Busted: Bankers and The Global Economy

April 1, 2011

U.S. Budget Madness Ensues

Filed under: economy, government, invest, money — Tags: , , , — digitaleconomy @ 7:37 am

fiddling as the nation burnsThe U.S. Treasury has released a final statement for the month of March that demonstrates that financial madness has gripped the federal government.

During the month, according to the Treasury, the federal government grossed $194 billion in tax revenue and paid out $65.898 billion in tax refunds netting $128.179 billion in tax revenue for March.

At the same, the Treasury paid out a total of $1.1187 trillion. When the $65.898 billion in tax refunds is deducted from that, the Treasury paid a net of $1.0528 trillion in federal expenses for March.

That $1.0528 trillion in spending for March equaled 8.2 times the $128.179 in net federal tax revenue for the month.

February 14, 2011

Scary Facts About Getting a Job in America

Filed under: business, economy, money, recession, stagflation — Tags: , , , , — digitaleconomy @ 12:23 pm

Business Insider published “19 Scary Facts About Getting a Job in America.”

This recession is not another run-of-the-mill post-war recession, nor is it simply what globalism looks like. The recession in the U.S.A.  is a prolonged structural unemployment caused by multinational corporations fleeing high-cost labor markets to exploit low-cost labor markets. The impacts are real and devastating:

1) If you lose your job today, there’s a 70 percent chance you won’t find a job in the next month.

2) If you’ve been unemployed for a year, there’s a 91 percent chance you won’t find a job in the next month.

3) Two million people have exhausted 99 weeks of unemployment benefits. Another four million will do so in 2011.

4) There was zero job growth in the past decade, the worst 10 years on record.

5) In the most optimistic scenarios, payrolls won’t return to 2008 levels until 2013. In that time, the population will grow by 5 percent.

6) More than one in four jobs added to the economy last year were temporary.

7) At 2000 levels of labor force participation, the unemployment rate would be 13 percent.

8) When you count the unemployed, underemployed and discouraged workers, only 47 percent of the work force is fully employed.

9) The number of workers over 55 has increased nearly 8 percent in three years. No retirement means no hiring.

10) Four out of 10 baby boomers said they will have to “work until they drop.”

11) The average length of unemployment is 22 weeks.

12) For workers over 55, the average length of unemployment is 43 weeks.

13) In one of the hardest cities to find a job, Las Vegas, there are nine applicants for every job opening.

14) No jobs crash since the Great Depression of the 1930s even compares to what’s happening now, in terms of the number of jobs lost by the economy as a whole.

15) A 1 percent increase in unemployment leads roughly to a 1 percent increase in suicides.

16) More than 3 million manufacturing jobs have been lost since 1998.

17) The number of motor vehicle manufacturing jobs will decline by 20 percent in the next decade.

18) The number of apparel manufacturing jobs will drop by 57 percent over the next decade.

19) Here is the competition: A network engineer in Bangladesh makes $6,000 a year, while a CEO earns $30,000 on the average.

The Business Insider report concluded with the following observation: “Getting a job today means going up against terrifying odds.”

February 4, 2011

Bernanke: Catastrophic Implications for U.S. Economy

Filed under: banking, business, corporatism, economy, federal reserve, government, money, recession — Tags: , , , , , , , , , — digitaleconomy @ 6:09 am

 

USA facing debt crisis

Ben Bernanke of U.S. Federal Reserve has warned that the failure to promptly raise the national debt ceiling would catastrophic.  This catastrophe would clearly have a negative impact on paper assets denominated in dollars and other fiat currencies.

Bernanke was blunt about the threats by some congressional Republicans to use the upcoming debt-ceiling vote as sledgehammer to force harsh spending cuts:

“I would very much urge Congress not to focus on the debt limit as being the bargaining chip in this discussion, but rather to address directly the spending and tax issues that we have to deal with in order to make progress on this fiscal situation,”

“Beyond a certain point … the United States would be forced into a position of defaulting on its debt. And the implications of that on our financial system, our fiscal policy and our economy would be catastrophic.”

It’s important to realize that Bernanke did not use his typical conservative language regarding the necessity of addressing U.S. fiscal challenges. To the contrary, he painted a bleak picture of the possible consequences of failing to act:

“… if government debt and deficits were actually to grow at the pace envisioned, the economic and financial effects would be severe. Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on U.S. output, incomes, and standards of living. Moreover, diminishing investor confidence that deficits will be brought under control would ultimately lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil. In a vicious circle, high and rising interest rates would cause debt-service payments on the federal debt to grow even faster, causing further increases in the debt-to-GDP ratio and making fiscal adjustment all the more difficult.”

