Economy In Crisis

Discussion in 'Economics' started by ktmexc20, Mar 3, 2006.

  1. Would someone please explain to me how all of this is supposed to be good for our country.

    While I'm at it, I urge all my friends here on ET to become more informed on these and all the other critical issues facing our nation. One, For instance, would be to watch more CSPAN and other independent journalistic avenues. All avenues though, require sorting through the rhetoric to get at the facts.

    The following posts are 3 lists of sobering facts: This source is EconomyInCrisis.org

    Btw, the sources are a bit outdated... The situation is obviously worse.
     
  2. Foreign Ownership of US Domestic Industries
    Code:
    [b]
    This data comes from IRS (Internal Revenue Service) 
    - Current as of 2002 (latest data available)
    
    Foreign ownership refers to ownership of assets of a particular industry 
    by foreign controlled domestic 
    
    U.S. Corporations (FDC) 50% or more owned by a foreign entity.
    
    FOREIGN OWNERSHIP OF SPECIFIC U.S. INDUSTRIES
      	INDUSTRY 	PERCENTAGE FOREIGN OWNED
      	Sound recording industries 	97%
      	Commodity contracts dealing and brokerage 	79%
      	Motion picture and sound recording industries 	75%
      	Metal ore mining 	65%
      	Motion picture and video industries 	64%
      	
      	Wineries and distilleries 	64%
      	Database, directory, and other publishers 	63%
      	Book publishers 	63%
      	Cement, concrete, lime, and gypsum product 	62%
      	Engine, turbine and power transmission equipment 	57%
      	
      	Rubber product 	53%
      	Nonmetallic mineral product manufacturing 	53%
      	Plastics and rubber products manufacturing 	52%
      	Plastics product 	51%
      	Other insurance related activities 	51%
      	
      	Boiler, tank, and shipping container 	50%
      	Glass and glass product 	48%
      	Coal mining 	48%
      	Sugar and confectionery product 	48%
      	Nonmetallic mineral mining and quarrying 	47%
      	
      	Advertising and related services 	41%
      	Pharmaceutical and medicine 	40%
      	Clay, refractory, and other nonmetallic mineral products 	40%
      	Securities brokerage 	38%
      	Other general purpose machinery 37%
      	
      	Audio and video equipment mfg and reproducing magnetic and optical media 36%
      	Support activities for mining 	36%
      	Soap, cleaning compound, and toilet preparation 	32%
      	Chemical manufacturing 	30%
      	Industrial machinery 	30%
      	
      	Securities, commodity contracts, and other 
            financial investments and related activities 30%
    
    
      	Other food 	29%
      	Motor vehicles and parts 	29%
      	Machinery manufacturing 	28%
      	Other electrical equipment and component 	28%
      	
      	Securities and commodity exchanges and other financial investment activities 	27%
      	Architectural, engineering, and related services 	26%
      	Credit card issuing and other consumer credit 	26%
      	Petroleum refineries (including integrated) 	25%
      	Navigational, measuring, electromedical, and control instruments 	25%
      	
      	Petroleum and coal products manufacturing 	25%
      	Transportation equipment manufacturing 	25%
      	Commercial and service industry machinery 	25%
      	Basic chemical 	24%
      	Investment banking and securities dealing 	24%
      	
      	Semiconductor and other electronic component 	23%
      	Paint, coating, and adhesive. 	22%
      	Printing and related support activities 	21%
      	Chemical product and preparation 	20%
      	Iron, steel mills, and steel products 	20%
      	
      	Agriculture, construction, and mining machinery 	20%
      	Publishing industries 	20%
      	Medical equipment and supplies 	20%
    
    
      FOREIGN OWNERSHIP OF MAJOR U.S. INDUSTRIES
      	INDUSTRY 	PERCENTAGE FOREIGN OWNED
      	Mining 	27%
      	Information 	24%
      	Manufacturing 	20%
      	Professional, scientific, and technical services 	20%
      	Finance and insurance 	11%[/b]
     
