The China Syndrome .

For many years now businessmen in the West have out sourced manufacturing of goods to Asia where labor was much cheaper as with all production overheads. Communist China took the biggest advantage and opened up its borders and adapted themselves to be the main port of call for those that needed cheap labor.

U. S.  companies and entrepreneurs took advantage of what was offered in China. China took advantage and improved their infrastructure to become the main manufacturing base for the world.  Large profits where made in the West and by China, but of course the West’s manufacturing base shrunk considerably.

Unemployment rose but was controlled because of the natural adaptation of the market place that became more service based to selling cheap products from Asia mainly China.  The biggest problem has been  money flowing mainly one way to China and China increasing its manufacturing output in its drive to improve its infrastructure and modernization of China.  A huge trade imbalance was the result. Eventually the bubble burst and  the housing and property market collapsed due to failure of people and business being able to keep up with their housing and property loans.  When the last domino actually fell, the World  saw one of its biggest recession’s.  US bank securities became practically worthless.

The real problem is the fact that the West has very weak manufacturing bases and the solution is that these bases need to be strengthened and that can only be done by making China a less attractive place to have goods manufactured.

USA  has seen this problem worsening within the last decade and has failed to stop cheap goods crossing our borders. 

 The only option for the U. S. is the of manufacturing goods at home which will decrease unemployment and stabilize economies.
China of course will shout and rave, but will wish to keep a sensible slice of the world market. The Chinese are not stupid.  But if the West does not take action now, that to me at least will look to be stupid,stupid,and more stupid.

    
Obama smacked a heavy tax on tires from China, could this be the first sign that the USA is waking up to the real solution to a very tricky problem and the real need to kick start manufacturing at home?  I doubt it. Companies like Wall mart have too much money from the current arrangement to let their bought politicians agree with any legislation that will restrict Wall marts business deals with China.

It will be up to the American People to boycott their addiction to goods from China by not shopping at Wall mart. Will this ever happen. No! I fear people are just too dumb to take charge of their own situation and would rather just listen to political leaders bought and paid for. The end is near my friends. The great American experiment is about to come to an end.