March 30, 2017

The Manifesto of Constitutional American Nationalism – Facts That Led Me to Embrace Constitutional American Nationalism – Part 2

American-NationalismWe are now equally enslaved. Americans have allowed themselves to be immobilized by their own fears. Immobilized by their own selfish concerns. Immobilized by a lack of understanding of the freedom secured by our forefathers, into which most of us were born-and now have lost.” Devin Milford, Amerika

“Allowing our defense industrial base to keep shrinking and our dependence on foreign manufactures to keep growing will make America weaker, less secure, and less safe…As the U.S. pivots its defense posture to focus on Asia, procurement policies that allow, or in some cases encourage, sourcing of critical defense materials from China and other potentially unreliable suppliers don’t make sense. Self-reliance has always been an American virtue and the key to our nation’s success and prosperity. Manufacturing is important for job creation and a strong economy, and it’s also essential for our national security.” Scott Paul, Alliance for American Manufacturing

The elite personalities, classes, and organizations have failed the American people and Nation in protecting us from the scourge and threat of totalitarian collectivism. It is high time for Constitutional American Nationalists to seize the moment and lead our Nation on the path to sovereignty, security, and prosperity. Our hope for national rejuvenation lay not with “conservatism,” libertarianism, or the assortment of left wing and collectivist ideologies. Instead, the key to restoring our future greatness as a Republic lay with Constitutional American Nationalism!

 Social Atomism of the Right and Left Chips Away at American Nationalism

 “Cosmopolitan critics (are) men who are the friends of every country save their own…” Benjamin Disraeli

The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.” Theodore Roosevelt

“The stock exchange is a poor substitute for the Holy Grail. We have seen that the industrialist and merchant, as far as they are entrepreneurs, also fill a function of leadership. But economic leadership of this type does not readily expand, like the medieval lord’s military leadership, into the leadership of nations. On the contrary, the ledger and the cost calculation absorb and confine. The inference is obvious: barring such exceptional conditions, the bourgeois class is ill equipped to face the problems, both domestic and international, that have normally to be faced by a country of any importance.” Joseph Schumpeter, Capitalism, Socialism, and Democracy

“Within a protecting framework not made of bourgeois material, the bourgeoisie may be successful, not only in the political defensive but also in the offensive, especially as an opposition. For a time it felt so safe as to be able to afford the luxury of attacking the protective frame itself; such bourgeois opposition as there was in imperial Germany illustrates this to perfection. But without protection by some nonbourgeois group, the bourgeoisie is politically helpless and unable not only to lead its nation but even to take care of its particular class interest. Which amounts to saying that it needs a master.” Joseph Schumpeter, Capitalism, Socialism, and Democracy

“(Schumpeter also wrote that capitalism) tends to wear away protective strata, to break down its own defenses, to disperse the garrisons of its entrenchments. And we have finally seen that capitalism creates a critical frame of mind which, after having destroyed the moral authority of so many other institutions, in the end turns against its own…The bourgeois fortress thus becomes politically defenseless. Defenseless fortresses invite aggression especially if there is rich booty in them. Aggressors will work themselves up into a state of rationalizing hostility—aggressors always do. No doubt it is possible, for a time, to buy them off. But this last resource fails as soon as they discover that they can have all.” Joseph Schumpeter, Capitalism, Socialism, and Democracy

 “(The Gaither Report) advised that America halt its advance toward consumer hedonism…(Eisenhower and Secretary of State John Foster Dulles) envisioned a bloodless victory against Russia. This victory would be achieved by the construction of massive shopping malls and endless freeways. Yes, our nuclear deterrent would be protected, but our people would not be protected. They would live carefree and happy lives, unencumbered by civil defense and militarized educational requirements in the secondary schools (i.e., health, drivers ed, plus civil defense). According to Eisenhower’s vision, we would triumph over the Russians by living better than the Russians. We would show them how to live the good life. We would lead by example. We would shop our way to victory.” J.R. Nyquist

There are a number of reasons why I am sometimes scared about the future of the United States. The democratic open society has to be very open, and it carries a danger of an enemy alliance in the society. For example, you have a number of illegal immigrants in the United States here. It was published in the newspaper that there are about 2 or 3 million people illegally here. It is such an extraordinarily good situation for any intelligence service to send people under the disguise of Mexican or Puerto Rican or Cuban refugees, or Southeast Asian refugees. And these people are really agents. They are trained to change their identity many, many years to carry such an assignment. It is a wonderful situation for a foreign country to send agents to the United States.” Czechoslovak foreign intelligence (HSR) defector Josef Frolik, 1975

“One reason, perhaps, why the New Right hasn’t explored the issue (government regulation of trade with the communist world) more carefully is that they would bump up against their own ideological totems. Any attempt to regulate business activity they would view as an assault on the ‘free enterprise’ system and a threat to capitalism itself. The New Right[1] is not about to make common cause with leftist critics of corporate power—that would be tantamount to aiding and abetting the enemy.” Alan Crawford, Multinational Monitor May 1982

“…conservatives who are normally the most sensitive to national threats and the most supportive of economic growth have been paralyzed by the notion that any act of government involving the economy is a sign of socialism.” Anthony Harrigan and William R. Hawkins. American Economic Pre-Eminance

 “Mr. Laissez-Faire …cannot grasp that the free market is not free. He cannot understand something above and beyond supply and demand. He does not know that liberal institutions need illiberal supports. He cannot grasp that blood is above money, that consumer values are not ultimate values because they cannot stand alone. In order for markets to be possible, one must look higher, to the warrior who protects markets, and who sheds his blood in the struggle of empires…Capitalism needs a protector. Capitalism needs to be placed in a subordinate position if it hopes to survive.” J.R. Nyquist, Origins of the Fourth World War

“…the apriorists-absolutists-tribalists of the conservative mainstream dutifully insist that any criticism of Bain Capital[2] is tantamount to anti-capitalism, full stop.” Scott Galupo, The American Conservative July 16, 2012

“As for the American ‘conservatives’ (so-called), I am disappointed. Narrowly focused on ‘cultural’ or economic issues, these writers and thinkers have entirely forgotten that thousands of nuclear-armed missiles are aimed at the country, and they have irresponsibly refused to discuss realistic civil defense. In fact, the conservative intellectuals in this country, despite their lip service to ‘tradition,’ are creatures of consumerism and market hedonism. I often suspect that these people do not know themselves, and do not recognize the rottenness of their own milieu.” J.R. Nyquist

“…wealth and power are corrosive if the antidotes to corrosion are set aside. And I believe that’s what the American people have done. America has developed a serious weakness as well as blindness, and the Russians are eager to take advantage of a developing situation. In fact, they have the sophistication to manipulate the U.S. in a variety of ways.” J.R. Nyquist

“Our peril was not the Bomb, or Communism, or the population explosion, but the state to which our life-style had progressed. By some sequence still not entirely clear, the American psyche curdled badly by the seventies.” Vandenberg by Oscar Lange

Since the takeover by the Soviet Union and the shift by which the United Nations has become its surrogate, we have remained concerned with our own individual selfish interests, ignoring that we are one people, interdependent.” Devin Milford, Amerika

We are now equally enslaved. Americans have allowed themselves to be immobilized by their own fears. Immobilized by their own selfish concerns. Immobilized by a lack of understanding of the freedom secured by our forefathers, into which most of us were born-and now have lost.” Devin Milford, Amerika

The National Security Threat of Massive National Deficits and the Growing Welfare State

unemployed“When we get ready to take the United States, we will not take it under the label of communism; we will not take it under the label of socialism. These labels are unpleasant to the American people and have been speared too much. We will take the United States under labels we have made very lovable; we will take it under liberalism, under progressivism, under democracy—but take it we will.” CPUSA Central Control Committee member and publisher Alexander Trachtenberg, 1944

