Economy In Crisis

K

ktmexc20

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Btw, the sources are a bit outdated...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.
 
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]
 
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]
 
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]
 
Quote from ktmexc20:

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
More...

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.
 
Quote from rhymeswithorang:

I started in this business in 1990, since then I have been ceaselessly told that (1) the consumer is about to collapse, (2) the CA deficit will be the end of the wordl, (3) the budget deficit will be the end of the world. The Japanese will buy us out, the Koreans will buy us out, the Chinese will buy us out, in that order. And of course there was the recent outsourcing hoopla.

http://www.foreignaffairs.org/20040501faessay83301-p0/daniel-w-drezner/the-outsourcing-bogeyman.html

cheer up :)
More...
Hi and thank you for the link.
Did you see the list he provided as sources? Not exactly independent I think.

kt
 
Quote from rhymeswithorang:

The Japanese will buy us out, the Koreans will buy us out, the Chinese will buy us out, in that order.
More...
The article shows that they actually have, we don't own entire industries any more.

And of course there was the recent outsourcing hoopla.
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?
 
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?
 
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