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DJT arrives in Beijing China May 13 2026. Topics that will be discussed are - the Iran War and how to resolve it, trade with China, tariffs, and US Taiwan policy. China continues to run trillion dollar surplus in trade with the world with lower trade surplus with the US after DJT tariffs. From $295 billion in 2024 under Biden the new DJT administration with DJT, Bessent and Jamieson has lowered this to $202 billion by 2026. In that same period the world trade surplus of China has increased from $992 to $1.19 billion. It is not clear whether some of the drop in the US figures is from China sending product through channels to Mexico and Vietnam that is then shipped to the US. DJT showed results in his policies by lowering the trade imbalance by 32%, while trade imbalance with the rest of the world has worsened (increase in trade surplus of China) by 20%. What does this show? We can safely assume that excessive trade imbalances are not in either China, EU, or America's interest. China increases trade and political friction by doing so, and it leaves its own policy weak by overdependence on exports, too little effort to increase domestic consumption and living standards.  FOr the US and EU trade imbalances with China of over $1 trillion reflect misguided policy at the top by US and EU decision makers and governments. By exposing their manufacturing base they are losing valuable jobs by the millions and creating a situation where the few with good jobs in select industries live in large cities and the rest of the country in smaller towns and rural areas suffering from lack of amanufacturing base. This weakens the investment base for public services and leads to lack of investment ininfrastructure. This is called deindustrialization which the DJT and Biden administrations both fight hard to reverse for the last 10 years since the disastrous years of the Obama and Bush administrations 2000-2016. For this reason we can say a good Republican is as good as a good Democrat, a bad Republican is as bad as a bad Democrat, political labels are just that labels. The media in US and EU are on a wrong footing and still fail to cover this the way it should be covered to shake off the lethargy in public sentiment in the US so that a rapid drive to reindustrialize and build new new infrastructure on top of the old that was built after World War 1 can take place. In today's world India is stepping up with major infrastructure building just as the US and EU ramp up their rebuilding.  ...

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China's dependence on an export sector that is uncertain 14% growth (EV's electronics) vs. 0.2% growth in domestic spending April 2026. Costlier energy inputs are affecting China in the way that is affecting Germany's economy in 2026. The US has increased tariffs, Germany and the EU are likely to do the same as they see their economy erode with Chinese exports in German markets replacing German manufacturing. China has set 4.5% growth target much of it from ramping up exports and depends on cheaper inputs for energy as Germany has done for economic growth. This is being gradually eroded as US/EU want to reindustrialize and make things and products realizing the errors in industrial policy of previous administrations Bush and Obama in US and Schroeder/Merkel in Germany. At the same time India wants to be a manufacturing hub like China. When that happens by 2030 China's growth will be similar to the US of 2-3% a year as exports decrease. Eastern India is the New East and South China with 700 million people for the first time in 2025-2026 under double engine governments. Double engine meaning state, local and federal governments all under the same party (the BJP National party) so that industrial policy is conducted along the lines of a Master Plan tested in western Indian states of Gujarat and Maharashtra. This has been seen before. As Japan rapid rise of the 1960's and 1970's slowed by 1980, China's rapid rise of the 1990's and 2000's slowed by 2025 and India in 2025 is picking up from China in the way China picked up from Japan. This means an industrialized US and EU, rapidly industrializing India will face a slowing China and aging China by 2030. Knowing this pattern helps US and EU leaders, Indian leaders, look at the long term in their plans, having confidence in their investments in industrial progress for the next 5 years. ...

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China's 15th Five Year Plan with shift to robotics, semiconductors, EV's, renewable energy, and lower investment in education, healthcare- the shift to a slowing economy, job losses. GDP per capita one third of the US much lower than most of southern Europe or Eastern Europe. China is still a middle income country. Unlike Japan which surpassed most of EU countries  GDP per capita, China with 1.4 billion people is a vast country. The shift in the emphasis in the 5 year Plan means economic growth  of 10-12% is now only 5%. With the collapse in housing construction and slowing manufacturing facing tariffs in the US means job losses.

