US Manufacturing

7 Out Of 10 “American” Vehicles Are Made Anywhere BUT America

General Motors is becoming China Motors. Forget the spin. The evidence is clear and convincing. Did U.S. taxpayers save GM for China? Listen to the candid comments of GM’s CEO.

There are a few issues in the video that I disagree with, but on the whole, this should be all you need to know about how $8BILLION of your tax dollars has been robbed, since you cannot seem to grasp the other sources of thievery. If you realize that your best jobs are being shipped to China, or that the factories are being sold to Chinese government supported corporations who care nothing for “Free Trade”, maybe you’ll get angry (but I won’t be holding my breath).

BROKEST CITY IN AMERICA – My Hometown is #1

I’ve watched over the last 4 years, and sometimes wrote and commented about how ‘bad’ things are in my neck of the woods. Some understood what I was talking about as they’ve watched many in their own areas struggle to make ends meet during this most recent depression. However, I dont think many understood completely what I was seeing in my area.

The city I grew up in, Columbus Georgia, which I now live 15 miles to the north of has been hit hard. While the local news along with the mainstream news continues to paint a rosy picture, many know the rose is dead.

Columbus Georgia in it’s heyday was a bustling textile / mill town. It was also called a military town due to the adjacent Fort Benning Georgia. In all respects it is now only a military town. The mills shout down and moved off shore. What local business that remained through the years, many have closed their doors, unable to compete with the big box stores, or off shored the labor as well.

There are a few big name companies in Columbus Georgia. Few of them hire folk that worked in the mills due to lack of formal education, or who recently left the military and stuck around. We have AFLAC which insures more than 60 million people worldwide. We have TSYS the largest processor of merchant acquirers and bank credit card issuers. We have Synovus which is a a financial services company. Synovus laid off 850 employees and closed multiple bank branches in early 2011. We have what is left of the W. C. Bradley Co. the maker of ‘Char-Broil grill’. I say what is left because W. C. Bradley moved Char-Broil grill production from Georgia to China in 2006. The Char-Broil division is still headquartered in Columbus but the jobs are in China. Columbus is also the birth place of Coca Cola and RC Cola. My how times have changed.

To be honest with you, there isn’t much left around here other than civilian employment at the Army base, Ft. Benning. This was one of the main reasons I am so pissed off about the illegal immigration situation in this country, let alone my neck of the woods. No jobs, yet they let the illegals stay and take them. I mentioned this countless times on my old blog. If it weren’t for Ft. Benning, as much as I hate the military industrial complex [MIC], Columbus in my eyes would have been another Detroit. Detroit is number 18 on the list, which I might add, most of us have heard how bad it is/was in Detroit the past year or so. Ghost town

Over on The Daily Beast, they have just released a list of 30, what they call ‘America’s Brokest Cities’. Four of Americas brokest cities reside in Georgia and many more are throughout the southeast.

VIA The Daily Beast

To find the most struggling cities in the country, we used three data points weighted equally: the most recently available unemployment rate (August 2011), median household income, and average debt. Data is from a recent report by Experian and the Bureau of Labor Statistics. The average credit score for each city is included in the gallery, though not taken into account to determine the final ranking. If this data is any indication, the cities struggling the most right now—the ones that may take the longest to recover—are clustered in the South and along the Pacific Coast.

#1, Columbus, Ga.

Unemployment: 9.8%

Median household income: $36,553

Average personal debt: $27,928

Average credit score: 721

#10, Augusta, Ga.

Unemployment: 9.6%

Median household income: $44,477

Average personal debt: $26,204

Average credit score: 709

#14, Macon, Ga.

Unemployment: 10.4%

Median household income: $37,507

Average personal debt: $23,775

Average credit score: 715

#25, Savannah, Ga.

Unemployment: 9.5%

Median household income: $46,755

Average personal debt: $25,561

Average credit score: 716

Of course the 1% in Columbus dont see it that way. Of course they have no idea what the other 99% are going through. Here is what the current Mayor has to say.

Via wtvm.com [local Columbus GA news station]

Columbus Mayor Teresa Tomlinson called the article "patently absurd" and "irresponsible".

"We know for certain that their data is wrong. The median income figure and the employment rate are not correct. Accordingly, we have no reason to believe their so-called ‘personal debt' level is current. Probably the most telling error is that even using their own incorrect data, their math is wrong. So, by the article's own alleged three-pronged criteria, Columbus is not the ‘brokest' on the list, much less America," Mayor Tomlinson explains.

"The numbers presented show there is no rational basis for the approach used. The slightest change, such as using the more accepted debt-to-income ratio instead of the personal debt amount dramatically adjusts the ranking. Including the referenced, but mysteriously excluded, ‘credit score' in the computation also dramatically adjusts the ranking. If there was any legitimate statistical point to be made here, the rankings would not fluctuate so when similar or related data is used", continued Mayor Tomlinson.

Yep, just like the rest of the 1%, 'those numbers are wrong'.

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All posts are opinions meant to foster comment, reporting, teaching & study under the “fair use doctrine” in Sec. 107 of U.S. Code Title 17. No statement of fact is made or should be implied. Ads appearing on this blog are solely the product of the advertiser and do not necessarily reflect the opinions of BuehlahMan’s Revolt or WordPress.com

The Mandate: Savage Austerity While Inflation Skyrockets

I think it is pretty obvious what is about to occur in this country. The unconscious American public is about to embark on massive changes to their social structure and welfare. We have basically fallen into the prescribed “sides” of the issues they want us divided into and have swallowed the bait and the hook is set.

Us “lefties” and you “righties” (or vice versa, whichever side you think we belong will suffice, for in reality it all means nothing) will go to the polls next Tuesday and we will vote for the lesser of two evils (AGAIN). The Republicans have hijacked the Tea Party making it nothing more than the Corporate Republican scalawags and you people have totally dumped the ideology that made you attractive to real patriots who are trying to change the system. How you could allow it is beyond me, but you did it. You let those fools co-opt you into becoming the same old Corporately fed, Zionist fawning, Imperial backing Republican Party that Dr Paul speaks AGAINST (but sadly won’t leave, making him moot, as well).

Then we have that other side of “Socialists” (yeah, right) that back a Kenyan infiltrator (lol) who is nothing but an extension of the last asshole that held that position. You forgot all your bitches about illegal wars, about torture, about loss of liberty and have swallowed the Dem Party storyline of “at least we aren’t Bush” (even tho nothing of any substance has changed).

You people keep us in the never-ending ping-pong game of  lesser evils, all-the-while never figuring out that evil is evil. Period. I live amongst the most gullible lot of nincompoops, if this is the best you can do.

As for me, if and when I go into any voting booth, I will write in…

NONE OF THE ABOVE

…if confronted with an R or D choice.

Of course, the sycophants from the left will say, “But that is a vote for the Republicans” and the righty sycophants will say, “You are voting for a Democrat.” But that is what ignorant sycophants do. They conveniently forget how we got to where we are and that these fools they follow and idolize are simply two sides of the same tainted coin.

I haven’t forgotten:

I remember it vividly, whereas the sycophantic rightys can’t seem to muster two brain cells together to recall the 8 years previous to the latest disaster POTUS administration. For God’s sakes, you are flirting with that idiot, Newt. WTF? Have you no shame?

I am not endorsing the D’s by putting up that video. Like I said, I’ll not vote for either, ever again.