January 18, 2011

Powers That Be & America

1. The IRS is NOT a U.S. Government Agency. It is an Agency of the IMF.
Sources: Diversified Metal Products v IRS et al. CV-93-405E-EJE
U.S.D.C.I.
Public Law 94-564
Senate Report 94-1148, pg 5967
Reor ganization Plan #26
Public Law 102-391

2. The IMF is an Agency of the U.N. and was organized in 1944 at Bretton Woods, N.H. well before WWII was concluded.
Source: Black’s Law Dictionary 6th Ed. Pg 816

3. The United States has NOT had a Treasury since 1921.
41 Stat. Ch. 214 page 654

4. The U.S. Treasury is now the IMF.
Presi dential Documents Volume 29 No. 4 page 113
Source: 22 U.S.C. 285-288

5. The U.S. does not have any employees because there is no longer
a United States. No more reorganizations. After 200 years of bankruptcy it is finally over.
Source: Executive Order 12803

6. The FCC, CIA, FBI, NSA and all of the other Alphabet Gangs were
never part of the U.S. Government, even though the ‘U.S. Government
held stock in said ‘Agencies.
Sources: U.S. v. Strang, 254 U.S. 491
Lewis v. U.S., 680 F.2d, 1239

7. Social Security Numbers are issued by the UN through the IMF. The application for a SSN is the SS5 form. The Department of the Treasury (IMF) issues the SS5, not the ‘Social Security Administration. The new SS5 forms do not state who publishes them while the old form states they are Department of Treasury.
Source: 20 CFR Chap. 111 Subpart B 422.103 (b)

8. There are NO Judicial Courts in America and there have not been any in America since 1789.
Judges do NOT enforce Statutes and Codes. “Executive Administrators” enforce Statutes and Codes. Thus, the “Uniform Commercial Code” is the supreme law of the courts, NOT the U.S. Constitution.
Sources: FRC v. GE, 281 U.S. 464
Keller v. Potomac Elec. Co., 261 U.S. 428
1 Stat. 138-178

9. There have NOT been any ‘Judges’ in America since 1789.
There have only been “Executive Administrators”. (Now you know why “judges” will hold you in “contempt” if you cite the U.S. Constitution in their presence.)
Sources: FRC v. GE, 281 U.S. 464
Keller v. Potomac Elec. Co., 261 U.S. 428
1 Stat. 138-178

10. According to GATT provisions, you MUST have a Social Security Number.
Source: House Report 103-826

11. New York City is defined in the Federal Regulations as the “United Nations”. Rudolph Guiliani stated on C-Span that “New York City is the Capital of the World”. For once, he told the truth.
Source: 20 CFR Chap. 111 subpart B 422.103 (b) (2) (2)

12. Social Security is NOT insurance nor is it a binding contract. Nor is there a “Trust Fund”.
Source: Helvering v. Davis, 301 U.S. 619
Steward Co. v. Davis, 301 U.S. 548

13. Your Social Security check comes directly from the International Monetary Fund (IMF) which is a “for profit corporate agency” of the United Nations. Examine one SS Check: top-left should be written ‘United States Treasury
see 2-4 above.

14. You actually own NO property. Slaves can’t own property, you see. Read carefully the Deed to the property you think is yours. You are listed as “a TENANT”. Often times the Mortgage Holder or the State is listed as “Seised in demesne as of fee”.
Source: Senate Document 43, 73rd Congress 1st Session

( What is “Seised in demesne as of fee” and what does this Latin Legal term mean? This is the strict technical legal expression used to describe the ownership in “an estate in fee-simple in possession in a corporeal hereditament”. The word “seised” is used to express the “seisin or owner’s possession of a freehold property”; the phrase ‘in demesne’, or ‘in his demesne’, (in dominico suo) signifies that he’s seised as owner of the land itself, and not merely of the seigniory services; and the concluding words, ‘as of fee, import that he is seised of an estate of inheritance in fee-simple. Where the subject is incorporeal, or the estate expectant on a precedent freehold, the words ‘in his demesne are omitted. Source: (Co. Litt. 17a; Fleta, 1.5, c. 5, 18; Bract. 1.4, tr. 5, c. 2, 2) Brown. “Black’s Law Dictionary
Fourth Edition, page 1523.

