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I am reading a great deal
of alarming information regarding impending economic collapse in the US.
I feel sure that most of
the predictions I read are based on facts, and ought to scare the living
daylights out of all readers.
What I fail to see is an
explanation of the causes of this terrible, atrocious situation in which the
US economy finds itself.
Let me cut through all
the dire warnings and offer readers a solution. However difficult it may be
to get a solution in place, it is absolutely necessary to understand that there
is a solution; if you want it badly enough, it is there waiting to
be implemented.
HOW TO GET THE US ECONOMY
GOING AGAIN.
In order to re-invigorate
the US economy the following policy must be put in place:
The United States will
only accept just as much imports from foreign countries, as foreign countries
are willing to purchase from the US. (But the US will not
resort to high Tariffs to restrict imports and protect local production.)
Question: Then you are
saying, Mr. Salinas, that the US should not just import what it wants from
foreign countries, and pay in dollars for those imports?
Answer: That is just what
I am saying. Because, you see, if you pay in dollars, there is no need for
local industries in the US. They are not needed and in fact they have disappeared because imports can be paid with
dollars. What do you want: lots of Asian imports available at Walmart, but no jobs, and what jobs there are at tattoo parlors and restaurants
- paying miserable wages? Or do you want industries which will employ
workers, pay higher wages and pay taxes to your government as well?
You see, what happened to
your country, the USA, is that since 1971 the US has no need to pay for
imports with EXPORTS and exports require local industries to feed the export trade. Since 1971, the US has been paying for
everything under the Sun, with dollars. And the result has been that US
industries just dried up. They were unnecessary. The jobs disappeared.
Detroit shriveled up, and the whole US is shriveling up, without industries.
All this has happened because US imports can be paid with dollars, and
exports are not really necessary.
This was great for China
and Asia in general. It was party-time there! They sold everything they could
make, and received dollars in exchange. The US had a party for a while; until the industries
died out and unemployment took over. All because dollars can pay for imports.
Exports forget it!
The exports which sustained the industrial base and the employment base of the US are not needed anymore.
And so the heart of the US has been rotting away bringing with it unemployment and 47 millions on food stamps.
Thats where you are today.
So how do you solve the
problem?
Very simple! I wont say it wont be painful, at first. But its the only solution:
GOLD MUST RETURN TO THE
MONETARY SYSTEM OF THE US.
The US must declare that
as of now:
- The
US will pay for all imports either with goods and services or with gold.
- The
US will provisionally initiate the re-industrialization of the USA with
a gold price of $10,000 an ounce of gold.
- Exporters
to the US will have their choice:
- Take their payment in US-made goods and services, or
- Take their payment in gold at $10,000 dollars an ounce.
- The
US will not attempt to reduce the flow of imports by
means of Tariffs. Tariffs offer no solution; in fact, Tariffs derail the
only solution.
The definitive price of
gold will be determined this way:
- As
long as gold continues to leave the country, instead of goods and
services, then the gold price must be hiked further, until the outflow
of gold is stemmed and no gold leaves the country (because
foreigners find American products more attractive than high-priced
gold).
- If
gold pours into the country, then the price of gold in dollars is too
high and American exports are too cheap. The price of gold will be
trimmed down, until the movement of gold is practically nil, with
exports paying for the mass of imports.
The result of this
measure will be an immediate rebirth of manufacturing in the
US, with a return to full employment and prosperity.
The only solution for the
dire circumstances of the US is a return to gold as the international money
on the part of the US.
Let me make it perfectly
clear: This solution - which is the only solution - will
absolutely wreck the whole financial system of the US, without a doubt.
What is more important:
The recovery of the US as
a productive powerhouse, employing millions of Americans in reborn industries?
Or keeping alive a
rotten, insolvent, bankrupt and corrupt financial system?
Do you want an America
that is alive, working and prospering at work?
Or do you want to
continue in the present situation of decay and eventual collapse, which is
inevitable if the solution is not applied?
Yes, the financial system
has to go down the tubes. The National Debt and its 16.8 Trillions
will be cut to about 1/7 of its present weight.
In exchange, Americans
get life and opportunity; a way out of this miserable situation, which will
become impossible sooner or later anyway.
This is the meaning of
gold at $10,000 dollars per ounce for the average American:
A reborn US,
bursting with opportunity and jobs for everyone.
***
Originally published at http://www.plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=212
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