“You Americans are so gullible. No, you won’t accept Communism outright; but we’ll keep feeding you small doses of Socialism until you will finally wake up and find that you already have Communism. We won’t have to fight you; we’ll so weaken your economy, until you fall like overripe fruit into our hands.” Former Secretary of Agriculture Ezra Taft Benson, conversation with Soviet ruler Nikita Khrushchev, 1959

Frances Fox Piven and Richard Cloward called for Widespread campaigns to register the eligible poor for welfare aid, and to help existing recipients obtain their full benefits, would produce bureaucratic disruption in welfare agencies and fiscal disruption in local and state governments. These disruptions would generate severe political strains, and deepen existing divisions among elements in the big-city Democratic coalition: the remaining white middle class, the white working-class ethnic groups and the growing minority poor. To avoid a further weakening of that historic coalition, a national Democratic administration would be constrained to advance a federal solution to poverty that would override local welfare failures, local class and racial conflicts and local revenue dilemmas. By the internal disruption of local bureaucratic practices, by the furor over public welfare poverty, and by the collapse of current financing arrangements, powerful forces can be generated for major economic reforms at the national level. The ultimate objective of this strategy–to wipe out poverty by establishing a guaranteed annual income–will be questioned by some. Because the ideal of individual social and economic mobility has deep roots, even activists seem reluctant to call for national programs to eliminate poverty by the outright redistribution of income.” Frances Fox Piven and Richard Cloward, The Nation May 2, 1966

Welfare consumed a minuscule portion of the Federal budget in 1950 and skyrocketed to over $600 billion in 2010. Information lifted from http://www.usfederalbudget.us/

“…Chinese purchases of federal debt don’t hurt us.” Derek Scissors, Heritage Foundation

“It doesn’t worry me a bit that China and Japan hold so much debt. In a way, it seems foolish for them to do it because they get lower returns than they might elsewhere. But that is their business.” Milton Friedman

Trade skeptics worry about the risks Americans take when we borrow heavily from the Chinese. They argue that the Chinese government might quickly sell off our bonds some day, driving down bond prices and raising the corresponding interest rates the United States will have to pay on new debt. But the Chinese have no incentive to do such a thing-at least not for now. A fire sale would probably result in huge losses for the Chinese since the bonds would sell for much less than they paid for them…But there is no other category of dollar-denominated assets as large, liquid, and safe as United States treasury securities. That’s why the Chinese hold so many and probably won’t be selling them en masse any time soon.” Senator Pat Toomey (R-PA), The Road to Prosperity

According to the former Treasury Secretary and free trade globalist Hank Paulson, the Russians made a “top-level approach” to the Chinese Communists “that together they might sell big chunks of their GSE (government sponsored entities) holdings to force the U.S. to use its emergency authorities to prop up these companies.” According to Paulson, the Chinese declined.  Paulson commented that “The report was deeply troubling…heavy selling could create a sudden loss of confidence in the GSEs and shake the capital markets. I waited till I was back home and in a secure environment to inform the president.” Bloomberg News, January 29, 2010

In 2010, Chinese People’s Liberation Army (PLA) Major General Luo Yuan noted that China could attack the United States through “oblique means and stealthy feints… For example, we could sanction them using economic means, such as dumping some U.S. government bonds…Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counterpunches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease.” Quoted from Bill Gertz, Washington Times February 10, 2010

John Tkacik, a former State Department China specialist, reported that “The Chinese military now believes that China has tremendous economic and financial leverage, especially over the United States, and they are giving fair warning to the world that they will use it when they can.” Quoted from Bill Gertz, Washington Times February 10, 2010

In 2007, China’s state-owned media described Beijing’s control over American debt and their dollar holdings as a “nuclear option.” Quoted from Chinascope November 10, 2011

Xia Bin, finance chief at China’s Development Research Centre, stated that Beijing should use their holdings of American debt as a “bargaining chip.” Quoted from Chinascope November 10, 2011

He Fan, an official at the Chinese Academy of Social Sciences, stated: “China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US Treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency.  Russia, Switzerland and several other countries have reduced their dollar holdings. China is unlikely to follow suit as long as the yuan’s exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar.” Quoted from Chinascope November 10, 2011

As of the end of October 2010, Red China held $906.8 billion of American debt; Brazil: $177.6 billion; Russia $131.6 billion. US Treasury Department, Quoted by Congressman Walter Jones (R-NC)

Attacks on Unions from the Communists

comunist-party-

“In building Socialism in this country the trade unions will play essentially the same role as in the U.S.S.R. The revolutionary unions of the Trade Union Unity League are the nucleus of the eventual great labor organizations of Soviet America. Whatever remnants of the present A.F. of L. may exist at the time of the revolution will be merged into the series of industrial unions based on all-inclusive factory committees. The revolutionary workers, both before and during the revolutionary crisis, will ruthlessly drive from office the reactionary A.F. of L. leaders as the most servile and dangerous of all tools of the bourgeoisie.” William Z. Foster, Toward a Soviet America, 1932

“Chinese capitalists are growing stronger while U.S. capitalists are starting to lose their grip. Ultimately, imperialism leads to war.” Progressive Labor Party, 2008

As humble servants for the racist bosses, (United Steel Workers head Leo) Gerard and the rest of the union hacks are trying to win workers to see China as “the enemy,” much as they did with Japan in the ’70s and ’80s. Bringing in busloads of workers to hear tales about U.S. imperialism’s “good old days,” and contrasting that with stories about the “evil Chinese” and their unsafe pet food and toys, only serves to build a racist base for war against China. As the U.S. economy weakens and factories close, the drums are beating louder, especially from the major industrial unions in auto, steel and aerospace which handle war production.” Progressive Labor Party, 2008

“We must counter these pro-war AFL-CIA hacks by building a mass base for PLP and communist revolution.” Progressive Labor Party, 2008

“The early trade unions were forged in the fight against wage slavery, but the capitalist class has succeeded for the present in turning the union movement into a reserve to defend that very system of exploitation…The capitalists have consolidated, in the union leadership, a stratum of labor lieutenants who serve as the political detachment of the imperialists in the working class.” October League, 1976

The Reality of Free Trade

“The global theory of free trade is siphoning off America’s wealth and bringing her economy to the level of others. The theory is displacing American workers who otherwise would be employed.” Senator George Malone (R-NV), 1958

concepts and labels of free trade and protectionism have become outdated in this world of managed national economies, international technology, skyrocketing rise of US foreign investment and growth of multinational companies.” Policy Resolutions Adopted by the 8th Constitutional Convention of the AFL-CIO, October 1969

 “Proud countries are losing the power to shape their own destinies, to guide their economies, to collect their taxes, to better the lives of their people. They are increasingly at the mercy of stateless, soulless, anonymous multinational corporations. This greatest industrial power in the world’s history is in danger of becoming nothing more than a nation of hamburger stands…a country stripped of industrial capacity and meaningful work…a service economy…a nation of citizens busily buying and selling cheeseburgers and root beer floats….The multinationals are now shunning the laws, taxes, and needs of this country, just as they have shunned the flag of this nation…The multinational has not only declared war on the jobs of American workers, but on the traditional concept of Americanism.” AFL-CIO’s Report to its 93rd Congress

“The serious decline of U.S. military strength, the dollar, and U.S. export goods–the three U.S. strengths–is the most concrete manifestation of the deterioration of U.S. power. This deterioration clearly proves that U.S. power is limited, and U.S. predominance over the world has passed its climax and is now in decline…” “Imperialism Is Increasingly Weakening” Quan Doi Nhan (North Vietnam) Dan September 17, 1974

