China may soon be the largest economy in the world. It has always had those things required to be a giant on the world stage: very industrious people culturally inured to thrift, a large nation with diverse climatic conditions, and a huge population. As Dr. Thomas Sowell has pointed out in his brilliant studies of ethnic characteristics, throughout Asia the Chinese people have been the most financially successful.
Malaya and Indonesia, for example, are lands in which a large percentage of the income and wealth is in the hands of ethnic Chinese immigrants. Hong Kong, long before Britain left when its 99-year lease expired, had among the highest standards of living in the Eastern Hemisphere. Singapore, too, far outstrips most other lands in Southeast Asia.
Chinese-Americans have also proven very capable professionals and entrepreneurs, starting from the very bottom of the socio-economic scale — lacking not only English language skills and a phonetic script, but a background in the Judeo-Christian religious traditions, and with a distinctive appearance that make them easy to recognize.
Unbeknownst to most Americans listening to 2012 campaign rhetoric, what’s being pitched is “free-market socialism." An oxymoron? Not exactly. “Free-market socialism,” a version of “market socialism,” is so named because it does not involve planners, as most of us understand that word. It is, in essence, a kinder and gentler form of highly regulated enterprise that nevertheless steers a nation toward an entitlement society with an emphasis on government-supplied jobs under the guise of entrepreneurship and “open” markets.
Because “socialism,” per se, carries negative connotations for most Americans — most younger voters don’t know exactly what it means anyway — it’s fairly easy to deceive the public into believing a candidate stands for free-market principles, as in the Founders’ vision, and still accept a welfare state, complete with bailouts, federal control of production, and government-created jobs, using the private sector only as proxies (contract entities).
The term “free-market socialism” was first bandied about on American college campuses in the 1960s by political science professors capitalizing on leftist-generated student rebellions. Purportedly, it combined a functional system of entitlements with a highly regulated (and therefore “fair”) free-market.
The National Labor Relations Board’s (NLRB) assault on American manufacturing may soon be arrested. As readers of The New American are aware, in what some have called its “worst decision,” the NLRB unloaded its regulatory arsenal on American aircraft manufacturer Boeing, Inc. and nearly eliminated a thousand jobs -- American jobs -- in the process.
With the American economy mired in the contrived quicksand of the Federal Reserve’s boom/bust cycle, Boeing struck out and threw a rope of hope to thousands of American families by opening a new 787 Dreamliner assembly plant in South Carolina. For such an ambitious undertaking, the Chicago-based aerospace and defense company received nearly universal praise. One prominent exception: the federal government in the form of the NLRB.
Rather than praise Boeing’s bravery and good will, the NLRB filed a federal lawsuit. The federal agency bared its litigious teeth after being “taunted” by Boeing’s lauding of South Carolina’s industry-friendly “right to work” labor laws.
When one studies international economics, one will inevitably encounter the topic of “free trade.” As always, it is a good idea to start with a definition, to avoid any possible confusion. Webster’s Collegiate Dictionary defines the expression “free trade,” whose earliest recorded use in the English language dates back to 1606, as “trade based on the unrestricted international exchange of goods with tariffs used only as a source of revenue.” Nowadays, free trade has come to mean the conduct of international business without any governmental interference, such as tariffs, quotas, subsidies, etc. Such a policy allows prices to be the result of nothing but pure supply and demand, without any artificial distortions entering into the process.
The term “free trade” is often used these days in multinational agreements such as the North American Free Trade Agreement (NAFTA), although such arrangements do not eliminate government involvement in trade but create multinational entities to regulate it.
Former Massachusetts Governor and 2012 Republican presidential candidate Mitt Romney unveiled his economic agenda Tuesday, beating President Barack Obama to the punch by two days. (Obama will present his jobs plan in a speech to a joint session of Congress Thursday evening.) Romney’s plan is, as former Labor Secretary Robert Reich put it, “unremarkable, to say the least.”
