In addition. our intellectual property laws (patent and copyright) guarantee a stream of payments from our trading partners in perpetuity that resemble tribute. And guarantee that our trading partners within the empire can never compete with the U.S. On an equal economic footing. Indeed. We cripple their ability to innovate and obtain patents of their own by hiring away their best and brightest at our overseas. Subsidiaries (thereby gaining ownership of their innovations) and by removing talented innovators. From their native lands through H1-B visas and immigration.
Why do they put up with this unbalanced system?”
First. they are reasonably comfortable for the time being. Largely because the United States debt balloon provides them with a large export job function email list market which allows them to provide employment for their people.
Second. because the dollar is used to settle so many trade transactions between nations other than the United States. non-U.S. participants in the empire are forced to hold very large dollar reserves – meaning that they have no choice but to buy our debt – so that they can trade with other nations (buy oil).
Third and last are the financial punishments.
A number of countries possess cheap labor and compete for the U.S. export market. Thus. we have the power to reduce access or close our markets to one country and open them to another and invest in that other country simultaneously so as to shift production from the country being punished.
Next. our Asian trading partners have much higher savings rates than we do. meaning that the capital structures of their companies must a book written by a finnish author have much higher ratios of debt to equity than ours in order to absorb and utilize that pool of savings. Thus. they become vulnerable to sudden withdrawals of foreign capital and attacks on their currencies despite their high domestic savings rates because of the leverage.
High savings rates create in their domestic
The inner party has demonstrated on many occasions that they know how to pull the rug out from under any country that allows in large amounts of alien investment capital. In Latin American economies heavily dependent on bahrain lists foreign capital. the rug pulling exercise is simpler than in Asia. After each rug pull. our imperial financiers buy up bankrupt companies at distress prices just as the IMF and the other emergency lending agencies (staffed by their brethren) make loans to the victim country thereby assuring that the distress purchases make huge profits for their new imperial owners.