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This generation of Americans has been witness to one of the most stunning declines -- a great power.
In the history of the world.
United States ran a surplus.
-- ran a deficit of one point four trillion dollars.
10% of the economy.
Deficit was almost equal.
And the 2011.
Deficit was almost equal to that.
The national debt is surging to 100% of GDP.
Or -- an eventual run on the dollar a default.
Or Weimar style inflation.
The greatest creditor nation in history.
Is now the world's greatest -- In 2010.
Republican senator Judd Gregg the fiscal conservative Obama wanted in his cabinet.
Went home to New Hampshire with a warning quote.
This nation is on a course where if we don't get fiscal policy under control.
-- -- -- -- The Tea Party is in the mainstream of where political thought he is right now.
We've had a radical explosion in the size of government and the last two years.
You've gone from 20% of GDP to 24% of GDP.
Headed toward 28%.
That -- to be brought under control.
-- we're going to bankrupt the country on court.
According to the International Monetary Fund America's GDP has fallen from 32% of world product in 2001.
As Leslie Gelb.
President Americans of the council on foreign relations has written.
With a massive debt has ever remained a great power.
US heavy industry has largely disappeared.
-- -- moved to foreign competitors.
Which has cut deeply.
Into its ability to be independent in times of -- Its public school students.
Trail their peers and other industrialized countries in math and science.
They cannot compete in the global economy.
Generations of Americans shockingly.
Read at a grade school level and know almost no history.
Not to mention no geography.
Even establishment has begun to get the message.
Political science professor Robert paper of the University of Chicago.
-- -- quote.
The self inflicted wounds of the Iraq War growing government debt.
Increasingly negative current account balances and other internal economic weaknesses.
Of course the United States real power in today's world of rapidly spreading knowledge and technology.
If present trends continue.
We will look back at the Bush Administration years.
As the death knell of American hegemony.
-- -- -- -- Correlated the rise of the nineteenth century powers with the growth in their shares of world product.
He found America's decline in the bush years could be almost without precedent.
America's relative decline since two.
Jobs was created.
Average households were earning less in real dollars at the end of the decade and at the beginning.
The net worth of the American family and stocks bonds savings home values.
Plants and factories shut down.
As a source of jobs manufacturing fell below health care and education in 2001.
Below retail sales in 2002.
The -- local government in 2006.
The -- leisure and hospitality.
Restaurants and bars in 2008.
All for the first time.
He would choose -- cars furniture.
Radios TVs appliances.
Bicycles tourist cameras computers.
We buy from abroad what we used to -- year.
Or economic independence is history.
In April 2010.
Three of every four Americans 74%.
Said the country is weaker than a decade ago.
Said life in America.
Will be worse for the next generation.
Than it is today.
Who did this house.
We didn't -- ourselves.
We abandoned economic nationalism for globalism.
We cast aside fiscal prudence for partisan bidding for voting blocks.
We ballooned our welfare state to rival the socialist states of Europe.
We invited the world to calm and partake of the -- And -- launched a crusade for democracy.
That has just tied down in two decade long wars.
Where globalization -- In 2009.
Paul Volcker former chairman of the Federal Reserve.
Told congress the cause of the financial crisis was trade related imbalances.
Pressed by senator -- Booker added quote.
Go back to be imbalances in the economy.
The United States has been consuming more than it has been producing.
For many years and grow.
Starting in the 1980s.
And accelerating with NAFTA -- United States set out to meld its economy with those of Europe and Japan.
Jon Stewart bill.
That experiment did not work out well for the free trade British in the nineteenth century.
Were shouldered aside in the struggle for world privacy by America.
-- our generation would make it work for the world.
What happened was predictable.
And was in fact.
-- the abolition of tariffs and with US guarantees.
Goods made in foreign countries would enter America free of charge.
Manufacturers began to shut plants here and move production abroad to countries.
Where US wage and hour laws and health safety and environmental regulations.
Did not apply.
Countries where there were no unions and workers' wages were below the US minimum wage.
Competitors who stayed in America we're under cut and run out of business.
Are forced to join the stampede abroad.
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