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This article was originally written in 2012 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse. This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy.

When I wrote America’s Financial Apocalypse in 2006, I did not want to be accused of being overly pessimistic, even though such an accusation would not likely hold merit since my analysis was based on extensive data. Nevertheless, to safeguard against such a criticism, in the final passage of this book, I wrote that once confronted with the elements of America’s Second Great Depression, Washington would make the changes required to prevent the indefinite demise of the U.S. However, I knew that these changes would not be made.

As we review the events from the past few years, Washington had numerous opportunities to respond and has failed on every front as far as the people are concerned. But corporate America has done well. This is who Washington serves.

Washington continues to insist that the transition from a manufacturing to service economy has provided better living standards for all Americans. This is but another lie, as confirmed by data. Ever since the implementation of free trade, fewer Americans have been on the receiving end of the financial gains from productivity. Meanwhile, more Americans have been on the receiving end of dead-end careers in industries that barely existed prior to free trade.

Even before the bubble burst in 2008, manufacturing jobs had been in rapid decline dating back to the implosion of the dotcom bubble. The implosion of the most recent bubble (real estate/stock market) has accelerated this trend.

The decline seen in U.S. manufacturing has been a significant contributor to America’s economic decline because it was this segment of the economy that gave rise to the nation’s middle-class. Thirty years ago, before free trade, the nation’s largest private sector employer was General Motors. Today, Wal-Mart holds that title. That pretty much sums up the picture.

The United States rose as an economic superpower early in the 20^th century due to its innovation and manufacturing strength. This was a time when it was difficult to find goods that were not Made in the USA. Everyone from around the world lined up for American-made products. They were the best in quality, design and durability.

America’s once dominant manufacturing sector gave rise to job security and generous benefits. This made Americans strong consumers. They did not rely on credit cards. They were not owned by the banks. This was all made possible because the U.S. produced goods demanded by the world. This led to large annual trade surpluses, which added to the nation’s wealth. This was a time when the United States was also the world’s largest creditor and the world’s largest exporter of crude oil.

There have been radical changes in the U.S. since then. Today, the U.S. is the world’s largest debtor and the world’s largest importer of oil. Largely as the result of free trade, current day America is in stark contrast to what was once viewed as the envy of the world. Today, much of what is made comes from Asia.

Advocates of free trade point out that it serves as a great benefit to consumers because lower-priced goods are made available in the global marketplace. What they fail to mention is that these lower prices are due to numerous illegal practices from China and elsewhere, ranging from currency manipulation and industry subsidies, to labor force exploitation and bribery. These unfair advantages lead to the theft of wealth and income in the form of jobs once held by America’s middle class.

These same supporters of this globalist economic policy also neglect mention of the fact that most of these imports from Asia are of much lower quality than if they had been produced in the U.S. and other advanced nations.

As a result, consumers will be required to purchase three or more ovens, vacuum cleaners, stoves, and other appliances over their life time rather than one. This is yet another way for corporate America to boost long-term profits.

In exchange for inexpensive trinkets, Americans have lost millions of good jobs to Asia. Outsourcing does provide consumers with less expensive mobile phones and PCs. The problem is that outsourcing does nothing to address the rising costs of basic necessities such as food, energy and healthcare. You only need one or two $2 brooms imported from Asia. At some point, U.S. consumers need good jobs in order to remain strong consumers and thereby boost economic growth.

The shift from a manufacturing to service economy has had additional negative effects on the U.S. Instead of unhindered research and development, a significant portion of the nation’s innovative mandates are now funded by large corporations, both domestic and foreign.

As a result of this change, much of the research in American universities is focused more on near-term commercial ventures, and less on core scientific progress. This short-sighted approach has already damaged America’s leadership in scientific research.

Critical U.S. businesses and assets are not only being bought off by foreign nations, America’s research and innovation has also been put on the auction block to the highest bidder. Technology transfer departments can be found on nearly every university. The objective of these business units is to sell or license university patents and other developments to the private sector. Because the research leading to these assets has been funded by tax payers, this represents tax payer fraud, yet no one is talking about it. There are virtually no restrictions on who can purchase these patents. For instance, one of the largest customers of university-based intellectual property outside of the U.S. has been Japan.