You see, I haven’t forgotten the lies the D’s told us all to get control of Congress and the POTUS-ship. I haven’t forgotten all the outrage of the wars from “the left” which mysteriously disappeared after electing your favorite PARTY CLOWNs. I haven’t forgotten how angry you were with illegal wars, but how quickly you embraced them when the Savior was elected. I haven’t forgotten your idols that bitched and moaned about our military forays in the ME, just to have them rally for the sanity of MORE war and murder.

You see, we are too far gone. There really is nothing more that someone like me can do to spread any sanity… to try to educate you as to what the hell you are getting US in to.

But I do want to make a prediction. I will predict that by your playing their games by their rules, you will give the Republicans a massive victory next week. Enough to change the majority makeup of the House. Not by much, but enough. Enough for what, you ask?

Enough for them to claim they have a mandate from the people of America.

This mandate will entail savage austerity, according to Zerohedge:

And, it is coming soon to America.

In the US, the intensity of the Austerity-For-Workers program will depend partially on the size of Republican gains in the November 2 mid-term elections. More seats going Republican—particularly the loss of the House—means more momentum for attacking working families’ social safety net.

What does this mean to poor rednecks, like myself? It means that IF you think you will get any Unemployment benefit extensions, forget it. Those 99%ers you have read about are about to become 24%ers or a bit more. How about that pension you acquired via hard work? How would you feel if the Gubment took it and reallocated it in Gubment (worthless) Bonds and “promised” you that you will get your money, but on their timeline? What if this austerity includes remaking the Social Security System, radically cutting benefits that are already far underfunded for normal life in America? What if that Medicare that you count on to keep you alive is stripped down to nothing? What if this austerity causes even more job losses in America and that we will NEVER recover the ones already lost?

We are about to embark upon the hardest times of your life (unless you are the mega-wealthy). Our elected officials are about to strip us of social programs that we count on and we will be left to fend for ourselves or die.

Charlie McGrath has one of the best run-downs of what is about to happen that I have seen. Well worth the watch, if you haven’t seen it yet:

Simultaneously, we are about to see inflation jump like never before. It is already happening, as I write this, but the real storm is a month or so away. As one example, College Tuition is going up again. But everything else will, as well. Especially food.

From CNBC:

Food Prices Expected To Rise Sharply

Corn is up 45 percent the last three months. We haven’t seen cotton prices this high since after the Civil War. Soybeans are up. Oil is up. Metals are up. So are coffee and cocoa.In this era of massive liquidity, everything is up, except for food prices—specifically processed food (made from many of the same commodities and other ingredients whose prices have risen).

According to the USDA, that is going to change. In its most recent CPI report for food, the USDA reported that prices are expected to rise in 2011.

For all food, prices are expected to rise two to three percent, which is double the levels of 2010. Meat prices are expected to rise up to 3.5 percent, and dairy 5.5 percent.

And it is a global phenomena (h/t Guardian UK):

Global food crisis forecast as prices reach record highs

Another warning is that crime is on the rise in America and will continue to do so as people get hungry. The Economic Collapse Blog has a list of 12 Statistics That Make You Wonder What Is Happening In America

#1 The murder rate in New York City has increased more than 15 percent in 2010, and the number of rapes has shot up from 943 in 2009 to 1075 so far this year.

#2 In the city of Detroit, crime has gotten so bad and the citizens are so frustrated by the lack of police assistance that they have resorted to forming their own organizations to fight back.  One group, known as “Detroit 300″, was formed after a 90-year-old woman on Detroit’s northwest side was brutally raped in August.

#3 Crime in Miami Beach was up almost 11 percent during the first half of 2010.

#4 The murder rate in Tempe, Arizona is now the highest it has been in 10 years.

#5 Shoplifting is completely and totally out of control.  According to the National Association of Shoplifting Prevention, every single day Americans steal more than $35 million worth of goods from retail stores.

#6 Today, there are approximately 400,00 registered sex offenders in the United States.

#7 U.S. authorities claim that there are now over 1 million members of criminal gangs operating inside the United States. According to federal statistics, these 1 million gang members are responsible for up to 80% of the violent crimes committed in the U.S. each year.

#8 The median age of the victims of imprisoned sex offenders in the United States is 13 years old.

#9 The crime rate in the San Diego school system is escalating out of control. The following is what San Diego School Police Chief Don Braun recently told the press about the current situation….

“Violent crime in schools has risen 31 percent. Property crime has risen 12 percent. Weapons violations (have gone up) almost 8 percent.”

#1053 percent of all investigated burglaries in the states of California, New Mexico, Nevada, Arizona and Texas are perpetrated by illegal aliens.

#11 Law enforcement officials estimate that about 600,000 Americans and 65,000 Canadians are trading dirty child pictures online.  They also say that the total profit from creating and trading these images is approximately two to three billion dollars every year.

#12 Each year, one out of every five people in the U.S. is victimized by crime.  No other nation on the planet has a rate that is higher.

I also read from my home town weekly paper that a very small town in my home county has a Chief of police who is apologizing to residents over the weekly road blocks that they set up in town every Sunday (now becoming renowned for it). As I read thru the list of “arrests” it couldn’t be more clear what they are going after… weed smokers. The vast majority of the arrests were drug related and the biggest proportion, by far, was for marijuana. The fine for less than 1 ounce (1st offense in MS) is about $1,000. After everything is said, done and paid for, it might cost a person $1800 to handle it in court. Fine and dandy, except for the fact that it costs the country $2800 per case.

Not only are these people arresting young folks (ruining their lives) over a weed, they are losing money EVERY time they do it. And the tax payer yawns and scratches his hinder parts and turns on American Idol while sipping his illegal beer in that dry county.

Of course, nothing new on all the break ins and thefts. But never mind that. We stopped those hippies from smoking a little weed.

WTF?

Look. I know I am experiencing my own hardships (no job, no prospect for a job), but I can’t bury my head. No matter how hard it gets, I believe I will be able to take care of my family utilizing my network I have been setting up for a couple of years (you know who you are). I am not totally prepared, but I have most of what we need to survive. So, I am not just some crazy person freaked out over my own circumstances. This shit is real, people. It is happening right before our eyes and we better be ready for it when it comes… for IT IS COMING.

Let me share with you this list of 30 Reasons Why People Should Be Getting Really Nervous About The State of The U.S. Economy (again from the Economic Collapse blog):

#1 Corporate insiders are selling off stock at a blinding pace and are looking for the exits.  Alan Newman, the editor of the Crosscurrents newsletter, examined a number of the top performing stocks in the market including Google, Apple and Target and found that the ratio of corporate insider stock sold to corporate insider stock purchased over the last six months for those companies was 3,177 to 1.  At the group of firms that Newman looked at, corporate insiders had purchased 38,000 shares of stock over the last six months and yet had sold off over 120 million shares.

#2 Analysts at both Bank of America and Goldman Sachs both believe that the U.S. Federal Reserve is going to initiate a new round of quantitative easing in November.  It does not take a genius to figure out that this is very likely to push up inflation and have very serious consequences for the U.S. dollar.

#3 Economists at Goldman Sachs are projecting that the Fed will have to purchase at least $4 trillion in assets during this next round of quantitative easing to get the U.S. economy moving in a positive direction once again.

#4 In the United States today, there are 5,057 janitors with Ph.D.’s, other doctorates, or professional degrees.

#5 Investors have very little faith in the U.S. dollar (and in paper currencies in general) at this point.  Precious metals are soaring to obscene heights.  The price of gold has increased more than 20 percent in 2010.  The price of silver has skyrocketed about 40 percent this year.  These are not signs that indicate that the U.S. financial system is stable.

