"powder rust" around windsheild wiper arms, bad???
 

While looking around in my engine compartment trying to figure whats up with my electrical system(read, i think my car needs an excorcist), i saw that around the windsheild wiper arms and shaft, there is an orange powder that looks like rust that is being sanded off. Now i know that isn't a good thing, i never like to see that type of powder unless it's caused by ME sanding it off. What type of repair/maintenance do i need to do here? anything? there are no rubber grommets etc around the shaft that looks as if it goes to the wiper motor, should there be? do i need to oil or put on rust prevention stuff on anything? i'm worried, i dont want to replace the windsheild wiper assembly.......
Ryan