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Coal is making a comeback as many countries in Asia are bringing back coal units following LNG shortages. Impact of Hormuz shutdown- 40% increased use of coal in Korea, coal units reactivated in India, and put on standby in Italy. Italy delays phaseout of coal to 2038. Coal is a reliable fuel in this period of Hormuz Straits shutdown. Much of Asia's LNG comes through Hormuz. Use of coal in the US shown here in graphs which in a second explain why the DJT administration and Republicans say it makes so little difference what the US does in coal for climate change when China and India make up 90% of the use of coal. Consider what these charts show- use of coal in 2027 in the US is 331 million metric tons vs 1422 million metric tons for India, almost 5 times the US coal use happening in India. EU is 244 million metric tons. But wait the Chinese number is much much larger than India's - 5005 million metric tons used in China in 2027. India's coal use alone is 3 times that of the EU and the US combined.  China's coal use is about 10 times the coal used in the US and EU combined. And when one compares US+EU use of coal to India + China coal use - India and China used in 2027 13 times as much as the US and European Union.  Which is why because cutting coal use also impacts communities hit hardest by the Elites of America (Bush+ Obama) shipping out its whole manufacturing base to China. These communities get some relief from these same Elites policies that shut down all coal plants, instead of using a carefully structured wind down that allows some selective use of coal plants which are cleaned up for emissions, and pushes China to do more. Small cuts in coal use in China which has benefitted from our Elites shipping out the national manufacturing base of the US to China, would make a bigger difference than large cuts or total shutdown of coal plants in the US, where the communities impacted are in the rural parts of America that have lost factories and jobs such as in Pennsylvania due to Bush and Obama policies of looking the other way to deindustrialization of America. ...

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Google former CEO Eric Schmidt at Arizona University commencement speech gets booed for statements on AI. The Google ex CEO says its your turn to shape AI but does not say that AI is shaped by a few individuals at corporations such as Microsoft and Google. Pew Research shows majority of students on campuses across the US have serious concerns and are not excited by the way AI has developed. This when Pew has not asked people to comment on how trillions of dollars needed for rebuilding of the dilapidated infrastructure and transportation of the US and for reindustrialization to create jobs after manufacturing was shipped to China by Elites, have through the capital markets been shifted into AI. Even when financial returns cannot come anywhere close to what these investments would do for the American people (and investors) if invested in reindustrialization+ infrastructure. The public knows better, no wonder Google founder Schmidt is booed.

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The world depends on rare earths supplies for automobiles, mobile phones, and jet planes. The Washington Post says the US can take up the strategic vulnerability challenge presented by rare earth's supplies 80% control by China in 2026. The Washington Post looks at the US Rare Earths planning- US government as buyer, faster permitting and predictable rules needed to setup US supply chain by 2030. China's Rare earths monopoly can be loosened but not in 2 years says the Washington Post. It will take 5-7 years by 2030 or 2032. Countries such as the US, Canada, Australia, Malaysia and Brazil are resource rich places where rare earth can be mined by the US. for the US government and US companies. Australia's Lynas is the largest non-Chinese company It has a $96 million contract with the US War Departent. America's MP Materials is building domestic supply and is expanding production at Mountain Pass, California. MP Materials is building a rare earths magnet manufacturing plant in Northlake, Texas for $1.25 billion. MP Materials has a "transformational public-private partnership with the US War Department. As long as the US remains the buyer private companies can step up their development of rare earths around the world in the best locations. European Union and India have a separate plan for rare earths supplies of their own with large investments that should further diversify and create new supply chains for rare earths in Asia, Africa and Latin America. ...

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US DJT administration using Section 301 creates the tariffs the US Supreme Court struck down- the EU, Mexico, Canada at 10%, Japan,, India China at 12.5%- June 2 2026. These countries are not doing enough to control the importation of products made with forced labour. This only goes to show what was said at that time and which the SCOTUS itself said the DJT administration could do, find other laws by which the same tariffs could be imposed. By the time the US Supreme Court reviewed the case it was already clear that all these countries had accepted DJT tariffs, and most had negotiated fair deals with the US including making up for past abuses by these countries of the international trading system. The US Supreme Court its shortsightedness ignored this or did not quite grasp this as Justices legal knowledge of facts does not mean grasp of the facts of commerce, trade and business and the history underlying it. Jamieson Greer interviewed at the Council of Foreign Relations this week and Robert Lighhizer in Foreign Affairs (covered and summarized on these Lyrarc pages this week as found rarely in other places) have documented these abuses in detail leading to the US losing $20 trillion in wealth shifted to these countries and its manufacturing dependent communities devastated by loss of over 5 million jobs through the shortsightedness of Bush/Obama adminstrations who let this happen, and these countries that took advantage with reckless disregard for these communities in the US, on a scale unknown in history.  ...

