The US is seeing a serious situation due the United States economic meltdown. A record number of foreclosures are being filed each day, Wall Street prices have plummeted. As a result, our government considered “lending” money to US based banks and lending institutions. This is a good gesture, but perhaps it should be thought through a little more.
In Global Marketing and World Economy, I wrote about the Regional Trade Blocs created by East Asian nations who are designing to drain our currency through trade deficit. The current economic meltdown, I feel, is the result of a trickle down effect of the staggering growth of our trade deficit and the huge amount of US dollars that is being held in the national reserves of these Eastern nations. The rate of our deficit has grown to the point where we have lost more revenue in the last 10 years than what we have expended internationally in the entire history of our nation. That is pretty staggering when you think about it.
So what should we do? We have a unique opportunity to remedy our US economic infrastructure on many levels at once. First of all, instead of lending money to the US based banks and lending institutions, the US government should be paying the balance of the foreclosed loans and eventually carry the mortgages themselves when these properties are resold so the these Fannie Mae type loans can bring interest income into our economy in a way that can benefit us all.
Another remedy is to also encourage US based corporation to become more involved in global marketing. Many corporations such as McDonalds now have multiple global marketing plans designed to appeal to hundreds of nations. The United States needs to have a strong presence in the global marketplace.
Our government also needs to take steps to discourage outsourcing US jobs to foreign countries. Many US corporations are taking away jobs that were previously held by US citizens by building assembly and manufacturing plants in countries whose economy is so poor that getting paid half the wages that would disgruntle US workers, seems like a fortune. So basically, the United States is now paying to line the pockets of US corporations that are willing to do anything in order to increase profits.
Another problem to be addressed is the trade deficit. So many millions of dollars are being siphoned into the federal reserves of these East Asian nations that it has resulted in a very poor positioning in terms of global economics and global economy. What needs to be done here is to understand that, as a nation, we are selling our nation out by purchasing any product that is manufactured in the nations involved in these trade blocs. Responsibility for this is on a personal level.