15. The most powerful court in America is NOT the United States Supreme Court, but the Supreme Court of Pennsylvania.
Source: 42 Pa. C.S.A. 502

16. The King of England financially backed both sides of the RevolutionaryWar.
Source: Treaty of Versailles. Signed July 16, 1782
Treaty of Peace 8 Stat. 80

17. You CANNOT use the U.S. Constitution to defend yourself because you are NOT a party to it.
Source: Padelford Fay & Co. v. The Mayor & Alderman of the City of Savannah, 14
Georgia 438, 520

18. America is a British Colony. The ‘United States’ is a corporation, not a land mass and it existed before the Revolutionary War and the occupying British Troops did not leave until 1796.

Sources: Respublica v. Sweers, 1 Dallas 43
Treaty of Commerce 8 Stat 116
Treaty of Peace 8 Stat 80
IRS Publication 6209
Articles of Association October 20, 1774

19. Britain is owned by the Vatican.
Source: Treaty of 1213

20. The Pope can therefore abolish any law in the United States.
Source: Elements of Ecclesiastical Law Vol. 1, 53-54

21. A 1040 Form is for Tribute paid to Britain.
Source: IRS Publication 6209

22. The Pope claims to own the entire planet through the laws of Conquest and Discovery. (Ever wonder why an Attorney, who is an often unwitting Agent of the Pope through the International Bar Association, wants to do “discovery” with you?)
Source: Papal Bulls of 1495 & 1493

23. The Pope has ordered the genocide and enslavement of Millions of people.
Source: Papal Bulls of 1455 & 1493

24. The Pope’s ‘Laws’ are obligatory on everyone on planet earth.
Source: Bened. XIV., De Syn. Dioec, lib, ix, c. vii., n.4. Prati, 1844
Syllabus prop 28, 29, 44

25. We are SLAVES and own ABSOLUTELY NOTHING. Not even what we think are “our children”.
Source: Tillman v. Roberts, 108 So. 62
Van Koten v. Van Koten, 154 N.E. 146
Senate Document 43, 73rd Congress 1st Session
Wynehammer v. People, 13 N.Y. Rep 378, 481

26. Military Dictator George Washington divided up the States (aka Estates) into Districts.
Source: Messages and Papers of the Presidents, Volume 1 page 99
1828 Dictionary definition of ‘Estate

27. ‘We, The People” does NOT include the General Populace, or what you THINK is ‘We, The People”.
Source: Barron v. Mayor and City Council of Baltimore, 32 U.S. 243

28. It is NOT the ‘duty of the police to protec t you. Their job is simply to protect THE STATE OR LOCAL CORPORATION and arrest “Code Breakers”.
Sources: Sapp v. Tallahassee, 348 So.2nd. 363
Reiff v. City of Philla., 477 F.Supp. 1262
Lynch v. NC Dept. of Justice, 376 S.E.2nd. 247

29. Everything in the ‘United States is up For Sale: Bridges, Roads, Water, Schools, Hospitals, Prisons, Airports, “Federal Lands”, “State (estate) Lands” etc.
Did anybody take time to check who recently bought Klamath Lake and the Arizona State Capital?
Source: Executive Order 12803

30. ‘WE THE PEOPLE’ are HUMAN CAPITAL – aka as “Goyim” to the rulers of the world.
Source: Executive Order 13037

The U.N. has financed the operations of the ‘United States Government for over 50 years and now ‘owns’ every man, woman, and child in America. The U.N. also holds all of the land of America in Fee Simple.

Understand that the United States, Britain and the Vatican are corporations are nothing but fictional entities which have been placed in your mind. National and global  slavery remains primarily because people believe in falsehood.

January 5, 2011

Hyperinflation: Top Economic Predictions

The National Inflation Association is pleased to announce its top 10 predictions for 2011:

1) The Dow/Gold and Gold/Silver ratios will continue to decline.

Major declines in the Dow/Gold and Gold/Silver ratios in the works. The Dow/Gold ratio was 9.3 at the time and finished 2010 down 15% to 8.1. The Gold/Silver ratio was 64 at the time and finished 2010 down 28% to 46. We expect to see the Dow/Gold ratio decline to 6.5 and the Gold/Silver ratio decline to 38 in 2011. Later this decade, we expect to see the Dow/Gold ratio bottom at 1 and the Gold/Silver ratio decline to below 16 and possibly as low as 10.

2) Colleges will begin to go bankrupt and close their doors.

