Associated Press Writer Tom Raum two hours ago wrote:
[…] International investments pouring into low-interest U.S. Treasury securities in recent weeks show that, even if the U.S. has lost prestige internationally in recent years, it’s still deemed one of the safest places to park money.
The equation is this: Money out of the USA = Money into the USA. Dollars leave the USA to buy manufactured products. Dollars returen to the USA to buy T-Bills.
The equation is out of balance because Manufactured goods require labor and TBills do not; they are loans. What the USA sells (TBills and mortgages) do not require labor. The net result is that USA citizens are unemployed in ever increasing numbers.
Enron found that there is no such thing as a perpetual motion machine. Engineers know that energy cannot be created or destroyed. There is balance in the economy and in science.
If America did NOT allow foreign entities to exchange manufactured goods for USA securities, foreign governments and nations would accumulate piles of dollars. The exchange rate would change. Products manufactured in the USA would become much cheaper to foreign markets. That would increase the demand for products made in the USA. That would increase demand for workers in the USA and put citizens of America back to work.
Let the USA only exhange manufactured goods for manufactured goods. Let there be FREE trade. What we have now is an American marketplace that has been raped and plundered. We have not had FREE trade for too long.