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WSJ Editorial Board on the Media's obsession with "Results" for the XI-DJT meetings when mutual respect and understanding was a key goal achieved. China's goal was clear from the start. It was that the US would recognize China for its achievements in manufacturing and infrastructure, in science and technology in the last 100 years. General Joe Stilwell who was the leading American in China in the first half of the 20th century, FDR's man in China, and who had a deep affection and attachment for the Chinese people and culture. Stilwell could not have been more gratified by the presence of the American president in Beijing after the struggles China has seen in his lifetime against the Japanese invasion and the struggles inside China for the road to industrialization in the second half of the 20th century. 

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WSJ on how America's political establishment lied about Covid's real origins in a Lab in Wuhan, China, after some in the American scientific community ignored prudent warnings about possible accidental release, and sent the virus from the US lab to a lab in Wuhan that was not fully prepared to handle it. In reality the Biden administration erred when it did not conduct an open assessment of what had happened, because this would have earned and kept the people's trust instead of dividing the country into vaccine believers and vaccine unbelievers.  Sections of the virologist community in the US and in China that promoted such research against the advice of others in the scientific community could have accepted their error with humility. The people of Asia have made great advances in this century- some call it the Asian century- great advances in manufacturing and in science. Yet they are not so fragile, the people in the Buddha lands and the land of Gandhi are not not so fragile that they could not accept that what they had achieved was on the shoulders of what hundreds of European scientists and inventors had done over three centuries since 1700. And that there was much to learn. The Chinese people and government can look with great self-respect for what they had achieved in the last 100 years not to need the condescension of the virologist community.  In a sense this divided the US people's perceptions of China, with half of the country skeptical about the virologist community's explanations accepted by the Biden administration. This was not in any way good for China and the Chinese people. In fact one can say that by handling this with an open mind would have clearly built more trust in China-US relations, and that China- US relations reached the lowest during the end of the Biden administration point with the Balloons incident. And recovered afterwards to this point of mutual respect under a frank president with candor and respect. This vaccine blunder also created further culture wars conflicts around the US, to ones based on race, LGBTQ, and other less consequential matters than the deindustrialization and loss of America's manufacturing base and its best jobs in huge numbers under the watch of Bush and Obama administrations, and their followers in the Republican and Democratic parties. What happened is that the country was split on race, gender, immigration, and belief in Christian values. Issues such as nuclear non proliferation (Iran) presented in ways that adversely affect the US. by calling it something else. In all such issues honesty is the best policy, dealing in a straight forward manner wiht the public is the best course, for reasons that are timeless and well recognized. Failure to do so on the part of the Elites only creates distrust of official explanations by the people of America. ...

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Canada's pitch to the US before tough negotiations with Jamieson Greer to preserve Canada's automobile industry, its aluminium industry, dairy industry with benefits gained in the past. US had also put forward its pitch for 82% North American content and 50% of it from the US for all automobiles sold in the US. Carney takes a positive approach presenting Canada as a strong partner that would Make America Great Again by offering its vast mineral resources, and its resources of oil and LNG. It says LNG will double from 2030 to 2040 from 50 million to 100 million tonnes of LNG annually. 56 critical minerals agreements with $18 billion in investment, doubling the electricity grid for lowest cost power and second lowest emission in OECD countries. Canada is an anomaly in trade says Sir Ivor Jennings in his book on the British Commonwealth. Its trade east to west is an anomaly when if it was truly apart of the North American economic region it would trade north to south. This is the result of Montgomery's failure to take Quebec during the War of Independence as Washington planned the war with Britain. For instance Ontario would trade with Vermont and New Hampshire and New York near its borders. Instead the dairy industry in Canada operates in competition with the US and sends product east to west. Washington and Oregon are not trading normally with neighbors British Columbia instead shipping product back to eastern Canada. For years the US allowed Canada and Mexico benefits in trade that hurt is own auto industry. Jamieson Greer is expected to change this so that US manufacturing can compete with China and European Union on a level playing field. ...