To his credit, Romney seems to grasp that the private sector, not government, is the source of American prosperity. In the summary of his agenda found on his website, Romney says that his plan “does not promise the immediate creation of some imaginary number of jobs, because government cannot create jobs — at least not productive ones that contribute to our long-term prosperity. It is economic growth, not government growth, that provides productive opportunities for American workers.” (This did not, however, stop Romney from claiming that his plan would create 11 million jobs during his first four years in office.)
Those who are hoping for a more optimistic report of the global economic future should probably not read on. According to a report released by the Union Bank of Switzerland entitled “Euro Break Up-The Consequences,” the death of the euro is inevitable and the long-term effects of such an event will potentially include civil war, the collapse of international trade and sovereign default.
The report lays the foundation of its assertions by declaring, “Under the current structure and with the current membership, the Euro does not work. Either the current structure will have to change, or the current membership will have to change.”
It goes on to reveal that the Union Bank of Switzerland has virtually no faith in the system to which they are ultimately connected. What makes such an assertion so frightening is that the UBS has a “hegemonic influence over the world economy,” notes The Blaze:
As President Obama’s new jobs proposal soon approaches, the U.S. Chamber of Commerce has prepared its own plan for expanding U.S. employment. In an open letter to Congress and the White House, the Chamber called for an array of measures to promote employment, ranging from easing restrictions on oil drilling, providing temporary corporate tax breaks, and increasing spending on public infrastructure.
The Chamber contends that its proposal would create six million jobs by 2013 and help shave the nearly $2 trillion that clutter corporate balance sheets. Some of the proposed measures will likely overlap the President’s new jobs initiative being announced Thursday, but others, such as oil drilling and a corporate tax holiday, are predicted to mainly garner widespread Republican support.
"To create jobs, we must enact policies that promote and sustain stronger economic growth. We must also address extraordinary fiscal and competitive challenges that are smothering growth and driving away jobs," wrote Chamber President Thomas Donohue in the seven-page letter. "There are specific steps Congress and the administration can take right now to spur faster job growth in America’s private sector without adding to the deficit."
The newsprint chronicling Texas governor Rick Perry’s dedication to the Siamese principles of corporate welfare and cronyism continue to pile up. As documented earlier in The New American, during his time in Austin, Rick Perry has shown unrivaled and unashamed favoritism to the largest supporters of his campaigns.
One of the most egregious beneficiaries of Rick Perry’s largesse (and one receiving a lion’s share of the media’s scrutiny) is an economic development program developed by Perry called the Texas Emerging Technology Fund.
This pet project was founded by Perry to act as a state government-controlled version of a venture capital firm. The Texas Emerging Technology Fund would act as an angel -— bestowing financial boons on technology-based start-up companies in the Lone Star State.
The global economy is facing a meltdown, according to World Bank President Robert Zoellick. “We are moving into a dangerous period,” Zoellick said to Bloomberg Television at a Singapore interview. The likelihood of an American recession is made increasingly likely by the danger of an economic implosion in the euro zone.
“I believe the U.S. will have slow growth, I don’t believe it will move to a double dip, but these things are very hard to predict because if you have events trigger uncertainty in Europe, that will flow back to the U.S.,” Zoellick noted, mentioning that the success of the euro zone “depends on the political decisions moving forward.
He added: “Sometimes people hope that you can muddle through by providing financing and liquidity, in the case of Europe, from the European Financial Stability Facility or the European Central Bank.
Information cited in a leaked 2009 diplomatic cable from the U.S. embassy in Beijing shows the Chinese regime knew about American and European suppression of gold prices to maintain dollar hegemony, but that it was buying more of the precious metal anyway. The purpose of increasing its gold reserves, according to report cited in the document, was to encourage other nations to do likewise while making China’s currency more appealing internationally. Another effect of the strategy, analysts noted, would be to weaken the U.S. dollar’s status internationally.
Gold-price manipulation by Western central banks — and the Federal Reserve in particular — has been somewhat of an open secret for decades. But the cable released by WikiLeaks triggered significant interest among metals investors and analysts, some of whom expected the news to cause another surge in gold prices.