A threat to the US economy "made in China"

The following paragraph sets the tone for what I want to say about Mitt later on, so bear with me!

As a student of finance, I am always intrigued with how candidates deal with economic issues. Currently, China is posing a huge threat to America's title of world economic powerhouse that they have enjoyed for the last 50+ years. China pegs its currency against the greenback instead of letting it float like most currencies do, and it does this primarily by purchasing and selling huge volumes of US government bonds and currency. Because their currency fluctuates proportionate to the green-back they can offer attractive labour cost and prices to American retailers, resulting in many manufacturing jobs being out-sourced so that Wal-mart can sell things cheaper (but hey, I can buy a TV for like 8 bucks!). American (and Canadian) companies that resist out-sourcing simply aren't able to land big contracts with retail giants (like Wal-Mart) and subsequently lose market share and eventually fizzle out of existence. Add the fact that China holds hundreds of billions of dollars (I've heard even over a trillion) of US bonds and currency, enough to significantly toy with the US economy, and there is a serious problem brewing. Increasingly more US ownership of companies, other equity, and bonds is slipping away from the hands of Americans and into the hand of foreigners (especially China). This, culminated with the fact that hundreds of millions of Chinese are moving into cities, causing an unparalleled surge of industrialization/growth in China, requiring a myriad of resources which are already scare. Currently the US is the largest consumer of oil, energy and other natural resources, but soon China will be hungrier and prices for these commodities will rise sharply causing major inflationary pressure on the US economy. Top this off with the fact that the savings rate in the US (and Canada) is atrocious, and dropping significantly year over year, lessening North Americans' traditional resilience to recessions due to savings put in store for a rainy day.

This is a real issue that will affect all Americans over the next decade and even further into the future. This is one of the biggest reasons that Mitt not only should, but NEEDS to, be president. There is no other candidate that can tackle this issue even half as good as Mitt. Why???

Because:

1) Mitt took Massachusetts out of debt and even helped them develop a handsome surplus. The US' government debt is growing at an alarming rate and so is its trade deficit (the US is importing more foreign products than its exports American products to others). I know that Mitt can do for America what he did for Massachusetts.

2) Mitt saved the scandal and debt laden Salt Lake Olympics and turned them around completely to make them a success. He has proven his success at handling crises under extreme amounts of pressure. Just look at a picture of any president before he was elected and one after his service and it is obvious that he has handled insane amounts of pressure. Mitt has shown that he can not only cope, but thrive under pressure. He has an amazing ability to turn any situation around, especially economically.

3) Mitt has turned many failing companies around and must have gained unique insight and experience from each one, making him better able to deal with various economic problems than any other candidate running, republican or democrat.

4) Mitt developed a state wide health insurance plan in Massachusetts (he actually DID this, unlike Hilary Clinton who just TALKS about it), helped to stop an outflow of jobs from the state and actually brought in 60,000 new ones (remember the China scenario - US jobs leaking away), and this 180 degree turn was done without raising taxes or incurring more debt (just think about how amazing that is).

5) Mitt has the idea to get rid of tax on capital gains, dividends and interest under $200,000. I cannot think of ANY way to encourage the average (not extremely wealthy) American to save money more than this. Furthermore increased savings will have a two-fold effect. First, it will prepare Americans for tough times of recession (through money put away for security) and prevent the economy from spiraling down more than it needs too. Secondly, when Americans invest, they take control of US equity and debt instead of countries like China. Who better to own American than Americans?

This man is EXACTLY what America needs, not someone who SAYS they'll do it, but someone who has actually DONE it. He has seen the problems that plague America on a smaller scale and it thus able to deal with them on a larger one. However, the only downside I can see to Mitt Romney is that he doesn't have Chuck Norris to manage the government's fiscal policy through fatal roundhouse kicks to the budget (this brilliant idea was already taken by Mike Huckabee.....no really that's actually his plan).








US debt - It's scary to look at, but there is nobody that can hack away at it better than Mitt.