How the Trade Deficit Affects You
Trade Deficit: The means through which foreign countries are able to own and control our consumption.
Trade deficits are just like other debts in many respects. They must be repaid. When our country buys more than it sells from other countries, these other countries accept our dollars. These dollars must eventually return to the U.S. and be exchanged for something of value. Since we are producing less and less, in all likelihood, the trillions of dollars will come back to buy our assets and wealth producing companies. This has resulted in many of our core industries now being controlled and managed for the benefit of foreign companies and countries.
These loans by foreign governments have given them leverage over our decisions, forcing us to enter into agreements with them to allow them to control our key assets (technology, ports, natural resources, etc.). In fact, these loans place us in a disadvantageous position in all our negotiations abroad. Witness our inability to offset China’s currency manipulation that is making it nearly impossible for American exporters to compete.
“Free Looting”
What is responsible for this rash of imports? Policy decisions including the WTO, NAFTA, CAFTA, and other so-called one-way “free trade” agreements have eliminated laws regulating what other countries can ship into this country.
Today we have laws that prevent people from breaking into a store and stealing goods. If such laws were abolished, thieves would be getting a great deal until the store-owners were forced out of business. Then no one would have a job or any goods. “Free trade” operates with similar effect.
The “thieves” produce goods at ultra-low wages in protected home markets in other countries that have government subsidies and do not have environmental or labor laws like we do. These goods produced at $1.00 per hour wages in other countries are sold into this country that has a $10.00 per hour wage rate. Eventually, the “store owners” in this country are robbed of their profits and their incentive to continue manufacturing here. They must either produce in other countries like their competitors or go out of business. There is nothing these “store owners” can do to be competitive enough on their own.
In previous years, this country operated with measures to protect our manufacturers from lower-wage competing countries, who have always existed. As a country, we decided it was critically important to make sure we protected our ability to produce what we consume, what we needed to defend ourselves, and the means to employee ourselves.
As times changed, other countries lobbied hard for the US to reduce this protection and lured us in with their cheap goods. Now that we have taken the bait and in fact lost our ability to produce what we consume, we find ourselves collectively not unlike the position of the thieves in our looting example after all of the stores have gone out of business. Yet we continue to open up more of these trade agreements with outrageous acclaim.
Unprecedented Vulnerability
This country is incredibly vulnerable. Based on the trends described above, we no longer produce what we need for everyday consumption. Between our government debt and consumer debt, we are borrowing $2.8 billion more each day from other countries. And this is just for “normal living conditions.”
If we were to engage in a major military conflict, from where would we supply our defenses? What would happen to our delicate balance if these other countries decided to reduce or stop this lending insanity? What would happen if another major shock like 9/11 occurred in our economy (or not if but when…)?
If you are concerned about these issues, please do your part by spreading this message. If you disagree, please tell us why – we are always open and eager to hear good news and reason to be optimistic.

This Work, How the Trade Deficit Affects You , by Thomas Heffner is licensed under a Creative Commons Attribution-No Derivative Works license.
Copyright © 2010 EconomyInCrisis.org
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If exports are an indication of our recovery, it is not encouraging since 2009. We are still at the bottom.
CHINA GETS ALL THE GOOD HIGH PAYING AMERICAN JOBS AND WE EAT IN SOUP LINES and SLEEP IN THE STREET.
WHEN WILL THE AMERICAN PEOPLE LEARN. . . . .
“AMERICAN Politicians CAN NOT continue SENDING GOOD HIGH PAYING JOBS OFF SHORE TO CHINA AND STILL EXPECT TO HAVE JOBS FOR OUR AMERICAN FAMILIES”.
WE WILL GET EVEN WITH EVERY INCUMBENT POLITICAN THIS NOVEMBER-2010.
WE SHOULD SEND THE PRESIDENT AND the CONGRESS OFF SHORE TO CHINA AND KEEP OUR GOOD HIGH PAYING AMERICAN JOBS HERE AT HOME. NOW THAT WOULD BE A WELCOME CHANGE.
