InformedTrades
Register as a Member
    Why join? See our testimonials.

Register Front Page See Today's Posts Site
Map
Free Trading
Courses
Shop
Rate this Entry

America is in deep, deep trouble folks - Changes are coming

Posted 12-06-2010 at 05:39 PM by Elijah [Show Appreciation] What's This?

THIS was forwarded to me by my uncle ( a trading Wizard ). It was sent to him by Dan (not sure who this is) But I have read the whole thing and knew some of those facts but was amazed at the other facts I didn't know. I have more research to do now. But I post it as supporting evidence of perhaps what is my natural USD bias, These facts
are extreme in some cases as the numbers are literally staggering. I don't expect I will find Dan is exagerating.

I don't expect you to read this and suddenly become a US dollar bull. I just provide it up for discussion and I think if read by every american, it would wake up a whole bunch of sleeping folks.

I find the: 19 Facts About The Deindustrialization Of America That Will Blow Your Mind (ITS ALL THE WAY AT THE END) especially disturbing, and I believe these facts strengthen my natural dollar bear bias. If you read nothing else read the 19 facts.

I have said this is the major problem for our country for years now. When they closed all of the LEVIS jean factories in the USA that was a key one. You cannot find LEVIS that fit properly today. They are made in about six different countries. The same for shoes. The shoes I buy today that fit are one to two sizes larger than the ones that were made in the USA. Some may consider this too boring to read, but, what is happening here in this once great country of America is scary. Dan

There is nothing political about this email. It simply points out very probable changes that are in our future.

CHANGES ARE COMING ----
Whether these changes are good or bad depends in part on how we adapt to them. But, ready or not, here they come

1. The Post Office. Get ready to imagine a world without the post office. They are so deeply in financial trouble that there is probably no way to sustain it long term. Email, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive. Most of your mail every day is junk mail and bills.

2. The Check. Britain is already laying the groundwork to do away with checks by 2018. It costs the financial system billions of dollars a year to process checks. Plastic cards and online transactions will lead to the eventual demise of the check. This plays right into the death of the post office. If you never paid your bills by mail and never received them by mail, the post office would absolutely go out of business.

3. The Newspaper. The younger generation simply doesn't read the newspaper. They certainly don't subscribe to a daily delivered print edition. That may go the way of the milkman and the laundry man. As for reading the paper online, get ready to pay for it. The rise in mobile Internet devices and e-readers has caused all the newspaper and magazine publishers to form an alliance. They have met with Apple, Amazon, and the major cell phone companies to develop a model for paid subscription services.

4. The Book. You say you will never give up the physical book that you hold in your hand and turn the literal pages. I said the same thing about downloading music from iTunes. I wanted my hard copy CD. But I quickly changed my mind when I discovered that I could get albums for half the price without ever leaving home to get the latest music. The same thing will happen with books. You can browse a bookstore online and even read a preview chapter before you buy. And the price is less than half that of a real book. And think of the convenience! Once you start flicking your fingers on the screen instead of the book, you find that you are lost in the story, can't wait to see what happens next, and you forget that you're holding a gadget instead of a book.

5. The Land Line Telephone. Unless you have a large family and make a lot of local calls, you don't need it anymore. Most people keep it simply because they've always had it. But you are paying double charges for that extra service. All the cell phone companies will let you call customers using the same cell provider for no charge against your minutes

6. Music. This is one of the saddest parts of the change story.. The music industry is dying a slow death. Not just because of illegal downloading. It's the lack of innovative new music being given a chance to get to the people who would like to hear it. Greed and corruption is the problem. The record labels and the radio conglomerates are simply self-destructing. Over 40% of the music purchased today is "catalog items," meaning traditional music that the public is familiar with. Older established artists. This is also true on the live concert circuit. To explore this fascinating and disturbing topic further, check out the book, "Appetite for Self-Destruction" by Steve Knopper, and the video documentary, "Before the Music Dies."

7. Television. Revenues to the networks are down dramatically. Not just because of the economy. People are watching TV and movies streamed from their computers. And they're playing games and doing lots of other things that take up the time that used to be spent watching TV. Prime time shows have degenerated down to lower than the lowest common denominator. Cable rates are skyrocketing and commercials run about every 4 minutes and 30 seconds. I say good riddance to most of it. It's time for the cable companies to be put out of our misery. Let the people choose what they want to watch online and through Netflix.

