Commentary on the economy, the markets, and business

New column: America's No. 1 export

What is America's No. 1 export? Debt. And that's what my column in the new issue of TIME, with the clipout ballot on the cover, is about. It begins:

Japan and Germany make cars. Saudi Arabia pumps oil. China supplies the world with socks and toys and flat-screen TVs. What does the United States produce? Lots of stuff, but in recent years this country's No. 1 export--by far--has been debt.

When you look at things this way, it becomes clearer what the frenzy in New York City and Washington is all about. There are major quality issues with our nation's flagship product. The authorities have acknowledged the problem--"This is a humbling, humbling time for the United States of America" is how Treasury Secretary Hank Paulson put it in one TV interview. So now Paulson & Co. are recalling defective financial products en masse, slapping GUARANTEED BY THE U.S. GOVERNMENT labels on some of them and replacing others outright with U.S. treasuries.

It's textbook crisis management, similar to Johnson & Johnson's famously forthright and successful reaction to the Tylenol tampering scare of 1982. So far, so good. But while Johnson & Johnson was soon able to restore Tylenol's lost market share, the U.S. faces a different challenge. Read more.

  • Print
  • Comment
Comments (5)
Post a Comment »
  • 1

    SUBPRIME BAILOUT THRILLER
    (Michael Jackson's Thriller)
    WilliamBanzai7

    It's Midnight this late September night and the night is full of Politicians, Lurking in the Dark.
    Under The Moonlight, You See A Sight That Almost Stops Your Heart.
    You Try To Scream, But Terror Takes The Sound Before You Make It.
    Debt Markets Start To Freeze, As Horror Looks You Right Between The Eyes,
    Your Paralyzed

    You Hear The Door Slam, And Realize There's Nowhere Left To Run.
    You Feel The Cold Take Hold, And Wonder If You'll See a Bear Run
    You Close Your Eyes, And Hope That This Is Just Imagination,
    But All The While, You Hear The GOP Pachydermata Creepin' Up Behind
    You're Out Of Time

    They're Out to Get You, There's Demons Closing In On Every Side.
    They Will Possess You, Unless You Change The Number On Your Skype.
    Now Is the Time for You and Your Trading Quants to huddle Close Together
    All Thru The Night, It'll Save You From The Terror On The Reuter Screen,
    It'll Make You See:

    (narrated by Vincent Price)
    Darkness Falls Across The Land, The Asian Trading Day Is Close At Hand.
    Bottom Feeders Crawl In Search Of Blood To Foreclose on Your Neighborhood
    And Whosoever Shall Be Found Without The Soul For Economic Bust
    Must Stand And Face The Hounds Of Hell, And Rot Inside A Bankrupt Shell.

    The Foulest Stench Is In The Air The Funk Of 700 Billion Bailout Bucks
    And Shortselling Ghouls From Every Trading Room Are Closing In To Seal Your Doom
    And Though You Fight To Stay Alive Your Net Worth Starts To Shiver
    For No Mere Mortal Can Resist The Evil Of The TARP Bailout Thriller

    'Cause this Is Thriller, TARP Bailout make or break Night
    and No-ones Gonna Save You from the Beast about to Strike.
    You Know its Thriller, TARP Bailout Thriller Night
    You're fighting for Your Monetary Life inside a Killer, Thriller.

    Thriller, Bailout Night
    'Cause I can thrill you More Than Any Market Ghoul Could ever try. (Thriller, Bailout Night)
    So Let Me Hold You Tight And Share A Killer, Chiller, Fiscal Massacre
    Thriller Here Tonight.

    'Cause this Is Thriller Bailout night
    It Will Thrill You More Than Any Ghoul Could ever dare try
    Any Ghoul could ever Dare Try

    (Daddy, can I be TARP for Halloween? No deary...its too scary! Be something funny
    like the McCain campaign )

  • 2

    Can't wait to read the article. All I have to say what a mess. A perfect storm of lobbying, greed and fiscal irresponsibility. I only hope we bounce back from this; bounce meaning at least two years from now. I hope this is the shake up Washington needs to reform, reform, reform and not bend to the whims of lobbyists and operate responsibly. Yeah, wishful thinking.

  • 3

    No. 2: bad American reality TV shows.

  • 4

    So does this point of view make it a financial crisis or a cultural crisis?

  • 5

    You may remember in Neal Stephenson's 1993 novel of the near future Snow Crash, he noted at the very beginning that America was better than anyone in the world at four things: music, movies, microcode (computer software), and fast pizza delivery.

Add Your Comment:

You must be logged in to post a comment.
The Curious Capitalist Daily E-mail

Get e-mail updates from TIME's The Curious Capitalist in your inbox and never miss a day.

Quotes of the Day »

Get & Share
LORI HAAS, whose daughter was wounded in the 2007 Virginia Tech shootings, on a new report finding that officials warned their families more than an hour and a half before the rest of the campus and released locked-down students who were later killed