The Bailouts and all this unemployment are all avoidable. “Just Pull out of NATFA and the WTO and close the doors to the largest consumer market in the world and everything will automatically correct all by it self”. America will be swimming in new Jobs almost over night.
Then you will see well over 15 million jobs good high paying jobs created almost over night not in CHINA, but right here in America for a change.
++++++++++++++++++++++++++++++
The American People have been hoodwinked into believing International Free Trade benefits all Americans.
But, the truth is NAFTA and the WTO started destroying America the very day it was signed back in 1992 and 1993 by Politicians that had been bought and paid for by Super Wealthy International Bankers, Wall Street Crooks and International Manufacturing Companies who have Gained Billions of Dollars from NAFTA and the WTO on the backs of American Workers.
I predict if the American People do not wake up soon and force American Politicians to start protecting American Jobs by withdrawing from NAFTA and WTO immediately, America will totally Collapse in the very near future.
President Obama keeps saying everything is starting to improve. But, the Federal Reserve has injected $1.5 Trillion Dollars of borrowed money from China into the Economy and we are still losing Jobs, wait and see what happens when the Federal Reserve are forced to take the punch bowl away.
Here is how to fix the American Jobs Problem almost over night.
WHY IS Harry Dingey and Patrick J. Buchanan THE ONLY TWO IN AMERICA TO FIGURE THIS OUT?
The same business as usual is exactly how America got into this problem and will only make a bad situation even worse.
Make no mistake about it; the International Trade Deficit must be balanced if America is to SURVIVE. There is only three ways to correct this humongous Trade Imbalance.
1. Increase the American Exports by $450.6 Billion Dollars per year. This is absolutely impossible and only makes things worse.
or
2. Decrease the American Imports by $450.6 Billion Dollars per year. Then manufacture the merchandise in America.
or
3. Pull out of NAFTA and the WTO and Produce all Imports in America. Do not worry about Exports and this will Create 15.02 million Jobs instantly and maybe ever more.
I am suggesting we do number three. This can only be done by the American Congress and will automatically bring the large American Manufactured Goods Trade Deficit into BALANCE almost over night. This is a no brainer.
Where Exports + Imports = a Balance of ZERO.
America is really in a very good position because “America has the largest most profitable consumer Market in the World”.
All we have to do is start manufacturing every item we consume or a daily bases right in the USA and that will automatically create well over 15 million jobs over night.
Of Course this will never happen because the President and all of Congressmen are in the pockets of the Council on Foreign Relations (CFR PARTY). The CFR PARTY MEMBERS are International Bankersters, Wall Street Gangsters and the greedy International Manufacturers.
They are making Billions of Dollars by transferring all of the Highest Paying Jobs off shore to Mexico, India, China and Japan as America goes Bankrupt. Our Federal Government is totally controlled by these CFR PARTY MEMBERS, the greediest and richest People in the World.
It you think you can change things at the Ballot Box your sadly mistaken. Take the 2008 Presidential Election, Every Presidential Candidate was bought and paid for by the CFR PARTY even before the first vote was ever cast. Every Presidential Candidate of both parties was a card carrying member of the CFR PARTY except RON PAUL.
What are the odds of that happening?
What are the odds in the 2004 Presidential Election where both Candidates George Bush and John Kerry both belonging to the same small College Fraternity such as Skull and Bones and also having CFR PARTY connections?
Check it out for yourself:
http://www.thirdworldtraveler.com/Foreign_Policy_Institutions/Council_Fo...
The CFR PARTY has been pulling this maneuver for over 80 years. Then of course the newly elected President appoints all CFR MEMBERS to all the highest positions in the Federal Government.
President Barack Obama and his wife are both card carrying MEMBERS of the CFR as most of his personal appointments to his Cabinet Posts and Department Heads.
You can verify everything I say by google.com or youtub.com any name you want along with key words like “IS A MEMBER OF CFR”.
Everyone should start looking at every Candidate for the CFR PARTY connection because one cannot serve two masters at the same time with very different goals.