The decline in production has rapidly increased the rate of unemployment–the third calamity afflicting the American working people.” “A Dark Shadow Over the United States” (Vietcong) Liberation Radio to South Vietnam December 29, 1974

“…postwar trade liberalization has been a beneficial exercise for America’s trade partners, and…if any country could be said to have ‘lost’ within our given time horizon it was the United States itself.” British scholars Gerard and Victora Curzon, 1976

 “…Free trade is, of course, a myth (an Anglo-Saxon myth in particular!). It exists less and less. The GATT rules are no longer followed…However in our mentality we stick to the idea of free trade is an ideal to be achieved and think that we owe our prosperity in the last twenty years to this ideal.” Thierry De Montbrial, economist from the Ecole Polytechnique in Paris, January 1977

“Friedman’s advocacy of freeing the economy from government restraint was correct-up to a point. Where it went wrong-terribly wrong-was in confusing the international market with the American market.” William J. Gill, Trade Wars Against America

“I cannot stand with those so-called conservatives who believe that ‘free trade’ is more important than free government, or the ‘fiscal conservatives’ who seem to believe that money and economic advantage matter more than our right to constitutional, elective self-determination. Trade socialism must be defeated root and branch, even when it is called ‘free trade.’” Former American UN diplomat Alan Keyes, 2008

When viewed in this context, the recent blind faith some Republicans have shown toward free trade actually represents more of an aberration than a hallmark of true American conservatism. It’s an anomaly that may well demand re-examination in the context of critically important questions facing all conservatives on trade policy.” Robert Lighthizer, 2011

 “In the 21st Century, the US economy has been kept going by an expansion in consumer debt, not by rises in consumers’ real incomes. Consumers are up to their eyeballs in credit card and mortgage debt. They are no longer in a position to borrow more in order to spend more. Interest rates are very low, and the government’s budget deficit is very large; yet the economy is sinking. Monetary and fiscal policy cannot help when the problem is that American jobs have been relocated offshore. Because of offshore production, stimulating demand stimulates production in China and other offshore sites. As high productivity jobs have been offoshored, American incomes, except for the super-rich, have ceased to grow.” Paul Craig Roberts, How the Economy was Lost

“A country that gives away its productive capability and becomes dependent on foreign creditors to finance its budget and trade deficits is a country that has problems beyond the reach of monetary and fiscal policies. For example, no country’s borrowing ability is unlimited. The US has been financing its trade and budget deficits by turning over the ownership of existing US assets and their income streams to foreigners and by foreigners recycling their trade surplus dollars into the purchase of new Treasury debt. This dependence on foreign creditos now constrains US monetary and fiscal policy.” Paul Craig Roberts, How the Economy was Lost

“Preserving the dollar as reserve currency requires large reductions in trade and budget deficits, a tall order for the current weak state of the US economy.” Paul Craig Roberts, How the Economy was Lost

“There are two reasons for the dollar’s demise. One is the practice of American corporations offshoring their production for US consumers…The other reason for the dollar’s demise is the ignorance and nonchalance of ‘libertarian free market free trade economists’ about offshoring and the trade deficit. There is a great deal to be said on behalf of free markets and free trade. However, for many economists free trade has become an ideology, and they have ceased to think.” Paul Craig Roberts, How the Economy was Lost

Free Trade as a Form of Economic Warfare

In September 1960, the Cuban Embassy in the United States secretly purchased 280 pounds of tobacco seed which would have produced 50 million pounds of processed tobacco. The Cuban tobacco seeds were supposed to be shipped back to the United States for the express purpose of disrupting the American tobacco export market. It was shipped by the Cuban Embassy through Idlewild (now JFK) Airport in New York. New York Times September 16, 1960

Starting in the mid-1970s, the Cuban Communists also sought to utilize the slow opening of indirect trade relations with the United States to saturate the American market with “knock-off” goods. The purpose of such a plan was to acquire more hard currency and destroy sections of the American industrial base through the dumping of imitation, cheap, and subsidized goods from communist Cuba. According to the high level defector Jose Llovio-Menendez, the Cuban Ministry of Light Industry predicted that “The production of Rodeo Brand blue jeans with their exquisite cut and magnificent fabric will easily displace the market for blue jeans made in the USA.” Llovio-Menendez, Jose Luis. Insider

In 1954, the East Germans dumped 576,000 tons of potash into the US market for three years at prices $3-$8 below the domestic market price. The East Germans sent shiploads of potash into American ports at intervals calculated to disrupt the US market. New York Times November 25, 1954

It was reported in 1949 that Czechoslovakia dumped goods in the West at subsidized prices and at prices below the costs of production. It was suspected that Czechoslovakia was conducting this activity to generate foreign currency and to serve an “unknown political purpose.” New York Times September 11, 1949

British Lord Chancellor Henry Brougham thought it “well worthwhile to incur a loss upon the first exportation (of English manufactures), in order, by the glut, TO STIFLE IN THE CRADLE THOSE RISING MANUFACTURES IN THE UNITED STATES.”

Henry Clay quoted a British leader Lord Goderich, who admitted that: “(N)ations knew, as well as (we did), what we meant by ‘free trade’ was nothing more nor less than, by means of the great advantage we enjoyed, to get a monopoly of all their markets for our manufactures, and to prevent them, one and all, from ever becoming manufacturing nations.”

William Pitt, Prime Minister of England noted “If the Americans should manufacture a lock of wool or a horse shoe, I would fill their ports with ships and their towns with troops.”

“The British merchants and manufacturers, immediately after the peace, disgorged upon us all their stores of merchandise and manufactures, not only without profit, but at certain loss for a time, with the express purpose of annihilating all our manufacturers, and ruining all our manufactories. The cheapness of these articles allures us into extravagance and luxury, involves us in debt, exhausts our resources, and at length produces universal complaint.” Letter from John Adams to William E. Richmond December 14, 1819

“If Europe and America may be called the front or the arena of the major battles between socialism and imperialism, the unequal nations and the colonies, with their raw materials, fuel, food and vast store of man-power, must be regarded as the rear, the reserve of imperialism. To win a war it is necessary not only to triumph at the front, but also to revolutionise the enemy’s rear, his reserves. Hence, the victory of the world proletarian revolution may be regarded as assured only if the proletariat is able to combine its own revolutionary struggle with the liberation movement of the labouring masses of the unequal nations and the colonies against the rule of the imperialists and for the dictatorship of the proletariat.” Stalin, 1921

 “Russia today presents the extraordinary spectacle of a country being starved and impoverished by a government pursuing the fantastic policy of depriving its own people of the things they desperately need in order to dump them abroad at cheap prices as a means of creating disorganization, discontent, and revolution in other countries. To be sure there is also another aim to this policy, namely that of obtaining capital for the Soviet industrialization plan, but the two go together…the Soviet government is engaged in systematic dumping operations with the object of fomenting world revolution by helping on the collapse of European and American markets.” Basil Delgass, former Vice President of the Soviet foreign trade corporation Amtorg, 1930

“Germany’s desperate need for foreign exchange and raw materials for the rearmament program led to its subsidizing of German exporters. By dumping German products abroad, the Nazis hoped to procure the needed foreign credits.” Fiss, Karen. Grand Illusion

Dr. (Hjalamar) Schacht’s (Minister of Economics in Nazi Germany) “new economic order for Germany was based on barter, dumping on a grand scale, and the fantastic swindle of blocked, travel, registered, aski, and any other kind of unbacked marks that a gullible world would accept for goods. Meanwhile he visited the United States and England, proclaiming private enterprise, the gold standard and free trade.” American Mercury March 1944

