Throughout this massive global meltdown, there has been very little discussion about how this Old World Order collapsed. Some commentators and most of the Bilderber gang, desperately want us to believe, it was a bunch of reckless California or Florida house flippers who flipped over the economic apple cart. They are a symptom, not the cause. The cause lies in ‘free trade’ and how it ended up destroying the entire US economy.Of course, the first nation to slip into a depression after a massive credit bubble was Japan. All global depressions have their roots in events that happen 20 to 50 years earlier. This one is no different. They all begin with the same financial lurch: stock markets suddenly begin to rapidly collapse about 2 years after the housing bubble bursts.
All credit bubbles hit housing very hard because this is the most convenient place for the populace to park new loans. Banks insist on owning the house as collateral on a loan. The borrower is then encouraged to pay up or be kicked into the streets, a pauper. So the whip of fear keeps the borrowers paying off a loan and if they fail, the property can be sold.
But if the banks lend too recklessly and too much, when the lending slows down due to lack of people with enough credit to take on new debts, the value of housing stabilizes and then begins to fall as frantic debtors, expecting to always roll over their massive debts via housing price rises, end up defaulting, instead.
This triggers a bank panic which also runs alongside a collapse in stocks. Central bankers know this which is why they moronically claim, they stop these bubbles via interest rates so there will never be any bubbles or crashes. Yet, we saw the Bank of Japan create a bubble/crash at home 20 years ago.
Worse, instead of learning a lesson, the Bank of Japan went on to create a SECOND housing/lending bubble, across the entire planet earth. The more the other central banks raised interest rates to stop the flood of lending, the more effective the Japanese carry trade became since the differential between Japan’s rates and world banking rates grew to an immense size.
But before all this, something was very, very wrong in world finances and world trade. The US began to run an increasingly big trade deficit with the entire world. This trade was paid for via red ink, ie, lots and lots of loans from the trade partners making out like bandits vis a vis the US.
Here is my video about the graphs below:
YouTube – Trade Deficits Kill Empires
First, the growth of imports is the most important story here. The Federal Reserve as well as several Federal agencies all track this. They obviously are not moved to any great alarm since not one soul working within our government, not one trade negotiator has managed to change course even slightly. Quite the opposite!
The push for ‘free trade’ is the major focus of the Bilderberg gang and they override all democratic systems in Europe and America. Despite obvious alarm bells ringing loudly, the desire for ‘free trade’ overrides all alarm systems. The US public, fed immense amounts of cheap credit, simply want this particular system to continue and the tool for this is even cheaper credit. Maybe, even zero interest credit. Except, we pay a very high premium for this credit, especially credit cards, the biggest killers of personal savings.
Let’s start with our close friend to the north, Canada. Corporations sell a lot of stuff to Canada. This is one of our biggest trade partners. Up to $24 billion in annual sales, at the peak. Now, in decline.
Canada sells us a lot of energy products. The graphs below in this series all show, in green, the difference in scale with the US graphs. That is, all the graphs showing US exports are on a much lower scale than the import graphs. That is, the highest number on the US graph, in this example, is only $28 billion while the Canadian graph is $32 billion which is $4 billion more.
Our trade with Canada is probably the least unbalanced of all our trade deals. But even so, since we always run a deficit with Canada, this slowly will bleed our own economy to death. Let’s go to the other NAFTA nation, Mexico>
ALFRED: Series: EXPMX, U.S. Exports to Mexico, f.a.s. basis
$10 billion less in trade than with Canada. But the trade differential is worse.
There is a $5 billion difference between import/exports. Since 1980, the US has gulped down Mexico’s oil and we have run a constant deficit with Mexico. A great deal of manufacturing has moved there, too. Between our NAFTA neighbors, we have gone from being a creditor nation to a debtor nation.
So, did our leaders try to fix this? NO! They expanded on this ruinous model! This is because the INCREASE in our own exports is very lucrative for them so they don’t care if, over all, we fall into increasing deficits.
Now, one can say, this inequality is all due to US oil imports. But when we go look at other trade allies, we see the NON-OIL export nations are hammering us 10 times harder than either Canada or Mexico!
