Well, my economic research of California is almost complete. Yesterday I visited the set where they produce the TV program Melrose Place. This industry is very labor intensive with lots and lots of people working together as a team to produce a TV show. But, the bottom line is, in my opinion, that we need to produce more products and stop giving away our ability to produce from new technology. Having lots of coffee shops, restaurants, clothing stores, furniture stores and other kinds of stores is good, but without this nation offering the rest of the world products, we can not hope to balance our foreign trade deficit. To some people, our foreign trade imbalance means nothing, but while we are printing a lot of money to bail out the banks and help the domestic economy, the United States needs to have a plan to reduce our trade imbalance. At some point, just like at some point there are too many triple-A rated mortgage-backed bonds, we can not continue to expect foreign governments, spell that People's Republic of China, to continue to buy our government's debt. I realize that some people will think I am crazy for bringing this up, but when a government borrows on a regular basis and your money is fiat money, and you run the printing presses, there is a day when the buyer of your debt comes to an end. Politically, this is not a good position for our country to be in as well.
Stay tuned.
Posts
2 comments:
AMEN! Keep it up and one day the signs will read:
United States of America
(Made in China)
Thanks for the reality check!
Summer
In meetings with private equity firms that we invested, I would often mention my trips to Home Depot and looking for things not made in China. Then I would add, if we all moved there, we could save on the freight.
Post a Comment