“If the dumping works and our import restrictions work then we can reckon with a high inflow of foreign currency.” Dr. Hjalamar Schacht, German Minister of Economics, Plenipotentary of War Economy under the early period of National Socialist rule

What is really behind this alleged Soviet interest in East-West trade?  First, the Soviet Government wants to buy samples, copy them, and claim them as its own creations. Second, and this is every important, to find out the types of our production machinery used in the consumer goods and system-of mass production with a view to stealing our technology. The same pattern was used to Soviet advantage in the heavy industries prior to 1948. And, third, once mass production of consumer goods has been mastered to offer us ruinous competition in world markets. With tens of millions of men, women, and children toiling in the factories under most inhuman exploitation, with other millions working as forced laborers from predawn to past sunset in the numerous slave labor camps digging coal, iron, and other minerals supplying raw materials for the industries, it is not difficult to visualize the extent of ruinous competition it could offer us and other highly industrialized countries. That is intended not so much for the sake of profit as for the purpose of undermining our economy, to create unemployment here, and cause unrest…One day we will wake up to discover that we had sold our birthright to the bitterest enemy for a mere mess of pottage.” J. Anthony Marcus, President of the Institute of Foreign Trade

“Industrially, we were to give priority to producing goods which could earn foreign exchange, penetrate Capitalist markets, even at low profit levels, and displace Western products in the markets of the Third World, thus bringing us economic and political influence.” Former Czechoslovak Major General Jan Sejna

“It is entirely right and proper for the developing countries to terminate imperialist economic monopoly and plunder, sweep away these obstacles and take all necessary measures to protect their economic resources and other rights and interests…In the recent Middle East war, the Arab countries, united as one, used oil as a weapon with which they dealt a telling blow at Zionism and its supporters. They did well, and rightly too. This was a pioneering action taken by developing countries in their struggle against imperialism. It greatly heightened the fighting spirit of the people of the Third World and deflated the arrogance of imperialism. It broke through the international economic monopoly long maintained by imperialism and fully demonstrated the might of a united struggle waged by developing countries. If imperialist monopolies can gang up to manipulate the markets at will, to the great detriment of the vital interests of the developing countries, why can’t developing countries unite to break imperialist monopoly and defend their own economic rights and interests? The oil battle has broadened people’s vision. What was done in the oil battle should and can be done in the case of other raw materials.” Deng Xiaoping, 1974

Soon you’ll find Romanian glass items in every department store in Western Europe and the United States, putting some of the old European and American corporations out of business. That’s Comrade Ceausescu’s communist way of creating our glass industry without capitalist licenses or royalties.” Minister of Light Industry Lina Ciobanu as witnessed by former Chief of Romanian Foreign Intelligence (DIE) General Ion Mihai Pacepa

…our labor costs are a fraction of those in the West. It wouldn’t surprise any of us to see some Western firms in trouble soon. Especially Texas Instruments.” Romanian Prime Minister Manea Manescu, as witnessed by former Chief of Romanian Foreign Intelligence (DIE) General Ion Mihai Pacepa

“‘Once all of the Third World countries have had their revolutions and withhold their natural resources from the United States, the capitalist system in the United States will collapse.’” FMLN commander code-named Neto, 1981

To keep peace, you need to have the capability to attack the other side. The same is true for trade.” Mei Xinyu, Research Institute of Foreign Trade and Economic Cooperation in the Chinese Ministry of Commerce

There is oil in the Middle East; there is rare earth in China.” Deng Xiaoping, Chinese ruler, 1992

“(President Jiang Zemin ordered industry in China to) improve the development and application of rare earth, and change the resource advantage into economic superiority.” Jiang Zemin, 1992

“The great fusion of technologies is impelling the domains of politics, economics, the military, culture, diplomacy, and religion to overlap each other. The connection points are ready, and the trend towards the merging of the various domains is very clear. Add to this the influence of the high tide of human rights consciousness on the morality of warfare. All of these things are rendering more and more obsolete the idea of confining warfare to the military domain and of using the number of casualties as a means of the intensity of a war. Warfare is now escaping from the boundaries of bloody massacre, and exhibiting a trend towards low casualties, or even none at all, and yet high intensity. This is information warfare, financial warfare, trade warfare, and other entirely new forms of war, new areas opened up in the domain of warfare. In this sense, there is now no domain which warfare cannot use, and there is almost no domain which does not have warfare’s offensive pattern.” Qiao Liang and Wang Xiangsui, Unrestricted Warfare

“Now that Asians have experienced the financial crisis in Southeast Asia, no one could be more affected by “financial war” than they have been. No, they have not just been affected; they have simply been cut to the very quick! A surprise financial war attack that was deliberately planned and initiated by the owners of international mobile capital ultimately served to pin one nation after another to the ground–nations that not long ago were hailed as “little tigers” and “little dragons.” Economic prosperity that once excited the constant admiration of the Western world changed to a depression, like the leaves of a tree that are blown away in a single night by the autumn wind. After just one round of fighting, the economies of a number of countries had fallen back ten years. What is more, such a defeat on the economic front precipitates a near collapse of the social and political order. The casualties resulting from the constant chaos are no less than those resulting from a regional war, and the injury done to the living social organism even exceeds the injury inflicted by a regional war. Non-state organizations, in this their first war without the use of military force, are using non-military means to engage sovereign nations. Thus, financial war is a form of non-military warfare which is just as terribly destructive as a bloody war, but in which no blood is actually shed. Financial warfare has now officially come to war’s center stage–a stage that for thousands of years has been occupied only by soldiers and weapons, with blood and death everywhere. We believe that before long, “financial warfare” will undoubtedly be an entry in the various types of dictionaries of official military jargon.” Qiao Liang and Wang Xiangsui, Unrestricted Warfare

“…this (PNTR with the United States) is only a theoretical market opportunity. During diplomatic negotiations, it is imperative to use beautiful words — for this will lead to success.” Long Yongtu, the Chinese Chief Negotiator for PNTR with the United States, January 2000

“In history, the Western powers used warships and opium to colonize China. Now the opposite has happened. We will use our open policy, seize the economic crisis in the West as a historical moment, and use effective measures to turn them into Socialist China’s economic and cultural colonies…Our colonization of these countries is the historical process of communism’s triumph over rotten capitalism. We Chinese communists must shoulder the great historical mission, and use socialism to defeat capitalism, eventually liberating the entire humanity with Communism.” Hu Jintao in a Meeting of the Chinese Communist Party Politburo and Central Military Commission, February 2008

The Collapse of American Industry

79722247_Detroit_92147c“In short, we have been too long subject to the policy of British merchants. It is time we should become a little more Americanized, and instead of feeding the paupers and laborers of England, feed our own; or else in a short time, by continuing our present policy, we shall all be rendered paupers ourselves.” Letter, Andrew Jackson

Abandonment of the protective policy by the American Government must result in the increase of both useless labour, and idleness; and so, in proportion must produce want and ruin among our people.” Abraham Lincoln

“If we purchase a ton of steel rails from England for twenty dollars, then we have the rails and England the money. But if we buy a ton of steel rails from an American for twenty-five dollars, then America has the rails and the money both.” Abraham Lincoln

“…what happens when cheap foreign-made products cascade into American markets? The answer is quick and simple: The floor that has taken fifty years to build under the American workers’ standard of living and job security collapses. The customers find better values in foreign-made goods, and they would not be human if they did not take advantage of them. And the American workers who would have made those products are out of a job. That is why I said and will keep on saying as long as I have breath in my body: ‘When we import cheap competitive goods, we import unemployment.’” American Workers vs. Free Trade, Speech by Senator George Malone (R-NV) before the American Federation of Labor October 3, 1949

