What is not understood by most politicians, media pundits and the general public of the West is that in the last two decades the economy of the world has undergone a STRUCTURAL CHANGE.
BUYERS ARE NOW SELLERS AND SELLERS ARE NOW BUYERS
What was made in the West and sold in the East is now made in the East and sold in the West. New intermediaries have jumped into place.
A&P, formerly a seller in the West is now in bankruptcy. A&P, would make its own products and sell to Western customers. In the place of A&P is WALMART.
Walmart makes nothing. Walmart goes to the East and buys everything. Those purchases are sold in the West. Money flows from the West to the East.
The West goes into debt daily in order to buy its needs. The East accumulates Dollars and Euros and buys Treasury Bonds. Since almost nothing is made in the West, there are no jobs.
As people in the West go deeper into debt no new jobs can be created. At the end of August 2011 the Government gave out its report: NO NEW JOBS.
A massive Economic Structural Change.