>   These loans would be good for the U.S. if this borrowed money was used
> for capital improvements, modern factories, research etc.  However, I
> believe it is being used for consumer wants and desires (cars,
> electronics, etc).  In the end, the U.S. will have tremendous interest
> payments that stifle investment in productivity and nothing new to keep us
> competitive.

Productivity in America has been growing at a terrific rate since the mid-1990s.  It
has surprised economists at how fast productivity has been growing and that the
growth has continued in the current recession.
http://www.federalreserve.gov/boarddocs/speeches/2001/20010614/default.htm
http://www.eoenews.org/2002-04/unusualrecession.html

>
> I've starting looking more and more, and everything I pick up at the store
> says "MADE IN CHINA".  Fine, we don't manufacture anymore in this country,

You're looking in the wrong kind of store.  America is the leading manufacturer in
the world, and the leading exporter of manufactured goods.  This comes up so often
that I've made a web page about it: http://home.nc.rr.com/kenhirsch/manuf.html


> but we are supposed to be a service and information economy.  The internet
> ends that.  Information can be stored, processed and sent around the world
> in a moment, so why would you pay to have it done in the U.S.?  Services?,
> well an Indian doctor can look at your chart and x-ray and as well as, and
> for cheaper, than an American doctor.

Economists call this the "pauper labor argument."  Fortunately, it's been known to
be wrong for 180+ years.

The actual situation is that demand for skilled labor is increasing in developed as
well as developing countries.

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