised that there would be higher paying jobs for United States workers who lost their livelihood by the movement of their manufacturing jobs-called "dirty fingernail jobs" by neoliberal economists-to Asia.

As I pointed out repeatedly in my columns and in my book, The Failure of Laissez Capitalism, the promised better jobs never showed up. Americas neoliberal economists simply lied through their teeth to the American work force and left them struggling for existence.

The next step in the economic disaster that is becoming the United States is the United States dollar. Serving as the reserve currency since World War II, the dollar as reserves for foreign central banks has meant that United States trade and budget deficits are easily financed by foreign central banks holdings of United States Treasury debt.

Foreign central banks kept their reserves not in gold but in liquid United States Treasury bonds. This removed all financing problems from the United States government, and the United States never had to be concerned about its growing trade (due to offshored manufacturing and industry) and budget deficits. In effect foreign central banks financed Washington,D.C.s wars as well as its deficits.

Washington,D.C. in an act of unbelievable stupidity, is driving foreign central banks away from keeping their reserves in United States Treasury bonds by weaponizing the reserve currency. Washington,D.C. destroyed its hold on power with economic sanctions, by seizing Russias dollar central bank reserves, and by blocking international clearance of payments by sanctioned countries.

The result is that a growing number of countries are ceasing to use the United States dollar for their international payments, instead using their own currencies or those of their trading partners. Russia and China are also keeping their reserves in gold,

So, what has happened is that the demand for United States dollars for international payments is declining, but the supply of United States dollars from growing trade and budget deficits has not. The implication is a falling exchange value of the dollar as supply exceeds demand.

As a result of offshoring its manufacturing, the United States is import dependent, so a decline in the dollars exchange value means a rise in price of imported goods and services (for example, Apples imports of computers and iPhones made in China come in as imports when they are marketed to United States customers). Apples imports worsen the United States trade imbalance.

A rise in inflation from dollar devaluation means a reduced standard of living for United States residents.

What the Biden Regime has managed to accomplish is the reduction of United States power. The incompetent regime is destroying the world currency role of the United States dollar, thus threatening the United States government with the inability to finance its trade and budget deficits.

The dollars decline might be slow. The Russian sanctions have wrecked European economies, and Washington,D.C. and its allies can organize attacks on currencies that are traded in foreign exchange markets. Nevertheless, the dollars use in settling international payments has already declined substantially.

Instead of paying attention to the eroding basis of United States power, the ideological Democrats are focused on delegitimizing white Americans and constructing on this delegitimization a one-party rule of "equity," which means a revolution against a society based on merit.

I do not see any organized group defending the founding document of the United States from repudiation by the Democrat Party.

My conclusion is that the United States is on a road to economic decline as it is being unmoored from its founding document and is undergoing a revolution.

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