Here is exactly what would happen if they do as I suggest.
Every car sold in America by Toyota of Japan would be totally manufactured in America.
Every item sold in every store in America would be manufactured right here in America. America would be swimming in newly Created Jobs almost over night.
Also, NO BAILOUTS would be needed.
I can remember reading this large sign posted in every Wal-Mart Store before NAFTA and the WTO: “EVERYTHING SOLD IN THIS STORE WAS MADE IN AMERICA”.
Sam Walton said: “Everything sold in all Wal-Mart stores will be made in America”. Then Sam Walton died on April 5, 1992 at 74 years of age.
Then America joined NAFTA in 1992 and the WTO in 1993. Now, look at any Wal-Mart store you will be hard pressed to find even one item made in America and all the Walton Children are now among the wealthiest people in the World.
Do you really want to solve the AMERICAN JOBS PROBLEM?
I CAN CREATE 15 MILLION JOBS ALMOST OVER NIGHT right here in America !!!
Here is my Job creation Computations:
+++++++++++++++++++++++++++++++++++++++++++++++++
Total USA Imports in 2006:
----------------------------------
$ 2,211.7 billion ---Total Imports.
$ - 309.4 billion ---(Less Money spent on Imported Crude Oil)
--------------------------------------------------
$ 1,902.3 billion / 30 billion=63.41 million jobs lost from Imports.
========================================
Total USA Exports in 2006:
----------------------------------
$ 1,451.7 Billion / 30 billion=48.39 million jobs America Created from Exports.
If USA Pulls out of NAFTA and WTO right now:
USA would create a total of 63.41 million Jobs by Manufacturing all IMPORTS right here in the USA.
So, 63.41 minus 48.39 = 15.02 million NET JOBS GAIN.
But, a lot of Exports must be purchased in the USA. That would mean an even larger number of jobs created in America than I have estimated.
Also, I should note that I have subtracted out the $309.4 billion dollars that America spent on Import Crude Oil in 2006. This is another problem that must be solved later.
My calculation means an ABSOLUTE 15.02 million Jobs gained if the rest of the world did not purchase one penny of USA EXPORTS.
Maybe our American Politicians should consult with a Fifth Grader to do the International Trade Mathematics?
Or maybe the American Politicians should start thinking about how they are destroying the greatest Country on earth with NAFTA and the WTO for a CHANGE.
I think everyone of these Politicians should be put on trial by the American People for TREASON and executed if found Guilty of TREASON because everything the CFR PARTY stands for and advocates is Treasonous to the America Constitution.
SO MOTE IT BE. . . . .
Do you truly want to help straighten out the United States Government now? Then, copy and post this article everyplace on the Internet you can post.
BY: Harry Dingey
Have a good day my friends.
Those of us who were "in the house when the house burned down," have been wondering for fifteen years why "our" government would have allowed, and continue to allow this to happen.
When Lou Dobbs published his book "Outsourcing America," in 2004, and was flogging this issue daily on CNN, it occurred to me that "our" government was willfully avoiding or ignoring the issue.
The Marxists predicted that the proletariat (working class) would overthrow the bourgeois (middle-class) and this would allow the intelligentsia (elites in the media, academia and politics/Communist Party) to run the country.
In the Soviet Union, the bourgeois were thrown out, or imprisoned or shot; but the proletarians never tasted the Marxist Utopia. Only the Party Members lived in luxury, while the workers remained poor and miserable.
In the United States, thanks to capitalism, the proletarians rose up and became middle-class citizens through gumption, individual responsibility and hard work. They shunned the elites who were still pushing for Marxist redistribution in the name of "helping the less fortunate."
The Progressives, (formerly known as Liberals, who were formerly known as Progressives) are back in full force. They never actually left, but have had to keep a low profile during times of prosperity in America. When the misery Marx predicted didn't materialize, allowing them to take over, they began to wonder whether they could create misery out of whole cloth. One manifestation of this thinking is known as the Cloward-Piven Strategy -- a scheme to manufacture chaos by overloading the economy with unsustainable spending. This strategy, which has been tested and has proven to be effective (Google it.) would be turbo-charged if we surrended our tax base to, say, China.
