SGM Metals: Walmart Economy Will Hurt When China Stops Playing Along w/ FED

April 10, 2012 - PRLog -- infowars.com reports: [ When you have great concentrations of wealth and power, the economic rewards of a society tend to go to just a few. True conservatives should want to see more competition instead of less competition. Competition helped make America great, and we need to get back to that.

In the United States today, big businesses and wealthy individuals fund the campaigns of our politicians, and in turn our politicians pass laws which rig the game in their favor.  It is a symbiotic relationship which is very bad for America.

Sadly, most conservatives tend to cheer on the big corporations, but this is not how our founding fathers envisioned our capitalist system working.  Our founding fathers envisioned large numbers of similar companies competing against one another for customers.  They did not envision a very small number of giant corporations buying up all of their competitors or smashing them into oblivion with their giant piles of money.

Instead of an economic landscape dominated by monolithic predator corporations, we need an economic environment where millions of small businesses can thrive and compete directly with one another.

Our founding fathers never intended for us to have the kind of system that we have today.  As I have discussed in previous articles, our founding fathers greatly restricted the size and scope of corporations in early America.  The following is how author Stephen D. Foster Jr. described the attitude toward corporations in the early years of the United States….

   The East India Company was the largest corporation of its day and its dominance of trade angered the colonists so much, that they dumped the tea products it had on a ship into Boston Harbor which today is universally known as the Boston Tea Party. At the time, in Britain, large corporations funded elections generously and its stock was owned by nearly everyone in parliament. The founding fathers did not think much of these corporations that had great wealth and great influence in government. And that is precisely why they put restrictions upon them after the government was organized under the Constitution.

   After the nation’s founding, corporations were granted charters by the state as they are today. Unlike today, however, corporations were only permitted to exist 20 or 30 years and could only deal in one commodity, could not hold stock in other companies, and their property holdings were limited to what they needed to accomplish their business goals. And perhaps the most important facet of all this is that most states in the early days of the nation had laws on the books that made any political contribution by corporations a criminal offense. ]

Somehow in modern America we have adopted a white washed version of our nations history that is taught in school. This deceptively vague version of our history has created a nation of adults who have NO IDEA of the economic & political corruption that infiltrated this country from old European money families nor the triumphant efforts to root out corruption in the name of a fair democratic republic that was designed to be of the people and for the people. Instead they are conditioned to worship these monopolistic behemoths that are designed to gobble up the free market and control entire sectors of the economy. Back in the 1980s the corporate media doing their part to help the corporate raiders when WalMart was taking over the mid-west by purposely destroying the image of Americans who had good economic arguments against them coming into their small farm communities. Every video clip aired by the corporate media of the ‘locals’ were conveniently portrayed as dumb hicks in flannel shirts who were missing teeth with misspelled protest signs. This psychological warfare tactic was very effective in subliminally convincing the viewers that anyone who was against WalMart coming to town were ‘just dumb hicks who were afraid of progress & should be dismissed as being ignorant of progress’.

No politician would want a corporate juggernaut to plow over family businesses in their district that had been around for several generations and destroy the fabric of the American way of life right? Well ordinarily that would probably be true, but when these behemoths are writing massive campaign checks their loyalty to the very people who voted them into office unfortunately becomes blurred. As these ‘buy the local politicians out from under their district and wipe out every mom & pop store in a 3 county area campaigns’ became consistently a slam dunk, there was nothing left but to fight with the other Chinese wholesaler for more territory as they burned up the nation with new construction everywhere you look.

It is these “Low Price Superstores” that have now destroyed every local mom & pop joint across the nation & are using their leverage to destroy the manufacturing base across our nation. Now that they wiped out the retail competition they are fighting with one another to offer the lowest prices to secure the market share. This is accomplished by forcing down the suppliers production costs & this done by pressuring the manufacturers to cut cost or else they lose their gigantic contracts. If the manufacturers lose their biggest buyer there is no smaller retailers to look to in order to fill the gap in sales number so they have them by the jewels. This forces the manufacturers to look for cost cutting measures and it starts with thinning out the workforce and forcing longer hours on the production staff. Then it turns to cutting so many jobs that the skeleton crew is unable to make quotas and this forces them to look for cheaper labor. Enter China’s cheap slave labor and the politicians who magically offer tax incentives to shutdown the American factories and move to emerging economies to lock in a profit margin or face the consequence of globalism and go out of business. The ‘get big or go home’ corporate model has destroyed not only the manufacturing base of our once great economy but has also obliterated pharmacies, doctors, banks, investment firms, farmers, dairy, colleges and practically ever other sector of the economy as a whole. Globalism is not in our best interest as it leaves total destruction and ruin in it’s wake all in the name of cheaper consumer goods.

These cheaper goods have given the false sense of prosperity that has masked the failing standard of living in America for so long. But now this disaster is starting to surface and its freaking a lot of people out as they realize that the jobs are gone and the ‘false sense of prosperity’ that has been sustained by easy money policies and cheap credit for decades are now fading away and the ruin of our economy is becoming evident. There is no easy solution here, but instead a very rough period of re-acclamation to a new standard of living that currently is affectionately referred to as austerity. With this re-shuffling of the global economy there will be a re-evaluation of the value of the US dollar and its role in the global market place as well as the free reign monetary policies that the federal reserve has exploited to their benefit. In this period of re-balancing their will be huge changes that will have massive consequences across the board. While these banks, Wall Street firms and corporations that have exploited this system to their benefit will be humbled by the new direction of monetary policies we the individual who weren’t in on the rigged game will need to seek safe haven from the carnage this will bring. Establish your “Plan B’ in precious metals such as gold & silver bullion today and take comfort in watching these new developments bring about a balancing of the global market place that is long overdue. There will be massive winners and losers when the system reboots but those who remove themselves from the battlefield and watch safely from their precious metals bunker the show will be spectacular and your wealth will be protected.

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SGM Metals strives to offer not only wealth preservation precious metals investments to offset weakness in the economy, but to help educate our family of clients to better identify the threats to their financial security.