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  • Morning Bell: Is the Age of America Coming to An End?

    A dire prediction hit the news yesterday: A date has been set for the end of the “Age of America,” — i.e., when China’s economy will overtake the United States. The news comes by way of an International Monetary Fund (IMF) forecast that shows China’s economy surpassing America’s by 2016. Though there are reasons to question the IMF’s conclusions, it is true that if the U.S. does not get its fiscal house in order, the era of American leadership will be over.

    Columnist Brett Arends writes in MarketWatch that China’s evolution into an economic superpower will spell the end of America’s economic dominance on the global stage:

    The actual date when China surpasses the U.S. might come even earlier than the IMF predicts, or somewhat later. If the great Chinese juggernaut blows a tire, as a growing number fear it might, it could even delay things by several years. But the outcome is scarcely in doubt.

    This is more than a statistical story. It is the end of the Age of America. As a bond strategist in Europe told me two weeks ago, “We are witnessing the end of America’s economic hegemony.”

    The Heritage Foundation’s Derek Scissors, Ph.D., notes that the IMF’s prediction that China will surpass the U.S. by 2016 might be a bit early, given that it is based on trends, whereas economic performance is all about a nation’s resources and policies. China’s economic growth could stall, or the U.S.’s could speed up. What’s more, like many predictions about the growth of China’s economy, the IMF uses “purchasing power parity” to try to compare the United States and China – resulting in potentially misleading conclusions. However, Scissors says that there is an overarching lesson to be learned from the IMF forecast:

    The IMF’s assumption that our economy will be weak indefinitely is all too reasonable. China might run its economy into the ground, but we are running our economy into the ground. Reasonable people can sharply disagree over what to do, but what’s killing U.S. leadership is obvious to the IMF and anyone looking at the global picture: our budget deficit.

    The picture of America’s economic house is a dismal one, with its escalating debt and out-of-control entitlement spending. There is a silver lining for America, though. Scissors points out that China has considerable economic weaknesses like low income levels, resource depletion and high unemployment, whereas the U.S. has comparable strengths and is poised to remain a global leader:

    If we do get our act together, we will stay far ahead of China where it counts most: in wealth, in employment, in technology, and so on. The United States is richer, has far more productive workers, and far more in the way of natural resources than China. The only way we stop being the global economic leader is if we blow it.

    And that’s why the next few months are so vitally important. As Congress begins debate on whether to raise the debt limit and how to curb spending, Members must realize that their actions have serious implications for America on the global stage.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    70 Responses to Morning Bell: Is the Age of America Coming to An End?

    1. Kevin H, college par says:

      So are you saying an economy from a Communist-led country is going to overtake the United States economy?

      For anyone to think that one country will remain on top of the mountain forever is a little naive – and has not paid attention to history.

    2. Tony, Brick, NJ says:

      Agreed.

    3. Mary............WI says:

      You have to wonder if elected officials truly realize what's at stake if the USA does not stop spending and borrowing……Paul Ryan and many other republicans do, Tea Partiers do and I'm sure many other Americans do as well. The question is will the majority of the elected politicians make the right decision to NOT raise the debt ceiling until this country's spending is under control.

      I don't want to be like the European nations so deep in financial debt that they can't find their way back to prosperity and freedom. I don't want to be dependent on the US government for my every. Never in my lifetime did I think this country would be in such a mess….I'm 60. It is very sad to see our once GREAT country slowly shrivel up….our emblem in the strong bald eagle will soon be replaced by the common buzzard….and STILL many Americans don't get it….some politicians don't get it…..Obama doesn't get it! We've become a country of "I want what I want when I want it" no matter what it takes…but there's not much left to "hand out"…..the taxpayer is tapped out. 2016 is NOT that far away!

    4. Sam Thomsen, Raleigh says:

      "what's killing U.S. leadership is obvious to the IMF and anyone looking at the global picture: our budget deficit."

      It's not the deficit! It's the spending! To single out the deficit is to imply that the problem can be fixed with additional revenue. It can't, because the problem isn't the shortfall, it's the excessive spending!

      http://amateurpundit.blogtownhall.com/2010/04/14/

    5. Jeff, Arizona says:

      This is all great information. The single best thing we could do now to forstall or completely eliminate this liklihood is to get Obama out of office.

      So, why do we have John McCain and Lindsay Graham supporting Obama on Libya during his re-election campaign, a time when Obama's trying to appear to voters to be "strong on defense"?

      No one has explained what vital national interest in Libya requires our military intervention. You would expect that a Democrat would neglect to do that, but if McCain has told us, I haven't seen it reported anywhere. So why are the two Republican senators supporting him instead of asking what we're doing there and demanding that Obama bring our troops home?

      It looks to me as if McCain and Graham would prefer that Obama remains in office rather than see a conservative elected to the office of the presidency. This tells me more about the Republican "establishment" than anything else I've seen to date. They're truly "Democrat lite". They need to go.

