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Today's Dollar Crisis: An Economic Pearl Harbor?

Published 11/19/07 Economy In Crisis - Print Article
E-mail - editor@economyincisis.org

BusinessWeek says China dumping their dollar holdings would be akin to an economic Pearl Harbor:

“For the United States, a Chinese decision to abandon the dollar would be tantamount to Pearl Harbor without the war. It would represent a challenge to the world's biggest economy by the world's fastest growing economy. Millions of people would see their standard of living suffer as a result, and American self-confidence, already shaky, would crumble even further. The United States would suffer a serious blow on its very own turf, the economy.”

“What is the difference between the US government in 1941 and the administration in Washington today? Perhaps there is none. A Japanese attack on the US Pacific Fleet at Pearl Harbor was unimaginable, even though US intelligence had picked up clues that it could happen. Washington, at the time, was convinced that the Japanese wouldn't dare stage an attack on a target 5,000 miles away, and that they wouldn't succeed if they did. The crews on America's ships were sleeping as the Japanese bombers approached Pearl Harbor.”


So what is the solution?

“But the truth is that the United States would be better off if Paulson and the administration of President George W. Bush would take decisive action instead of sulking. The US's ability to deliver goods should be increased and its industrial base should be reinvigorated. Government and consumer spending, which in reality is doing nothing but eating away at the country's future, should be curbed. Although growth would decline as a result, it would be a more sustainable form of growth.”


America is in debt and vulnerable to an economic attack. The country must focus on producing domestically and reducing its dependence on debts and loans , which create an unsustainable standard of living.

This is common sense policy for a sustainable future. Write to congress and tell them to take action to ensure that nations like China no longer hold the fate of the American economy in its hands.

Front Page Photo by Kevinq2000- Flickr © Some rights reserved

Click here to contact your Representative in Congress.

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Article Comments From Readers

guest says "Ron Paul would be a well intentioned disaster" on 12/29/07
I like Ron Paul. He is one of the very few politicians who has courage to speak frankly and unapologetically about the dire straits America faces.

He's got a lot of great talking points. Unfortunately when it come to economic policies, he is hopelessly naive and his well intentioned ideas would actually cause more economic harm and distress because of his 18th c. Constitutional zeal blinds him to the real world consequences of a deconstructivist actions.

Abolishing the IRS would put the poor folk at a permanent disadvantage to the wealthy. Those CEO's earning billions would be able to keep even more of their loot and those earning minimum wage would be able to keep the extra $1.25 an hour.

All the thievery through tax shelters, tax breaks, off shore accounts, trust funds and other tax avoidance vehicles and maneuvering would essentially be rewarded. The cheaters will be victorious over the hard and honest hard worker. American corporations who have done their utmost to underpay taxes, underfund the PBGC, offshore profits, and factories, damage unions, default on pensions through banckruptcy reorganization, and pollute the environment would essentially have gotten away with it and won the economic game at the expense of the hard working American public.

In other worlds the Cheaters would have been rewarded for cheating and there would be no recourse for the American public who have been swindled.

Additionally, dissolving social programs such as Social Security and Medicare, might save taxpayers money, but would constitute a gross injustice to those who are poor and needy and reliant on those programs to survive.

Should the govenment adopt mean spirited policies to cheat and punish the poorest of the poor and the neediest of the needy?

All those who have faithfully paid into the system to pay for others before them would essentially be cheated of getting their fair share.

This would scarcely hurt the wealthy, but the middle class and lower classes would be unjustly short changed and without recourse. They would have paid into a system for decades only to be ripped off in the future.

A well intentioned disaster would result because of a naive understanding of economics and a desire to streamline government services without consideration of those who support and have paid for these services from the beginning.

Ron Paul means well. But good intentions and sound policy are very different animals.

guest says "ECONOMY" on 12/27/07
GEE, I GUESS OLD ROSS PEROT WAS RIGHT, AND ALL THOSE IDIOTS CONDEMNED HIM, NOW DONT THEY ALL LOOK GOOD WITH CRAP ON THERE FACES

guest says "We need Ron Paul" on 12/27/07
We need Ron Paul who has over and over again faithfully warned this nation about these issues. This man is a true lover of America and has been fighting these men who have given this nation over to loss of rights, Nafta, Cafta,
Globalistic greed, Money Lenders, etc. We need the one, trueblue person who cares about us and won't sell us for 20 pieces of silver, nor any amount.

guest says "Michael Milken and Business Week" on 11/21/07
Wasn't it Business Week who heaped praise and respect on 1980's Junkbond King Michael Milken and called him a brilliant model investor that business students should emulate?

