The #1 law of economics is; You can only free-trade until cheaper labor out-trades you!
Mercantilism is a great way to advance statecrafted wealth!:-) It's how the U.S. started out in 1791. Alexander Hamilton was a genius at setting up our first great mercantilist system to counter England's Hegemony and real financial suzerainty. Well, 200 yrs. later and the table's been reversed. Now, we face China with her powerful statecrafted mercantilist system attacking America's statecrafted hegemony, and our actual financial suzerainty. How long can America survive supporting the rest of the world? Good question, I can't answer that, but I do know unless our hegemonic law structures are changed back toward real world balances, we will face financial destruction by, not only China, but all her mercantilist minions all over the globe.
It's really a sad state of affairs when the greatest economists and nation on earth can't figure out the simplicity of the above. The battles of hegemony, mercantilism and the cheapest labor have been going on since the beginning of organized economic societies, whether Egyptian, Greek, Roman, Myan, Hapsburg, Spanish, or English and American. What's it take to see logical common sense? Does everyone think China will go the way of Japan's mercantilism? They should think again because either way China goes, success or collapse, collapses the entire system this time. There won't be a second chance. So, I would suggest we start looking seriously at a little repair work here at home. There are many solutions. The one I would suggest is a sliding scale law structure of say 10% per year change, toward rebalancing the global economies through the anti-hegemonist anti-mercantilist policies of J.M. Keynes' full and fair balance of payments system, that was never enacted in the `40's.
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