    6. Robert, North Richla says:

      Mike, great question! But your republican readers don't want to hear any of this. They just need one more chance to "make government smaller" after 33 years of failure. Why are we blaming China? Is it China's fault we have over 100 million welfare recipients? Is it China's fault we have over 12 million people collecting permanent unemployment benefits (2-3 years)? Is it China's fault that our hedge-fund speculators have driven oil prices back up to $112 per barrel? Is it China's fault that our government (combined state and federal) takes 43% of our GDP? Is it China's fault that we saddle our employers (and small businesses) with 17% payroll taxes and burdensome regulations? No, stop blaming China. And don't kid yourself about productivity. Chinese people work 10-12 hour shifts 6 and 7 days per week. That is 10-12 hours of work, not Facebook, e-mail, texting and internet browsing – where American employees waste up to 3 hours per day. The kindergarten productivity analysis (cited by Heritage and Rush) simply divides total sales by the number of U.S. employees. So, a company like Watts Water Technologies (or GE, or thousands of other U.S. companies), that ships several thousand jobs to China, looks very productive. But, in fact, their U.S. employees are not producing more – but their 500 -800 Chinese replacements are extremely productive – with zero payroll taxes; zero workmens compensation; and zero wrongful termination costs. Don't distort the facts. You can still make an excellent case for the end of America.

    7. Pragmatic in Texas says:

      If the worst happens, and Obama is re elected, you can be guaranteed it is the end of the age of America. It has become patently clear he does not believe in an exceptional America, and wants to see self reliance squashed, so we can achieve his Marxist dream of everyone being the same, with no hope of betterment and achievement.

    8. Jimmy Guana Florida says:

      Our spoiled Nation is way too eager to accept new normals. It has no reverse perspective. Why is human nature so blind that it cannot learn from the lessons of history? We are headed the way of the Roman Empire. Just as fires are necessary to clear a forest, so only complete destruction and hardship is the only reality that men seem to understand. Pruning our nation back to health will only lead to a clamor of many hands grabbing for the shears and arguing about how much of the branch to lop off.

    9. John Olofson, Graeag says:

      Depends on which comes first, USA's bankruptcy or the meltdown of China's managed economy and/or civil rights revolution.

    10. harley spoon says:

      Yeah, our age is coming to an end because the right wing is turning our nation over to the corporate fascists faster than Mussolini could come up with the word "fascist"…When the Dems say, "let's rebuild and maintain our infrastructure…", the right wing says no. So our power grid is antiquated and falling apart. Our bridges, dams, water systems and sewers are crumbling. The right wing refuses to allow development of a high speed people moving and freight rail system. The right wing advocates neglecting our people just as much as we are neglecting the other things that will keep us in the game of get us back in the game before it is too late because their narrow scoped ideology is more important to them than the progress of the nation.

      By contrast, the emerging nations of the world are charging ahead building their infrasturucture in preparation to out compete us in every possible way.

      History has proven that when the reactionary programs are imposed by right wingers, our debt rises, our infrastructure crumbles, our influence in the world declines and our nation falters…

      Since Ronald Reagan, our nation has been brainwashed to think we can govern the nation of 2011 the same as we governed the nation of 1811. That lunatic notion is destroying our Great Experiment in self government and turning it over to the corporate statists (fascists) who care nothing about the American people, democracy or capitalism. The Heritage Society–a pawn and prostitute of the corporate statists–is a willing contributor to the demise of the USA at home and in the world.

    11. Ray Speicher says:

      China grew strong because of capital and technology sent from American companies. Americans were willing to buy cheap goods made with slave level wages. We love Walmart and won't pay for American union made products. Is anyone really surprised? We want short term results and are losing our values. Communists in China have played their game well and will be a ruthless overload as they grow in dominance.

    12. Bernard P. Giroux, S says:

      A few years ago, Business Week Magazine asked the question on-line: "Has Wal-Mart hurt America?" or something close to that. I answered the question and Tony Bianco, a business news editor, who wrote a book about Wal-Mart, asked me to set up interviews with members of the textile industry around Fall River, MA. What struck Mr. Bianco in my note to Business Week was the last sentence in my note: "We are all going to end up washing each others toilets, eating at McDonald's and shopping at Wal-Mart, because that is all we can afford to do." In my opinion, we are rapidly heading there and, if the budget and the Federal Reserve do not get under control, it will become the truth, not just a speculative opinion.

    13. Gregory Kasper, West says:

      Blessings or the lack therof (cursings) are listed in Deuteronomy Ch 28. They are conditional upon our moral levels, or lack thereof.

      So, if it seems that we are losing our Blessings, as England already has, then it's time to clean up our act on our individual basis or National basis.

    14. Pat Finch Al. says:

      yes it may be true that China will surpass the US but they don't have the enviormental rules that are set upon us. That is why the corprations move out of the US to other countries and also cheap labor is another factor. If they were made to live under the same rule we are forced to live and work under it would probably level the playing field and everyone would prosper.

    15. Pat Finch Al. says:

      if china was made to live and work under the same enviormental rules as we do then the playinf field might level out and things would be different.

    16. bankalchemist, NYC says:

      during my lifetime I never thought I would see the fall of communism, but after awhile folks can not eat tanks and they were starving. but none the less that was on the scale like going to the moon. here again I never thought America would find itself in a discussion about losing its #1 position as the worlds economic power. Not that quality can not carry us and that we have lost just yet, 2016 is the projected year, but to think they have the numbers base to do it and the drive for self accomplishment. We may not win this race. bankalchemist.