8. The "Things" That You Own. Many of the very possessions that we used to own are still in our lives, but we may not actually own them in the future. They may simply reside in "the cloud." Today your computer has a hard drive and you store your pictures, music, movies, and documents. Your software is on a CD or DVD, and you can always re-install it if need be. But all of that is changing. Apple, Microsoft, and Google are all finishing up their latest "cloud services." That means that when you turn on a computer, the Internet will be built into the operating system. So, Windows, Google, and the Mac OS will be tied straight into the Internet. If you click an icon, it will open something in the Internet cloud. If you save something, it will be saved to the cloud. And you may pay a monthly subscription fee to the cloud provider. In this virtual world, you can access your music or your books, or your whatever from any laptop or handheld device. That's the good news. But, will you actually own any of this "stuff" or will it all be able to disappear at any moment in a big "Poof?" Will most of the things in our lives be disposable and whimsical? It makes you want to run to the closet and pull out that photo album, grab a book from the shelf, or open up a CD case and pull out the insert.

9. Privacy. If there ever was a concept that we can look back on nostalgically, it would be privacy. That's gone. It's been gone for a long time anyway. There are cameras on the street, in most of the buildings, and even built into your computer and cell phone. But you can be sure that 24/7, "They" know who you are and where you are, right down to the GPS coordinates, and the Google Street View. If you buy something, your habit is put into a zillion profiles, and your ads will change to reflect those habits. And "They" will try to get you to buy something else. Again and again. All we will have that can't be changed are Memories.

19 Facts About The Deindustrialization Of America That Will Blow Your Mind

The United States is rapidly becoming the very first "post-industrial" nation on the globe. All great economic empires eventually become fat and lazy and squander the great wealth that their forefathers have left them, but the pace at which America is accomplishing this is absolutely amazing. It was America that was at the forefront of the industrial revolution. It was America that showed the world how to mass produce everything from automobiles to televisions to airplanes. It was the great American manufacturing base that crushed Germany and Japan in World War II.

But now we are witnessing the deindustrialization of America . Tens of thousands of factories have left the United States in the past decade alone. Millions upon millions of manufacturing jobs have been lost in the same time period. The United States has become a nation that consumes everything in sight and yet produces increasingly little. Do you know what our biggest export is today? Waste paper. Yes, trash is the number one thing that we ship out to the rest of the world as we voraciously blow our money on whatever the rest of the world wants to sell to us. The United States has become bloated and spoiled and our economy is now just a shadow of what it once was. Once upon a time America could literally out produce the rest of the world combined. Today that is no longer true, but Americans sure do consume more than anyone else in the world. If the deindustrialization of America continues at this current pace, what possible kind of a future are we going to be leaving to our children?

Any great nation throughout history has been great at making things. So if the United States continues to allow its manufacturing base to erode at a staggering pace how in the world can the U.S. continue to consider itself to be a great nation? We have created the biggest debt bubble in the history of the world in an effort to maintain a very high standard of living, but the current state of affairs is not anywhere close to sustainable. Every single month America goes into more debt and every single month America gets poorer.

So what happens when the debt bubble pops?

The deindustrialization of the United States should be a top concern for every man, woman and child in the country. But sadly, most Americans do not have any idea what is going on around them.

For people like that, take this article and print it out and hand it to them. Perhaps what they will read below will shock them badly enough to awaken them from their slumber.

The following are 19 facts about the deindustrialization of America that will blow your mind....

#1 The United States has lost approximately 42,400 factories since 2001.. About 75 percent of those factories employed over 500 people when they were still in operation.

#2 Dell Inc., one of America ís largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.

#3 Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem , North Carolina in November. Approximately 900 jobs will be lost.

#4 In 2008, 1.2 billion cell phones were sold worldwide. So how many of them were manufactured inside the United States ? Zero.

#5 According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.

#6 As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.

#7 The United States has lost a total of about 5.5 million manufacturing jobs since October 2000.

#8 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.

#9 In 1959, manufacturing represented 28 percent of U.S. economic output. In 2008, it represented 11.5 percent.

#10 Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul , Minnesota . Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford's new "global" manufacturing strategy.

#11 As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time less than 12 million Americans were employed in manufacturing was in 1941.

#12 In the United States today, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services.

#13 The United States has lost a whopping 32 percent of its manufacturing jobs since the year 2000.

#14 In 2001, the United States ranked fourth in the world in per capita broadband Internet use. Today it ranks 15th.

#15 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#16 Printed circuit boards are used in tens of thousands of different products. Asia now produces 84 percent of them worldwide.

#17 The United States spends approximately $3.90 on Chinese goods for every $1 that the Chinese spend on goods from the United States .

#18 One prominent economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#19 The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in the 51 years that records have been kept.

So how many tens of thousands more factories do we need to lose before we do something about it?

How many millions more Americans are going to become unemployed before we all admit that we have a very, very serious problem on our hands?

How many more trillions of dollars are going to leave the country before we realize that we are losing wealth at a pace that is killing our economy?

How many once great manufacturing cities are going to become rotting war zones like Detroit before we understand that we are committing national economic suicide?

The deindustrialization of America is a national crisis. It needs to be treated like one.