#6 Robin Griffiths, a technical strategist at Cazenove Capital, told CNBC on Monday that the U.S. dollar is in danger of becoming “toxic waste”.

#7 In the United States today, 317,000 waiters and waitresses have college degrees.

#8 U.S. lending institutions repossessed an all-time record total of 102,134 homes in the month of September.  That was the first time that home repossessions in the U.S. had ever exceeded the 100,000 mark during a single month.

#9 According to a Standard & Poor’s/Case-Shiller home price report that was released on Tuesday, single family home prices in the United States declined  for a second straight month in August.

#10 In the United States today, over 18,000 parking lot attendants have college degrees.

#11 During the months of August and September, the state of Nevada had an unemployment rate of 14.4 percent, which was the highest in the history of the state.  Not that the rest of the country is doing any better.  The state of California has become a complete and total economic disaster zone, and the city of Detroit, Michigan is literally dying.

#12 The “official” unemployment rate in the United States has been at nine and a half percent or above for 14 consecutive months.

#13 The number of people unemployed in the state of California is approximately equivalent to the populations of Nevada, New Hampshire and Vermont combined.

#14 According to the president of the Federal Reserve Bank of New York, there are approximately 3 million more vacant housing units than usual in the United States.

#15 China has reduced the export quota on rare earth elements for the second half of 2010 by 72%, thus strengthening their position in the world economy even more.  Rare earth elements are absolutely crucial to the manufacture of a vast array of high technology products, and now even more of them will have to be made in China.

#16 In 1985, the U.S. trade deficit with China was 6 million dollarsfor the entire year.  In the month of August alone, the U.S. trade deficit with China was over 28 billion dollars.

#17 Wheat, corn and other staples are absolutely soaring in price on world markets.  These higher food prices are going to hit U.S. consumers hard.

#18 In 2007, 3 U.S. banks failed.  In 2008, 25 U.S. banks failed.  In 2009, 140 U.S. banks failed.  Last Friday, it was announced that 139 U.S. banks have failed so far this year and it is not even the end of October yet.

#19 Total student loan debt in the United States is climbing at a rate of approximately $2,853.88 per second.

#20 Back in 1980, the United States imported approximately 37 percent of  the oil that we use.  Now we import nearly 60 percent of the oil that we use.

#21 According to an analysis by the Congressional Joint Committee on Taxation, the health care reform legislation that Congress didn’t read but passed into law anyway will generate $409.2 billion in additional taxes on the American people by the year 2019.

#22 Median household income in the U.S. declined from $51,726 in 2008 to $50,221 in 2009.  That was the second yearly decline in a row.

#23 One out of every six Americans is now enrolled in a government anti-poverty program, and yet the number of Americans signing up for food stamps and other social programs just continues to set new all-time records month after month after month.

#24 The number of Americans working part-time jobs “for economic reasons” is now the highest it has been in at least five decades.

#25 American 15-year-olds do not even rank in the top half of all advanced nations when it comes to math or science literacy.

#26 According to a recent poll conducted by CNBC, 92 percent of Americans believe that the performance of the U.S. economy is either “fair” or “poor”.

#27 After analyzing Congressional Budget Office data, Boston University economics professor Laurence J. Kotlikoff came to the conclusion that the U.S. government is now facing a “fiscal gap” of $202 trillion dollars.

#28 A trillion $10 bills, if they were taped end to end, would wrap around the earth more than 380 times.  That amount of money would still not be enough to pay off the U.S. national debt.

#29 According to the U.S. Treasury Department, the U.S. national debt is rapidly closing in on 14 trillion dollars and and will climb to an estimated $19.6 trillion by 2015.

#30 At our current pace, the Congressional Budget Office is projecting that U.S. government public debt will hit 716 percent of GDP by the year 2080.

You want to know what doesn’t stop? Military Spending and the expansion of the Empire. We got all the money in the world for murder and mayhem.

You May Not Have a Job, But We’re Getting a $12.6 Billion Military Base on Guam That Nobody Wants

All posts are opinions meant to foster comment, reporting, teaching & study under the “fair use doctrine” in Sec. 107 of U.S. Code Title 17. No statement of fact is made or should be implied. Ads appearing on this blog are solely the product of the advertiser and do not necessarily reflect the opinions of BuehlahMan’s Revolt or WordPress.com

Crucial Lists

I have been preaching about being ready for the fall for quite some time (that link is but one of many examples). But I have not only preached to you, I have lived by my sermons. I run across various lists and only on a few occasions have highlighted them here. But maybe it is a good idea to share some of these, in case you learn something new.

Today, my buddy Ed at Not Another CONspiracy shared a list of 19 facts from The Economic Collapse Blog that addresses the de-industrialization of America and how this is affecting us, the poor folk in America.

#1 The United States has lost approximately 42,400 factories since 2001.  About 75 percent of those factories employed over 500 people when they were still in operation.

#2 Dell Inc., one of America’s largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.

#3 Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem, North Carolina in November.  Approximately 900 jobs will be lost.

#4 In 2008, 1.2 billion cellphones were sold worldwide.  So how many of them were manufactured inside the United States?  Zero.

#5 According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.

#6 As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.

#7 The United States has lost a total of about 5.5 million manufacturing jobs since October 2000.

#8 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.

#9 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.

#10 Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul, Minnesota. Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford’s new “global” manufacturing strategy.

#11 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time less than 12 million Americans were employed in manufacturing was in 1941.

#12 In the United States today, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services.

#13 The United States has lost a whopping 32 percent of its manufacturing jobs since the year 2000.

#14 In 2001, the United States ranked fourth in the world in per capita broadband Internet use.  Today it ranks 15th.

#15 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#16 Printed circuit boards are used in tens of thousands of different products.  Asia now produces 84 percent of them worldwide.

#17 The United States spends approximately $3.90 on Chinese goods for every $1 that the Chinese spend on goods from the United States.

#18 One prominent economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#19 The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in the 51 years that records have been kept.

I gotta ask you rednecks if you have ever worked in some manufacturing plant? Most of the people who I know do or have. Many are telling me about even more plant lay-offs and factory closings that were once the very bread and butter of a small town (or, at least one of the key employers). I attended a “Job Fair” in Mississippi last week and saw a very old friend who had been working at World Color and she told me that they are shutting down that plant.

I spoke with representatives from Caterpillar who told me that even tho they were attending and manning the booth at this Job Fair, they didn’t have any active jobs available, except in their temporary operator program (this is code for “we don’t have to pay any other perks or guarantee even 40 hours per week”). There was a booth for a local plastics company, but they didn’t have any viable positions open, either.

As a matter of fact, I am not sure why they bothered to hold this event, if the truth be known. I must have asked 25 people, at least, if they got anything out of the event. Not one person told me they did. And this venue was PACKED out with every sort of person you can imagine, looking for a job.

There were countless community colleges and technical schools present and the spiel was that if you could get the grants, they could teach you something and you could use the rest of the money to take care of your other needs (I am not saying this is a bad thing, but the quest SHOULD be to gain knowledge that will put you to work later, I would think).

The entire group of unemployed workers, by and large, looked like a bunch of beat-down zombies looking for brains to eat. Unfortunately, all the non-zombies have already been eaten.

