Whydestiny.com

IN GOD WE TRUST

A piece of news saying that our big businesses are raising fund by creating loan in the low interest environment that government provides but not create Jobs. A rail road company, Norfolk Southern Corporation issued 2.3billion dollars bond with a term of one hundred years and pay only 5.95% interest rate. Michal Soft issued 47.5 Billion dollars three years’ bond by paying 0.875% interest rate only. In 2010 business loan are 488 billion dollars, 7% higher than figures in 2009. Companies raise fund in this way to buy back their stocks and that is why the stock market is going up. The cash they are holding now is 6.1% of their asset, the highest rate since 1964. Even though funds that they invested in the equipments and soft ware increased 20% than 2009, the amount was still lower than what they spent before financial crisis. Businesses now have 1.6 trillion dollars cash in hands and American short of 15 million jobs. The low interest environment government creates actually sacrifice publics’ benefit, particular those senior people who living on their interest income. Banks give loan to big businesses that are not intent to create jobs and wouldn’t give hands to small businesses that need funds. The whole picture shows our government’s 0% interest policy is actually failed.
Without the trust and co-operation from our businesses U.S government’s forcing RMB up cannot bring jobs back to the United States. If Chinese RMB is too strong to create profit our businesses will move their factories or place their orders to India, Vietnam, Cambodia, Philippine. It is obvious that U.S Government cannot force all the countries in the world to raise their currency rate to meet the United States’ requirement.
Forcing other currencies up is rude. All we need is having our jobs back. Other countries can ask why you don’t reduce your salary to meet the competition. At the time we signed contracts, we allowed developing countries gain only 5%-10% profit from their productions and take advantage from their low price products. RBM has gone up more than 20% all these years. That means their profits actually are all gone. Forcing their currency up is just like we reducing our debt by paying nothing. Robbing people in this way cannot solve our unemployment problem because many other countries are waiting to import their products to the United State. We cannot force all of them raise their currency rate.
The only way to reduce our trading deficit is to increase import tax. That will bring in income for our government directly. If it creates Wars in Trading we will prepare for that war. Free trade is not fair in the beginning. We are so dependent on market consumption. How can we open our market when currencies rate and people’s living standers are so different in this world? Free trade is business people design for gaining more profit. The end result is that poor countries being exploited and the consumers being fooled. Developing countries have their bottom line for the price of their productions. Increasing import tax mostly means decreasing our business companies’ profit and creating inflation in the United States. We have no choice but tie our belts. Government cannot rely upon private businesses do something for our society. We have to directly collect funds from them by increasing importing tax. We can announce proudly saying that we do this for preventing dollars down. We will tie our belt instead of creating debt because create debt means printing dollars. Such a policy will benefit the whole world. We take our responsibility for we remember what we print in our bills—IN GOD WE TRUST.