If you disagree with this article, I have a direct challenge for you. If anyone can explain how a deindustrialized America has any kind of viable economic future, please do so below in the comments section.

America is in deep, deep trouble folks. It is time to wake up

Posted in Uncategorized
Views 1312 Comments 8 Email Blog Entry
« Prev     Main     Next »
Total Comments 8

Comments

(Must register to comment)
  1. Old Comment
    nothing last forever
    permalink
    Posted 12-06-2010 at 06:42 PM by bkelly23 bkelly23 is offline [Show Appreciation] What's This?
  2. Old Comment
    Elijah's Avatar
    How's that for the bigger picture as to how america has declined over the last 50 years?
    permalink
    Posted 12-06-2010 at 07:13 PM by Elijah Elijah is offline [Show Appreciation] What's This?
  3. Old Comment
    As Ravi Batra explains in his 1999 book "The Crash of the Millennium," the most wealth is generated by manufacturing, every economy needs a healthy manufacturing sector, and free trade becomes destructive when it leads to "deindustrialization." He also mentions tight regulation of the financial sector. I guess the US went wrong in both areas!
    No matter how much money "The Benbernank" prints, it will not address these structural changes in the economy. It must be unending greed by corporate managers and wealthy stock holders. What are these people thinking? Does some CEO with ten grandchildren think they will all get to go to Ivy League Colleges and be among the small percentage who control most of the wealth, as he destroys the domestic economy?
    permalink
    Posted 12-06-2010 at 10:22 PM by davek davek is offline [Show Appreciation] What's This?
  4. Old Comment
    Quote:
    How's that for the bigger picture as to how america has declined over the last 50 years?
    very clear
    permalink
    Posted 12-06-2010 at 11:03 PM by bkelly23 bkelly23 is offline [Show Appreciation] What's This?
  5. Old Comment
    Magic's Avatar
    Good points, Elijah.

    I think the "Cloud" is going to take a big hit, though. It seems AT&T, because of the IPhone, has stopped "unlimited" internet to cut down on individual bandwidth usage. Under the new rate, if you use up your allowance, it will cost about $70 in overtime charges to download a $10 movie fro ITunes. When I found out, I checked out Verizon and found out their rates have been changed - matching AT&T.

    As for manufacturing...In America, the number one cost in manufacturing is labor. We can't compete with the rest of the world unless labor costs come down. It is actually much cheaper for a corporation to go overseas, build a plant, manufacture some goods and ship them to the US than it is to manufacture them here.

    And a comment, to add to your conversation on China. Yes, it is a net exporter to the US, BUT it is a Net Importer. As quickly as it has come up (emerged), it's labor cost are on the rise. So..., it has moved a lot of it's manufacturing to other countries such as Malaysia, and Vietnam where labor is much cheaper. As far as I can tell, it is in a mad dash to end up like Japan.

    Yes, the US is "deindustrializing", but the industrialization of the emerging markets depends on US consumption which is falling. What will happen to China when we stop buying from there? Keep in mind that China's and Japan's GDPs together add up to only about half of ours. What would happen to the rest of the world if the EuroDollar came home to roost for a couple of months?
    permalink
    Posted 12-07-2010 at 04:24 AM by Magic Magic is offline [Show Appreciation] What's This?
  6. Old Comment
    Elijah's Avatar

    yes, But

    Sprint still provides for me a mobile hot spot only slightly larger than a credit card that allows up to 4 devices to connect, unlimited data for $60. We have a contract. They have tried to jack this agreement. And they too are going after folks who use more than 5G/MO. So all new plans are capped at 5G and the overages are huge. They claim that the reason for these changes are government based, they claim the government passed a law severely regulating data transfers while roaming. I have not investigated, but it is fishy. It is sort of like the BS financial law saying you can only make 3 withdrawls from your savings account without the bank needing to charge you a fee. At&T, verizon and sprint I am sure still will have an unlimited dATA plan just for more money. T mobile tries to be the budget data connecton.

    Labor: The problem with labor is unions they claim, but the real problem is not the employee, but the employer. unions add a pile of money to the cost of labor especially in places like Chicago and New York. This should serve to allow old real estate prices to remain towards the top versus new construction. Take Ironworkers for example, in 1960 ironworkers made a couple dollars an hour in 2000 ironworkers in chicago made 32.50 an hour (NY HIGHER YET) in 2010 I am not sure how they are doing. But it is likely that they have contracts in place and have collectively bargined for the last 10 years, and are likely higher. So over the span of only 40 years 1960-2000 ironworker labor cost in Chicago increases 1600% (from $2/HR to $32/HR).
    Had the union not been there the working man would have more likely went from $2/HR to $10 or something? And the company he was working for would pass this savings on to his customer? NOT LIKELY, he would keep all the money for the company. Nothing against the company, because we need producers but should they be paid the least possible amount needed to enable them to survive?