So, it is apparent to me that there will be little in the way of industrial jobs available any time soon. What does that mean? Well, you can always apply at the Carlisle Group’s table and get a job at Wendy’s. Or take any of the many sales jobs that pay commission only and hope for the best (lame assed insurance jobs).

Or maybe, JUST maybe you need to get prepared, just as I have been warning you for over a year.

The Ten Things You Should Be Doing NOW and Everyday

TIP ONE: Get Real. You must realize you are being lied to by the media, the politicians and the experts. If you don’t accept this reality, then you will not be serious in your efforts to change your situation.

TIP TWO: Be Prepared. Figure out what you’ll need to survive and examine what you have. This will tell you what you don’t have. Start a plan so you can get what you need, but don’t yet have.

TIP THREE: Become Self-Sufficient. The more dependent you are on others, the less likely your chances of survival. Start with the basics: food and water. Do you have a plan for feeding yourself if the food supply chain breaks down, supermarkets go out of business and your cupboards are bare?

TIP FOUR: Be Secure. As things get worse, those that have will become targets of those who have not. Is your home secure? Are you hiding your “wealth” and looking poor? Are your assets easy to get to but securely protected?

TIP FIVE: Get Off the Grid. As resources dwindle a steady, reliable source of power will become a necessity. Solar, wind and hydropower are all within the reach of the individual, depending on your location. Transportation
needs also must be considered, especially if you are reliant on public transit. Do you have a bicycle?

TIP SIX: Get Out of the Dollar. You will need an emergency fund. Dollars are not the currency you want this fund in. Think precious metals and buying a safe to store them in as your bank may not be around much longer.

TIP SEVEN: Think Individually, Act Privately. Be brutally honest about your skills. If your skill set will enable you to do things that others are going to need, you’ve just improved your odds of survival.

TIP EIGHT: Educate Yourself and Your Family. Go old school. Read books. Don’t satisfy yourself reading just those who mimic your beliefs; read about alternative viewpoints, too. The more you know, the more you grow. The wise man learns something new every day. When was the last time you learned something new?

TIP NINE: Investigate the Opportunities. Every situation has opportunities, even our current economic climate. Keep your outlook positive, surround yourself with upbeat people and keep your eyes open for opportunities to present themselves. They will. Just make sure that you seize them when they do.

There is a Tenth Tip, but I won’t feature it here, for if you are hurting for money, one of the last things you (or I) can do is buy a video. Maybe this site will find some way to offer the video in some other format, if they are serious about helping. But, as I review the other hints, I can’t find much to argue with and have done most of it, personally.

I am actively working to set up my “network” or “community”. This is nothing more than trusted friends who have something to offer the community when the SHTF. I am becoming much more vocal in real life (as an example, I recently turned on my next door neighbor to the eBook, “Earth’s Forbidden Secrets” that I featured here by Max Igan. This work is a preface to understanding my goal of community and how we can defeat the current, corrupt system. You can also access it from the sidebar on the right.

Asia Wins Again and Again While The USA Loses

I have been in sales for a long time. High end automation. Over the years I have watched the decline of manufacturing (and discuss it here often enough) and always listened as those folks responsible for NAFTA, CAFTA and every other “SHAFTA” they could think of to enrich corporations (to the detriment and loss to the American worker) as they told us that we will focus on high-tech manufacturing and allow general industry and heavy manufacturing to go off shore.

It was for the betterment of the country, don’t ya know?

I have sold multi-hundred thousand dollar machine tools and virtually every type and level of automation (including robotics, etc). I even had some very good years in 2003 and 2004. But, I knew it was slowly dissolving… disappearing into other lands. With our government’s help (doing the bidding of the Corporations that own them lock, stock and barrel), they dismantled one key industry that we had superiority in and allowed China and other Asian nations to develop their engineering and products until we cannot compete. In most, if not all cases, their high-tech manufacturing is protected by their government, where here, not so much (not at all, in actuality).

In Manufacturing and Technology News, Richard McCormack shows us how we lost the advantage and explains who has it in his article U.S. Precision Machine Tool Industry Is No Longer A Global Competitive Force:

U.S. producers of some of the most technologically advanced machine tools are in trouble, according to an assessment by the Department of Commerce. Sales of high-precision five-axis machine tools are declining. U.S. share of global exports is in a freefall. Foreign companies in China and Taiwan have caught up with U.S. technical capabilities, rendering stringent U.S. export controls moot. U.S. companies are being purchased by foreign rivals. A lack of training programs has created a shortage of skilled workers able to use the complex machinery. Commercial and U.S. government customers prefer foreign machine tools. Export controls are hampering foreign sales. The entire U.S. machine tool industry spends only $1 million a year on research on five-axis machine tools.

These are some of the findings from a “Critical Technology Assessment” conducted by the Commerce Department’s Bureau of Industry and Security.

U.S. producers of five-axis machine tools had sales of $253 million in 2008, down 11 percent from 2005 sales of $284 million. That was before the U.S. machine tool industry suffered a meltdown in 2009, when domestic consumption tumbled by 60.4 percent, according to the Association of Manufacturing Technology.

Sales of five-axis machines to domestic customers from U.S. producers declined by 19 percent from 2005 to 2008, from $242 million in 2005 to only $195 million in 2008. There are six American companies dedicated to producing five-axis machine tools, and at least 20 in China. Five-axis tools are used for the production of precision components in the aerospace industry, in making gas and diesel engines, automobile parts, and throughout the medical, textile, oil, glass, heavy industrial equipment and tool industries. “Many other industries are discovering the advantages of these machines,” says the Bureau of Industry and Security (BIS).

This is not new, but devastating, nonetheless. It happened with robots (only a handful of US manufacturers to compete with very good foreign brands). It happened with PC Board chip mounting equipment. It happened with 3 Axis routers (similar to the 5 Axis stuff Robert discusses). It is happening, even tho we were told that it was this stuff we would keep. We would let the small, mass-produced stuff go offshore and focus on high-tech, leading edge products and manufacturing.

Again, we find that either they made ANOTHER monumental mistake (does it seem like our government is the most inept entity on the face of the earth, or what?)…. ORRRRRR…. they do this shit intentionally. I have to ask folks, can our leadership make THIS MANY mistakes? Do we continually elect the most ignorant and foolish leaders or are they intentionally doing this stuff? For the life of me, I find it hard to believe they are this stupid.

Whatever. Its leaving the US, no matter what the reason. And so is another highly touted industry: the solar panel building companies.

Evergreen Solar Heads To China ‘As Quickly As We Can’

If you can’t beat China and can’t get the U.S. government to understand what you’re up against, then you may as well join them.

That is what Evergreen Solar has decided to do, shifting production of solar fabrication and assembly from its factory in Devens, Mass., to Wuhan, China.

Evergreen Solar CEO Rick Feldt went to Washington, D.C., and met with Energy Secretary Steven Chu and Commerce Secretary Gary Locke. He told them Chinese government policies made U.S. production uncompetitive. But the Obama appointees do “not quite [have] the understanding that we think is necessary about what’s actually happening in this industry,” Feldt told financial analysts on Feb. 9. “The United States keeps talking about keeping jobs. You go to the President’s State of the Union Address and he said, ‘I want to keep jobs in the United States.’ It’s easy if you say it, but you’ve got to do something to do that.”

Without an adequate response from the U.S. government to counter competitive forces working against domestic production, “we are going to China as quickly as we can,” Feldt told the analysts. “The issue for us is just how long does it take to get there. We’ve got the China operations underway as we speak.” The company expects to spend $50 million this year on its Wuhan, China, facility.

