What made America rich was its natural resources and
its innovation. It was not just one or two commodities
it was a cornucopia of riches, from copper to iron to
coal, and the ability to grow enough food to feed the
world, plus the creativity to be a magnet for innovation
Because everything was "under one roof", unlike those
nations which have to import raw material or products
they can not manufacture, America became rich.
Iron dug out of American soil, the Iron Smelter owned by
an American Company, the purchase of Iron to make Steel
by an American Company, the Steel sold from an American
Company to other American Companies, on and one kept
the wealth within the borders of America.
This was coupled with the exploitation of underdeveloped
countries, which were used as cheap supply of raw materials
and labour.
Hence Firestone could virtually "own" Liberia by owning
the rubber plantations. America virtually owned Central
America via United Fruit.
One would have thought that America would be chary of
allowing foreign companies to purchase resources. Yet,
for the past few years, American Companies have been
purchased by overseas Corporations which repatriates
the profits.
As more businesses are sold to overseas consortiums,
America no longer "owns" its own resources.
A Copper Company is sold to an Indian Corporation,
copper can no longer figure in the American Economy.
All profits depart, along with all benefits. The American
company which needs xyz tons of Copper purchases it from
an Indian Corporation which owns the copper that was dug
out of American soil.
Just as Goodyear Tire "owned" Liberia, and United Fruit
'owned' Central America, we move to the stage in which
other nations are quickly buying up America as if there
has been a fire sale.
No one could have imagined this, and it was unimaginable
fifty, even forty years ago. Now, it happens every day.
The effects of this "fire sale" will not be immediately
perceived. As time passes, however, it will become more
evident. One can expect rises in prices which can not
be escaped.
In Third World countries the recognition that a foreign
country owns their resources leads to riot and subsequent
nationalisation; i.e. the current stance of the President
of Venezuela in re overseas oil companies. In America, any
attempt to protest will lead to court action and the contract
confirmed, with damages.
Investing in a volatile Third World nation is tricky.
Investing in America, is safe. Other nations are carving
up America as America had once done to those nations.
This is not the tragic result of a war or vast devastation
in which one nation needs the help of another which then
uses the leverage to take control.
This is the short sighted get rich quick mentality of
Corporations which think "globally".
The "oil crisis" is a foretaste of things to come.
Nice writing,