“There is no effective difference between between importing the products of foreign low-wage living standard labor and in importing labor itself. In either case we are importing unemployment.” American Workers vs. Free Trade, Speech by Senator George Malone (R-NV) before the American Federation of Labor October 3, 1949

We Republicans have fallen down in our historic duty to protect American producers.” Senator Barry Goldwater (R-AZ), 1958

“During the Cold War, the US was willing to grant major privileges to nations which it saw as useful allies against communism. The NICs, strategically placed to help contain China, North Korea and Vietnam, were granted liberal access to the world’s richest markets without being required to liberalize their own. They exploited this opportunity to the full by using their cheap labour, importing technology, encouraging export-oriented industry and regulating their currencies. Massive exports and controlled imports resulted in a historic transfer of wealth from the West to the NICs which represents one of the greatest subsidies granted to allied nations during any war.” Sir James Goldsmith, The Response

“Our industry dominates world markets and our workmen no longer need fear the competition of foreign workers.” President Harry Truman, as quoted by Clyde Prestowitz in Betrayal of American Prosperity

In 1953, the President’s Advisory Board for Mutual Security called for the unilateral elimination of tariffs on autos and consumer electronics because “US producers are so advanced no one can touch them.” as quoted by Clyde Prestowitz in Betrayal of American Prosperity

In 1953, a State Department official remarked that “the US trade surplus is a serious problem and we must become really import minded.” State Department official, 1953 as quoted by Clyde Prestowitz in Betrayal of American Prosperity

In 1953, former President Herbert Hoover predicted that “thousands of US villages and towns will be deprived of their employment and their schools, churches, and skills will be greatly decimated” as a result to free trade policies. President Herbert Hoover, as quoted by Clyde Prestowitz in Betrayal of American Prosperity

“A great wave of competition from plants that we built for them (our trading partners in Europe and Japan) will bring vast unemployment to the United States.” Treasury Secretary George Humphrey as quoted by Clyde Prestowitz in Betrayal of American Prosperity

In 1954, the Eisenhower White House noted that the “overriding interest of the United States is to strengthen our national security by taking the first step to bind Japan to the free world.” as quoted by Clyde Prestowitz in Betrayal of American Prosperity

“All problems of local industry pale into insignificance in relation to the world crisis.” President Dwight Eisenhower, speech to Republican Congressional leaders, 1955 as quoted by Clyde Prestowitz in Betrayal of American Prosperity

“…trade restrictions which tend to drive away an ally as dependable as Britain do more harm to our security than permitting a US industry to suffer.” President Eisenhower, as quoted by Clyde Prestowitz in Betrayal of American Prosperity

“The problem of foreign competition was going to grow rapidly in the future. The costs of production abroad of competitive products were shockingly lower than the United States, mostly as a result of cheaper labor costs.” CIA Director John McCone, National Security Council debate on international trade policy, 1959 as quoted by Clyde Prestowitz in Betrayal of American Prosperity

Council of Economic Advisers chair Walter Heller told Japanese leaders in 1964 that the American tax cut would produce a “strong and expanding (American) market for Japanese goods.” Quoted in Judith Stein, Pivotal Decade

State Department trade specialist Philip Trezise commented that “We did make some big tariff cuts and didn’t get any reciprocity. It was quite deliberate…Businessmen and congressmen were right” in criticizing the State Department. Quoted in Judith Stein, Pivotal Decade

Kennedy’s Under-Secretary of State for Economic Affairs and former European Economic Community (EEC) lobbyist George Ball purposely antagonized American textile producers in a meeting. Ball was described as being “dressed in a British-made suit, a British-made shirt, shoes made for me in Hong Kong, and a French necktie” in his meeting with American textile producers. Quoted in Judith Stein, Pivotal Decade

An economist from FDR’s Treasury Department Oscar Gass commented that the Trade Expansion Act of JFK was the “administration’s Holy Cause” whose officials “were decent people are prepared to lie for it.” Gass predicted massive trade deficits from passage of the Trade Expansion Act of 1962. Quoted in Judith Stein, Pivotal Decade

Seymour Harris, a Treasury Department economist under JFK, reported that West European nations “generally made concessions where the result was not likely to be large at the expense of their domestic producers.” Quoted in Judith Stein, Pivotal Decade

Real wages for manufacturing workers fell by 82 cents an hour from 1965 to 1969. Quoted in Judith Stein, Pivotal Decade

Between January 1979 and December 1980, twenty auto plants were shut down, which resulted in the layoff of 50,000 workers. One hundred businesses dependent on these plants closed which eliminated an additional 80,000 workers. In the late 1970s, 13 Chrysler, 5 Ford, and 7 General Motors plants closed. By 1981/1982, this wave of plant closings became a flood. Quoted in Barry Bluestone and Bennett Harrison, The De-Industrialization of America

In November 1979, US Steel announced that it was closing 14 plants and mills in eight states. When a US Steel plant closed in Youngstown Ohio, 3,500 workers lost their jobs. Between 1977 and 1981, American steel manufacturers shut down enough plants to reduce the nation’s steel capacity by 11%. When Youngstown Sheet and Tube Company closed its Campbell Works, 4,100 workers lost their jobs. Quoted in Barry Bluestone and Bennett Harrison, The De-Industrialization of America

Japanese dumping and high oil prices forced American auto and tire makers to cut their production. Between 1975 and 1981, 24 tire plants shut down with 20,000 workers laid off. Companies such as Uniroyal produced tires in foreign nations for re-export to the US. By 1980/1981, unemployment rates in the industrial areas of the South stood above 10%. At the Fayetteville TN industrial park, 150 out of the 170 acres were vacant in 1981. In the Pacific Northwest, the number of lumber mills dwindled from 500 in 1960 to 20 in 1981. Quoted in Barry Bluestone and Bennett Harrison, The De-Industrialization of America

The Council on Competitiveness examined nine major technology intensive industries in a 1990 report titled Gaining New Ground: Technology Priorities for America’s Future. This report indicated that the United States lost 15 areas in industries such as ceramics, robotics, and memory chips. The United States was also behind in the production of high technology in 18 areas. Quoted from Gaining New Ground: Technology Priorities for America’s Future, Volume 38, Issue 9 1991

 “Global free trade has become a sacred principle of modern economic theory, a sort of moral dogma. That is why it is so difficult to persuade our politicians and economists to reassess its effects on a world economy which has changed radically. I believe that GATT and the theories on which it is based are flawed and that, if they are implemented, they will impoverish and destabilize the industrialized world whilst at the same time cruelly ravaging the Third World.” Sir James Goldsmith

I totally reject the concept of specialization. We need the contrary, a diversified economy. Only such an economy will allow our populations to participate productively in our society.” Sir James Goldsmith

“Global free trade will force the poor of the rich countries to subsidize the rich in poor countries. What GATT means is that our national wealth, accumulated over centuries, will be transferred from a developed country like Britain to developing countries like Communist China, now building its first ocean going navy in 500 years.” Sir James Goldsmith

“China, with its 1.2 billion people, three Indochinese states with 900 million, the former Soviet republics with some 300 million, and many more can supply skilled labor for a fraction of Western costs. Five dollars in Communist China is the equivalent of a $100 wage in Europe.” Sir James Goldsmith

“It is quite amazing that GATT is sowing the seeds for global social upheaval and that it is not even the subject of debate in America…If the masses understood the truth about GATT, there would be blood in the streets of many capitals. A healthy national economy has to produce a large part of its own needs. It cannot simply import what it needs and use its labor force to provide services for other countries.” Sir James Goldsmith

American strategic industries continued to exhibit a sharp decline during the Clinton and George W. Bush Administrations. By 2002, more than 30 steel companies were in bankruptcy. They included Bethlehem Steel, Republic Technologies, Wheeling Pittsburgh, National Steel, and LTV (now part of International Steel Group or ISG). Geneva Steel ceased operations, while a number of mini-mills went out of business. Quoted in Stephen Cooney. The American Steel Industry: A Changing Profile February 14, 2003

“America lost 5.7 million, or 33%, of its manufacturing jobs in the 2000s.” Quoted from Industry Week, March 14, 2013

“The real reason the U.S. lost 5.7 million manufacturing jobs in the last decade was due to the decline in manufacturing output, which in turn was caused by U.S. manufacturing losing out in global competition.” Quoted from Industry Week, March 14, 2013

“During the 2000s, 13 of the 19 aggregate-level U.S. manufacturing sectors, which employed 55% of manufacturing workers in 2000, experienced absolute declines in real output.

