Language Selection

English French German Italian Portuguese Spanish

Globalization's Next Victim: US

Filed under
Misc

President Bush says the U.S. economy is the envy of the world, and Federal Reserve Chairman Alan Greenspan insists economic growth is solid despite a bit of froth, but the truth is that the global economic scene is now more troubled that at any time since the trade wars with Japan 20 years ago.

The U.S. trade deficit was considered unsustainable at around $25 billion annually by the Reagan administration. It is now nearing $700 billion, an unprecedented 6 percent of our gross domestic product.

As a result, the U.S. economy is on life support. Our lifeline to finance this deficit is huge infusions of foreign lending, much of it from the central banks of China and Japan. Congress is calling for China's scalp, and Treasury Secretary John Snow is demanding that Beijing revalue its currency. The new U. S. Trade representative is promising to get tough with China just as I and other U.S. trade officials promised to do with Japan in the past.

Former Federal Reserve Chairman Paul Volcker is forecasting a 75 percent probability of a major international financial crisis within five years.

How, if the United States is the envy of the world, can we be having all these problems? Easy.

Although the world, as characterized by columnist and author Tom Friedman, is getting flatter as a result of removal of trade and other barriers, it is also being tilted at an increasingly steep angle.

Think of it as a sliding board, very flat and smooth but inclined to speed the move of production, services, technology, wealth and power from West to East and often from open, democratic systems to more opaque, authoritarian regimes.

In short, despite the miracles it has accomplished in the past and may bring in the future, globalization is distorting the world economy in ways that pose increasing risks to the United States and the rest of the international community. This is an issue that didn't make it onto the agenda of the world leaders at the G-8 meeting in Scotland last week, but should make it onto future agendas.

Part of what's wrong is illustrated in recent statements by the chief executive officers of Intel and IBM. In testimony to a presidential advisory panel, Intel's Paul Otellini said his company might build some future factories overseas. After selling his company's personal computer division to China's Lenovo, IBM's Sam Palmisano told the New York Times that he had gotten a blessing on the deal from China's top leaders and added that "IBM wants to be part of China's strategy."

Remember now, we're talking about Intel and IBM, two of the three or four top technology companies in the world, both based in the United States.

According to our elite economists, America's future lies with high tech - - with companies like Intel and IBM. Yet here are two of U.S. high-tech industry's top CEOs saying the future may lie abroad, especially in China.

Add the fact that U.S. trade in high-tech products has swung from a surplus to a deficit, and it is not at all clear that this country's future will be in high tech.

At the heart of the problem is the false assumption that all the countries in the globalization contest are playing the same game. They're not: Some countries have strategies, but others don't have a clue. The United States is in the latter category.

Full Article.

More in Tux Machines

FATHOM releases Crystallon

  • FATHOM releases Crystallon, an open-source software for lattice-based design
    Lattice structures are integral to 3D printed designs, and Aaron Porterfield, an industrial designer at additive manufacturing service bureau FATHOM, has developed Crystallon, an open source project for shaping them into structures.
  • FATHOM Introduces Open Source Software Project for Generating 3D Lattice Structures
    California-based FATHOM, which expanded its on-site managed services and announced important partnerships with Stratasys and Desktop Metal last year, is introducing a fascinating new open source project called Crystallon, which uses Rhino and Grasshopper3D to create lattice structures. FATHOM industrial designer Aaron Porterfield, also an Instructables member, developed the project as an alternative to designing lattices with commercially available software. He joined the company’s design and engineering team three years ago, and is often a featured speaker for its Design for Additive Manufacturing (DfAM) Training Program – and as the project developer, who better to explain the Crystallon project?

Kernel and Graphics: Machine Learning, Mesa, Wayland/Mir, AMDGPU

  • AI-Powered / Machine Learning Linux Performance Tuning Is Now A Thing
    A year and a half ago I wrote about a start-up working on dynamically-tuned, self-optimizing Linux servers. That company is now known as Concertio and they just launched their "AI powered" toolkit for IT administrators and performance engineers to optimize their server performance. Concertio Optimizer Studio is their product making use of machine learning that aims to optimize Linux systems with Intel CPUs for peak performance by scoping out the impact of hundreds of different tunables for trying to deliver an optimal configuration package for that workload on that hardware.
  • Pengutronix Gets Open-Source 3D Working On MX8M/GC7000 Hardware
    We've known that Pengutronix developers had been working on i.MX8M / GC7000 graphics support within their Etnaviv open-source driver stack from initial patches posted in January. Those patches back at the start of the year were for the DRM kernel driver, but it turns out they have already got basic 3D acceleration working.
  • SDL Now Disables Mir By Default In Favor Of Wayland Compatibility
    With Mir focusing on Wayland compatibility now, toolkits and other software making direct use of Mir's APIs can begin making use of any existing Wayland back-end instead. GTK4 drops the Mir back-end since the same can be achieved with the Wayland compatibility and now SDL is now making a similar move.
  • Mesa 18.1 Receives OpenGL 3.1 With ARB_compatibility For Gallium3D Drivers
    Going back to last October, Marek of AMD's open-source driver team has been working on ARB_compatibility support for Mesa with a focus on RadeonSI/Gallium3D. Today that work was finally merged. The ARB_compatibility support allows use of deprecated/removed features of OpenGL by newer versions of the specification. ARB_compatibility is particularly useful for OpenGL workstation users where there are many applications notorious for relying upon compatibility contexts / deprecated GL functionality. But ARB_compatibility is also used by a handful of Linux games too.
  • AMDGPU In Linux 4.17 Exposes WattMan Features, GPU Voltage/Power Via Hwmon
    AMD's Alex Deucher today sent in the first pull request to DRM-Next of AMDGPU (and Radeon) DRM driver feature material that will in turn be merged with the Linux 4.17 kernel down the road. There's some fun features for AMDGPU users coming with this next kernel! First up, Linux is finally getting some WattMan-like functionality after it's been available via the Windows Radeon Software driver since 2016. WattMan allows for more fine-tuning of GPU clocks, voltages, and more for trying to maximize the power efficiency. See the aforelinked article for details but currently without any GUI panel for tweaking all of the driver tunables, this WattMan-like support needs to be toggled from the command-line.

Wine and Ganes: World of Warcraft, Farm Together, Madcap Castle, Cityglitch

Security Leftovers