    17. Gordon, Jonesboro GA says:

      On this subject no one seems to consider population differences. Certainly if individual wealth in China were to equal that of the USA, China's economy would be far larger than the USA's, but would their citizens individually be better off? Already the economic rise of some of their people is raising the specter avarice among those whose economic well-being is not rising. In fact, because of China's political system it may become a far difficult problem than we have made it in the USA.

    18. RD Goldsticker says:

      I am confident beyond a reasonable doubt that America will remain the very best country ever after this lull in our economy and a return to the values of our Founders—no doubt!

      "I predict happiness for Americans if we can keep the government from wasting

      the labors of the people under the pretence (sic) of taking care of them."

      —Thomas Jefferson

      "That we receive easily, we esteem lightly."—Alexander Hamilton

      Best regards,

      RD Goldsticker, MD

      Design Logic by Raphael, Inc

    19. Don Ruane says:

      Sorry, I do not accept the dire prediction of the viability of the United States of America.

      We have a simple problem, "Spenting more then we take in".

      The simple solution to this problem, cut the Federal Government budget by 50% and reduce the Federal Government workforce by 50%, works every time it has been tried.

    20. 2dokie says:

      At what point do the rest of the Washington occupants sober up to the fact that the admin. and the Dumbocrats are hell-bent on destroying this nation for their own political power. The EPA needs to be defunded into oblivion, and the halucinating halfwits that obsess over carbondioxide for whatever reason need to be reprogrammed to accept the fact that the problem doesn't exist. The Pres. needs to use some REAL experts to plan his headlong plunge toward so-called green technology. He's going to need coal to mine and refine all the copper for all those electric cars he wants, to use all the power supplied by all the wind-generators that will also require thousands of tons of copper. Oh, yes, he'll also need a lot of domestic oil production to supply all the synthetic composites to make all the bodies for those little cars. Its glaringly obvious noone in the admin. has thought that far ahead… their stuck on the deep ideological problems of squaring their obsessions with reality…no that's no problem either……

    21. Leon Lundquist, Dura says:

      I wouldn't trust data from the IMF any further than I could throw it! Top of my head, China is one fourth the Economy of the US. That's crazy talk from the Extreme Left, unless of course you know the Kloward Piven Gang are bringing the United States Economy down! Like really soon! So it isn't really China surpassing the US, it is what the pieces look like after The Crash! It makes me sick America has funded the Lion's Share of the International Monetary Fund! It makes me sick They got the Bail Out funds! These crazy Liberals have done everything in their half vast power to Run America Down! I am not grateful for our IMF to undermine confidence in our Economy! Is that what we paid Billions of Dollars for them to be doing?

      Defund the IMF! We make those European Socialists look good! But Hell! They can't even afford to Defend themselves! Are you kidding? It is true it isn't the only thing wrecking our American Markets! But it is one of those things when so called 'experts' are paid (by us) to run down our prospects! Look guys! I'm not baffled! Donald Trump is right about America getting "Bad Deals" all across the World! When they should be grateful? The IMF is busy colluding to wreck the Dollar! While you are at it, Defund the United Nations!

      Socialism doesn't work. When America falls? China falls! Hard! We have propped up too many Socialist Governments! Their failure is inevitable! And why? They don't credit the Human Spirit! And what a Power that is in a Free Market! Give Obama a couple more years? America will fall!

    22. Lee-White Tanks AZ says:

      Lets look at some numbers (2009):

      1. US Population 307 million

      2. China Population 1.3 billion

      3. US GDP $14.2 trillion

      4. China GDP $5.0 trillion

      5. US GDP per capita $45,989

      6. China GDP per capita $3,744

      Simplistically the two economies would be "equal" when the two GDPs are equal. Setting them equal at the current time would make the key numbers look like this:

      1. and 2. no change

      3. US GDP $14.2 trillion

      4. China GDP $14.2 trillion

      5. US GDP per capita $45,989

      6. China GDP per capita 14200billion/1.3billion = $10,923

      Yes, the GDP are equal and to some doom and gloomers this might potend the "end of the American" dream. But looked at from the view point of the individual citizen of the two countries the numbers tell a far different story. Keeping population constant the individual in the US participated in an economy generating 45 thousand dollars per person. The individual of the Chinese economy is at 10.9 thousand dollars per person.

      It is absolutely absurd to say that when GDP are equal the "economies" are equal. That said, the path the US is presently on, the rapid abandonment of technological leadership, of financial leadership, of a huge manufacturing base, and conversion/submersion of the economy to a globalist Socialist (collective) will result in the loss of the US as we know it. This is up to us.

    23. Frank, Florida says:

      End of the Age of America? Yes, coming sooner rather than later! Could the outcome be changed? Yes, but politicians in Washington are more interested in winning re-election & appeasing the uniformed (& misinformed) American voting majority & in paying off big campaign donors rather than in doing the right things for the USA long term. It's all about short term gain & even though the day of a financial collapse of the USA & US Dollar are close at hand, it's still pretty much politics as usual and there is not much real daylight between big government Democrats & big government Republicans.

