More than three million U.S. manufacturing jobs have been lost while Bush was in the White House. Jobs that have been moved offshore do not come back.
By replacing $20 an hour U.S. labor with $1 an hour Chinese labor, the profits of U.S. offshore corporations have boomed, thus driving up share prices and “performance” bonuses for corporate CEOs. [Favoring the rich over the poor. Or "Middle class" as described by John McCain, an annual income less than $5 million!]
[Concerning the poor decisions made by Wall Street institutions] The US Treasury does not have $700 billion on hand with which to buy the troubled assets from troubled institutions, meaning The Treasury will have to borrow the $700 billion from abroad. This crisis comes at the worst possible time. Gratuitous wars and military spending in pursuit of US world hegemony have inflated the federal budget deficit.
These large deficits are financed by foreigners, and foreign unease has resulted in a decline in the US dollar’s value compared to other tradable currencies, precious metals, and oil.
If the US Treasury’s assumption of bailout responsibilities becomes excessive, the US dollar will lose its reserve currency role. The minute that occurs, foreign financing of America’s twin deficits will cease, as will the bailout. The US government would have to turn to the printing of paper money as did Weimar Germany.
[Excerpts from an article by Paul Craig Roberts, former Assistant Secretary of the Treasury in the Reagan administration]
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