Monday, January 26, 2009

Is China spending 100 billion on railroads this year? Guess where they got the money.

We hear that the economy is in bad shape. And although I don’t have any answers, I might have the same questions as you do. You might remember that Mr. Nixon did better in the polls than Santa Claus when he opened the doors to China and by so doing put us where we are today.

Which is broke.

Three generations ago, the dollar bill you gave to the milkman would pass from hand to hand five or six times before it ever left your village. And then it would circulate a while longer in your county and then move elsewhere in your state. Spend that dollar nowadays in a big box store and within a week it is in China by way of Arkansas. Not one of your neighbors gets to see it.

Thirty five years ago nobody thought to ask what would happen if you and all your neighbors bought everything you could from China at low, low Wal*Mart prices: toys, wood, clothes, dishes, instruments, and now even food.

Yes. If everything we buy in every store in America is made in China does it take an economic genius to figure out what is going to happen to the companies in the USA that made the things we used to buy from them?

Right. They go out of business. And when they go out of business, American workers lose their jobs. Of course, this is no concern of mine or yours because American workers losing their jobs is an abstraction --- we don’t know who these people are, and their wages were probably too high, anyway. But being able to buy things made in China at low, low prices is, for you and me, a concrete and necessary reality.

So China is now the proverbial Company Store. For all practical purposes, China owns most of The United States. And because every day that goes by they get almost every cent that we spend, day by day they own more and more of the United States. To survive, very soon almost every rural family will have to do what their ancestors and put up preserves from a big garden. They will keep a cow, chickens and a few pigs.

How do we avoid this huge, sucking economic black hole? By buying only those products made in the USA so Americans can go back to work? Probably not, because we look for those low, low prices offered only by the Chinese. And there is a good chance that there are no longer on our shelves any products made in the US of A.

So, now we are told that the US economy is in bad shape. The past administration whipped up an unnecessary war that has cost you a trillion or so. And while the war commanded your attention, every business was deregulated or privatized so billions more could be funneled down that rat hole.

But a brighter day is coming, because is not Mr. Obama going to jumpstart a ruined economy with a trillion or so dollars? You’d better hope he gives it all to the bankers, because if you and I get our hands on it, within a week every penny of it will be in China.

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Seeing this rant from my January 11, 2009 radio show, one of my radio friends sent me something similar:



"This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format: Q. What is an Economic Stimulus Payment? A. It is money that the federal government will send to taxpayers. Q. Where will the government get this money? A. From taxpayers. Q. So the government is giving me back my own money? A. Only a smidgen. Q. What is the purpose of this payment? A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy. Q. But isn't that stimulating the economy of China ? A. Shut up. Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely: If you spend that money at Wal-Mart, all the money will go to China. If you spend it on gasoline it will go to the Arabs. If you purchase a computer it will go to India. If you purchase fruit and vegetables it will go to Mexico, Honduras, and Guatemala (unless you buy organic). If you buy a car it will go to Japan. If you purchase useless crap it will go to Taiwan. And none of it will help the American economy. We need to keep that money here in America. You can keep the money in America by spending it at yard sales, going to a baseball game, or spend it on prostitutes, beer and wine (domestic ONLY), or tattoos, since those are the only businesses still in the US.

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You are invited to stop by for supper anytime.
Robert Karl Skoglund260 Hamlin Drive
Fort Myers, FL 33905
207-226-7442
humble@humblefarmer.com

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