Capitalism in crisis. (Letters to the Editor).

This letter is prompted by your recent article, "Criminalizing Capitalism" (August 26th issue of THE NEW AMERICAN).

The underlying cause of the present dislocation of our economy has been the export of our industries. After President George H. Bush was unable to put through the North American Free Trade Agreement, he was removed in favor of President Clinton, who promptly suborned enough Democrats in Congress to join with most of the Republicans in putting it through. At the same time, Clinton and others made arrangements for China to become America's chief supplier of foreign goods. The result is an increasing deficit of trade, now approaching $500 billion per year, which is collapsing both the U.S. economy and the dollar. Our demand for foreign goods must and will shrink, and the foreknowledge of this prospect is depressing stock markets in Europe and Asia.

None of this could have happened but for the infamous Bretton Woods agreement of 1944, whereby other countries agreed to accept dollars as a reserve currency equal to gold. When America's increasing deficits of trade led to abandoning all connection to gold and a devaluation of the dollar, foreign central banks had too many dollars to abandon them as a reserve currency. Now the situation is much worse, for our cumulative deficit of ...