Now read the rest of the article and think about that for a minute. Think about this statement:

In response to the Chinese competitive challenge, Evergreen Solar has two options. It can try to counter China’s advantage by reducing its costs in Massachusetts as low as possible, or “get to China as fast as we can,” said El-Hillow. “We’ve tossed internally about becoming more aggressive in Washington, trying to get them to understand the situation that we face as a solar manufacturer and leveraging our wafer technology. There’s no silver bullet here. It’s an incredibly tough situation.” Added CEO Feldt: “The issue for us is just how long does it take to get [to China].”

And you would think that since the government offered Big Money to help them get started, they would have some sort of patriotic duty to stay… some small bit of conscious that would do whatever they could to stay here, or, our government do more to help level the playing field. But, no, this company took that money, developed the processes and manufacturing systems with that money, and now will do whatever it can to get out of the USA.

And you silly rednecks think that the problem is “liberals”…

In 2007, the company received $23 million in grants from the State of Massachusetts to build its facility on state-owned property in Devens. It also received $17.5 million in low-interest loans along with a 30-year lease on the property.

For now, the company will keep cell manufacturing in Devens. “We think we’re extremely competitive making wafers any place in the world,” said Feldt. “We have this fixed investment in cell manufacturing so it comes down a little bit to cash versus GAAP accounting depreciation [and] amortization.” Even if the company continues to improve its Devens, Mass., plant “it’s not all clear to us that we’d be better off by buying a whole new set of equipment in a salvaging operation in China and scrapping the equipment we have here. These cell lines are not easy just to pick up and move — of course it’s possible — so we’ll have to play that one by ear. We think that we will continue to reduce wafer and cell costs efficiently that would make sense given our fixed investment here. Of course if it doesn’t we would take other action.”

You may not give a damn about manufacturing. But you should give a damn about how money is taken, used up then the corporations shit on you by going elsewhere. THAT should bother you. But that is the entire problem across the board. These very same big corporations don’t give a f#ck about you. They don’t care if you or some little chinese f#cker make the shit that we gobble up.

THEY DON’T GIVE A F#CK ABOUT YOU (see the Carlin video to understand), yet they are considered “persons” by the courts in this land. These very same corporations that will take the money and run are considered the same as you. Can you believe that shit? And how do they get by with it? They own the “parties”, especially the leadership within those parties.

Let me explain something to you by using some old guy’s own words. I know most of you think that this guy isn’t worth hearing about, but it might help you in your search for “why” (go to the link to read the entire thing, well worth the education). I want to focus on a couple of points that he addressed regarding political parties and how they culminate in what we are now experiencing first hand (we should have paid attention to this old coot):

From: Washington’s Farewell Address

I have already intimated to you the danger of parties in the state, with particular reference to the founding of them on geographical discriminations. Let me now take a more comprehensive view and warn you in the most solemn manner against the baneful effects of the spirit of party, generally.

This spirit, unfortunately, is inseparable from our nature, having its root in the strongest passions of the human mind. It exists under different shapes in all governments, more or less stifled, controlled, or repressed; but in those of the popular form it is seen in its greatest rankness and is truly their worst enemy.

The alternate domination of one faction over another, sharpened by the spirit of revenge natural to party dissension, which in different ages and countries has perpetrated the most horrid enormities, is itself a frightful despotism. But this leads at length to a more formal and permanent despotism. The disorders and miseries which result gradually incline the minds of men to seek security and repose in the absolute power of an individual; and sooner or later the chief of some prevailing faction, more able or more fortunate than his competitors, turns this disposition to the purposes of his own elevation on the ruins of public liberty.

Without looking forward to an extremity of this kind (which nevertheless ought not to be entirely out of sight) the common and continual mischiefs of the spirit of party are sufficient to make it the interest and the duty of a wise people to discourage and restrain it.

It serves always to distract the public councils and enfeeble the public administration. It agitates the community with ill founded jealousies and false alarms, kindles the animosity of one part against another, foments occasionally riot and insurrection. It opens the door to foreign influence and corruption, which find a facilitated access to the government itself through the channels of party passions. Thus the policy and the will of one country are subjected to the policy and will of another.

There is an opinion that parties in free countries are useful checks upon the administration of the government and serve to keep alive the spirit of liberty. This within certain limits is probably true— and in governments of a monarchical cast patriotism may look with indulgence, if not with favor, upon the spirit of party. But in those of the popular character, in governments purely elective, it is a spirit not to be encouraged. From their natural tendency, it is certain there will always be enough of that spirit for every salutary purpose. And there being constant danger of excess, the effort ought to be by force of public opinion to mitigate and assuage it. A fire not to be quenched, it demands a uniform vigilance to prevent its bursting into a flame, lest instead of warming it should consume.

Did the man wake up, dig out from his grave and write this yesterday? Either that or he predicted what would happen. Whatever. The man was right and if we were to seriously believe in the Constitution, we would dissolve those two complicit evil and murderous parties that have melded into one monster that is (from every indication) purposefully tearing America apart and giving the crumbs to the rest of the world.

China: The New America

These little people have done it. They out smarted us. They have taken decades to do it, but they have finally taken the mantle (and all Clinton can do is flex her puny little muscles and hope we hold on to the fake security that we are “America”… the strongest, smartest, most productive, most moral, most compassionate, most helpful, most endearing country in the world). The exceptional-ism that we have is immense. So much so that it dwarfs reality. We are really broke ass, plastic duck junkies:

See a person’s means…

Observe his motives.

Examine that in which he rests.

How can a person conceal his true character?

— Confucius

The Creditor and the Plastic Duck Junkie

Yes, boys and girls, it is true. They have been allowed to make you into a broke assed plastic duck junkie. And you (and I) gobbled that shit up. We supported the Wal-mart takeover (distribution arm of China) of our small towns. We allowed our “leaders” to bullshit us into believing the NAFTA’s, CAFTA’s, and every other Ass Shafta they could implement. We, all of us super-exceptional Americans, sat idly by as they dismanteled our manufacturing base, simply to give China the room to use virtual slave labor to make these worthless trinkets and other garbage so we can spend, spend, spend.

I would ask if you are even embarrassed, but you are not. You don’t even know it is happening, so how could it embarrass you?

What if, as the video above suggests, that China has intentionally been playing with us using profits from bogus shit to grow their economy and manufacturing (can anyone contend that they have NOT been doing so)? What if the situation is so dark and brooding that they have implemented the next step, which is to suggest to the Chinese citizens to buy gold and silver (you won’t hear that from any US government official, ‘cept, maybe Ron Paul)? What if the end run is on right now? What if they, the Chinese, decided that their own citizens owning gold and silver would help them back their currency, with plans to implement a new standard of currency in the world? What if they have orchestrated this take-over from the beginning and are now on the cusp of success?

I have been warning about the consequences of the status quo and have said time and time again, we are on the precipice of disaster. I have gone so far to inquire of my economic friends, ways to purchase silver and/or gold coinage (just as a safety net when the SHTF). But until today, I have not been able to close the circle of logic to “how” the demise will take place, but the following video should shed much more light on the subject. Sure, thee are many variables, such as how will our military react or what false flag event can they muster to take us into war with China (and Russia, Iran and Venezuela, cause they will ban together to fight us… mark my words). But, from a financial standpoint, they have us by the short curlies.

Maybe the video can explain it better than I:

Chinese Government Advises Gold Buying… Why?