For example, motor vehicle output decreased 45%, textiles 47%, and apparel 40%.  In other words, manufacturing establishments were producing less, and so of course they employed fewer workers.”Quoted from Industry Week, March 14, 2013

“After decades of economic embarrassment caused by the federal government reporting on millions of working Americans being laid off in mass firings, the U.S. government has finally killed the statistical program that tracked those layoffs.” Quoted in Manufacturing and Technology News, October 24, 2013

“The Mass Layoff Statistics (MLS) program at the Bureau of Labor Statistics produced its last report in June and closed its doors and turned out the lights. The Obama administration decided the program was not worth it, given that the BLS had to cut its budget due to ‘sequestration,’ and there were other data priorities.” Quoted in Manufacturing and Technology News, October 24, 2013

“According to MLS data, since 2000, there have been 85,049 mass layoff events in the United States involving more than 50 employees. A total of 15,962,800 Americans have lost their jobs over that time in mass layoff events, the majority of which occurred in the manufacturing sector.

‘Everyone has been convinced that those are really important industries, but Americans en masse are losing those jobs and with the loss of human capital the country has no ability to ramp those industries back up because we have depleted the people who know how to do it,’ says (William) Spriggs (chief economist at the AFL-CIO). Quoted in Manufacturing and Technology News, October 24, 2013

(William Spriggs, chief economist, AFL-CIO): ‘The idea that we would farm out the core industries for national security is just mind boggling. If you don’t make computers in this age you are going to last two months in a war.’” Quoted in Manufacturing and Technology News, October 24, 2013

The Collapse of the Defense Industrial Base

tank“If the governing consideration were cheapness, if national independence were to weigh nothing; if honor nothing; why not subsidize foreign powers to defend us; why not hire Swiss or Hessian armies to protect us? Why not get our arms of all kinds, as we do, in part, the blankets and clothing of our soldiers, from abroad?” Henry Clay

The safety and the interests of the free people “require that they should promote such manufacturing as tend to render them independent of others for essential particularly military supplies.” George Washington

It is of importance that the kingdom should depend as little as possible upon its neighbours for the manufactures necessary for its defence; and if these cannot otherwise be maintained at home, it is reasonable that all other branches of industry should be taxed in order to support them.” Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations

Smith also remarked that “Defence (is) much more important than opulence.” Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations

“Suppose it did prove cheaper to buy all our steel abroad. There are alternative ways to provide for national security. We could stockpile steel. That is easy, since steel takes relatively little space and is not perishable. We could maintain some steel plants in mothballs, the way we maintain ships, to go into production in case of need. No doubt there are still other alternatives.” Milton Friedman, Free To Choose

“It’s far cheaper to stock pile oil than it is to maintain in existence oil wells that cost a great deal more to exploit then you can buy the oil from abroad. In any event, it’s always seems to be kind of a mystery about how you preserve the oil reserves in the United States by pumping it out as fast as possible.” Milton Friedman, Free To Choose

“If the international division of labor is carried too far, then we will find ourselves dependent on some other nation for some very strategic materials or products. If this supply were cut off, either by the supplying country becoming an enemy or through enemy action which prevented delivery of war material, our whole defense program could become ineffective.” Quoted from Lewis E. Lloyd, Tariffs: The Case for Protection

“It is a fine theory to say that if we are all dependent on other nations for essential materials and products, we will all know better than to start a war. Unfortunately, however, we cannot be sure that some other nation won’t start it. In fact, how more effective can a potential enemy be than to plan a trade program so that a given country would become dependent upon it for some vital products. When these products are cut off, the country would be an easy victim of because an essential part of its national defense would be missing. We should no more dismember components of our industrial base for national defense, as long as there is possibility of war, than we should disarm while the other nations of the world remain armed. Pacifism is a fine ideal, but not practical in the world of sovereign nations as we know it.” Quoted from Lewis E. Lloyd, Tariffs: The Case for Protection

The president of Toyota called the Korean War “Toyota’s Salvation” because the American military ordered 1,000 Toyota trucks per month. Quoted in Judith Stein, Pivotal Decade

“…the Western Hemisphere can be defended and that it will be the only ‘dependable’ source of the necessary critical materials during any all-out war.” Report of the Minerals, Metals, and Fuels Economics Subcommittee of the Senate Committee on Interior and Insular Affairs (July 1954)

During the 1973 Yom Kippur War, it was discovered that the US industrial base did not have the capacity to replace the equipment shipped to Israel rapidly.” Anthony Harrigan and William R. Hawkins, Putting American First

“It is a contradiction to think that we can maintain our position as a first class military power with a second class industrial base.” General Alton D. Slay, November 1980 Testimony to the House Armed Services Committee

There was a “serious decline in our economic base and in our leadership of the industrial world…problems which remain in the defense industry are, in fact, a sub-set of our overall economic industrial problems.” Secretary of Defense Casper Weinberger, 1983

Dependence on imported strategic goods would result in “…an adversary is to nibble at our worldwide resource tentacles and watch the fun. It need hardly be asked whether this scenario is not already in progress.” William P. Wadbrook, Economist and head of FEMA 1983 The Defense Mobilization Infrastructure

“The number of huge plants that have disappeared is almost unbelievable. It has been bothering me for some time. I don’t think we could exist for long in a regular war. If we started losing, we would have to escalate to nuclear war …because we would have no other option.” Richard Wolf, President of Ajax Industries

“While the US industrial base was experiencing its greatest decline in history, with detrimental effects on both civilian and defense sectors, the Soviet Union was rapidly expanding its industrial base, which is overwhelmingly dedicated to armaments production.” Secretary of Defense Casper Weinberger, 1985 Annual Report to Congress

“…the fact that needed manufactured products could be made offshore more cheaply…does not offer a viable alternative if we look at the potential reliability of these suppliers with cold logic. How secure would the nation be at the outbreak of a war if 50 or 60 percent of the goods, technology, production processes or equipment needed by this nation for mobilization had to be obtained quickly from a foreign source.” Robert C. Fabrie, senior fellow at the Mobilization Concepts Center at the National Defense University, 1985 Mobilization and National Defense

If foreign sources were cut off, M-1 tank production would stop, critical subsystems for the F-16 fighter would be delayed, and semiconductors for a host of aerospace programs would be unavailable.” Admiral Carlisle A.H. Trost Chief of Naval Operations, Testimony at the House Armed Services Committee, February 1987

While the US Army was strong and mobile, it “would run out of supplies after only a few months of intense fighting because there is no national production base to support it.” US Army Chief of Staff General John A. Wickham Jr., June 1987

