FOLLOW THE MONEY TO CHINA
While foreigners are flocking into the good ole'
The US dollar was the most valued currency on the face of the earth and was preferred capital for moneyed people everywhere. But now we are involved in a GLOBAL neighborhood and that is all changing. According to the UN Conference on Trade and Development, Foreign Direct Investment includes, "purchases of and mergers with companies outside one's borders and expansion of divisions of foreign-based firms in other countries." In the year 2001 this foreign-based investment into the United States was at $144 billion. One year later it had dropped 90 percent to only $30 billion.
While American jobs are disappearing and our economy is in the doldrums, China's economy continues to expand. An article appearing in USA Today states, "In recent years, China has become an attractive place to build up businesses and to invest because of cheaper labor costs - even for well educated workers, and because of liberalization of some policies as the country enters the World Trade Organizations. The rapidly growing economy also makes it a good place to set up shop to sell goods." China's foreign investment reached $52.7 billion last year, a 12% increase over the previous year.
While other nations are investing in China, China is continuing to invest in the United States. As I reported in last month's Chronicle, foreigners are holding 1.3 trillion dollars of our foreign debt and 43% of it is held by China and Japan. Not too many years ago America was the richest country in the world. Today, we are the world's greatest debtor nation and much of that debt is to foreigners.
While we are being told that the economy is gradually picking up, President Bush is assigning a new government official to address the vanishing factory jobs. Multinational companies are moving not only production facilities but also headquarters overseas, setting the stage for the globalization of corporate activity. These corporations are going where the labor is cheap, the taxes are low and government rules and regulation are non-existent. That ain't the United States!
William O. Dougals, Justice of the US Supreme Court once said, "As nightfall does not come at once, neither does oppression. In both instances, there is a twilight when everything remains seemingly unchanged. And it is in such twilight that we all must be most aware of change in the air however slight lest we become unwitting victims of the darkness."
Is it possible that our economy is RIDING OFF INTO THE SUNSET?
� 2003 Derry Brownfield - All Rights Reserved
Derry Brownfield was born in 1932 and grew up during the depression. He is a farmer and a broadcaster. Derry attended the College of Agriculture at the University of Missouri where he received his B.S. and M.S. degrees. He taught Vocational Agriculture several years before going to work as a Marketing Specialist with the Missouri Department of Agriculture. Derry served as Director of the Kansas City Livestock Market Foundation at the Kansas City Stockyard prior to establishing himself in farm broadcasting.
Derry started farming when he was 16 years old and received the Future Farmers of America State Farmer degree in 1949. Since that time the Brownfield Farm has grown to over 1000 acres maintaining a herd of 200 registered Charolias cows.
In 1972, Derry and his partner established the Brownfield Network which now serves 250 radio stations throughout the Midwest with news and market information. In 1994, Derry started his own syndicated radio talk show and he is one of the most popular radio talk show hosts in America. The Derry Brownfield Show can be heard on approximately 80 radio stations in 23 states. With his entertaining sense of humor and witty commentary he has captured audiences for over 30 years. His ability to present an informative talk show while being light and colorful is why he has a large loyal listening audience.
Derry Brownfield is a practical farmer, a practical
business man and a very entertaining speaker. He travels extensively throughout
the country speaking about his common-sense point of view. Web Site: www.derrybrownfield.com
"Not too many years ago America was the richest country in the world. Today, we are the world's greatest debtor nation and much of that debt is to foreigners."