The goal of war, according to the detailed study by Clausewitz in his masterpiece On the Nature of War, is to disarm your enemy so you can bend them to your will. Do we have the manufacturing base to build an army? Where is it?  If modern warfare is based on technology, do we build our own computers or cell phones?  Who builds them?  Do we have the money to rebuild our army?  Who is our creditor?  If you are honest, you will see that we are at war, and we are not winning.  We have almost no time left, because we already lost the war.  Our enemy has disarmed us without ever firing a shot and all that after giving us the playbook by which it would be done.

The Chinese destroyed our factories without dropping bombs, but the factories are closed; the employees are refugees.  Our government stood by and watched this and, to some extent, encouraged it.

This colossal failure of leadership is only possible because of the corruption in our government.

This is ridiculous.  There is a hurricane coming.   It is that time of the year.

short break

I am taking some time writing so the blog entries will be separated by a few days.  The war will continue in my absense just as it will with yours.

world war c

I don’t accept ignoring the war since I am what Jack London called an individualist and what I call a evolutionary economist, paraphrased only slightly, “the race goes to the swift and the battle to the strong.”

We must be strong in mind and strong in action.  We cannot just write about these problems we have to join in the battle.  The war with China is a symptom of a much larger problem, the war against the Universe, but more on that later.

I continue to write love stories, historical fiction and poems.  I would return to those and enjoy life in the absence of writing about what I see as a current horror.  I propose a sense of destiny that resides in everyone as a nearly religious duty.  I also propose that balance dictates that we can enjoy a quiet summer day and still conduct war and fulfill the obligations of duty put on us by short term and long term intelligence.

War With China-basic manufacturing exported

http://www.dailyfinance.com/2012/08/03/olympic-uniforms-china-import-favorites/

36 percent china-imports of clothing
85 percent of footwear
58 pecent of furniture
49 percent of appliances

These are the numbers for where imports come from.  What is not missing from this picture is that these percentages represent the conversion of American jobs to Chinese jobs, American savings to Chinese savings, American technology to Chinese technology.

The consumers who are building the chinese manufacturing machine are spending to their own impoverishment.

While it is not too late to act in some cases, it is certainly not too early.

world war c-America exported the middle class

Fact Of The Day #7: Who Holds The Note? Look In The Mirror

China has taken enough debt of the USA to make sure we could continue to export our technology and the massive interest payments on this are making them more competitive with us.
The 6% effective interest on one trillion in debt, is 60 billion dollars a year towards modernizing their army.
This doesn't include the forty cents on every dollar spent in the USA that goes to China.

This country is engaged in an election where the cadidates can't see past the symptoms to the underlying causes of the problems in this country.

They sit around wondering what is happening to the middle class when only an blind man would miss that the middle class has been exported to China.

War With China, The Great Depression and analogies with today

One solution discussed is to have a "controlled war" (much like the Chinese War which we are losing even though we don't know we are in it as a country) based on building & competition as opposed to destruction.  This would be a manufacturing war to bring us out of the current depression much as World War II (a shooting war) brought us out of the so called "Great Depression" of 1929-1936 (you pick the exact dates).

In order to draw this analogy we should have some basis to compare these two situations. The purpose of this log entry is to provide the analogy.
Securities: The great depression was based largely on the 1929 Stock Market Crash.  While we have no crash (yet) we do have a real estate crash which is largely analogous in terms of effect on banking.  Many predict a stock market crash, but we can stay with real estate in order to keep the analogy.

Bank Failures: We have plenty of "too big to fail" bank failures tied to eal estate. The key is the increasing unwillingness of banks to make loans in 1929 and the similar conservative practices today. 

Deflation:  The great quote is that "If you don't like inflation, wait till you see deflation."  During the great depression they ran movie spots explaining why people needed to get out and buy and why growing prices was a good thing.  Those old government sponsored advertisements would be great to see today.  While property and implements were under pressure in the great depression, our problems today are EVEN WORSE!  We have the same deflationary pressures on real estate, but while we have fairly steady prices on consumer good 40 CENTS OF EVERY DOLLAR IS GOING TO CHINA!  This is worse than just losing jobs because people are not buying.  We not only lose the jobs like we did in 1929, but we are still sending the money somewhere else, exacerbating our debt problems.

Trade: Tarriffs and protectionism were a primary exacerbation of the Great Depression.  In our case, the Chinese War (which only the readers of this blog apparently know about) is much more insidious.  In this case only the exports from our country are negatively impacted, both in their diversity (the number of products we export) and in the amount.  China controls how many cars we sell to them while they flood our markets with cheap goods putting our companies out of business and increasing the marketplace.  They are providing the same recessionary pressures that Tarriffs and protectionism provided; but the failure of our government to recognize this problem for what it is means that the damage is in one direction.  Everyone benefits from fair competition.  War is an example of unfair competition.

The "dust bowl".  Wow! We even have a drought (climate change may be the new lexicon) just like at the time of the Great Depression.  Who would have guessed at the similarities.  I consider climate change to be one of the many "New War" issues we should address, along with a "manufacturing war" which doesn't require us to bomb China (or get bombed by them).

If we can act quickly, we can use the manufacturing war to head off the worse effects of the current Great Depression Revisited.

More on this later.  Everyone have a good weekend.

Life is too short to spend your precious time trying to convince a person who wants to live in gloom and doom otherwise. Give lifting that person your best shot, but don't hang around long enough for his or her bad attitude to pull you down. Instead, surround yourself with optimistic people.
Zig Ziglar

Solutions intro; Philosophy of the impossible; retooling our workforce; Environmental considerations; critical industries; Political change; term limits; litigation problems; recognition of problems; recognition of war with china; provide a competitive labor pool for key industries; currency revaluation; Education; over valuation of life; parental responsibility.