Do we have a China problem ?

China has clearly emerged as a powerful economic competitor and potential military threat to the United States. Despite the destruction of America's manufacturing capacity, loss of millions of U.S. jobs and a rapidly growing trade deficits, many Republicans and even some Democrats continue to defend suicidal "free trade" policies which benefit China - not America. The failure of our leaders to act borders on treason. Alan Tonelson, a economic research fellow with the U.S. Business & Industry Council Educational Foundation http://www.usbusiness.org/, wrote an excellent column in the Wisconsin Economic Threat in answer to the question, "Do we have a China problem ?" http://tinyurl.com/9ssjj Tonelson presents a convincing case for the affirmative in the excerpts from the column below:

America's lopsided trade with China not only endangers future U.S. prosperity. America's huge deficits are also undermining national security by financing the expansion and modernization of China's military. Just as important, the U.S.-China trade imbalance is boosting the odds of a long, deep downturn in the entire world economy whose consequences China will not escape.
While lobbying hard for expanded trade with China over the last decade, cheerleaders for the China trade status quo have consistently promised Americans more access to a huge, fast- growing market for U.S.-made products. Thus America's producers could grow their earnings, create jobs and pay their workers better.The results, however, have been completely different. China sells the United States more than six times the value of the goods it buys from America, and the ratio keeps rising. Although U.S. exports to China are increasing, imports from China are surging nearly 70 percent faster. Worse, a large and growing percentage of these products are not labor-intensive goods like apparel and toys, but advanced manufacturing products from the sectors that create the highest-paying U.S. jobs on average. And these Chinese goods keep taking share from their U.S.-made counterparts in the American market.

Yes, Americans get low-cost consumer goods in return. But largely because so many high- paying jobs have been displaced by imports from China and elsewhere, the inflation- adjusted wages of American workers have stagnated for more than 30 years - a first in U.S. economic history.These destructive results were inevitable. As the China cheerleaders knew all along, most Chinese are far too poor to buy U.S. products with any regularity, if at all. In addition, China's economic strategy emphasizes producing and exporting, not importing.As a result, Beijing heavily subsidizes manufacturing in China in myriad ways from keeping its currency artificially cheap to protecting Chinese industry from foreign competition that also depress imports and consumption in general.

The damage done to domestic manufacturing by Chinese and other imports, however, has an impact that transcends economics. U.S.-China trade is also endangering industries vital to maintaining a world- leading American military. Worse, the huge sums Beijing earns from its exports are making possible a military buildup that senior U.S. officials are openly criticizing.Indeed, China's $148 billion trade surplus with the United States so far this year alone equals nearly 38 percent of the entire 2005 U.S. defense budget. Yet with few in Washington recognizing the link, U.S. trade policy literally keeps arming America's likeliest future rival.

CONSERVATIVE DEMOCRAT SEEKS WYOMING U.S. SENATE SEAT

Right Democrat is more geared to promoting ideas than politicians, however, one candidate seeking high office seems to offer a rare candor and might provide a refreshing perspective in Washington. Conservative Democrat Dale Groutage is seeking the Wyoming U.S. Senate seat held by Republican incumbent Senator Craig Thomas. Groutage appears to be the kind of common sense Democrat that we need in Washington. Groutage has a interesting background as a rocket scientist and espouses strongly rooted mainstream values. See link to his campaign website http://www.dalegroutageforsenate.com/ and read the Planet Jackson Hole newspaper interview with Dale Groutage at http://tinyurl.com/dacqa