Defense conservatives in Congress and arms specialists in private industry are expressing increased concern over what they call possible withering of the nation’s military-industrial ability to ‘surge’ or rise to the danger of a major crisis or actual war. American defense industry, a number of observers point out, is steadily if slowly shrinking while some major arms producers are speculating about ‘going out of the defense business altogether,’ as one industrial spokesman warned. Many specialists agree that if the trend toward neglecting defense industry is not reversed, the nation’s ability to respond rapidly to a major crisis could be seriously crippled…a future crisis might confront American industry with production tasks that it could not readily fulfill or at least not meet in time to stem defeat.” Free Press International 1987

“The apparel industry is diminishing rapidly and the textile industry is consolidating…These industries will not have the capacity to support mobilization within five to ten years if imports continue to increase at the same levels that they have for the past five years.” Lt. Col. Joseph Kermodle, Armed Forces Industrial College

 “…if West Germany were to move in a neutralist direction, which is a possibility given the outlook of the Social Democrats and Greens, what would be effect of the Bonn government’s policy on key German companies operating in the United States or supplying vital components to American firms?” Anthony Harrigan and William R. Hawkins, American Economic Pre-Eminence

The Reagan Administration sold off strategic metals in the US National Defense Stockpile and trimmed shipments of oil destined for the Strategic Petroleum Reserve. Once again, these measures were enacted for budgetary reasons.

Information quoted from Anthony Harrigan and William R. Hawkins, American Economic Pre-Eminence

“Even as the US was entering the Desert Shield phase of the mobilization, the Defense Science Board issued a series of reports warning that as control of critical technologies moves offshore, the US industrial base will be increasingly threatened by both the possibility of supply cut offs and the loss of access to critical state of the art technologies. In fact after the war the Pentagon admitted that we really did not know for instance how many Japanese semiconductors were triggering the military equipment being used in the Gulf.” John P. Cregan and Patrick J. Buchanan America Asleep

By 2001, the Defense Department purchased from Red China 618,000 pieces headgear for American soldiers that was worth $4 million. Information quoted from Washington Times August 01, 2001

Scott Gulbransen summarized with national security analyst Ryan Mauro the urgency and long term negative effects of deindustrialization and economic interdependence with adversaries of the United States:

Ryan Mauro: What are the implications of the common trend among US companies of hiring immigrants from countries, some of us see as potential enemies, like China, the former Soviet republics and Russia, etc?
Scott Gulbransen: The ramifications of moving all of our manufacturing jobs overseas are unknown but, in my view, it cannot be good. If an international war or incident broke out, we wouldn’t be able to produce enough goods and services at home to compensate for the loss of overseas resources. In reality, we’re all giving up economic freedom so we can buy items at Wal-Mart for less than we can elsewhere. We’re selling our souls to save a few bucks.”

At the time of the 2003 invasion of Iraq and the subsequent civil war, the Swiss company Micro Crystal AG refused to supply pie-zoelectric timing crystals for the guidance system of the Joint Direct Attack Munition smart bomb. Finally, one surviving American company was found to provide these crystals. The military was aware of this problem, but was simply overpowered by the political power of defense contractors who found that outsourcing was irresistibly profitable. Information quoted from Washington Times, July 24, 2003

The potential effects of this restructuring are so perverse and far reaching and have such opportunities for mischief that, had the United States not significantly contributed to this migration, it would have been considered a major triumph of an adversary nation’s strategy to undermine US military capabilities.” Department of Defense, 2005

Boeing outsourced its research and design projects to Russia under the neo-KGB dictatorship of Putin. TASS noted in 2005 that “Not a single new civilian airliner developed by Boeing over the last 3-4 years has been designed without the involvement of Russian engineers employed at Boeing’s design centre in Moscow.” Sergey Kravchenko, Boeing’s Vice-President for Russia and the CIS informed an ITAR-TASS correspondent of this at the MAKS-2005 air show: “The most interesting development of recent years has been the participation of Russian engineers and scientists in the development of the Boeing 787, 50 per cent of which will be manufactured from composite materials, therefore representing a new stride in the development of the world aircraft industry…roughly a third of the design work on the Boeing 777-300 had been done in Russia.”  The Boeing representatives said “over 1,000 Russian specialists” were employed at the Moscow Design Centre. Boeing also cooperated with over 400 Russian scientists in seven other Russian cities. Kravchenko noted that “Joint projects are advantageous to the US side, but they are just as advantageous to Russia.” Information quoted from ITAR TASS August 18, 2005

By the end of 2006, China produced 500 million metric tons of steel per year. Since 2005, China was a net steel exporter. In late 2006, China was the leading foreign supplier of steel to the United States. China used government money to purchase equity interests in offshore companies capable of supplying raw materials for the steel industry. Information quoted from American Iron and Steel Institute. Steel and the National Defense January 2007

As of 2011, Chinese-made components were used by an American supercomputer laboratory engaged in classified military research, simulated flight testing, and submarine warfare. Congressman Duncan Hunter (R-CA)

In 2011, the US Air Force bought 25 SR-20 aircraft from Cirrus Aircraft, which was owned by the state-owned China Aviation Industry General Aircraft Company. Information quoted from “Huanqiu: China Aviation Company Becomes U.S. Defense Contractor Huanqiu” July 11, 2011

 “…groups like the Club for Growth that advocate for open trade with China on ‘free market’ principles are operating in a policy vacuum, one that does not take into account national security concerns.” Quoted from a report authored by Brigadier General John Adams, Report for Alliance for American Manufacturing

“Unfortunately, at its own peril, the U.S. has become dangerously reliant on foreign suppliers of products, materials and technologies that are critical to our ability to prepare for, respond to and recover from manmade and naturally occurring disasters. This situation could present serious problems in the context of a catastrophic event, particularly one brought about by a creative adversary with a working knowledge of nodal analysis and our supply chain interdependencies, or a natural disaster with acute, far-reaching international supply chain implications.” Department of Homeland Security, July 2012

“Major security and preparedness concerns associated with America’s growing dependence on off-shore manufacturing vary greatly, including the following: Higher average and highly variable costs; Quality, design and performance problems; Lack of reliable product specifications and standards; Unreliable/uncertain supply in time of great demand; Just-in-time delivery, long lead times and extended construction schedules; Global economic volatility; Unknown off-shore vulnerabilities and cascading  impacts of system disruption;  Deliberate introduction of design flaws, vulnerabilities  or cyber ‘bugs’ into products and technologies key to U.S. national security; Suppliers associated with nations unfriendly to or competitors of the U.S.; Drain of high tech innovation, basic research and  advanced development from U.S. to offshore suppliers; and Huge investments required to restore capacity lost to offshore manufacturers. Additionally, hostile trading partners may make a deliberate choice to not supply needed products, materials or technologies during a time of domestic crisis. Relying on a potentially hostile trading partner in a time of need puts our national security at risk in many important ways.  Unfortunately, at its own peril, the U.S. has become dangerously reliant on foreign suppliers of products, materials and technologies that are critical to our ability to prepare for, respond to and recover from manmade and naturally occurring disasters…The defense industrial base sector suffers from a similar over reliance on products and technologies formerly made in the U.S.A. but now manufactured offshore based on the pressures from foreign competition. This situation is the result of many factors, principal among them being the fact that America’s domestic manufacturing capacity can no longer meet even some of the military’s most broad-based needs. These include things like: specialty metals, flat panel displays, hard disk drives, semiconductors, batteries, photovoltaics, machine tools, electronics components and information technology systems.” Department of Homeland Security, July 2012