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NYT's Simon Romero looks at Cumano in Venezuela, and the breakdown of water, electricity,  industry, and education systems in this city. How efforts to solve inequality without a grasp of how a modern economy works can lead to something worse. And how good intentions are not enough, lack of understanding and knowledge of of a government (Chavez and successors), on how industry, infrastructure for water and electricity, education and healthcare works is dangerous. Immersion in the rhetoric (Chavismo) makes things worse. Appeals to Simon Bolivar (history), mass communication (Alo Presidente), religious symbolism (socialist motherland and victory) and us vs them, (the marginalized poor and the established elites), mean little and take an entire nation backwards for making industrial progress and infrastructure building,  creating a strong modern economy. It in fact turns out to be dangerous and counterproductive, breaking up the very productive forces that are needed to build a modern economy. The Japanese visited and carefully studied the US transformation into an industrial advanced economy in the 1890's Meiji era, the Chinese visited and studied the Japanese plus the US transformation into industrial advanced economies in the 1990's, and Indians visited and studied the Japanese, Chinese, and American transformation into industrial advanced economies by 2014 in Gujarat State, to spread that model to all states to achieve the goal of building infrastructure, manufacturing, and modernization. America made some careful choices under Lincoln, TR, FDR, Truman and Eisenhower to achieve this transformation. Bringing factory labor, farmers, professional classes, and factory owners together under FDR with his first experiment in New York state building modern institutions with Secretary of Labor Frances Perkins, and industrial interests, then repeating this across 51 states in the Union as president of the US. Frances Perkins documents this in her book "The Roosevelt I Know." ...

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WSJ Quiz on data centers- test your knowledge. Does China have the most data centers? No the US with 4000, followed by Britain with 515 and Germany with 500 showing that China is not in the AI craze the way the US is even though the idea of the US falling behind in AI is used to get trillions of dollars in AI funding. This only means infrastructure that is dilapidated and broken in the US will not be replaced, and that the US plan to reindustrialize to get jobs will lack funding as dollars are diverted from these essential and vital needs to AI. Eventually Asian countries with new infrastructure will find ways to get that US technology without having to pay for it. The American public will be paying for this AI craze. We at Lyrarc.com checked how many data centers China has built? The number is 250 data centers are operational and note this in the MIT Technology Review it says 80% of these data centers are not being used, there is 80% overcapacity in China. Because China's AI such as Deep Seek is designed so that it uses less computing power. What this means is that only the US will put over 3 times the combined data centers put in by China, UK and Germany for AI and US will put in 16 times the data centers China has put in. As China only needs or is using 20% of its 250 operational data centers or 50 data centers the US is putting in 80 times the data center capacity China is using in 2026. Why 80 times? Because China has a Plan and it can manage the supply to the need or demand. In the US each company is trying to put so many in so it can get the leadership position in the market. For example Amazon puts in $200 billion instead of the $100 billion it can afford simply to be in the leadership ranks. There is much wasteful spending in the US market system than China's coordinated effort in a new technology even though ideologues like to say the US system is superior, and a plan by the state is frowned upon in the US, costing the US dearly when it lost its entire manufacturing base to China while economists said everything was OK. Even the WSJ Quiz fails to ask the question we asked about China and how many data centers China has actually made operational, how much is overcapacity- 250 datacenters and 80% overcapacity. Showing how little the public knows and even WSJ has looked into, giving a few companies such as Google, Amazon, Apple, Microsoft and others the freedom to spend in a reckless way so that future infrastructure investments and reindustrialization investments will be crowded out in the US economy. And economists as usual will say its OK. ...