The USA has a college education bubble in America that was made possible by the U.S. government’s willingness to give out cheap and easy student loans. With all of the technological advances that have been taking place worldwide, the cost for a college education in America should be getting cheaper. Instead, private four-year colleges have averaged 5.6% tuition inflation over the past six years.

College tuitions are the one thing in America that never declined in price during the panic of 2008. Despite collapsing stock market and Real Estate prices, college tuition costs surged to new highs as Americans instinctively sought to become better educated in order to better ride out and survive the economic crisis. Unfortunately, American students who overpaid for college educations are graduating and finding out that their degrees are worthless and no jobs are available for them. They would have been better off going straight into the work force and investing their money into gold and silver. That way, they would have real wealth today instead of debt and would already have valuable work place experience, which is much more important than any piece of paper.

Colleges and universities took on ambitious construction projects and built new libraries, gyms, and sporting venues, that added no value to the education of students. These projects were intended for the sole purpose of impressing students and their families. The administrators of these colleges knew that no matter how high tuitions rose, students would be able to simply borrow more from the government in order to pay them.

Americans today can purchase just about any type of good on Amazon.com, cheaper than they can find it in retail stores. This is because Amazon.com is a lot more efficient and doesn’t have the overhead costs of brick and mortar retailers. NIA expects to see a new trend of Americans seeking to become educated cheaply over the Internet. There will be a huge drop off in demand for traditional college degrees. NIA expects to see many colleges default on their debts in 2011. These colleges will be forced to either downsize and educate students more cost effectively or close their doors for good.

3) U.S. retailers will report declines in profit margins and their stocks will decline.

Although most analysts on Wall Street believe retailers will report a major increase in holiday season sales over a year ago, NIA believes any top line growth retailers report will come at the expense of dismal bottom line profits. NIA expects many retailers to report large declines in their profit margins for the 4Q of 2010 and first half of 2011. Retailers have been selling goods at bargain basement prices in order to generate demand. Americans, being flush with newly printed dollars from the Federal Reserve, have been eager to buy up supplies of goods at artificially low prices. However, shareholders will likely sell off their retail stocks on this news. As share prices of retail stocks decline, retailers will begin to rapidly increase their prices by mid-2011.

4) The mainstream public will begin to buy gold.

Although the mainstream media continues to proclaim we have a gold bubble, it is impossible to have a gold bubble when mainstream America isn’t buying gold. The average American is more likely to be a seller of gold through companies like Cash4Gold, in order to raise enough dollars to put food on their table. Most Americans today don’t even know the price of gold. During the next 12 months, we expect to see a huge ramping up in the public’s knowledge about gold. More Americans than ever will know the current price of gold and understand that it is real money. By the end of 2011, we expect the general public to begin looking at gold as an investment, just like they began looking at Real Estate as an investment in 2003. Sometime during the next six months, we believe you will overhear a stranger at a restaurant talking about investing into gold. We believe the price of gold could surge to as high as $2,000 per ounce in 2011.

5) We will see a huge surge in municipal debt defaults.

In the closing months of 2010, we saw yields on municipal bonds rise to their highest levels since early 2009. After 29 consecutive weeks of inflows into municipal bond funds, investors are now pulling money out of municipal bond funds by record amounts, with $9 billion exiting municipal bond funds in the five weeks leading up to Christmas. NIA believes there could be a small dip in municipal bond yields over the next couple of months as investors realize that municipal debt defaults might not be imminent, but we expect municipal bond yields to begin rising again by mid-2011 with a huge surge in municipal debt defaults coming in the second half of 2011. Although the Federal Government has a printing press that it uses in order to pay its debts, cities and municipalities do not.

6) We will see a large decline in the crude oil/natural gas ratio.

When we released our top 10 predictions for 2010, crude oil was $73 per barrel and we predicted that oil prices would rise to $100 per barrel in 2010. Crude oil ended up rising by 26% in 2010 to $92 per barrel, coming short of our outlook. However, it is possible our $100 per barrel oil forecast might be off by just a month or two. We wouldn’t be surprised to see $100 per barrel oil within the first two months of 2011 and if so, we expect to see a huge movement in America this year towards natural gas.

The crude oil/natural gas ratio currently stands at 20. Historically, the crude oil/natural gas ratio has averaged 10 and based on an energy equivalent basis, crude oil and natural gas prices should have a 6 to 1 ratio. Brand new fracking technology has caused natural gas supplies in the U.S. to rise to record levels. Although our country might be flooded with natural gas, the natural gas fracking boom that is taking place across the U.S. today is causing ground water in the U.S. to become contaminated. Americans living near natural gas wells that use fracking, are finding that they can now light the water coming out of their faucets on fire. New government regulations are likely to crack down on natural gas fracking and this will come at the same time as American individuals and businesses begin to convert their automobiles and machinery to run off of natural gas. A large decline in the crude oil/natural gas ratio in 2011 is likely, possibly down to as low as 15.

