Language Selection

English French German Italian Portuguese Spanish

Globalization's Next Victim: US

Filed under
Misc

President Bush says the U.S. economy is the envy of the world, and Federal Reserve Chairman Alan Greenspan insists economic growth is solid despite a bit of froth, but the truth is that the global economic scene is now more troubled that at any time since the trade wars with Japan 20 years ago.

The U.S. trade deficit was considered unsustainable at around $25 billion annually by the Reagan administration. It is now nearing $700 billion, an unprecedented 6 percent of our gross domestic product.

As a result, the U.S. economy is on life support. Our lifeline to finance this deficit is huge infusions of foreign lending, much of it from the central banks of China and Japan. Congress is calling for China's scalp, and Treasury Secretary John Snow is demanding that Beijing revalue its currency. The new U. S. Trade representative is promising to get tough with China just as I and other U.S. trade officials promised to do with Japan in the past.

Former Federal Reserve Chairman Paul Volcker is forecasting a 75 percent probability of a major international financial crisis within five years.

How, if the United States is the envy of the world, can we be having all these problems? Easy.

Although the world, as characterized by columnist and author Tom Friedman, is getting flatter as a result of removal of trade and other barriers, it is also being tilted at an increasingly steep angle.

Think of it as a sliding board, very flat and smooth but inclined to speed the move of production, services, technology, wealth and power from West to East and often from open, democratic systems to more opaque, authoritarian regimes.

In short, despite the miracles it has accomplished in the past and may bring in the future, globalization is distorting the world economy in ways that pose increasing risks to the United States and the rest of the international community. This is an issue that didn't make it onto the agenda of the world leaders at the G-8 meeting in Scotland last week, but should make it onto future agendas.

Part of what's wrong is illustrated in recent statements by the chief executive officers of Intel and IBM. In testimony to a presidential advisory panel, Intel's Paul Otellini said his company might build some future factories overseas. After selling his company's personal computer division to China's Lenovo, IBM's Sam Palmisano told the New York Times that he had gotten a blessing on the deal from China's top leaders and added that "IBM wants to be part of China's strategy."

Remember now, we're talking about Intel and IBM, two of the three or four top technology companies in the world, both based in the United States.

According to our elite economists, America's future lies with high tech - - with companies like Intel and IBM. Yet here are two of U.S. high-tech industry's top CEOs saying the future may lie abroad, especially in China.

Add the fact that U.S. trade in high-tech products has swung from a surplus to a deficit, and it is not at all clear that this country's future will be in high tech.

At the heart of the problem is the false assumption that all the countries in the globalization contest are playing the same game. They're not: Some countries have strategies, but others don't have a clue. The United States is in the latter category.

Full Article.

More in Tux Machines

Kernel Backports and Graphics

  • [Older] Backports and long-term stable kernels
  • What’s New in Wayland and Weston 1.12?
    The Wayland core protocol documentation has received numerous refinements to improve its clarity and consistency. Along with this, many blank areas of the protocol documentation have been fleshed out. A new wl_display_add_protocol logger API provides a new, interactive way to debug requests; along with this are new APIs for examining clients and their resources. This is analogous to using WAYLAND_DEBUG=1, but more powerful since it allows run time review of log data such as through a UI view. There have been improvements to how the protocol XML scanner handles version identification in protocol headers. This enables better detection and fallback handling when compositors and clients support differt versions of their protocols.
  • XDC2016 Wraps Up After Many Wayland, X.Org & Mesa Discussions
    The 2016 X.Org Developers' Conference (XDC2016) wrapped up Friday in Helsinki, Finland. Here is a summary of the major happenings for those that may have missed it or didn't yet watch the video streams.

IBM Claims “New Linux Based Power System Server Kicks Butt

today's howtos

Leftovers: Ubuntu

  • Ubuntu Phone, Sep 2016 - Vorsprung durch Touch
    The Ubuntu Phone is getting better, and with every new iteration of the OTA, my little BQ Aquaris E4.5 is gaining more speed and functionality. Like in the air force, with an avionics upgrade, which transforms ancient wings into a powerful and modern bird of prey. Only the pace of advancement is lagging behind the market. See what Android and iOS can do, even Windows Phone, and you realize how late and insufficiently meaningful the Ubuntu Phone really is. This has to change, massively. This latest round does bring some fine goods to the table - more speed and stability, better icons, more overall visual polish, incremental improvements in the applications and the scopes. But that's not enough to win the heart of the average user. A more radical, app-centric effort is required. More focus on delivering the mobile experience, be it as it may. Ubuntu cannot revolutionalize that which is already considered the past. It can only join the club and enjoy the benefits of a well-established reality. And that is a kickass app stack that makes the touch device worth using in the first place. Still, it's not all gloomy. E4.5 is a better product now than it was a year ago, fact. Ubuntu Phone is a better operating system than it was even this spring, fact. So maybe one day we will see Ubuntu become an important if not dominant player in the phone and tablet space. It sure is heading in the right direction, my only fear is the availability of resources to pull off this massive rehaul that is needed to make it stand up to the old and proven giants. And that's it really. If you're keen on Linux (not Android) making it in the mobile world, do not forget to check my Ubuntu tablet review! Especially the convergence piece. On that merry note, you do remember that I'm running a wicked contest this year, too? He/she who reads my books might get a chance to win an M10 tablet. Indeed. Off you go, dear readers. Whereas I will now run the same set of tests we did here on the Aquaris tablet, and see how it likes the OTA-12 upgrade. The end.
  • Ubuntu 16.10 Unity 8 - new window snapping feature
  • Ubuntu Online Summit for Ubuntu 17.04 is Taking Place In Mid-November
  • Ubuntu Online Summit: 15-16 November 2016