The recent news that China has run its first trade deficit in six years is bound to console those who continue to insist that the US economy is making a comeback. However as I argue in my recently completed film, China: The Rebirth of an Empire, slated for release in 2010, the US continues on a path of economic decline. America’s current economic problems are a direct result of the recent financial crisis; their seeds were planted long ago in the country’s near messianic adherence to an economic theory that places the free-trade ideal above practical outcomes. As a result, the US has relied on cheap imports from a stream of Asian countries, starting with Japan in the 1970s, to the “Asian Tigers” (South Korea, Taiwan, Singapore and Hong Kong) in the 80s and 90s, and now China, to prop up its living standard, while spending increasing sums on its military and global empire of bases. While the economists keep expounding the virtues of offshoring and Wall Street rallies around loose monetary policy, people on Main Street know things are amiss: America’s real economy is in deep, unrelenting decline, and very soon, China will be on top.
Disclosure: No positions