7) The median U.S. home will decline sharply priced in silver.

For the past couple of years, being able to make ones mortgage payment has been the primary concern for the average American. In an attempt to support housing prices and keep mortgage interest rates at artificially low levels, the Federal Reserve has been implementing massive quantitative easing and buying mortgage backed securities. NIA believes the Federal Reserve will be successful at putting a nominal floor under Real Estate prices. NIA also believes that the Federal Reserve’s actions will cause a massive decline in the value of the U.S. dollar, which will allow Americans to more easily pay back their mortgages with depreciated U.S. dollars.

However, the Federal Reserve will not be successful at reinflating the Real Estate bubble. In fact, in terms of real money (gold and silver), NIA believes Real Estate prices will decline to record lows. The median U.S. home is currently priced at $170,600 or 5,500 ounces of silver. Priced in silver, the median U.S. home price is down 16% from one month ago and 45% from one year ago. After the inflationary crisis of the 1970s, silver rose to a high in 1980 of $49.45 per ounce. The median U.S. home price in 1980 was $47,200, which means the median U.S. home/silver ratio declined to a low of 954.

With the Federal Reserve printing money at an unprecedented rate and record amounts of new homes built during the recent Real Estate bubble, NIA believes it is inevitable that the median U.S. home will decline to a price of 1,000 ounces of silver this decade and possibly as low as 500 ounces of silver. In 2011, we believe a decline in the median U.S. home price to 4,000 ounces of silver is possible.

8) Food inflation will become America’s top crisis.

Starting a few decades ago and accelerating in recent years, America has seen a boom in non-productive service jobs, mainly in the financial sector. Most of these jobs were made possible by inflation. Without inflation, which steals from the purchasing power of the incomes and savings of goods producing workers, the majority of the jobs on Wall Street would not exist today and our country would be in much better financial shape because of it.

With most Americans in recent decades seeking non-productive jobs in the financial services sector because that is where they could access the Fed’s cheap and easy money, very few Americans sought jobs in the farming and agriculture sector. In the 1930s, approximately 28% of the population was employed in the agriculture sector, but today this number is less than 2%. Agriculture currently makes up only 1.2% of U.S. GDP, compared to the services sector, which makes up 76.9% of U.S. GDP.

There is currently a major shortage of farmers in the U.S. and a lot of land that was previously used for farming has now been developed with Real Estate. To make matters worse, agricultural products now trade on the international market and Americans must now compete against citizens of emerging nations like China and India for the purchasing of food.

Prices of goods and services do not rise equally when governments create monetary inflation. Inflation gravitates most towards the items that Americans need the most and there is nothing that Americans need more to survive than food and agriculture. As the U.S. government prints money, the first thing Americans will spend it on is food. Americans can cut back on energy use by moving into a smaller home and carpooling to work. They can cut back on entertainment, travel, and other discretionary spending. However, Americans can never stop spending money on food.

The days of cheap food in America are coming to an end. The recent unprecedented rise that we have seen in agricultural commodity prices is showing no signs of letting up. In the past few days, sugar futures reached a new 30-year high, coffee futures reached a new 13-year high, orange juice futures reached a new 3-year high, corn futures reached a new 29-month high, soybean futures reached a new 27-month high, and palm oil futures reached a new 33-month high.

We estimate that it takes as long as six months for rising agricultural commodity prices to be felt by U.S. consumers in their local supermarket. Even if food producers and retailers accept substantially lower profit margins in 2011, we are still guaranteed to see double-digit across the board U.S. food inflation in the first half of the year. That is correct, let us repeat, NIA guarantees that Americans will see double-digit food inflation in the first half of 2011.

Shockingly, except for Glenn Beck (who was kind enough to feature our food inflation report), absolutely nobody in the mainstream media is doing anything to warn Americans about the food inflation crisis that is ahead. In fact, left-wing groups like Media Matters (funded by George Soros) have been working tirelessly to try and discredit NIA’s research while reassuring Americans that they need not worry about food inflation. The truth is, when Americans realize that they can no longer take food for granted, we will likely see the outbreak of an all out food price panic with everybody rushing to the supermarket to stock up on goods before prices rise even further. The end result will likely be government price controls and empty store shelves, but NIA doesn’t project this to occur until later this decade.