      If anyone was listening closely to Hannity's interview of Ron Paul last night on TV, did you catch the answer he gave as to if Congress would really cut the budget? His answer was yes, but not until we have gone bankrupt & then we will be forced to cut it whether we like it or not! I could see in Ron Paul's face that he has given up hope that the voters would ever take his 30+ years of warnings about the financial problems this nation faces seriously. At least the majority of voters won't take them seriously until it is too late, when disaster hits.

      I posted in the comments page yesterday the important numbers pointed out by my financial advisor as to what Washington needs to do to avoid a financial disaster & the bottom line was: cut IMMEDIATELY $1 out of every $3 of the Federal budget, pay off Treasury Bills/Notes/Bonds as they mature & stop issuing any new Treasury Bills/Notes/Bonds. In other words, not just balance the budget, but start to significantly pay it down. Also, the Federal Reserve must stop any more printing up of "funny money" (any more "Quantitative Easing", "QE").

      With the end of QE2 on June 30th & no more QE's scheduled (for now), it will be interesting to see what happens on the auctioning block of more Treasuries to finance our continuing debt. China recently announced it will unload $2 trillion (out of $3 trillion) of its foreign exchange currencies that it has accumulated (with US Dollars being the biggest past). Japan is recovering from its recent disasters. China & Japan were the #1 & #2 buyers of US Treasuries (except for the Federal Reserve recently due to its QE policy, which was buying 70% of it at an artificially low interest rate). With neither the Federal Reserve, China or Japan buying new US Treasuries, who will buy them & at what interest rates will they be bought?

      The End of America scenario is coming into focus. Our time & options are fast running out. But for Washington politicians & most American voters it is still short term gain & business as usual!

    24. Mike from Long Islan says:

      Well, if "the Age of America is coming to an end" then maybe, I won't have to listen to all those pompus financial commentators proclaiming that their programs are "coming from New York City, the financial capitol of the world!".

    25. JACK TILL Santa Fe N says:

      I have no confidence that our political leaders will put the USA ahead of their personal re-election efforts. As Lilliy Tomlin said,'I try to be cynical but it's hard to keep up"

    26. EON says:

      Our problems are obvious, and the people are apathetic, but the Chinese economy is a paper tiger. It has no substance because it was created by the west. As their cost of business increases with increased wages, the production they are doing will move to another country. This is just another phase in the world economy. We were worried about the European economy buying up so many US companies, then it was the Arabs, and then it was the Japanese. Our major problem in the US is our government. It continues to increase barriers to rebuilding the economy. Who is John Gault?

    27. Christopher Popham S says:

      Regrettably, Congress is paralytic to effectively forge any legislation that would

      help to heal and restore the economy of this once great nation.

      We shall likely be indebted to China for decades, and in the meantime, they will

      continue to enjoy a burgeoning economy, all at our expense.

      America is on the cusp of dissolving fiscally/economically.

      Congress and the White House do not care a wit about the fate and destiny of

      this country. Jointly, they have demonstrated this over the past 35 years.

      Some are finally seeing the light as their lot in life and that of their progeny diminshes. But it's too late. It is time for the 21st Century American Revolution

      to take place…..in whatever form necessary to get America back on track.

      GOOD LUCK, AMERICA.

    28. Lloyd Scallan (New O says:

      Thank you Obama. I'm sure you, Michelle, and the two childern will be very happy

      living in a Red Chinese controled country.

    29. Randall Scott says:

      This article is difficult to read! It's like watching an old friend die. Now that our experiment in Democracy is over, welcome to Obama's America: The Socialist States Of America

    30. Margaret says:

      paying ytat the age of obama is close to the end……

    31. toledofan says:

      I think that until the scoundrels are removed from office we're going to get more of the same. It's obvious that no matter the data, history or available information, the Democrats are hell bent on continueing on the same path of spend, baby, spend. The Republicans don't have the votes, plus, they lack the real leadership to get the ball moving in the right direction. Basically, the Republicans don't have the nerve to be real Conservatives. So, life will go on, people will be miserable and the main stream media will continue to provide cover for Obama and his administration. What is really sad in all of this is the blood spilt over the past 200 years to forge our freedoms is all being wasted because of a ideology we know doesn't work. It's clear, to me, that the Democrats can't be trusted with managing the economy, the government, or the military and as long as they are in power not much will change.

    32. Kenneth Haapala, Fai says:

      One item that is systematically ignored is that the Federal, state, and local governments are aggressively squandering resources under the false claim that spending money will create jobs. Certain government expenditures, such as the Interstate Highway System drove down the costs of transportation, increased productivity, stimulated employment and economic growth.

      All too often, today’s government expenditures decrease productivity, resulting in overall job destruction. For example, subsidies and mandates replacing reliable and affordable electricity from coal with unreliable and costly electricity from wind reduce productivity and are detrimental to employment and the economy.

      Kenneth Haapala,

      Exec. VP, SEPP

    33. Yellowbird says:

      Mr. Obama – you mislead too many Americans with your lies and fabrications to get elected. You have completely failed at every turn for two years running, due to ignorance or perhaps, purposely. Americans will pay for your incompetent actions for years to come. Please step down now, or will you insist on completely destroying this great nation which, was built by many brave and creative people.

