We can only really know what the Fed was up to five years ago. But even that lag reveals how expendable American labor was, and is, to the corporate culture in America.
“What do I mean by a conspiracy? Well, you can read all about it. It’s right in the transcripts of the December 2005 Federal Open Market Committee, which is the committee of central bankers that run America… In that meeting, Dallas Fed President Richard Fisher is complaining about the enormous quantity of Chinese goods flowing into America. He points out that this is creating ‘disinflation’, i.e. lowering prices and wages for Americans.
“Only, he isn’t complaining that there are too many Chinese imports, he is frustrated there aren’t enough imports. Even though China has built special export-only ports to ship goods out of China, he says, the ports at “Long Beach and Northwest” can’t absorb what China wants to sell us, because of work rules (i.e. unions). This is a huge problem, Fisher continues, because it is blocking his CEO contacts from outsourcing as much work abroad as quickly as possible. They cannot “exploit China” fast enough.
“In that same meeting where he complained about too few Chinese goods coming into the US, he bragged about the weakness of one of the most significant employers in the United States: “My most delicious irony is the fact that similarly dated Vietnamese debt now trades on a price basis richer, and on a yield basis lower, than that of Ford Motor Company. [Laughter]”
“Just who is Richard Fisher working for, anyway?
“This is a systemic problem, and it requires a systemic answer. Right now, China makes our goods, the Chinese workers get our jobs, and American workers get pay cuts. But, the Chinese also lend us our own money back to us, which we then give to JP Morgan, Citigroup, Goldman, and Bank of America so they can speculate with. Pretty soon, China will have our entire industrial base, and we will be left with the socially destructive financial oligarchs that Charles Ferguson described in Inside Job.”