9) QE2 will disappoint and the Federal Reserve will prepare QE3.

The Dow Jones is now back up to 11,670, which is where it was in mid-2008 before the crash. NIA believes that most of QE2 has already been priced into the market, before the Federal Reserve even prints the $600 billion. At some point, we expect it to become apparent to all that the U.S. economic recovery is phony and stock prices are rising solely due to inflation. In our opinion, we will see some sort of catalyst that causes the stock market to sell off at some point and the consensus on Wall Street will be that QE2 will not be enough to save the U.S. economy. By the end of 2011, we expect the Federal Reserve to begin planning QE3. QE3 might be the final dose of inflation that causes the U.S. economy to overdose into hyperinflation.

10) Sarah Palin will announce she is running for President as a Republican.

NIA believes that Sarah Palin has been setup perfectly to run for President in 2012 and that she will announce her candidacy for the Republican nomination with great fanfare from tea party supporters in 2011. We give Sarah Palin credit for recently speaking out against the Federal Reserve’s QE2 and warning Americans about the food inflation crisis that is ahead. Unfortunately, we believe Sarah Palin is not a true independent and is being controlled by the Republican establishment, which is just as responsible as the Democrats are for the financial crisis we have today. As President, Palin would be unlikely to implement the measures that are necessary to prevent hyperinflation. In our opinion, we need to elect a true libertarian candidate as President who will cut government spending, balance the budget, and restore sound money. NIA intends to support Ron Paul, if he decides to run for President.

Thanks to the National Inflation Association for these really decent and down-to-earth predictions.

January 1, 2011

Bilderberg Documents & Links

Filed under: banking, business, corporatism, globalization, inflation, invest, money, United Nations — Tags: , — digitaleconomy @ 3:18 pm
2009 Press Release & Participant List 2009 Bilderberg Group
2008 Participant List 2008 Bilderberg Group
2007 Uniting the West – The Bilderberg Group, the Cold War and European Integration, 1952 – 1966 Thomas W. Gijswijt
2007 Participant List 2007 Bilderberg Group
2006 Participant List 2006 Bilderberg Group
1996 Correspondence with William J. Perry Bilderberg Group
1980 Meeting Report & Participant List 1980 Wikileaks
1963 Meeting Report 1963 Wikileaks
1962 Meeting Report & Participant List 1962 Wikileaks
1960 Meeting Report 1960 Wikileaks
1958 Meeting Report 1958 Wikileaks
1957 Meeting Report 1957 Wikileaks
1956 Bilderberg History Wikileaks
1955 Meeting Report 1955 Wikileaks

November 7, 2010

Obama Admits Decline of US Dominance

Filed under: business, corporatism, economy, globalization, government, money, politics, recession — Tags: , , , , , , , , , — digitaleconomy @ 6:27 pm

Today, President Barack Obama said that the USA was no longer in a position to “meet the rest of the world economically on our terms.”

Speaking at a town hall meeting in Mumbai, he said,

“I do think that one of the challenges that we are going face in the US, at a time when we are still recovering from the financial crisis is, how do we respond to some of the challenges of globalization? The fact of the matter is that for most of my lifetime and I’ll turn 50 next year – the US was such an enormously dominant economic power, we were such a large market, our industry, our technology, our manufacturing was so significant that we always met the rest of the world economically on our terms. And now because of the incredible rise of India and China and Brazil and other countries, the US remains the largest economy and the largest market, but there is real competition.”

“This will keep America on its toes. America is going to have to compete. There is going to be a tug-of-war within the US between those who see globalization as a threat and those who accept we live in a open integrated world, which has challenges and opportunities.”

President Obama disagreed with those who saw globalization as evil. He did warn that protectionist impulses in the USA will get stronger if Americans don’t see trade bringing in gains for them.

“If the American people feel that trade is just a one-way street where everybody is selling to the enormous US market but we can never sell what we make anywhere else, then the people of the US will start thinking that this is a bad deal for us and it could end up leading to a more protectionist instinct in both parties, not just among Democrats but also Republicans. So, that we have to guard against.”

President Obama noted that America could not continue to promote trade at its own expense at a time when economic power in India and China is rising. “There has to be reciprocity in our trading relationships and if we can have those kind of conversations – fruitful, constructive conversation about how we produce win-win situations, then I think we will be fine.”

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