There is no gas shortage...

superchuck500 said

I agree, but that it overly simplistic (as I'm sure you'd concede).

Part of the equation is that we willingly consume products from external sources because its cheaper that way. China is the perfect example of this. We could actually make most of the things we buy from China. But it isn't economical.

For a fascinating look at the economic relationship between the U.S. and China, read this article (I swear I'm not working for Atlantic, the two cites are a total coincidence).


Full Article - strongly recommended if this interests you-
The $1.4 Trillion Question

Click to expand...

Is it really simplisitic?

I'm not arguing the economic efficiency of offshoring production, lowering costs, etc.

I'm more getting at the scale of consumption financed on debt and easy credit -- and the erosion of savings:

http://www.breitbart.com/article.php?id=d8ff6d700&show_article=1

http://www.msnbc.msn.com/id/11098797/

That is more of a problem than globalization. But when it is combined with globalization it builds up enormous financial imbalances in the international financial system and undermines your own freedom of action.

When you put on top of that the fact that the biggest borrower who is very dependent on credit likes to lecture and preach to the countries that lend to it and sustain its consumption, you can foresee the possibility of some tense scenarios of conflict developing in the future.