China has accumulated trillions of U.S. dollars of currency reserves, of which a major portion consists of U.S. treasury bonds. This has happened through an escalating balance of trade surplus with America. China sells far more to us than we do to them. This is one of the main reasons China has been instrumental in putting a great deal of American manufacturers out of business.
This process has also given China a massive stockpile of both money and economic leverage. China is threatening to dump these bonds and our U.S. dollar on the market. If the communist country decides to take action, it would immeasurably devalue the worth of our money, sending the cost of goods skyrocketing and as a result crippling our economy.
This condition has been building up for a long time, and puts America in a precarious and vulnerable position, as we have been producing less each year and have increasingly been surviving on imports.
Most people don’t realize these dramatic changes are taking place. America is becoming a much different country then it was in the 1950s and 60s. American children today will be left with an unexpected and very disappointing legacy. The issues our political leaders should be attempting to resolve are very clear cut. We must do something about this now.
Contact your congressional representatives and let them know the changes you would like to see implemented. For example:
1. The U.S. should implement a crash program to re-industrialize America.
2. Free trade agreements with foreign countries should be changed to become even and fair.
3. Conditions need to be created that will erase our massive debts, and allow us to once again become a productive, self-sustaining nation.
These economic issues affect us all and should take precedence over present “wedge” issues that are often concocted to gain votes. America needs a change in direction, and our political representatives need to start fighting for sound economic policy that supports the American worker.
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