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The broken world economy has hurt the American people, in small communities and towns across the US whose societal fabric was destroyed by a system of world trade with abuses done by China. Japan, European Union, Canada and Mexico since 2000. Shortsighted American leaders and economists allowed this to happen. Robert Lighthizer on the New World Order a new system of world trade that replaces the old in 2026. The old trading system was one in which lip service was made to free trade while all the time the system was used by Japan, Germany, China, Canada, Mexico and other nations to build non tariff barriers and other policies to support their industry  at the expense of the United States leading to disillusionment in the US. The facts are mind boggling- the loss of 5 million jobs, many small communities across the US decimated with loss of jobs. About 20 trillion in wealth transfers to China and other countries over 2000-2020, with foreigners owning $27 trillion more of US assets than the US owns of theirs. US Trade Deficits that went up by 40% in 4 years of the Biden administration from $800 billion to $1.2 trillion. Economists and weak leaders got it all wrong allowing this to happen from Geoge W. Bush to Clinton Bush and Obama. Lighthizer says "shortsighted leaders aided and abetted this process," from 1990 to early 2010. Consider that US had 17.3 million  people in manufacturing, in factories all over the US in 1970, in 1999 we had the same number of jobs, even though there were changes in technology and productivity- the US held its own with the rest of the world. The Bush, Obama years were the worst for the US industry - by 2026 we have 12.6 million - loss of 4.7 million jobs since 1999. And real median household income took a big hit growing from $72,000 to $84,000 about 17% in the last 25 years, compared to twice that in the period 1975-2000 prior quarter century. The result is the fracturing of American society- and dire consequences for healthcare as communities suffered from loss of jobs leading to drug overdoses, alcohol abuse and suicides, which are common in post industrial American communities. Think of this fact: two thirds of America's workforce that does not have a college degree, that is working class people, lives 8 fewer years than college graduates, a gap that was only 2.5  years in 1992. The wars carried on by Bush and continued by Obama in the Middle East also wracked these same communities till Biden and DJT pulled out. One has only to drive across America to see this with one's own eyes. Trade may be an abstract topic for economists and politicians- there is nothing abstract about this. And the economic growth of the US has suffered with the unfair trading system with China, European Union, Japan, Canada and Mexico. From 1945 to 2000 American growth was 3.2% a year. Since 2000 only 2 years of growth over 3%. US has not seen historically normal growth for the last 19 years and at this rate (if we continued along this path) the Congressional Budget Office says 1.8% growth for 2027-2035. There are other factors yet the the major driver of this is our trade deficit of $1.2 trillion dollars a year. It is a story of remarkable persistence in the Nation's interest through 2 adminstrations- this Lighthizer story. Lighthizer fought Japanese commercial interests as Deputy Trade Representative under Ronald Reagan, and as US Trade Representative under DJT in the first DJT administration in 2016-2020. His Deputy at the time is Jamieson Greer who is now the US Trade Representative in the second DJT adminstration in 2025. For 30 years this brave American patriot has fought to reverse the bad actions of presidents and economists that have led to devastating losses in the American countryside. He says any new trading system must be perceived as fair to working people. It will survive only if working people think it is good for them. It cannot and must entrench a small, permanent elite. The benefits going to labour must be at least as great as those going to capital. It should create fulfilling high paying jobs for the vast majority of the American people. This is America's new promise to its people, its new compact with its people. ...

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TSMC will build a third plant in Arizona with the $6.6 billion in grants it gets from Biden's CHIPS Act. It will increase its investment in the US from $40 billion to $65 billion, essential to make the US a manufacturing hub for semiconductors. Intel, Samsung and other companies are making similar investments in the US in semiconductor plants. After years of post Reagan/Friedman period orthodox economics that led to the US chip industry and other advanced manufacturing following textiles to Asia, the US is making its policies follow actual practice and experience. This experience shows that in semiconductors with long lead times of a decade to build plants the country which supports its semiconductor industry gets ahead while others following orthodox Reagan/Friedman period economics fall behind. This has revealed the danger of a theoretical economic textbook approach that doesn't work and endangers American manufacturing and technological leadership. A culture wrapped around the textbook approach has led to the US and the EU, India, losing their competitive advantages and losing manufacturing in industry after industry, with loss of millions of jobs and deindustrializing. It has also led to decline and increasing lack of economic opportunity in towns and communities dependent on this manufacturing across the US and the European Union. ...

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Manufacturing could be the bright spot for the U.S. in 2021 and the years ahead. The pandemic has hurt industrial production in the U.S. in 2020. This brings manufacturing in the U.S. to a new low. This report in the WSJ says there is hope today because negative trends are about to be reversed. During three decades since the eighties three trends hurt the U.S.- lack of sustained capital investment, noncompetitive labor costs, degrading infrastructure.  To make the reversal of these trends and raise American manufacturing to what it was after World War II attention is being paid to these negative trends. The response- a quick recovery from the recession,  localization of supply chains, technological advancements to close the gap with competitors. By market capitalization on S&P 500 the U.S. manufacturing industrial sector was 15% in 2000, in 2020 it is 9%. Hope today lies in the determination to reverse the trends in this sector and regain leadership. Even in the aerospace sector the determination and legacy of American manufacturing is strong. Recently the WSJ ran a story on how David Farr, the CEO of industrial company Emerson Electric, which makes automation equipment for factories and aerospace parts based in Ferguson, Missouri, managed his company through the pandemic so that it was posed to return quickly to full production. Against all the hurdles he would not give up and fought hard in each battle with suppliers, governments and the pandemic.This bodes well for American manufacturing coming back on quickly even in tough markets such as aerospace and automation. Other factors WSJ mentions are quick reversal in hit to earnings, robust demand. Consumables have sprung back up fastest, but automobiles are also holding up in demand. This leads us to the localization of supply chains. Companies realize the risks of tensions in the South China Sea and technology theft today in a way that they did not before and this is changing the mood resulting in plans to move production onshore. Warnings from the Trump administration played a role with new tariffs on Chinese imports. Shipping products halfway around the world no longer makes sense, especially in losing control of supplies. Emerson depended on production off shore in China and other countries and panic from the pandemic set in quickly that everything would come to a halt as supplies stopped coming and Emerson could do nothing. The economics WSJ points out are also different today with labor cost inflation in China and labor cost deflation in the U.S. which improves U.S. competitiveness. To make U.S. labor cost competitive with China says Scott Davis in WSJ, one has to make the same quantity of product with half the employees, and this is now possible with automation technologies in 2020. The result is that even at this low point in manufacturing one can see the future is bright for the USA as it moves rapidly to rebuild the strength in manufacturing it had for most of the twentieth century. ...