As of December 2012, China produced 47% of the world’s steel, while the United States pro­duced 6%. China produced 90% of the world’s strategic rare earth minerals. Chinese overproduction drove American producers out of business. Chinese rare earth metals exported to the West and the United States included antinomy, mercury, and tungsten. These metals were used to manufacture microprocessors and cutting machine tools. China and the Russian Federation produced over 66% of American imports of vanadium. The United States also imported tantalum from Red China. Over 50% of the world’s indium was produced in China, with another 16 percent coming from South Korea. If North Korea invaded the South, the US and the West would lose at least 16% of their indium imports. Thus, global economic interdependence could potentially result in a supply chain breakdown as a result of a world war or an intense localized conflict on the Korean Peninsula. In fact, it appeared that Red China exerted leverage over nations which depended on Beijing’s imports. For example, in 2010, China halted rare earth shipments to Japan after a diplomatic incident. As of December 2012, China produced 47% of the world’s steel, while the United States pro­duced 6%. China produced 90% of the world’s strategic rare earth minerals. Chinese overproduction drove American producers out of business. Chinese rare earth metals exported to the West and the United States included antinomy, mercury, and tungsten. These metals were used to manufacture microprocessors and cutting machine tools. China and the Russian Federation produced over 66% of American imports of vanadium. The United States also imported tantalum from Red China. Over 50% of the world’s indium was produced in China, with another 16 percent coming from South Korea. If North Korea invaded the South, the US and the West would lose at least 16% of their indium imports. Thus, global economic interdependence could potentially result in a supply chain breakdown as a result of a world war or an intense localized conflict on the Korean Peninsula. In fact, it appeared that Red China exerted leverage over nations which depended on Beijing’s imports. For example, in 2010, China halted rare earth shipments to Japan after a diplomatic incident.

Information quoted from information provided by Brigadier General John Adams, Report for Alliance for American Manufacturing

After Cytec Industries discontinued pro­duction of BT (missile propellant), the United States military depended on China for that product. The United States currently depends on China for such key military hardware as Hellfire missile propellant, the lanthanum metal used in night-vision goggles, and the high-tech magnets required to manufacture military-grade Humvees, Apache helicopters, and Virginia-class submarines.

Information quoted from information provided by Brigadier General John Adams, Report for Alliance for American Manufacturing

“America’s vulnerability today is frightening…Excessive and unwise outsourcing of American manufacturing to other nations weakens America’s military capability. As a soldier, I’ve witnessed firsthand the importance of our nation’s ability to rapidly produce and field a sophisticated array of capabilities. There is a real risk that supply chain vulnerabilities will hamper our response to future threats.”  Brigadier General John Adams

United States is completely dependent on a single Red Chinese corporation for the chemical needed to produce the solid rocket fuel used to propel Hellfire missiles. The commercialization of rechargeable batteries has moved offshore along with new innovation capacity. The United States imports 91 percent of the rare earth element lanthanum, which is needed to make night-vision devices, from China. Production of high-tech magnets has migrated offshore to Red China.

Information quoted from Brigadier General John Adams, Remaking American Security: Supply Chain Vulnerabilities & National Security Risks Across the U.S. Defense Industrial Base

“Allowing our defense industrial base to keep shrinking and our dependence on foreign manufactures to keep growing will make America weaker, less secure, and less safe…As the U.S. pivots its defense posture to focus on Asia, procurement policies that allow, or in some cases encourage, sourcing of critical defense materials from China and other potentially unreliable suppliers don’t make sense. Self-reliance has always been an American virtue and the key to our nation’s success and prosperity. Manufacturing is important for job creation and a strong economy, and it’s also essential for our national security.” Scott Paul, Alliance for American Manufacturing

The five largest Russian imports into the American market included enriched uranium ($1.4 billion), oil ($19.4 billion), iron and steel ($1.6 billion), and platinum ($813 million). Information quoted from Office of the US Trade Representative

Even more incredible was the purchase of dozens of Russian-made Mi-17 helicopters by the United States for the Afghan military. The Defense Department believed that the Mi-17s were a superior helicopter compared to the American-made models. Even the pro-free trade Senator John Cornyn (R-TX) complained that “So why are we buying Russian helicopters when there are American manufacturers that can meet that very same requirement?..Makes no sense whatsoever and the Department of Defense has steadfastly refused to cooperate with reasonable inquiries into why in the world they continue to persist along this pathway.” Other Senators and Congressmen also reported that the firm which produced the Mi-17 sold weapons to thuggish socialist dictatorships such as Syria under the Ba’th Party President Bashar al-Assad. Information quoted from Christian Science Monitor December 7, 2013

As of late 2014, the US Air Force, NASA, and the National Reconnaissance Office (NRO) all used Russian-made RD-180 rocket engines. However, some in Congress sought to halt dependence on Russian-made rocket engines for spacecraft and planes. Congressman Duncan Hunter, Jr. (R-CA) noted that “An invisible battle is raging between those who believe the U.S. military should rely only on secure defense suppliers and those who are willing to turn a blind eye, in the interest of globalization, to the dangers of foreign dependence.” Information quoted from the office of Congressman Duncan Hunter, Jr. November 13, 2014

Red Chinese steel imports into the United States grew by 115% in 2014. Hostile powers such as Russia and Vietnam also dumped massive quantities of steel into the American market. Steel mills were idled in Texas, Missouri, and Illinois in 2015 as a result of the unchecked import surges. Information quoted from Manufacturing and Technology News March 31, 2015

In 1976, it was reported that a maquiladora factory in Mexico assembled electronic components for the Phoenix missile and other American military systems. Information quoted from Boletin Informativo Sobre Asuntos Migratorios y Fronterizos El Comite Mexico 1979

The Rockwell Inn Company in Nogales Sonora assembled electrical circuits for civil and military planes of the Rockwell International Corporation. Information quoted from Boletin Informativo Sobre Asuntos Migratorios y Fronterizos El Comite Mexico 1979

A maquiladora plant operating on behalf of Varo Enterprises of Garland TX produced night vision devices and weapons delivery systems for the US Armed Forces. Information quoted from L.A.W.G. Letter Volume 10 Issue 2 1988

A maquiladora factory in Mexico produced electronic training devices for the American military. Information quoted from Leslie Sklair, Assembling for Development

A maquiladora factory (AIRCO) produced electric inductors for the US military. Information quoted from Altha J. Cravey, Women and Work in Mexico’s Maquiladoras

General Electric repaired aircraft parts in Reynosa, while body bags for the US Armed Forces were manufactured in Piedras Negras. Information quoted from The Daily Texan, February 11, 2004

[1] The New Right in the 1980s opposed trade with the communist world and their supporters in American big business.

[2] Bain Capital was a firm involved with outsourcing production and labor to Red China. Republican Presidential candidate Mitt Romney was an executive in Bain Capital and was accused of encouraging such outsourcing. Bain’s record was effectively used by the Obama Campaign in 2012 to defeat Romney.

 

NEXT:  Part 3 of the series:  The Manifesto of Constitutional American Nationalism – Facts That Led Me to Embrace Constitutional American Nationalism

Nevin Gussack is a professional librarian, political commentator, and writer. His works appeared on the webpages of the Center for Intelligence Studies, Accuracy in Media, Economy in Crisis, and JRNyquist.com. He also appeared on America’s Survival Roku television program, WEI’s Make the Call radio program, and the veteran broadcaster Chuck Harder’s radio program For the People. Nevin received a double major from the State University of New York at Albany in History and Political Science. Since that time, he also received two Master’s Degrees in Social Studies Education from Florida Atlantic University and Library and Information Science from the University of South Florida.  Nevin is the Director of Bear Witness Central in the West Palm Beach area.

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