    34. Susanna Pyron Floren says:

      With all due respect, China is building infrastructure in Africa too. Africa is almost three times larger land mass than the United States with natural resources galore. There are many Chinese Christians which will strengthen the character of the Chinese people so that free enterprise can be successful there.

      We in the U.S. need to remember our Christian founding. Our schools are a mess without the center focus on Christianity we are doomed.

      God bless you for your work.

      Susanna

    35. Judith in Michigan says:

      The bigger and more important question is whether this decline of America is being done by stunningly inept politicians or it is being deliberately done. When we have that answer, we can then deal with correcting the situation.

      It would be very interesting if The Heritage Foundation did a study on the ramifications to the United States if China did surpass us. What would happen to our economy, our way of life, our security, our future, the entire global community, etc?

      I have a feeling most Americans would not be very happy with the report.

    36. Nicholas Fitzgerald, says:

      I agree with this article. I think we need to remember that we don't have control over anything really at this point. All we can do with our house majority is, if our leaders have the cojones to do it, block any further fiscal insanity. What we really need to focus on is 2012. The candidate field will sort itself out as it always does, but we need to keep the pressure on Obama and the Dems. Right now there is no way Obama could win the election, but that's not good enough. The test is in Nov. 2012, not right now. We need to defeat more than just Obama the candidate, we need to defeat, finally, the ideology that makes a President Obama or Speaker Pelosi possible. Never again must people at such odds with the American Ideal be elected to leadership in this country. We just can't afford to make this mistake again.

    37. Doug Whaley, Lake Ha says:

      Dear John Boehner,

      Yes John this is a "Dear John" letter. Your rant about the oil company's profits recently confirmed for me where you really are on the political spectrum.

      Complaining about oil company's profits and declaring they should be paying more to the government and declaring we will need more revenue as well as spending cuts to help with the budget crisis puts you square in the Democrats camp. As a matter of fact Barack Obama I believe as well as Democrat talking points say exactly the same thing. Are you on the list to get Democrat talking points? A conservative would have suggested that the government should allow more drilling so more of the profits could be used to find and develop the flow of our own oil. And by the way didn't you vote to subsidize these same oil companies and vote for the pathetic ethanol program both of which cost the tax payers billions every year? Looks to me you are a supporter of democrat crony capitalism.

      So John, since you have shown yourself to be a big government liberal we are parting ways. The only way you can help this country now is to resign. Not just as speaker but also from congress. You are more of a hinderance to solving the budget crisis than a help and worse yet you claim to be a conservative but act like a liberal.

      Goodbye John,

      Doug Whaley

    38. El Gordo WA says:

      Being No. 1 is not necessarily or always a good thing in and of itself. And not being No. 1 night not be a bad thing. We economic serfs need to know the implications, the consequences. Could the economic experts at Heritage spell it out for us please? What are the specific problems that will result?

    39. randydutton says:

      China has a few problems. Their population bomb will soon go off. They have many more men than women, which will sow unrest. Because of the one-child law, they have an aging population, which will reduce the productive workforce and increase the dependency population.

      India on the other hand has a youthful population and is growing rapidly. It will overtake China as the most populous country. It speaks English, has a thriving democracy, and may become the better future business choice unless China has another cultural revolution that allows more freedom.

    40. MN J says:

      If we continue to elect the "victim and control" crowd, China will win – why? They have a lot of governmental experience with the control thing/ However, if some of our people manage to develop a backbone, well, we could come roaring back. We'd need to get rid of laws that stifle creativity and finding real energy sources but we could do it.

      Question is, are there enough Americans left with this mindset or have 40 years of victimization, social justice, and everyone and everything is equal education wiped out this ingenuity, drive, and constant improvement?

    41. R. Patrick Gilson says:

      Dear Heritage,

      You should know better, for now as never before America has its greatest need for leadership and we are expecting to have a major dose of it from our Heritage foundation. The problem here is ‘justice’. Every nation or even group and especially family, etc., requires ‘justice’. God himself demands ‘justice’ for it is one of the founding pillars of goodness and righteousness.

      Hopefully most Americans know that some very bad actions have been going on within Obama’s dictatorship which are not good or right but are indeed wrong, evil and corrupt. These corruptions were most certainly within America’s elected politicians well before Obama became President and that’s all the more reason and necessity to improve things! ‘Justice’ is that necessary capability which is essentially required to be applied to any circumstances which comes to light within our culture where there is the possibility and concern that something wrong or evil or wicked or sinful or criminal might be happening. Like for example serious misleading lies, spending vast amounts of money that America does not have, printing vast amounts of new money that has no true financial value, the immoral usage or assigning of vast amounts of government money to corrupt improper efforts to harm America and its people, the crimes that were covered up and ignored for the operations of planned parenthood, etc. the cover up of the criminal actions of some of America’s elected officials as in the case of Barney Frank, Chris Dodd and their associates, in their Fannie May & Freddie Mac fraudulent mortgage crisis causing financial destruction upon America with no ‘justice’ applied. America has an endless list of crimes for which nobody was ever found guilty!

