ERNEST F. HOLLINGS, former U. S. senator
2009 -- The perfect desertion is forming to take the nation down. The
politics of the President and the Congress, influenced by the politics
of the financial community, brews into the perfect desertion.
don't realize it or else they would force change. They know something
is wrong. But their belief in free enterprise and market forces is so
strong that they don't realize that in globalization the economy of the
United States is being decimated in a Trade War. Globalization is nothing
more than a trade war with production looking for a country cheaper to
produce. Japan started this Trade War after World War II by closing its
domestic market, subsidizing its manufacture, and exporting its production
at or near cost, making up the profit in its closed market. Later, China
not only closed its market, but took total control of its financing, investment,
production, labor, trade - now the internet. In response, Corporate America
off-shores our country's production, jobs, and economy.
and bonus crowd call for "free trade;" "don't start a Trade
War" to make sure that nothing is done to slow the off-shoring. "Free
trade," like world peace, is a desirable goal. Of "free trade,"
Henry Clay said in the United States Senate in 1832: "It never existed
it never will exist." Calling for "free trade" in
this Trade War is like calling for world peace in a "hot" war.
China control makes it the superpower in the Trade War and expecting "free
trade" in globalization is ludicrous. The loss of jobs results not
nearly so much from the recession, but overwhelmingly from the Trade War.
People waiting for the recession to end to find a job will have to wait
for the United States to jump into the Trade War and protect its jobs
Like a Southern Governor, China offers every inducement for foreign investment,
technology and production. China retains 51% control, and is so successful
in its drive for industrial development that it has now attracted the
research and production of Intel and Microsoft. The bailout and bonus
crowd say the reason for off-shoring jobs is our lack of education and
innovation. But the best of innovation is off-shored and, if I remember
correctly, Bill Gates never graduated.
The Council on Foreign Relations gives credibility to the off-shoring
by also calling for "free trade." The CFR hopes that "free
trade" will cause capitalism and democracy to take over communism
in China. But there's no chance of a country of 1 billion, 300 million
population going to one-man/one-vote democracy. Communist control will
continue for China to stay together as a country.
are only interested in making millions in China to enhance their
pay and retirement. Acting as a Fifth Column, they oppose our country
competing in the Trade War, for production would resume in the United
States causing them labor troubles and less profits. Thus, Corporate
America fights every attempt in Congress to regulate trade and compete
in the Trade War."
Ernest F. Hollings
S. must control its trade and protect its economy. Already China alters
its acquired technology and moves to patent it. When the patented article
is introduced in the vast China market, it will become the leader in international
trade. In a few short years when China needs to take back the foreigners'
49% investment to prosper the rest of its people, Corporate America will
return to the United States with nothing to produce. In fact, the China
price rules today. The banks won't make a loan to produce in the United
States any article that's traded in globalization unless it meets the
China price - the price of a competitive Chinese import. The cheaper import
would put the lender out of business and cause the loan to default.
The bailout and bonus crowd have no idea of creating jobs in the United
States. CEOs of large corporations foresee China's hegemony in the Trade
War and could care less about the corporation's future. CEOs are only
interested in making millions in China to enhance their pay and retirement.
Acting as a Fifth Column, they oppose our country competing in the Trade
War, for production would resume in the United States causing them labor
troubles and less profits. Thus, Corporate America fights every attempt
in Congress to regulate trade and compete in the Trade War.
Introduce a bill in Congress to enforce our trade agreements and coming
down on your head crying "free trade" will be Wall Street, the
big banks, investment houses like Goldman-Sachs, think tanks like the
Peterson Group, the Trilateral Commission, the Council on Foreign Relations,
the National Association of Manufacturers, the Business Roundtable, the
National Retail Federation, and the United States Chamber of Commerce.
This is the crowd that furnishes the contributions for the campaigns,
so Congress avoids its Constitutional authority to regulate trade.
In globalization, Corporate America can no longer produce for a profit
in America. The people fail to realize this. The people refuse to believe
that the National Association of Manufacturers is not for manufacture
in the U.S. but in China. People can't believe that the United States
Chamber of Commerce is not for Main Street, Peoria, but Main Street, Shanghai.
People believe the morning newspaper editorial for "free trade,"
not realizing that it's a handout from the local retailer who makes more
money on Chinese imports and whose advertising provides most of the newspaper's
profits. People can't believe that the President, spending trillions to
create jobs, could, at no cost, immediately save industries and create
far more jobs by taking advantage of the trade laws on the books. "Free
trade" is the neutron bomb in the Trade War.
Larry Summers is President Obama's Commander-in-Chief for the Trade War,
who acts like he invented "free trade." David Axelrod and Rahm
Emmanuel make sure the President keeps campaigning and ignores the Trade
War so the President can get contributions for the campaign. The President's
inexperience on trade is understandable. Under the Constitution, trade
measures must originate in the House of Representatives. And when a trade
measure reaches the Senate it is controlled in the Finance Committee,
and when considered on the floor of the Senate, fast track forbids amendments.
President Obama never had a chance in the Senate to learn about the Trade
War and does what Summers, the economists, the financial crowd, and the
Council on Foreign Relations tell him. Critical policy to protect the
United States' production, jobs and economy goes wanting. The U. S. heads
for a downfall.
To engage in globalization; to trade; to stop the off-shoring of production
and jobs; and for the economy to make a quick recovery, we can cancel
the corporate tax and make up the lost revenues with a 3% value added
tax. The average corporate tax is 27% and China has a 17% VAT, which is
rebated. Thus, the 44% incentive to off-shore to China is eliminated.
Millions of jobs are saved. Then enforce the provision in law that allows
quotas and tariffs to be imposed on imports so the nation can have a ready
production of items needed for our national security. Millions of jobs
are created. Another 1% would pay for health care reform, and another
1% would start paying down the debt - for a total 5% VAT.
But "free trade" politics cause the President, the Congress,
and the people to ignore the Trade War, allowing the perfect desertion
to destroy our economy.
of South Carolina served 38 years in the United States Senate, and for
many years was Chairman of the Commerce, Space, Science & Transportation
Committee. He is the author of the recently published book,
Government Work (University of South Carolina Press, 2008).
Ernest F. Hollings. All rights reserved. Contact
us for republication permission.
Ernest F. Hollings served
the public for 56 years -- 38 years in the United States Senate and as South
Carolina's governor, lieutenant governor and a member of the S.C. House of
Today, Hollings continues
to be influential in public affairs and offers this Web site as a compendium
of current and past positions on public issues. Learn
more about Fritz Hollings.
Hollings receives French honor
France honored retired
U.S. Sen. Fritz Hollings on in 2013 by awarding him the Legion of Honor for
his World War II service. More.
commentary via The Huffington Post
Please visit Sen.
Hollings' section of The Huffington Post where you can get an RSS of his
columns, subscribe by email or use social media.
here to learn more about Hollings' impressive and distinguished record
of public service.
the new book
University of South Carolina Press in 2008 published Making
Government Work, a new book by Sen. Hollings. Learn