Plain and simple, the WTO, NAFTA, free trade, the housing crisis, and all the rest. It is all related. Everything was caused by Chinese currency manipulation of the US dollar. Free trade with other countries caused it too. This is allowed by the US and isn't pressed because the long run result is it makes the United States the technology leader of the world.
In other words, China finds it artificially easy to build factories and ship products to buyers in the US because of the currency situation. The US on the other hand is becoming a country without dirty industry. A country in which the only way to survive and compete is to reduce cost through technological means to compete with currency manipulators. The end result is a country which essentially eliminates costs of production of all types.
My prediction is that 50% of the US working population and possibly students will be telecommuting on a daily basis in as soon as five years. When that gigantic process is completed, the United States will have officially taken over the world economy by regaining the illusory capital flows it has lost.
You see, the US is so powerful that there truly is no long run competition. As the Chinese have devalued their own currency for decades, the US has been forced to adapt into the absolute top technology-based economy in the world. There is no other economic solution for US businesses to survive in the free market.
Just think back to economics 101. Imagine a very three dimensional, illusory dimension which only Gods can see. The image which should be burned into your mind is the topic of "golden growth."
The US is in the process of possibly the largest expansion of golden growth economics in its history. This is not nominal growth; this is growth which re-engineers the very landscape in which we work and play each day. In due time, the trade deficit will finally shrink down to nothing, and the world will witness the most perfectly functioning economy in recorded history. Health care for all who need it. Cars which do not pollute nor require more than the slightest amount of fuel. People will be able to see this in the coming year, emerging from the cocoon.
It appears to me that the US is destined to become a nation of information technology-based researchers, who work from their homes and earn excellent pay.
Some look back to the dot com boom as a problem in US economic history, but sometimes it takes something that big to usher in the future. Real estate may even be falling due to a lack of commercial demand over the long run, as companies that used to house people in large skyscrapers no longer need to spend the funds on this. Instead, these companies can save tremendous amounts of money by just designing companies in which all or nearly all of the workers telecommute.
We could one day see the freeways to big cities in the US nearly empty because so few people commute by car anymore. While countries with artificial funds use those funds to build intricate transportation systems, the US is being forced to due away with transportation entirely.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.