Wednesday, July 02, 2008
Economic Policy is Foreign Policy
Is there a national security incentive to restore America's manufacturing base, and if so, what role for the government to play?
Washington may not want or welcome sovereign wealth funds, but Wall Street will want to have a piece of the action, especially to manage and direct investment.
If the United States is not going to be supplying manufactures to the energy producers--in other words we aren't getting orders for development and infrastructure projects, are we moving to a system where the U.S. is essentially the paid security contractor? That the incentive to maintain the dollar and support our current account deficit is so that the U.S. will deploy its security assets in the service of the security of other states? In this view, it is not the U.S. as "Globocop" but as the world's condottiere?
Except that hasn't worked out as planned in Iraq.
Hence, the concerns of the US foreign policy elite expressed in your previous post.