Wednesday, August 3, 2011
The Export Fantasy
China's Exports to GDP ratio is .4, the United States' is .1. The point being, Obama's dream of a export-centered recovery was always fantasy because it's not a significant share of the US economy and hasn't been for years. The U.S. has been an economy built on domestic demand and domestic growth since the opening of the West. And as things stand, much of American industry is not competitive in the global market, and won't be without a currency collapse, which is impossible given the dollar's role as safe haven. Which is why the country will continue to rot from the core until the global financial architecture is changed, which won't happen because Wall Street and foreign mercantilists won't let it. The ruling classes mostly have their chips in this system.