Remember that Milken was found guilty of defrauding investors, went to prison, got out early as a "model prisoner" and kept the millions looted from the defrauded investors.

I remember seeing how worried his lawyer looked when escorting him from the courtroom. His face told the world a differnt story then the sunny boy wonder would ever acknowledge.

This is the story of America over and over again whether you look at Blacks or Indians, or Latinos or even the unwealthy whites.
Time and time again, the wicked prosper and cheat the poor and get away with it.
Our system of "Predatory Capitalism" is the perfect tool in the hands of shameless businessmen to defraud the public as individuals and a group.
It is proof positive that those who are honest and hardworking and play by the rules always lose.
Thank you Business Week for celebrating championing the wicked at the expense of the poor.

guest says "Business Week practices Revisionist history" on 11/20/07
This excerpted article from Business Week mag contains a line and nefarious implication that is so flatly false to even a casually informed reader, that I wonder what other historical revisions the editors will cook.

Equating FDR with the Bush administration is like comparing Michael Jordan with a 7th grade beginner in basketball or Mother Theresa with Dennis Koslowski.

Perhaps the editors of the magazine have a sense of humor in their revisionist history making absurb comparisons?

Folks, a little real history lesson is needed.
Just a few of the numerous differences between these men:

1:FDR was elected president. Bush was appointed president by the Supreme Court (in 2000).

2:FDR created the WPA and the CCC to put America back to work, create jobs, social benefits, and restore the country to strength and integrity. Bush's legacy is one of amnesty for illegals to undercut workers, deporting American jobs, free trade with Communist China, and dismantling/defunding social security nets to cripple citizens.

3:FDR pulled America out of the Great Depression. Bush seems to be creating one just as his Father was doing at the end of his term.

4: FDR was a great orator. Bush is still working on sentence assembly.

5:FDR saw the inevitable war coming and prepared for it by ramping up of the production of military equipment and supplies and creating and succeeded at a voluntary draft getting thousands of new recruits to enlist before Pearl Harbor even happened. Bush did not act wisely to prevent 9/11 from happening even though the scenario of flying buildings into was discussed as a possibility. A record 52 terror alerts for hijackers on planes were issued during the summer of 2001. Both Clinton as well as Bush's own security chief Richard Clarke warned him repeatedly about an imminent attack on U.S soil.

6:Bin Laden had officially declared holy war on America in the 1990's and had made strikes against the embassy in Africa and in Oman to the U.S.S. Cole as well as the previous 1993 terrorist attack against the WTC.
Conversly Japan only declared war on our nation after the attack on Pearl Harbor.
7:FDR saw the war to completion almost(save his death in Spring '45) and Truman successfully finished the job. Bush has disbanded the CIA's Bin Laden unit and declared in the 2004 debates with Kerry that 'I don't really know where Bin Laden is and don't give it much thought'. What would've happened if FDR gave up on battling Hitler?

8:FDR fought a defensive war. Bush is fighting a preemptive war with moveable goalposts.

9:Bush has allowed torture, suspension of Habeas Corpus and illegal wire tapping to invoke fear. FDR said famously: "There is nothing to fear but fear itself" and respected Constitutionally enshrined human rights far better (though not perfectly).

10:Bush has assured us of the noble character of Vlad Putin, and Mushareff, and numerous "trustworthy"Iraqi presidents and sent billions in aid to their nations. FDR accurately judged the character of Truman, Stalin, DeGaulle and Churchill and acted wisely giving America the win in the war and an economic boom for our country which followed in the 50's

guest says "What you say is true" on 11/19/07
I just finished reading a story about foodbanks and soup kitchens not having enough supplies in the USA.

Here is the article link:

http://news.yahoo.com/s/ap/20071119/ap_on_re_us/food_pantries_shortage_2

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