      Our hope is to remove Obama in the next election. This requires that America can be reformed or renewed or somehow restored back to the America that was first founded, which most assuredly includes ‘justice’. This cannot ever be accomplished without first establishing America’s need and return to ‘justice’. Notice that America’s ‘justice’ has been quietly removed to an unknown place, while our vast increase in immorality is showing up everywhere. America got to where we are because of our increasing immorality. Notice how the Democratic Party has the biggest footprint in its platform to control and mold the Justice of all American judges placed in power. Is this proper for America?

      Continued success, Patrick. Member # 3363785

    42. Steve Cafaro Fort My says:

      I agree the USA will soon be displaced as the economic leader. And although the National Debt certainly is part of the calamity, there is a greater malaise that is most responsible for our decline.

      For close to 40 years, our governement and business leaders have embraced a flawed economic policy that has encouraged the export of tens of millions of jobs, thousands of factories and complete industies. Although this policy is generally referred to as free trade, it has proven to be anything but free for American public.

      On a macro level, the USA had it's last trade surplus in 1975. Since that time, America has run an unbroken string of trade defictis that cumulatively exceed 8 trillion dollars. If free trade were a business, the USA is the undisputed loser in world commerce. On an individual level, jobs have been lost, wages have regressed, opportunities are far fewer and the standard of living is in decline. In a nutshell, Americans no longer produce for their own needs and have become dependent on foreigners for their continued existence.

      The solution is simple –Americans must begin producing for their own needs if we are to survive as a free, independent, sovereign and self-sufficient Nation. Wake Up and Restore American Jobs!

    43. Leith N. Wood says:

      Get our act together by cutting government spending, cut taxes, return to Capitalism and throw out Obama and his czars in 2012. Bring back the rights of the states and individual rights and return God to Washing ton and all our affairs.

    44. Tom Sullivan in FL says:

      China has 4 times the population of the US, so their economic clout is severely limited.

      We still need to crank up free enterprise in the US and restore a much faster economic growth rate. Government spending is now 44% of GDP, and regulations another 20% of GDP. That should be cut in half.

      1. Limit federal spending to 18% of GDP (like under Gingrich/Clinton), a 39% cut from current levels

      2. Cut regulations at least in half from their current 20% of GDP to 3% of GDP.

      3. Cut state spending (10% GDP) and regulations

      4. Consolidate the dozens of layers of local governments (12% of GDP)

      5. Strip the tax code down in order to reward business, not tax games

      6. Free the students – abolish all government schools, including universities, give vouchers instead

      7. Phase out social security and medicare, make them investment programs designed to make all lifelong workers into millionaires at retirement.

      That's a good start. .

    45. D.L. Liebman, Los An says:

      If we are the largest economy in the world, why can't we take care of the poor, sick and senior citizens when other lesser countries can do it?

    46. Robert Miller Galves says:

      hooyaa, atlas shrugged

      when the ones on the mountain VOID the folks in the Valley get WET

    47. bob says:

      Based on what data? The last time I checked, China doesn't produce or share a whole lot of statistical information. In other words, one would require an apples to apples comparison of each nation's economy in order to make this sort of suposition. I remember the IMF making the same bold projections about Japan in the early 90s. Additionally, extrapolation doesn't typically account for evolving institutional arrangements and dynamic shifts in technological advancement. Both of the aforementioned functions are key characteristics for sustained economic growth.

    48. ThomNJ says:

      If we don’t throw out the socialists/progressives and the PC garbage from our government this story will come true. I think our inherent strength will keep China as a lesser economy for years to come as long as we let Americans be Americans and not some warmed-over version of Euro-socialism. obamao and his cronies need to go, for they are quite literally killing the goose that can lay the golden egg..

    49. Jason, District of Columbia says:

      I think that by using metrics for economic forecasts of the traditional economy, maybe the American Economic House is on its decline. We are, however, still innovators in tech, culture, and politics. That provides the US a powerful upper-hand against China.

      That being said, no matter how large China’s economy grows, for now, it is because of the US economic engine. They shoot America in the head re: our debt and their investments; it shoots itself in the head. Sort of like the time travel paradox in quantum physics.

    50. mike hutchings says:

      somehow or another i don't think we're finished…regardless of foolish missives… by those with a ingrained hatred of everything we are not…and a blind eye to the good we are…china has a one child policy that will turn them into the same stilted non-breeding societies europe is dealing with….our strength is assimalation(sic)…our weakness is that those close to the centers of power…now they are… remember nothing is forever…they can't can't deal with…or tolerate true economic..or true intellectual diversity…. and they live behind big iron gates and breathe each others fumes….fumes smoking off gassified truism's and failed ideas..done…..with a secure income stream….courtesy of those who are shaken down to support them….each learned pronounement is the final word….they would…there is the danger….judges and czars unaccountable for their actions…functionaries who steeple their hands together to look wise and scratch themselves when no ones looking….nothing stays the same….china is cutting a fat hog right now but we'll see….its odd the liberals and their pet corporations see absolute power over people as the way it should be….odd that…and contradictory to common sense….unless you're somehow more enlightened than the rest of humanity…draw them out and talk to them…and you'll find them as deep as any los vegas floor show with pretensions to art….have some tea and think on it….

