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China Becomes Largest Trading Nation
The
globalists put their plan into motion decades ago. The proper meaning of the headline is not that China is an economic miracle,
but that the United States, systematically stripped of its industrial might, is destined to fall even further. The Chinese
economy is a haven of direct transnational integration. The outsourcing of manufacturing from domestic capacity is not solely
a response of cheaper economic cost of goods production. No, the underlying reason for the migration of product assemblage
is to weaken an independent American economy. The news of this long
awaited milestone, primarily announced in the foreign press, almost has a ring of glee. The Guardian reports that China surpasses US as world's
largest trading nation. "China’s annual trade in goods passed the $4tn (£2.4tn) mark for the first
time last year according to official data, after exports from the world's second largest economy rose 7.9% to $2.21tn and
imports rose 7.3% to $1.95tn. As a result total trade rose 7.6% over
the year to $4.16tn. The US is yet to publish its 2013 trade figures, but with trade totaling $3.5tn in the first 11 months
of the year, it is unlikely to beat China."
Further
coverage presented in the Telegraph, the Financial Times and the BBC, reflects I told you so attitude. "It’s always been a matter of time until China surpasses the US ... and there
are good reasons to believe that China is likely to retain this pole position for the foreseeable future. "The trade figures look very healthy and the factors underpinning them are structurally
sustainable. It is hard to see them being reversed significantly, at least in the short to medium term."
Contrast this viewpoint with the assessment out of Marketwatch. "And
let’s not forget: The economic data out of Chinese agencies has long been seen as a bit questionable. Even the country’s
own statistics office has said it is trying to clean up the inaccuracies. As our own Michael Kitchen points
out, trade data has come under particular suspicion, as businesses disguise
some money flows as trade to try to bypass controls." Of course, the U.S. press continues to make excuses that conceal the betrayal of American
trade policy goals and practices. These are the same business journalists that repeat the statistical figures coming out of
recent administrations that need revisions, when caught in dramatic errors of omission or deception.
Proponents of a structured destruction
of America’s economy, laud international trade, as long as it slanted to eliminate domestic survival and reduces our
standard of living. This lunacy, stated in Benefits of International
Trade, does not square with the aftermath of a trade deficit that has become a
permanent fixture. Some important
benefits of International Trade - Enhances the domestic competitiveness
- Takes advantage of international trade technology
- Increases sales and profits
- Extend sales potential of the existing products
- Maintain cost competitiveness in
your domestic market
- Enhance potential for expansion of your business
- Gains a global market share
- Reduce dependence on existing markets
- Stabilize seasonal market fluctuations
Now examine the real
significance of this "Free Trade" globalist plan for America. 1. How can domestic competitiveness
improve, when entire industries move offshore? 2. Where is the advantage in developing new technology domestically and
transferring it to foreign plants, even if owned by "so called" U.S. national companies? 3. Increase sales
and profits, booked by foreign subsidiaries, means that the capital is not repatriated back. 4. If products produced
domestically, shipped, and sold to overseas markets, there would be a valid benefit. However, the direction is in reverse.
5. Maintaining cost competitiveness translates into closing domestic facilities. 6. Expansion of business means
look overseas because domestic consumers have less money to spend. 7. Oh yes, the holy grail of market share, means
last company standing, since domestic markets have reduced sales. 8. Yep, now that existing domestic markets are sinking,
move your boat to a different ocean. 9. Seasonal fluctuations means that booms are past profit spikes, the new normal
is a perpetual dip.
The
Chinese perspective as reported in China Daily from Wang Haifeng, a researcher with the Institute for International
Economic Research at the National Development and Reform Commission, needs especial emphasis.
"The size of the value of the trade
in goods tells just one side of the story. The other side is that China's export competitiveness, as well as the competitiveness
of its trade structure, is far behind the US. The competitive advantage of US exports centers on its technology, quality
and brands, with added-value being very significant. China's export prices are much cheaper on average and a large
part of its exports are from OEMs (original equipment manufacturers)," Wang said.
When an economic system intentionally transfers their technological advantages, inventions and intellectual edge
to a foreign country so that companies can avoid domestic taxation or onerous regulation, the future adverse and inevitable
consequences with such relocations, are preordained. According
to World Bank data, in 2011, the US GDP reached $15 trillion while China totaled $7.3 trillion.
Just how long will it take this gap to narrow and surpass the U.S. GDP?
This example demonstrates the extravagant
cash flow and disposable income that is circulating in China. Much of this opulence comes from the pocketbooks of struggling
Americans, who buy essential or sustainable goods that have a made in China label. Tech firms transfer the secrets of their products and software to their Chinese partners as the U.S. government subsidized
consumer or the remnant middle class, just deepen this destructive cycle. This absurd economic bargain drives the wealth disparity
to irrational levels. That is exactly the objective of the globalists, and the rest of us are mere spectators as the Chinese
laugh at our stupidity. James Hall – January 15, 2014
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