(h/t BrassCheckTV here and here)

Sec Clinton Threatens China With “Back in Asia” Initiative

Well, here ya go, boys and girls. If you are still thinking that we are just the magnanimous country trying to take care of the world and aren’t an evil-assed empire whose goal is hegemony and total rule of this planet, then I cannot tell you how dumb a sum bitch you are.

It is no secret any longer. We are making the final power grab in the world. But I want to explain how bad it really is: we are now threatening China, subversively, with military intervention because they are using their economic might to secure positions of power in Asia. It seems that it is unacceptable to American policy that they compete economically. It appears that we will use military force against them because they can compete and we cannot.

This is the sign of a declining Empire. Taken from “Clinton speech underlines US-China tensions” by John Chan on 15 January 2010:

In a statement, Clinton seized on Google’s current threat to pull out of China over Beijing’s tight control over the Internet. She expressed her “serious concerns” over the issue, saying: “We look to the Chinese government for an explanation.” Her statement indicates that Washington intends to ratchet up its rhetoric on human rights in China, including over Internet censorship—issues that it had played down.

In this context, Clinton’s speech to the East-West Centre in Hawaii highlighted the Obama administration’s determination to counter China’s growing influence in Asia. She declared: “I don’t think there is any doubt, if there was when this administration began, that the United States is back in Asia, but I want to underscore, we are back to stay.” She underlined earlier comments by US Defence Secretary Robert Gates that the US is “not a visiting power in Asia, but a resident power”.

Wow. Imagine how our Founding Fathers must consider such a thing. We are embroiling ourselves in a place where it is not our business, unless we do business. We cannot expect the world to stand idly by as we wane in power without a fight. It is clear that the Chinese own us and that our government has made it possible that we sell more debt than we can ever pay back. They don’t raise these bogus debt ceilings for nothing.

But, it isn’t us that I am worried about as far as raising ceilings. It is the fact that at some point, the world is going to give us the middle finger and tell us where to get off. When they do that (and it is coming sooner than one might think), the dollar will fall to nothingness within days, if not hours.

I can think of it as we are in a small dingy, going down river and all seems so nice and wonderful. Even as we near the water fall, everything seems smooth and happy. Nothing to worry about… that is, until you hear the roar and realize you are but seconds away from death and carnage and there is nothing you can do about it as a passenger in the dingy. Methinks that Mr Obama/Mrs Clinton hears the roar:

In her speech, Clinton signalled the Obama administration’s intention to make more aggressive diplomatic moves. She declared that the US would seek to “actively participate” in all key regional forums, including ASEAN+3 and the Shanghai Cooperation Organisation. ASEAN+3 is an exclusively Asian body involving the ASEAN countries plus China, Japan and South Korea. The Shanghai Cooperation Organisation was formed by Russia and China in 2001 to counter growing US involvement in Central Asia.

The secretary of state emphasised that the “future of this region depends on America”. It was in the interests of Asian countries to have the US as “a dynamic economic partner and a stabilising military influence”. She highlighted Washington’s formal defence treaties with Japan, South Korea, Australia, Thailand and the Philippines as the cornerstone of US policy in Asia.

These remarks sought to send a message that the US would not allow Beijing to use its economic power to exclude the US from the region, and would contain China militarily. Clinton was more explicit in comments to reporters on Monday, declaring: “Everyone’s aware that China is a rising power of the 21st century. But people want to see the United States fully engaged in Asia, so that as China rises the United States is there as a force of peace.”

Force of Peace? Jesus Christ in a handbag. China is strengthening themselves in finance and we are telling them that we are going to consider that an aggressive posture (even tho we are guilty of the same) and that we are going to counter that financial aggression with military might. THAT is exactly what happened to the Roman Empire. Spread too thin and incapable of carrying forward financially. So, they threatened everyone with military might (which only works for a short period of time).

These countries are going to tell us to get screwed. When they do, our military will NOT be able to do a damned thing financially to help us. We are a dying Empire that will NOT stop the killing because we can’t now. It is too far gone.

h/t wsws.org

Financial Barbarians at the Gate: Guns and Butter Interview with Michael Hudson

Michael Hudson, author of “Global Fracture“,  “Super Imperialism“, and many excellent articles and papers on the state of finance and economics in America (one of my favorites regarding the subject of how we lost our manufacturing base to pursue a Finance Capitalism is found here… written in 1998).

He was interviewed by Bonnie Faulkner of KPFA’s “Guns and Butter” on April 15, 2009 was rebroadcast on Nov 25 and is one of those interviews that truly teaches both a history lesson on finance (how it has been manipulated many times over the centuries) and how it relates to the Empire we now find ourselves in (no matter what Mr Obama says differently). I featured Mr Hudson in a post last year entitled Once In a Century Rip-off. In that RealNews interview, he explains how the bailout was nothing more than another Elitist’s thievery.

But my point in that particular post was more towards the rednecks like me who have been bamboozled for so long that they can’t even recognize a bad flea market salesman:

The Bail-Out is a Rip-off. Period.

Every time someone I talk to says we “need to do something”, I ask “why?”

Why do the poorest Americans need to bail out the richest? When they say something, I ask, how much money do you have saved or in retirement? This usually is enough to shut them up.

This entire scheme is so obviously a rip-off, on its face, yet Americans are still scared to death by Bush (the ultimate ‘boy who cried wolf’). What the hell is wrong with you, rednecks? This redneck didn’t fall off the turnip truck yesterday and I know when a rip flea market salesman is bullshittin’ me, and Bush is the worst ever. He uses the same schtick over and over.

Fool me once, then…uhh… errr… can’t be fooled again.

B’Man: Sept 8, 2008

I don’t think I was wrong in that estimation, do you?

Since this subject is Mr Hudson’s expertise, I wanted to share this interview with you in case you missed it. I downloaded this for posterity, since the KPFA’s archives are only good for a couple of weeks. But please visit them to listen at the Guns and Butter link above (or here) or simply press the play button below.

Financial Barbarians at the Gate

“The Financial Barbarians at the Gate” with financial economist and historian, Dr. Michael Hudson. Europe; worsening financial situation and indebtedness; the history of banking and the criminalization of the banking system; tax policy; real estate asset inflation; US imperialism via the monetary system; neoliberal/neofeudal economics; classical political economy; finance capital breaking away from industrial capital; the financial crisis leading to a political crisis; similarities with the Roman Republic; what measures labor should take.

B’Man’s Patriot Watch: David Simon

I am certainly glad that Chycho decided to post this and enlighten folks (Chycho has recently been on an important hiatus).

Part One

Part Two

I think my buddy Jay Midnyte would be interested in Mr Simon’s thoughts on free market capitalism.

Prison Planet: An Unreconcilled Dichotomy

I subscribe to Prison Planet RSS feeds. Not because I think Alex Jones is a Patriot (maybe he is, maybe he isn’t), but because there are always some very good links to other authors I respect. But I have noticed a tendency for them to make a post and follow with another that basically is at extreme odds with the previous.

When I see things like this, it causes me to wonder what their purpose and ideology actually is other than grabbing whatever headline they possibly can.

One example is that they keep touting Ron Paul’s videos and writings there and then will show Paul Craig Roberts’ stuff and in some instances, they are almost opposite thoughts. I posted this about Paul less than a month ago where I take him to task over his complete aversion to “Medicare for all”. This same info was presented at Prison Planet. But just a week prior, Alex featured a post by Paul Craig Roberts that is ideologically the opposite. Roberts wrote:

What the US needs is a single-payer not-for-profit health system that pays doctors and nurses sufficiently that they will undertake the arduous training and accept the stress and risks of dealing with illness and diseases.

