June 1 was a historic day for all the wrong reasons. That was the day General Motors officially filed for bankruptcy. It was a sad day for the 100-year-old icon of industrial might, but it was an even sadder day for a nation that is experiencing the gutting, hollowing out and shuttering of its manufacturing capability. GM may survive in various reduced forms for a time. But is its collapse a harbinger for America?

The scene at GM plants across America is not pretty, even if serene. Factories that have churned out vehicles for decades sit silent. Many plants are being shuttered for up to 11 weeks while GM dealers try to work off a massive inventory of hundreds of thousands of unsold vehicles. With the economy slowing further, some factories may take much longer to reopen.

On June 2, GM announced it had found a buyer for its Hummer brand—a Chinese company. General Motors has also said it will shed its Pontiac, Saturn and Saab brands. Its European and South American units are also on the negotiating table.

Meanwhile, evidence is emerging that, contrary to what they have been led to believe, taxpayers will never be repaid their $50 billion in GM bailout money.

Based upon current levels of government ownership of company stock, GM would have to be worth at least $69 billion for taxpayers to break even. The market values GM at around $500 million today. To get the kind of market valuation that would enable the government to get back what it has put into the company, GM would likely need around $19 billion in annual operating cash flow, or approximately the same cash flow benchmark that Toyota had in its best year ever, says the New York Times. To do that, GM would need to boost annual sales by 50 percent—a very unlikely scenario seeing as the economy is tanking, and the company has divested itself of major brands and is attempting to sell off its foreign operations.

GM will never be a powerhouse again. So Americans can kiss their bailout money goodbye. At any other time, the bailout scheme would have led to a major political scandal, but during these days of economic crisis, the Wall Street handouts have stolen the spotlight.

But the failure of GM (as well as Chrysler) has highlighted a deep, fundamental weakness in America. Germany’s business daily Handelsblatt notes:

America’s economy is losing power and influence in the world. It’s a creeping process and only becomes visible on days like yesterday: General Motors, a warhorse among the world’s industrial companies, significantly bigger than the failed and scandal-ridden Enron and WorldCom, has filed for bankruptcy protection. A fat chapter has been added to the book on America’s de-industrialization.This process, which began with the relocation of textile production to Asia and then pushed steel producers, tire plants and many other industries out of the country, has plunged the country’s political leaders into increasing despair. How else can one interpret the gigantic rescue operation for GM that will end in the nationalization of the biggest auto company in a country that has always hailed itself as the paragon of capitalism?

America is no longer the industrial power it once was. The signs are everywhere, and the implications are ominous. More and more of the most successful companies are located overseas. The Trumpetwarned in 2006:

First, America as a whole will eventually become poorer, so be prepared to downgrade your standard of living. As progressively more manufacturers move abroad, the flow of money out of the country will exceed the benefits of cheap imports. At some point, America’s trade deficit will overwhelm us. If this trend continues, eventually Americans will not be producing enough to pay for the standard of living that post-World War ii America has become used to.Second, if you are not among the rich and you rely on a job, prepare yourself for job security issues. In plain language, if you work in the manufacturing industry, don’t expect raises and don’t be shocked if your job gets “outsourced.”

For over a half century, American manufacturing dominated the globe. It turned the tide in World War ii and hastened the defeat of Nazi Germany; it subsequently helped rebuild Europe and Japan; it enabled the United States to outlast the Soviet empire in the Cold War. At the same time, it met all the material needs of the American people.

But American manufacturing today is a decayed husk of its former glory. The Trumpet reiterates what it said three years ago: “As GM goes, so goes the nation.”