    51. Jennifer, Pittsburg, says:

      Obamas agenda was to bankrupt the U.S. and turn us into a third world nation and he is doing just that. If these idiotic fools vote him in for another 4 years then he will ruin us and become the dictator that he obsesses to become. I fear this will happen because of the illegual invasion that he is letting go on and they will vote for him. He got put in office illegually and is jumping for joy at the destruction that he has personally inflicted on the U.S. so if he gets reelected then it's all over for us.

    52. Disgusted , Illinois says:

      If the IMF prediction comes to pass, the the street corner " community organizer " has accomplished his goal of reducing America to a third world country that the rest of the world has no respect for . And he was able to accomplish this in just two years.

    53. Pingback: Is the Age of America Ending? | Liberally Conservative

    54. Dr. Henry D. Sinopol says:

      How humorous, we now acknowledge the death of the Age of America. We have been on our death bed for years. Remember The New Deal,The War of Poverty? Keep supporting the lifer Republicans who helped the Democrats kill the greatest country in the world. Guess what? The lifers in Congress have not suffered at all.

      The government reminds me of our lagging educational institutions…as soon as something becomes obsolete, they make it a required course. Same thing with the lifer politicians…as soon as we discover one crisis…make it a priority.

      Good luck Heritage…looks like Barry O. and 'the bell' will be living high in subsidized housing 4 more years.

    55. James Michael Tierra says:

      I will keep saying we do not need to raise the debt limit we need to cut spending and we need to lower taxes on everyone say to a flat 10% personal and corporate no deductions no subsidies for anyone period. you make $1000 you pay $100 you make 250K you pay 25K ect.ect. Job creators will flurish and so will our economy. The government department that need to be closed are epa, education, energy, commerce and the overseas cost of our military just to name a few.

    56. Kaydell Bowles, Brig says:

      The citizens of the United States have quietly let the nation loose its manufacturing ability by sending jobs overseas, because there is no incentive to keep the jobs in USA; and because our foreign and government policy caused the loss of these jobs. Both parties are to blame.

      The Media does not address these issues because of social justice and their Liberal policy to promote their adgenda. Hence we as the People are the loosers. We import more than 300 billion in imports and are exports are a pittance of what China buys from us.. Thus we are purchasing our own demise.

    57. Pingback: ¿Está llegando a su fin la Era de América? | Heritage Libertad

    58. michael j mudrak car says:

      Ladies and gentlemen Iam afraid that washington has gone to far out of control

      for man alone to correct the problems. We need the hands of God back in our

      nation. and may GOD bless america

    59. Audrey Enzor Mississ says:

      And just who do you think put China where they are TODAY?

      None other than the POLITICANS IN CHARGE OF THE "GOOD OLD U.S.A." and this started way back in the day when the Rockefellers and the Rothchilds and let us NOT forget Kissinger and George Soros who decided WE needed a "New World Order", like it or not (we didn't).

      Why do you imagine we have such a high-unemployment rate in the United States…………because of all of the out-sourcing of jobs to China and other Countries to boost their economies, could that be why in spite of the Administrations' blaming "Greedy" corporations, this has happened?

      It cannot ALL be blamed on Obama for this started prior to his birth, he has been brainwashed into believing in this "New World Order" which is what is happening to the children of America right now.

      If we had wished to live under Communism and/or Socialism, World War II would never have been fought!!!

      Think about it!

      Thank you,

      Teri

    60. Jim --New Haven, Ct. says:

      Right on, Doug Waley!!!! I was driving home a little while ago and heard the news about Obama and Boehner essentially agreeing on the oil companies. My first thought(like yours), was why not tie drilling ,permits to any change in the tax status of oil companies?

      Obama is running away from the escalating gasoline prices, and, in classic Democrat mode, attacks the tax breaks to oil companies as the reason for $5.00+ gasoline.

      God forbid that the MSM would dare mention the almost prohibition of new leases. That might be stating the obvious.

      I'm concerned that the Republican leadership does not know how to fight the next battle.(2012)

    61. Olu Somuyiwa Portlan says:

      I am an immigrant to America from Europe. I love America and have a healthy repect for the culture of freedom, courage(no cowering) and almost complete

      deference to the truth and facts. I say almost, because from most of the response to this article, the education required to appreciate the truth and facts seem to be lacking.

      Lets look at things through the eyes of Chinese Premier Hu Jintao who came to the US and expressed very clearly his thinking(following on from the Visionary leader Deng Xaio Ping) and admiration for the US. He said basically Adam Smith wrote two books

      (1) The Wealth of Nations (which is illustrated by the invisble hand of the market place) which assigns resources for production/consumption

      (2) The Theory of Moral Sentiments(which Hu illustrated as the second hand) which further assigns resources to what is deemed good.

      (I) 1 is basically Market driven economics =>Capitlism => Republican Party

      (II) 2 is basically Sentiment driven economics =>Non-Market control => Democratic Party

      Hu said, we need both hands and I agree with him. For most of the people on the site please go and read the second book, it would calm you down.

      The real issue that concerns China and the US, is which hand should be foremost, basically is the most efficent way to be left handed(hand 2) or to be right handed(hand 1). The tradition of the US is to be right handed while that of China is to be left handed. I think the naturally stronger way is to be is right handed(There is alot of thinking behind this for brevity I refer to the book on Unlimited wants "If You Give a Mouse a Cookie" by Laura Joffe Numeroff;).