The inequities of free trade have made it difficult for manufacturing operations to remain competitive on U.S. soil. As a result, engineers and scientists are no longer paid well. Many have defected for lucrative careers on Wall Street where they work with financial institutions and funds to scalp assets from investors. This represents a tremendous loss of human and economic productivity.

As enrollment in science and engineering programs by U.S. citizens continues to decline, these spots are being given to foreign students, who return home after gaining the knowledge of America’s taxpayer-subsidized university system.

Instead of more engineering and science universities, America has seen the rapid growth of for-profit universities that exploit tax payer-based financial aid, in order to churn out workers for America’s privileged class.

In exchange for its former manufacturing base, the U.S. is now home to an army of valets, who will park you’re your car when you go to a restaurant, mall or hospital; fitness trainers who will help you lose weight or stay in shape; massage therapists who have added to the already bloated healthcare bubble; landscapers, who will tend to your lawn; personal chefs, nannies, maids and pet sitters/handlers. [2]

Many of these occupations are also found in third world nations whose economies are focused on domestic labor for the wealthy elite. These occupations only provide the next pay check. They do not provide employee benefits and they do nothing to generate foreign demand. That means that the U.S. has created an indefinite trade deficit due to profound changes made to its economic infrastructure.

Ever since shifting to a service economy, the United States has become vulnerable to the actions of foreign nations because it no longer manufactures key elements required to maintain autonomy.

Autonomy is a dirty word to the globalists. Their goal is to destroy autonomy so that both individuals and nations become dependent on the Banking Cartel and corporate America. [3]

As corporate America moves forward with record profits, the majority of Americans will continue to be left out of this economic feast. But things are only going to get worse. Now that U.S. consumers have been tapped out and will never again provide the level of economic demand required to maintain earnings growth, corporate America is planning for its next phase of economic treason.

With more than 1.3 billion consumers boasting the highest savings rate in the world, China represents the next horizon for corporate America. Within the next decade, these will be the consumers that fuel corporate America’s earnings growth. We are already seeing this transition take place. As more effort is dedicated to target Chinese consumers, this will by necessity lead to a greater exportation of U.S. jobs.

When I wrote America’s Financial Apocalypse in 2006, I did not want to be accused of being overly pessimistic, even though such an accusation would not likely hold merit since my analysis was based on extensive data.

Nevertheless, to safeguard against such a criticism, in the final passage of this book, I wrote that once confronted with the elements of America’s Second Great Depression, Washington would make the changes required to prevent the indefinite demise of the U.S. However, I knew that these changes would not be made.

Although most Americans have been led to believe that the current economic downdraft is only a temporary phase of the economic cycle, I can guarantee there will be no real recovery so long as America’s fascist regime remains in power.

As I have discussed in the past, most Americans will be fooled into thinking that the economy has recovered once a new bubble has formed. But this will represent just one more phase of America’s silent depression.

As corporate America continues to focus more overseas, there will be little left for most Americans. Many will live on welfare, never having the opportunity to contribute to society. Others will work as cashiers and burger flippers, while drawing government assistance to supplement their slave wages.

Most of the remaining Americans will serve the wealthy as maids, valets, fitness trainers, pet sitters and nannies. None of these individuals will have retirement plans or healthcare benefits. They will struggle to make ends meet. They will never retire and they will die broke.

The best opportunity for upward mobility in the United States will come from white collar crime. Others will keep playing the lotto, heading to casinos, and gambling in the stock market as they desperately search for a way out of the economic mess created by free trade.

[2] These are among the more legitimate careers in the U.S. The U.S. is also home to life coaches, money gurus, relationship gurus, real estate gurus, and hundreds of other titles which point to con men and women who look to exploit the naïve and desperate.

[3] The national security of the U.S. has also become vulnerable. If a real war actually arose; a war that truly threatened the U.S., America could find itself in trouble since it does not make most of the weaponry and military goods essential for combat. Instead, the U.S. relies on a large list of potential enemies for some or all of the key components used in combat.

Free Trade and the Suicide of a Superpower (Part 2)