    China owns us. I guess it all comes down to how hungry are you. Too many folks here have had it too good for too long and many of them have become fat and lazy. Americans waste food on a grand scale and soon they are likely to be fighting for crumbs. Nice of China to hold the bag for US, but in the end I think the joke is on them. Certainly it wasn't our intent to live so high on the hog and overconsume and undersave. Then there are entitlements, there is no such thing as a free lunch why do we keep giving them out? Extend uneployment benefits?!?! BAH Insurance runs out thats it, get a job, get hungry, get off the couch (couches tend to make people fat and lazy if they are overused), get a job, go to China and get a job, we keep exporting our jobs to other countries where the people are hungry and have to work to eat, and they want to work and are thankful for a job so they can try to live in the higher end of poverty.

    US consumption is shrinking because no one has any money and those who do are stocking up on food and hoarding their money and converting it to gold and silver and other commodities. And lots of people aren't working so consumption is bound to go down there is not a lot of discretionary spending money out there.

    what is unfortunate is that Chinese goods as compared to american goods often have very little difference in quality, so If I can buy a Stainless steel fry pan made in China for $20 why would I buy the one made in america for $80-100? In fact there are pans made in the US that are marketed to the US that cost as much as $1000 a pan. So it all comes down to value and having the goods folks want. Is a seemingly identical pan worth 4 to 50 times more money? China may not be the value leader anymore, but americans have a hard time competeing against them. So if a new value king rises then so be it, but people are instinctively going to try to save money especially now.

    The eurodollar to me represents a much safer currency than any USD, and LT I think the world will see this and you can expect the EURO to do some roosting as helped along by our sinking economy. We all cannot be consumers and not have any producers.

    Quote:
    Originally Posted by Magic View Comment
    Good points, Elijah.

    I think the "Cloud" is going to take a big hit, though. It seems AT&T, because of the IPhone, has stopped "unlimited" internet to cut down on individual bandwidth usage. Under the new rate, if you use up your allowance, it will cost about $70 in overtime charges to download a $10 movie fro ITunes. When I found out, I checked out Verizon and found out their rates have been changed - matching AT&T.

    As for manufacturing...In America, the number one cost in manufacturing is labor. We can't compete with the rest of the world unless labor costs come down. It is actually much cheaper for a corporation to go overseas, build a plant, manufacture some goods and ship them to the US than it is to manufacture them here.

    And a comment, to add to your conversation on China. Yes, it is a net exporter to the US, BUT it is a Net Importer. As quickly as it has come up (emerged), it's labor cost are on the rise. So..., it has moved a lot of it's manufacturing to other countries such as Malaysia, and Vietnam where labor is much cheaper. As far as I can tell, it is in a mad dash to end up like Japan.

    Yes, the US is "deindustrializing", but the industrialization of the emerging markets depends on US consumption which is falling. What will happen to China when we stop buying from there? Keep in mind that China's and Japan's GDPs together add up to only about half of ours. What would happen to the rest of the world if the EuroDollar came home to roost for a couple of months?
    permalink
    Posted 12-07-2010 at 06:56 AM by Elijah Elijah is offline [Show Appreciation] What's This?
  7. Old Comment
    forexer's Avatar
    Too much doom and gloom maybe?
    permalink
    Posted 12-07-2010 at 07:55 AM by forexer forexer is offline [Show Appreciation] What's This?
  8. Old Comment
    Elijah's Avatar

    I am not really a doom and gloom person

    but the facts remain, we (the USA) consume far too much, produce far too little, spend too much, and save too little. And if you look at the spending patterns of our government they exactly represent those of an operation on the brink of bankruptcy.

    You cannot keep getting your credit limit raised.
    the consumer has to file bankruptcy when his income produced cannot meet his basic living needs AND the minimum payments on his credit cards, then it is over he has to file bankruptcy,
    because the bank sure isn't going to raise all his credit limits, BECAUSE HE IS TAPPED OUT.

    Our government is tapped out, this high flying circus act cannot continue forever.

    Quote:
    Originally Posted by forexer View Comment
    Too much doom and gloom maybe?
    permalink
    Posted 12-09-2010 at 07:09 AM by Elijah Elijah is offline [Show Appreciation] What's This?
 

All times are GMT -5. The time now is 04:16 PM.


Creative Commons License

InformedTrades is dedicated to empowering traders with knowledge. Learn more about our mission statement, and our charity endeavors.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.3.2
vBulletin Optimisation by vB Optimise (Reduced on this page: MySQL 4.65%).
vBCommerce I v2.0.0 Gold ©2010, PixelFX Studios
vBCredits v1.4 Copyright ©2007 - 2008, PixelFX Studios