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Changing perceptions of European companies about the viability of U.S. manufacturing in 2012-2014. The views of Atlas Copco AB, and Skanska, two Swedish companies, on why it makes sense to make products in the U.S.

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Wessel describes the changes in American manufacturing as it goes through some of the same changes that happened in Germany in the years after reunification. With high unemployment German manufacturing companies worked with unions and the government for wage restraint over the last decade, resulting in wages barely keeping up with inflation. The increase in productivity and wage restraint helped Germany become more competitive with factories in Asia and Eastern Europe. Wages are now increasing with larger wage increase negotiated by the unions in Germany, as skilled labor is becoming scarce. In the U.S. Labor Department figures show an increase in output per hour in American manufacturing of 13% in the last 5 years and 21% in the five years before that. Typical of the wage changes in manufacturing- American Axle & Manufacturing plant in Three Rivers, Michigan hires assembly workers at $10 per hour, with older "legacy workers" making $18 per hour. General Electric brought back manufacturing work from Mexico paying workers $13 per hour for new hires, compared to to $21- $23 in prior years. At GM, Ford and Chrysler workers make $16-$19 per hour in base pay compared to older workers with legacy rates of $29-$33. The Bureau of Labor Statistics shows earnings for production workers in manufacturing averaging $19.15 per hour in April, which is where they were in 2000 adjusted for inflation. The impact of this large increase in productivity with new machinery and production methods, and the wage reductions in manufacturing, is a return of offshored jobs. Wages increased in China and Mexico in the last decade. After a 35% decrease in the number of manufacturing jobs in the U.S. from 1998-2010, the number of jobs has increased by 4.3% to 11.9 million in April 2012, according to the Labor Department....

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Making stuff- machining and other skills -are now cool in American schools. You Tube reality show "Clash of Trades" and building up prestige of machining skills and machining jobs in the trades from a young age. Young people are getting excited about making things again.Other articles in NYT and elsewhere in media this month show how the big tech companies have become huge and  bureuacratic, so big that no one cares for the individual, its just get on with it. Computer coding jobs not just in the US but also in India are not glamorous anymore, as companies employ tens of thousands of programmers in many locations and are not responsive. 

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American manufacturers are importing more of the parts that go into each product. According to Susan Houseman, a senior economist at the W.E. Upjohn Institute in Kalamazoo, Michigan, the imported portion for these parts is up to 25% from 17%. Even the Bureau of Economic Analysis figure of the share of GDP coming from manufacturing is overstated, says Houseman. That figure was 11.2% for 2009, but is closer to 10.5% if all the imported components are included instead of being counted as domestically made. This is down from 14.2% ten years ago, and about 30% in the 1950's. There is deep concern that the manufacturing decline has weakened America. Houseman says that one cannot separate manufacturing from innovation, and she asks if America can continue to be strong in R&D with a shrunken manufacturing base. James Jordan of the Interstate Maglev project, says Maglev- which uses special magnets to levitate and propel high-speed trains- was invented in the United States. Today equipment for that technology is manufactured and used in Japan, and innovation in high speed trains is taking place in Japan and Germany. The decline in manufacturing is shockingly large. From 1979 employment in manufacturing went down by 8.1 million to 11.6 million, with the largest drop occurring in the last ten years. With it America is losing something significant- all the knowhow and skills that go into making things. Today the airplane wings for several Boeing airliners are made in Japan and shipped here. In a not too distant past these wings would have been built here, and workers with the knowhow and skills for these critical components were part of Boeing's workforce....