Today’s release by The Institute for Supply Management’s of its index for
non- manufacturing businesses, following Monday’s release of similar data on
the manufacturing sector, confirms America’s trend toward de-industrialization.
The manufacturing, or wealth producing, sector of the economy continues to
contract, while the service, or wealth consuming, sector of the economy continues
to expand. As a result America’s record trade deficit will expand further as
unproductive Americans continue importing the products that the U.S. economy
is incapable of producing. This news, which confirms just how unproductive
the U.S. economy actually is, comes on a day when the Labor Department is trying
to tell us that third quarter “productivity” rose by 5.6%! Unbelievable
government propaganda! The de-industrialization of America will ultimately
result in a collapse of the American standard of living. This will occur when
foreign producers finally wise up, and refuse to exchange their products for
our I.O.U.’s. At that point the service sector will collapse, as there will
be far fewer products to sell. Similarly, when America’s foreign creditors
wise up, and discontinuing lending their hard earned savings to over-leveraged,
non-productive, American debtors, American consumers will no longer be able
to afford all the services they are currently consuming, as they will be forced
to dramatically reduce their consumption and increase savings. The foreign
Piper has yet to be paid!