Sunday, July 26, 2009

Negotiating with the Chinese when they hold all of the cards is a further sign of how weak our government and corprations have allowed us to become.

Talks begin this week with the Chinese on the economy, Korea and how jobs may be created in the US to help lift us out of the recessiondepression that we helped to create. Sadly we are in a horribly weak position to negotiate with the Chinese on any topic. Our government allowed our greed driven corporations to export the bulk of the manufacturing job in this country to China over the last twenty years and the principle influence used to sway the government was through lobbying efforts which is nothing more than a legalized form of bribery. In order to 'maximize profits' rather than modernize their facilities to compete worldwide, the corporations moved their manufacturing offshore with the blessings of the government, and the government being as short sighted as the corporations took the money and essentially put the wheels in motion that have led to the economic crisis we are in today, at least that's how I perceive things to be in my simple world.

The Chinese, wanting to fuel their fledgling economy were a most willing recipient of the jobs and in fact were gracious enough to come, dismantle obsolete factories and move them in whole to China where they reassembled the obsolete factories and went to work, in the process putting millions of Americans out of work. The Chinese, being much better long range planners than their American counterparts knew that they could start their economy, eventually rebuild with hi-tech factories and by artificially keeping their labor costs low could bring us to our knees as they have today. Essentially what they have done is turn us into a beggar nation as we have to consult with the Chinese before we make any financial moves because they also had the insight to buy up the debt we were creating from our reckless spending and ever increasing trade deficit.

Since the talks are to held here don't expect much. We really have nothing to bargain with at this point, we have a huge trade deficit, have no real way to get the Chinese to let their currency float other than begging. It's just a guess but I'd say China uses North Korea for nuclear research and they aren't about to stop until they have squeezed every bit of information they can get from testing, they also have an excellent foil in the North Koreans as a way to keep the east and west off balance.

Other than an opportunity for 44 to make, what is becoming an almost daily occurrence, another speech and I have no clue what number this one is, it is also a chance for Hillary Clinton to save some face from her recent verbal thrashing and public humiliation at the hands of the North Koreans and another chance to drag out Tim Geithner to show one more time how ineffective he really is. There is an upside to all of this, even though we will have to put up 150 Chinese trade delegates and spies for however long the meetings run, there's some solace in the fact that US taxpayers don't have to pay to send our delegation on a junket to China, put them up in hotels, pay for meals, entertainment and whore house excursions.

Thanks for reading,

"Persecution for opinion is the master vice of society".
Francis Wright
1795 - 1852
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