  3. Foreign Financing of US Government Debt
    Code:
    [b]This data comes from US Federal Reserve - Current as of September, 2005
    
    Total foreign ownership of US Federal deficit currently stands at 45% 
    as of end of first half of 2005
    COUNTRY 	
    OWNERSHIP OF U.S. GOVERNMENT DEBT
    
    Japan 	$687.3 Billion
    China 	$252.2 	Billion
    United Kingdom 	$182.4 	Billion
    Caribbean Banking Centers 	$102.9 	Billion
    Taiwan 	$71.8 	Billion
    Germany 	$63.5 	Billion
    Korea 	$61.7 	Billion
    OPEC 	$54.6 	Billion
    Hong Kong 	$48.1 	Billion
    Canada 	$47.8 	Billion
    		
    Grand Total 	$2.0655 Trillion
    
    Conclusions:
    
        * Foreign sources financed 54% of US Federal deficit in 2002, 
          73% in 2003, and 99% in 2004
        * Total foreign ownership of US Federal deficit currently stands at 45% 
           as of end of 1st half of 2005
        * The US Government currently owes Japan $687 Billion, 
           China $252 Billion, and Korea $62 Billion - together $1.0 Trillion
        * The US Government currently owes $2.0 Trillion to foreign lenders[/b]
     
  4. Percentage of US Consumption Spent on Foreign Goods
    Code:
    [b]
    This data comes from US Bureau of Economic Analysis 
    (US GDP Output by Industry and Commodity) - Current as of 2003
    (lastest data available)
    
    CATEGORY DESCRIPTION 	
    CONSUMPTION
    Apparel and leather and allied products 	
    64%
    Computer and electronic products 	
    45%
    Miscellaneous manufacturing 	
    39%
    Electrical equipment, appliances, and components 	
    36%
    Machinery 	
    32%
    Transportation Equipment 	
    32%
    Primary metals 	
    24%
    Furniture and related products 	
    23%
    Chemical products 	
    22%
    Textile mills and textile product mills 	
    21%
    Wood products 	
    16%
    Nonmetallic mineral products 	
    15%
    Fabricated metal products 	
    12%
    Paper products 	
    11%
    Petroleum and coal products 	
    11%
    Plastics and rubber products 	
    11%
    Food and beverage and tobacco products 	
    6%
    Printing and related support activities 	
    5%
    Subtotal - Manufactured Goods
    	
    24%
    The subtotal percentages represent a weighted average of the above components
    
     
    
     
    	
    Oil and gas extraction 	
    45%
    Mining, except oil and gas 	
    6%
    Subtotal - Oil, Gas, and Mining
    	
    39%
    The subtotal percentages represent a weighted average of the above components
    
    
    
    Examples of how to read these figures (current as of 2003):
    
        * $1 in $4 American dollars spent on manufactured goods goes directly to imports
        * America imports 45% of its oil and gas
        * More than 2/3 of apparel goods are imported
        * Nearly 50% of computer and electronic products are imported
        * 1/3 of our transportation equipment is imported 
    (plus consumption of US domestic production that is actually owned by foreign corporations)[/b]
     
  5. its not a problem. just remember what happened to the japanese in the 80s. they paid top dollar for properties and during the next downturn we bought them back for much less.
     
  6. Hi and thank you for the link.
    Did you see the list he provided as sources? Not exactly independent I think.

    kt
     
  7. The article shows that they actually have, we don't own entire industries any more.

    3 mln jobs were created during the last 5 years, primarily due to a heavy increase in the government's discreationary and military spending. Compare it with the fact that Carter created 8 mln new jobs during his four years, let alone Reagan and Clinton. So maybe "the recent outsourcing hoopla" is completely justified after all?
     
  8. And yet as a country, we are enjoying low inflation, longer and stabler economic expansions. We get richer and richer as a nation. Where is the problem?
     
  9. I think as a nation, we are far better off than we were when Carter was president. As a side note, High oil prices haven't slowed the economy.
     
    #10     Mar 3, 2006