I wonder, just wtf does Alex think? Is Prison Planet another Crooks and Liars that features writers who wish a thing could happen, but then ideologically they reel themselves in and fall for the bullshit that Paul spews regarding that particular subject (in C&L’s case, it is their undying ass-kissing of Obama)?

Make up your freaking mind, Alex.

Well, it happened again today.

Prison Planet featured Paul again today and his continued “Free Trade” idiocy, claiming that:

If we were really interested in democracy, peace, prosperity and safety, we would pursue more free trade with other countries. Free and abundant trade is much more conducive to peace because it is generally bad business to kill your customers.

No one addresses the point that “Free Trade” is one reason we find ourselves in the manufacturing predicament we are in. There is no such thing as “free trade”. One party or the other will screw the other. Trade systems are implemented that basically cause the American companies to shut down business here and hire the cheap, sometimes “slave” labor of other countries in the guise of “free trade”.

In non-purposeful opposition, Roberts has written this at Prison Planet:

There is a great deal to be said in behalf of free markets and free trade. However, for many economists free trade has become an ideology, and they have ceased to think.

Such economists have become insouciant shills for the offshoring interests that fund their research and institutes. Their interests are tied together with those of the offshoring corporations.

Free trade economists have made three massive errors: (1) they confuse labor arbitrage across international borders with free trade when nothing in fact is being traded, (2) they have forgot the two necessary conditions in order for the classic theory of free trade, which rests on the principle of comparative advantage, to be valid, and (3) they are ignorant of the latest work in trade theory, which shows that free trade theory was never correct even when the conditions on which it is based were prevalent.

When a US firm moves its output abroad, the firm is arbitraging labor (and taxes, regulation, etc.) across international borders in pursuit of absolute advantage, not in pursuit of comparative advantage at home. When the US firm brings its offshored goods and services to the US to be marketed, those goods and services count as imports.

But, even more sad than this obvious schizophrenic thought pattern is the fact that Paul steps right up to the line, almost ready to give us the total story, then stops. WTF?

Democracy is obviously not what we are interested in. It is more likely that our government is interested in imposing its will on other governments. This policy of endless intervention in the affairs of others is very damaging to American liberty and security.

Why did he stop there? Why not do what Roberts does? Of course Democracy is NOT what the US is interested in. What ARE they interested in, Ron? What purpose could there be, other than some supposed hidden agenda of “imposing our will” on them?

There is a damned purpose we are there. I address the Imperialization and strategic logistics involved here all the time. But, when one takes into consideration all the other happenings in Afghanistan and Pakistan (and perhaps Iran), does anyone else see the dots connected? Like OIL?

Pepe Escobar calls it Pipeline-Istan:

Nothing of significance takes place in Eurasia without an energy angle.

Ron (and Alex) could be more open about this, if they understand it. If Ron doesn’t, then that speaks loudly for itself.

Listen, rednecks, I like Ron Paul because he seems to want to hold the bankers in check by auditing the Fed. I like him more because he believes that we should not be interventionist and that bombing other innocent people is bad, even when his party (that he is still a part of, altho their ideology is nothing the same as his) cheer-leads the bombs, including leaders that sing for more.

But when it comes to his foolish bantering about even more Free Trade when we have been so adversely affected by the “Free Trade” that we have experience thus far, tells me that he has lost his mind or has another agenda. I also can never

My point is, tho, that Prison Planet has a Schizo problem when they continue to post opposite thoughts and ideologies.

I am not sure what audience Alex is trying to truly serve (kind of like estimating who Beck is trying to woo at the moment). But keep one thing in mind. Alex is an “entertainer”, much in the same way Limbaugh is. They are both radio jocks and want an audience and the means to sell you shit (just take a look at the place and see all the ads everywhere).

I am not knocking making money. I need more myself. But please, don’t pretend to be a patriot, when the message is so damned convoluted as to cause many thinking people to wonder just WTF is going on in that brain. At least he doesn’t use Vicks salve to sway his listeners.

I give my kudos to Alex (and he likely has little to do with the hour to hour actions of the blogs). He is the face of the 911 movement and he deserves the recognition. But I can’t help but think that the money and the limelight causes people to do things that simply don’t add up. If money and limelight weren’t a factor, I believe there may be a bit more continuity in thought from day to day.

I wish I did have the answer to the following:

How does Alex feel about Single payer, Not-for-profit healthcare for all (Medicare for all)?

Come out and tell us, Alex. Or are you afraid that you might lose half your audience?

For me, Roberts trumps Paul on a daily basis, especially on this subject of health care.

B’Man’s Rants: The Realities of US Manufacturing

Manufacturing in the USA has been declining substantially for decades. Back in the 90′s, we saw how Japan got a foothold in some high tech areas like PC Board manufacturing (I saw countless businesses go out of business and it forced me to find other work). We saw NAFTA come in and destroy some jobs, as they were shipped off to lower paying and much lower skilled workforces in Mexico (I witnessed and participated in RCA’s move to Juarez which was devastating to many American jobs and quality suffered).

Yesterday, the Senate Subcommittee called the “Banking, Housing, and Urban Affairs Subcommittee” which is chaired by Sherrod Brown, had three witnesses participate in a hearing called, “The US as a Global Competitor: What Are The Elements of a National Manufacturing Strategy” (click link to see the video, extremely informative). The hearing is started at the 24:30 mark and is fairly long at 107 minutes. Sam Smith at UnderNews posted an article in his “Crash Talk” series and included a link to Mike Lux’s article at OpenLeft that addressed some of this, in particular, Leo Hindery’s testimony.

One of the clear issues that I have been harping on for many years now is that we have intentionally allowed the Corporations to find ways to disallow Americans to manufacture their products and to save a few pennies and enrich the Corporation, by moving them elsewhere (as I have been a first hand witness to the demise of manufacturing, both by first pursuing lower wage areas in the southeast USA, in which I was able to make money, but those up north lost; and by the further movement of these jobs for even lower wages jobs overseas).

We were told that all of this was good for our economy because we were going to move from a manufacturing sector based economy to a “Consumer Spending/Wall Street Economy”.

One of the most important issues is the fact that we invited and encouraged China to join the WTO in 2001. We were promised that they would be fair in their monetary policy and would raise their Yuan value as their economy flourished. Until very recently they did not and even the amount they have raised it is about 5% (which still means its value is around 25% undervalued). This causes a huge deficit in trade and causes the rich corporation owners to send work there as opposed to making stuff here (their purpose is to make the company as much money as possible and they don’t give a rat’s ass about where it is made or if Americans benefit).

It isn’t ONLY the losses to China and other foreign countries, but the major recent losses are obvious because we all know about the automobile industry tanking and the housing crisis. It is obvious that these sectors will be extremely slow to improve and whatever strides are made will be low. Why? Because the bubble popped… the “Consumer Economy” cannot be supported without a manufacturing base and the “Wall Street” economy is and has been proved to be a huge rip off of the American’s money and way of life.

As we moved into this “Consumer Economy” of debt consumption from manufacturing, there has been a steady drop in the manufacturing sector in America. But in the last 13 months, we have seen it “turbo-charged” (as Scott Paul put it). That is why I find it sadly ironic that Mr Obama tells us in his pretty speeches that this stimulus policy will “add or save” 3.5 Million jobs, even though over 13 Million have been lost. Even The Messiah is disconnected or lying. (Take a hint, he is NOT disconnected).

