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Responses To: "America’s reign as world’s economic king in peril"


Subject: "America’s reign as world’s economic king in peril" created on 11/23/07 by guest
This article explains in very simple terms why the U.S. economic woes may lead to the U.S. losing its status as the world's only superpower.

http://www.tribune-democrat.com/editorials/local_story_326091707.html

America’s reign as world’s economic king in peril

BY ZACHARY HUBBARD

The war on terror grabs headlines, but there are far greater threats to America than terrorism. Conditions are ripe for a shift in the balance of global power, perhaps in the next four to five years. When it occurs, America will no longer be the dominant economic force on the planet. As our economic power wanes, our political and military power will follow suit.

The Roman philosopher Seneca said, “If one does not know to which port one is sailing, no wind is favorable.” His wisdom applies to America’s economic situation today.

Americans must choose a new economic destination and change course soon or we stand to lose much of our national power.

If we fail to act, the world could well end up with a four-way competition among the European Union, a China-dominated Asia, a global oil cartel dominated by Russia and a nuclear-armed Iran, and a U.S.-led North American Union.

Indications of America’s waning economic power are numerous. A mortgage crisis caused by foolhardy subprime lending practices has thousands of Americans at risk of losing everything. Many financial institutions caught up in the scheme are also in trouble.

American consumer debt is at an all-time high and may cause the next major financial crisis.

The Baltimore Sun published an article on Oct. 10 titled, “Credit card debt is ready to blow.” According to the Sun, the financial industry is preparing for major defaults on the credit card debt held by Americans today, which exceeds $500 billion.

General Motors, once a global symbol of American industrial might, has suffered record losses recently and is facing financial disaster. Ford apparently has similar woes.

America’s manufacturing base is shrinking, as U.S. companies continue to ship manufacturing jobs overseas. Meanwhile, China is experiencing record economic growth funded largely by American consumers and U.S. government debt.

Failed energy policies could soon have Americans facing $5 per gallon gasoline. Looming energy shortages threaten manufacturing and other sectors. Every U.S. president since the Arab oil embargo of 1973-74 has failed to exhibit leadership in addressing America’s energy needs. Consequently, today we must buy oil from a rogue cartel dominated by Middle Eastern tyrants who hate us.

The U.S. dollar has tanked on foreign markets. Exchange rates are at an all-time low against the Euro and even the Canadian dollar. Iran has shifted its hard currency reserves to the Euro. China is threatening to do the same. Such a move by China, which holds more than $1 trillion in U.S. debt, would be devastating to the U.S. economy.

The solution to these problems rests with our elected officials on Capitol Hill. Unfortunately, all you will find there today is a do-nothing Congress that has failed to pass legislation on a single major issue this year.

Pork lovers on both sides of the isle warn of looming funding crises for Social Security and Medicare, yet they continue to increase the federal debt.

What you won’t find in Washington is a single leader with the integrity, knowledge and leadership ability to bring about significant change.

Where is today’s John Kennedy or Ronald Reagan?

Are there no statesmen remaining?

The lineup of potential nominees in the upcoming presidential election appears to lack a single candidate, Republican or Democrat, with the ability to steer the nation toward a new destiny. We need a leader with the guts to tell Americans the truth about the dangers of our present course, and the resolve to do something about it.

America’s economic problems can’t be solved using traditional methods.

The Federal Reserve can no longer simply print more currency or manipulate interest rates to save the day. With American manufacturing shrinking, we cannot reduce our huge balance of trade deficit by increasing exports. Raising taxes enough to begin paying down the staggering national debt would stifle economic growth.

There are no easy fixes.

Our problems are not purely economic. They reach to the very core of America’s national identity. Many politicians talk about repairing America’s reputation, but it’s not just our reputation that is broken.

The way we do business on Capitol Hill needs fixing. American voters must redefine the country economically by facing up to exploding personal and national debt, our disappearing manufacturing base and our dangerous foreign oil dependency. Only then may we hope to preserve our political and military might.

If party politicians continue to skirt these problems, America may suffer the same fate as the vanished democracies that preceded it.

Even the glory of Rome faded. Why should we expect our fate to be any different if we fail to tackle our problems?

Zachary Hubbard is a retired Army officer and freelance writer residing in Upper Yoder Township. He is a member of The Tribune-Democrat Reader Advisory Committee.



Comment


guest says "More good articles by this author" on 11/23/07
I did some research on the author and found several other interesting articles. Here is a very long link to them:

http://www.tribune-democrat.com/archivesearch/resources_googleresultpage?SearchableText=%22zachary+hubbard%22+&sa=Search&sitesearch=http%3A%2F%2Fwww.tribune-democrat.com&domains=http%3A%2F%2Fwww.tribune-democrat.com&client=pub-4648602590429272&forid=1&q=%22zachary+hubbard%22+&stores=local&ie=ISO-8859-1&oe=ISO-8859-1&flav=0000&sig=cK_Ze8nEuuDj9suv&cof=GALT%3A%23008000%3BGL%3A1%3BDIV%3A%23FFFFFF%3BVLC%3A663399%3BAH%3Acenter%3BBGC%3AFFFFFF%3BLBGC%3A336699%3BALC%3A0000FF%3BLC%3A0000FF%3BT%3A000000%3BGFNT%3A0000FF%3BGIMP%3A0000FF%3BFORID%3A11&hl=en

If you have trouble with the link go to this website and do a search for the author's name: "Zachary Hubbard"

www.tribune-democrat.com


cyberfriend says "Yes, by 2050 at the latest!" on 01/14/08
But the Amerikan Citizen can help!

It can seek to have FINANCIAL DISCIPLINE, cut out the ROT in the SYSTEM.

Cut out the PORK BARREL POLITICS, America was not built on socialist subsidy!

We might end up with a smaller economy, but it'll be a strong economy.

Or we can just "fiddle on" till the danger hit us in 2050! where another state can challenge the United States.

or maybe we can help the British brethrens reinstall the GOLD STANDARD?

Cyberfriend


guest says "Loss of Purpose and Respect" on 08/17/08
Pesident Bush is a liar and should have been impeached for waging an illegal war in Iraq on false pretences. Congress and the Justice Department have become mere puppets of the Executive arm of government. Religious fundamentalism is rampant in the US and diluting the nation's ability to commit to a path of enlightened progress based on scientific research, commercial development, innovation and leadership.

America has lost sight of its soul, principles and purpose. Without these, there is no compass to guide action and no reason for the rest of the world to support the American brand.

Impeach Bush.

Elect some enlightened politicians.

Reinvigorate the constiution and democracy.

Recommit to fundamental scientific research, commercial development and innovation with a view to maintaining ownership of the means to defend the great principles of freedom, justice and democracy.





guest says "United We Stand" on 08/17/08
"United We Stand, Divided we Fall"

Those few words pretty much sum up what the USA used to be. Why don't the big shots take heed and:

Deport all illegal immigrants so Americans can have their jobs back and let us reunite.

The Bush of Terror reign divided us when it allowed all these corporations to steal from the poor to middle/upper middle class, to hand to the ridiculously rich thus leaving us with only disgustingly wealthy and tragically poor Americans.

Chenney should be hung out to dry and Bush should (can anyone complete this sentence)?

What do they care about the economic crisis? After all, we pay for their private jets, that's if we have a job or can afford to even get to work.

The only thing that comforts me is that their time too, will come.

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