Like those "self-accelerating" Toyotas which eventually end up in fiery crashes, our economy is headed for the precipice. "Our" government could easily apply the brakes if they chose to. Writers on this web site have provided a number of well-thought-out options for slowing or stopping the death of our economy.
The Progressives are driving, and they are pushing on the accelerator for all they are worth.
Bruce Bishop
Sssshh.. President Obama and Congress do not want you to know this because they are all International Globalist. They are the ones who shoved NAFTA and the WTO down the American people’s throat and it has been a dismal failure.
Whenever you find yourself in a hole: “STOP DIGGING”.
It seems Harry Dingey and Paul Krugman (an American economist and Nobel Prize Winner) are the only two people in America to understand we have a Trade Problem with China?
Make no mistake about it the International Trade Deficit must be balanced one way or another if America is to SURVIVE as a Nation.
There are only three ways to correct this humongous Trade Imbalance.
1. Increase the American Exports by $450.6 Billion Dollars per year. We been trying to do this since 1993 and this is absolutely impossible.
or
2. Decrease the American Imports by $450.6 Billion Dollars per year, then manufacture the merchandise in America. Paul Krugman wants to add a 25 percent Tax on all Imports and hopes this will reduce Chinese Imports.
or
3. Pull out of NAFTA and the WTO. Then Close the Largest Consumer Market in the World to all Imports. Do not worry about Exports and this will create well over 15.02 million Jobs instantly and probably even more.
I am suggesting we do number three. This can be done by the American President and Congress and will automatically bring the large American Manufactured Goods Trade Deficit into BALANCE almost over night. But, they would rather keep borrowing and printing money and hope things get better. They are pushing on a string because you cannot have a meaningful recovery without good high paying manufacturing and construction jobs.
There is NO substitute for good High Paying Jobs.
The real question is do we want to create Good High Paying Jobs in America again or continue letting the International Companies make large Profits off of Chinese Slave Labor?
Toyota of Japan would be forced to totally manufacture in America, every car sold in America.
Every item sold in every store in America would be required to be manufactured right here in America.
I can remember this large sign posted in Wal-Mart: “EVERYTHING SOLD IN THIS STORE WAS MADE IN AMERICA”.
Sam Walton said: “Everything sold in all Wal-Mart stores will be made in America”.
I CAN CREATE 15 MILLION JOBS ALMOST OVER NIGHT right here in America !!!
Here is my Job creation Computations:
+++++++++++++++++++++++++++++++++++++++++++++++++
Total USA Imports in 2006:
----------------------------------
$ 2,211.7 billion ----- Total Imports.
$ - 309.4 billion ----- (Money spent on Imported Crude Oil)
--------------------------------------------------
$ 1,902.3 billion / 30 billion=63.41 million jobs lost from Imports.
==================================================
Total USA Exports in 2006:
----------------------------------
$ 1,451.7 Billion / 30 billion=48.39 million jobs America Created from Exports.
If USA Pulls out of NAFTA and WTO right now:
USA would absolutely gain a total of 63.41 million Jobs by Manufacturing all IMPORTS right here in the USA.
So, 63.41 minus 48.39 = 15.02 million NET JOBS GAIN. But, a lot of Exports must be purchased in the USA. That would mean an even larger number of jobs created in America than I have estimated.
Also, I should note that I have subtracted out the $309.4 billion dollars that America spent on Import Crude Oil in 2006. This is another problem that must be solved later.
My calculation means an ABSOLUTE 15.02 million Jobs gained if the rest of the world did not buy even one penny of USA EXPORTS.
SO MOTE IT BE. . . . .
Do you truly want to help straighten out the United States Government now? Then, copy and post this article everyplace on the Internet you can post.
BY: Harry Dingey
Have a good day my friends.
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