The numbers are horrific if you take the time to evaluate and understand. When you hear the TV telling you that the unemployment rate is 9.5%, remember that there are factors that they are not taking into consideration. In other words, they are misleading you (purposeful or just stupidity, you determine). Officially, they tell us the unemployment rate is 9.5%, but when you consider every other factor, the “effective unemployment rate” is around 19 – 20%. Not only that, but the hours lost per week is growing and is now around the 33hrs/week mark. Think about that for a minute. 20% unemployment and on average, those people are only working 33 hours per week.

There are several things that we MUST do, if we are ever going to come out of this (and the more I consider and study this, I can only determine that we are “purposefully” set on a course to continue this downward spiral). Being able to get the corporately fed Congress and especially this administration who is in bed with Sachs and The Fed will be a long, tough road to travel. It is even conceivable that it is too late, but I hope not.

We must get rid of these trade imbalances and China’s unfair trade policy it lied to us about. We MUST begin “stimulating” High tech manufacturing (like solar, exotic materials, etc) and we MUST implement a “Buy American” plan that bolsters US manufacturing, but doesn’t alienate other countries that play fairly.

Our past shows us that our current path is leading to doom. Manufacturing simply CANNOT be replaced by a service sector economy. It is idiotic to even consider it, but we are in the middle of it for decades now.

Only 8.7% of our jobs are in manufacturing and only 11.7% of our GDP is from manufacturing. This cannot be sustained if we plan on coming out of this mess. We MUST grow our manufacturing base, but how?

We are never going to go back to hand assembly of little bullshit trinkets and garbage for the “consumer economy”. We must focus on high tech manufacturing like solar, wind energy, exotic materials and other leading edge technologies. But we will be playing catch up because as it is, China produces 80 – 90% of wind and solar products right now. Foreign automobile manufacturing has and is getting even more of a foothold in the USA (which, btw, they generally use their country’s integration firms and by passes American companies that could build their systems, which just grows their sector and takes away from ours).

This is not a “Protectionist Sentiment”. It is only fair because they don’t trade fairly. As Mr Hindery and others have put it when asked why we should implement such a Buy American mentality, “Everyone Else Does It!”.

It is reality. You can see from the screen shot I took that we are hugely imbalanced across the board.

It is obvious that allowing China into the WTO was a huge mistake for regular working Americans, but not for those that profit the most from sending the work there.

I was interested at the 96 minute mark where Mr Brown asked the question how we can attract more young people into manufacturing, especially the high dollar folks that go to Harvard. 1/2 of Harvard’s current Grads go into finance. Why is that and how do we change it?

In many ways, the answers are obvious. Education in this country sucks and pushes people either towards the richest college (if they have money) or into the “service sector” or lower wage jobs. It is the divide of the classes. But there also MUST be a job market for them (at 8.7%, there are lean pickings). It is also compensation, of course. When a Harvard Grad can make 400 times the wages of a factory worker or manufacturing head, it makes sense for them to go where the money is. This divide went from 20-25 times, to about 400 times.

In a nutshell, we have devolved, not evolved. We have seemingly systematically dismantled our manufacturing base, when it is apparent that this very strategy is causing our downfall.

For when it comes down to the bottom line, the countries that “Buy Wherever They Are From” are fed up with our debt, they will stop providing the consumer crap, but will also stop providing essential products we have allowed them to take over manufacturing for us. At the very least, the prices will go so high we can’t afford it anyway.

New Manufacturing Data Suggests Deeper Recession Coming

Folks,

It isn’t “bad” yet. It is only beginning.

From my perspective as an equipment salesman to factories, I get the leading indicator whether or not manufacturing will grow (or not). I was asked by one of my Principals to provide my monthly forecast and honestly, I don’t see a single robot selling in January (with one possible exception that has been lingering for months: which is never a good sign). People and companies are hoarding their money.

I took my mother and family to lunch at the most popular resaraunt in town (which is normally packed) and it was barren.

I drive down main street and there are hardly anyone around, much less shopping. Red Sale signs and no people to buy.

There is but two major employers in this town and both have had lay-offs with more to come (one may shut down all together).

Every machine builder and integrator I call on is basically begging me to find them business (which I do when I can). Normally, in more robust times, my phone rings constantly, but I will bet that I receive less than 5 calls THIS WEEK.

People are getting desperate and are beginning the looting and thievery, especially in the big towns (just ask my Bro, Raw Dawg).

Now, it isn’t just a redneck spouting his observations, it is backed with data:

The Wall Street Journal (1/3, Evans, Matthews) reported, “Manufacturing activity around the world fell sharply in December, suggesting that the U.S. recession will extend well into 2009, if not longer, and that unemployment will rise globally.” According to “separate surveys of manufacturing activity around the world released on Friday, the first business day of the new year, were also bleak.” The Journal continues, “The simultaneous woes of manufacturing in rich countries and poor countries are something new in the global economy. In the past, weaknesses in U.S. and European manufacturing meant a windfall for developing economies, which took up the slack. … The struggles of big steel companies are particularly troubling, because that industry’s health is considered an early indicator of how other industries are faring.”

The Washington Post (1/3, D1, Schneider, Shin) reported on the front page of its Business section, “The Institute for Supply Management’s index of industrial production slipped from 36.2 percent in November to 32.4 percent in December, the lowest level since June 1980″ and “None of the industries covered in the survey reported an expansion in their business, and the drop registered not just in the institute’s index of production, but also in the volume of new orders and raw material costs.” Meanwhile, “prices paid for raw materials fell by 7.5 percentage points to 1949 levels.” Analysts said “none of Friday’s reports bodes well for the first three months of 2009.” They said “that whether the global economy bounces back in the second half of 2009 depends on the success of government stimulus efforts.”

The Financial Times (1/3, Guha) reported, “Spanish and German companies experienced acute problems. The findings will add to pressure on the European Central Bank to cut interest rates again this month.” John Ryding and Conrad DeQuadros, at RDQ Economics, said the new data showed “the global nature of the economic contraction.” They said “the case for a massive global fiscal stimulus continues to grow.”

The Chicago Tribune (1/3, Boak) reported, “Manufacturers such as Advance Lifts Inc. have a simple resolution this year: survive. Expecting a 35 percent drop-off in annual sales, Advance Lifts Chief Executive Hank Renken recently laid off 19 of 72 workers in St. Charles who make such products as hydraulic loading docks.” In addition, “Steel mills, chemical plants, computer assembly lines and even industrial bakeries are bearing the brunt of a global recession that has struck with alarming force since October.”

AFP (1/5) reports that manufacturers were said to be “reducing inventories and shutting down capacity to offset the slower rate of activity caused by a prolonged recession. In the machinery sector, respondents to an ISM survey said Europe ‘has slowed down dramatically, while Asia — particularly China — has virtually shut down.’” Analysts said “there was no sign that the US industrial activity decline was easing, citing the new numbers.”

Bloomberg News (1/5, Chandra) reports, “Clogged credit markets, the collapse in housing and mounting job losses have hurt demand for everything from furniture and appliances to automobiles, driving General Motors Corp. and Chrysler LLC to the brink of bankruptcy. The ISM’s employment index decreased to 29.9 from 34.2 in November. The gauge of prices paid fell to 18, reflecting the drop in commodity costs. Economists had projected that the measure, which averaged 65 in 2007, would drop to 20.”