The United States has Shed Most of its productive manufacturing power to Asian powerhouses like China and India.

 

March 06, 2010 (Hamsayeh.Net) - The latest polls in Greece shows that most people are against the new deficit cutting austerity measures enacted by the government. The polls conducted by local newspapers, show over 48 percent of people say they are against the measures, whereas only 46 percent support the program.

 

The government plans to save 5 billion euro by cutting bonuses for civil servants, a 2 percent tax increase and a freeze on pensions. Greece’s debt amount to over 250 billion euro, and the country might not be able to repay it to international lenders in the next few months.

 

Yesterday, Greek Prime Minister George Papandreou met with German Chancellor in Berlin but received only a political backing from Angela Merkel. Greece had asked for obtaining fresh loans with easy interests to kick-start its stagnated economy. However, most Germans say they are against bailing out Greece, as they should take care of their own problems at home.

 

Analysts fear Greece’s financial troubles could spiral out of control and spread to other parts of Europe and indeed to other parts of the world. There are several countries in Europe, which suffer from similar problems, namely Spain and Portugal. Greece's financial woes could even spread to the United States.

 

On Friday, the Congressional Budget Office in the US warned that President Obama’s budgetary deficit will reach $9.8 trillion by 2010, which is $1.2 trillion, more than the initial estimates. A $9.8 trillion is about 90 percent of the US economy and it could represent an alarming development for the country.

 

The United States has shed most of its productive manufacturing power to Asian powerhouses and without such a base it would be impossible to go back to the good old days as promised by Obama during his speeches. Generally speaking, in order for the US to boost its moribund economy, there are only three choices available.

 

The first one is to have an unhindered and unlimited access to cheap and abundant oil and gas resources. Next could be the exclusion of China, India and other Asian powerhouses as the main competitors against Western manufacturing.  And finally, it would be to cut off China and the rest of those emerging economies from gaining access to international oil market.

 

Clearly, since the first two options would be impossible to implement, the US has no other choice but to select the last option, which is to cut off China and the rest from gaining access to energy resources on their own.