      As a result the US (in my thinking) would probably retain economic leadership. China hopes to mitigate this by switching from left to right sometime down the line. I think this is easier said than done(However given what has been done, no mean fit, they just might succeed in doing it).

      The US in the last 10 years has increased its GDP faster than any other developed Nation from about $10 Trillion to $14.5, for an already wealthy country

      this is amazing. However in the US hand 2 is lame, hence as the country get richer budget deficits notwitstanding, poverty expands.

      Back to the angry comentators, by and large the Chinese planned and worked themselves to where they are, give them the credit, it is not Obama/Bush/Trump who helped them. I also doubt if any of them could have prevented them from making progress. Besides America rode the Tiger to even more success.(Check the Walmart Story).

    62. Blair Franconia, NH says:

      Is the Age of America over? Good question. If we don't get a handle on our debt, yes.

      If we do, and hopefully, we will. That's why we need the Ryan Plan. It's the logical

      alternative to the Obama Plan which is no plan at all.

    63. Bippy Bellito New Je says:

      The Chinese are embarking upon a spurt to Ruthless Capitalism. This is something that this country is not prepared to defend with the current "compassionate' weaklings we have in the president's office and in Congress. Good Luck with Unions trying to organize in China. They will understand the meaning of "ruthless" very quickly.

    64. Lee-White Tanks AZ says:

      Dear Heritage

      I see were Obama is once more beating the class warfare drums. This along with the idea that the so called Bush tax cuts for the "rich" must be overturned or at least left to die.This ties right into this idea that the end of America is nearly here. It most definitely is if we continue on the path of spend, spend, tax, tax.

      Also, to understand why it is ever more important to leave taxes alone becomes even more significant. It is particularly important to "pull the rug" from under the argument that significant wealth has accumulated at the top as the rich have become richer. This is not factual.

      As pointed out in these comments, for the last forty years we have systematically "shipped" vast numbers of jobs overseas, many of which were accompanied by the technologies that supported them. People did not follow them, they stayed here, many times earning far less.

      These jobs were not low level jobs. They were highly skilled labor, mid level science and technologists, and some middle level management. Again, the Jobs were gone, the people were still here. The upshot of this is that as these middle and upper middle class jobs went away the middle of the job/salary level dipped very decidedly in the middle.

      This creates a false impression that the rich got richer and the poor got poorer. The reality is a "hole in the middle. Overall wage and salaries have decreased on average. Note: a very good example of how this works can be seen in the debacle that Obama spawned with the drilling embargo. The rigs are gone, the jobs are gone, millions in wages/ revenues no longer flow to the people that normally benefit from this economic activity. Governor Jindal has spoken eloquently about the economic impact on Louisiana.

      I would really like someone at Heritage to pick up on this concept and show the American voter just how badly skewed the Obama message is.

    65. Gene, Lake Stevens, says:

      I like the fact that everyone above, regardless of their persuasion, is paying attention. And let your friends know you are. It is not a time to be shy about our convictions. Only reasonable.

    66. Scott Bennett, Mosco says:

      We''re proud that the U.S. has long been the leader in many eras, including economics. However, being the leader just for the sake of being the leader rings hollow and ethnocentric. More important is how that leadership is used. An economy being the aggregate of goods and services willingly supplied and purchased, more populous China or India should naturally progress to greater quantity of goods and services. We surely do not begrudge them that. That said, we can insist on a level international playing field, and quit handicapping ourselves with excessive tax burden and regulation. In such a less fettered setting, the U.S. can and should always lead economically, quanlitatively and morally, even if many decades hence not quantitatively. A significant part of U.S. goods and services goes toward improving dignity, health, and self sufficiency in all nations willing to roll up their sleeves.

    67. vesey,washington says:

      Our indebtedness to China is worrisome but keep in mind that if you owe someone $5000.00 they control you, when you owe someone $500000.00 you control them…

    68. Hermes LIBERTY New-Y says:

      Once more it is very important to understand the Essential Mechanics at work in order to SEE really what is happening and why certain things are the way they seem to be. From 1776 to around 2008 the Course of US Development' Trajectory has gone only increasing, so to attain its highest point at that time. By Natural Law it automatically started (the trajectory) to emprunt the descending corresponding movement. This was also the time the Enemy attacked in many fronts even tough most of us did not SEE this correlation. These attacks (that continue today) aim at accelerating our demise while it was this same hidden Enemy who internally used China in many ways.

      All Nations rise and fall but there is a way out if we bother to see how Nature works, and continue to use her Laws as did our Founding Fathers. In order for this to happen in an effective and efficient way, a new Re-Foundation needs to take place; that I have many times called the Second American Revolution, to which I call all those who love this country and need to see it continue to lead. A leader is always years in advance of those he leads. To be it again, we need, through this second r-Evolution introduce more of the Wisdom we know into our institutions and in all our lives layers so that to reap more of these bounties that spring always from the correct and knowledgeable application of Natural Laws and Principles.

    69. @damiancunny says:

      Stop moaning. You had your chance and squandered it. China is number 1 get used to it.

    70. Big Al One says:

      As a nation goes, we have regulated and liberized ourselves right out of business.

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