US trade with Germany is less than with Mexico. But the trade differential with Germany the same as Canada, who has much more trade with us than we have with Germany:
The trade gap with Germany was growing greater each year until the global trade collapse. Now, onto the other empire we defeated in WWII only to see them best us in the global struggle for dominance:
Our exports to Japan are different from all the other graphs. All the other ones show US exports growing, even though they always lag far behind imports. But not to Japan. For many years, our exports to Japan fell! Never, have they climbed past a miserable $6.3 billion a year. It has been between $5-8 billion a year for over 20 years. This has been significant heavy bleeding in the US.
Our own imports from Japan have also stabilized. This is simple: the Japanese, alarmed at US ire over trade deficits with Japan, moved many factory finishing operations to the US so they could fly under the radar. The Germans did this too. It is a common ploy of many trade rivals. This quiets the US public and puts them back to sleep while ownership of America is rapidly transfered from US citizens to foreign powers.
Now, on to China: we get yet another grinning fool as our ambassador to China. Of course, the Chinese will not be all very friendly at all if we insist on splitting China into smaller nations we can put troops in. The Chinese are focused on their 50 Year goal and this involves bankrupting the US.
Infantile commentators insist the Chinese fear a US bankruptcy. HAHAHA. Gads. It is the fundamental basis of their entire strategy! They really don’t mind losing several trillion dollars if this means the US goes totally bankrupt and ceases to exist the same way the Soviet Union is no longer with us.
ALFRED: Series: EXPCH, U.S. Exports to China, Mainland, f.a.s. basis
Our exports to China shot up like a classic hockey stick graph! But it is no greater than our trade with Germany or Japan! And a lot of it is, like to our other trade rivals, lots of garbage being recycled or commodities they turn into manufactured products, for example. Or these deals are us transferring US manufacturing equipment to China.
YIKES! The trade differential is just utterly immense. A staggering $27 billion differential at the peak! The annual spikes are Xmas deliveries. China is our Santa Claus. The mania for Xmas buying binges is very strongly tied to Chinese production of cheap consumer goods we like such as toys and games, etc.
The German and Japanese graphs are all about automobiles. These have no annual spike to the degree that smaller electronic and game goods have. The transfer of wealth from the US consumers dancing around the Xmas tree and the Chinese dragon has been fatal. We can only decrease our dependence on this trade by killing Xmas. The Grinch has to take over or we all end up unhappy slaves.
Here are some interesting graphs from the Fed Reserve, showing how the ‘good times’ are actually negative financial outflow sessions that are deadly. Note that the only times money flows back in, are during recessions or depressions:
Money flows to foreigners the same way and at the same time. The outflow got to a negative $40 billion before a global depression slowed it down:
This graph is particularly alarming. Income foreigners are clipping from us went to a manic $190 billion in 2007 when the whole thing blew up. It is now ‘only’ $100 billion which is still a sign, the US is bleeding literally to death:
And how did we cope with all this? Simple! The Federal Reserve prints money like mad. From 1980 to today, our MZM increased from less than a trillion dollars to ten trillion dollars. In less than thirty years, the money supply has shot upwards and you can bet, the vast bulk of this growth was our growing national and private debt loads:
The Fed knows these graphs, they produce them. The Federal Government has seen these graphs, too. The information has obvious conclusions. There is no escaping the logic here. So why is it nearly impossible for our government to do the only sane thing, which is to decrease our trade as much as possible until we stop the red ink?
They can’t do it. The exporters here love the system. Since most of our manufacturing entities also use cheap foreign labor and then import their products back home, they, too, love this deficit system and don’t give a hoot, if it destroys our nation. They don’t view themselves as citizens of the US. They are BILDERGERGERS and their nation is their cabal, their gang, their wealthy Mafia.
ΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩΩ
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You know, it doesn’t get better the more you view it
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ballence of trade is one thing… business should do the same godamn thing they do here in foreign countrys… try and make it big but thats not the game, the game is finance and skimming
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in my opinion the dollar is COMPLETELY imbalenced… we can play the promice game, the we dont care game, or the we got friends game… but that aint the dollar game, the dollar buys stuff and its a big deal if we dont allow for proper accounting noone knows where the money is ‘in dollars’ i be thinking its our arse playa
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http://video.google.com/videoplay?docid=-53565441845289277&q=nuclear+fision&total=185&start=10&num=10&so=0&type=search&plindex=0
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what is green, can be printed, and takes any shape
Elaine
A book for you (if you haven’t read already) – The Dollar Crisis. Sounds interesting. It was referenced by Clusterstock.com writer in the following post :
* Abandoning the gold standard in 1971 has resulted in large global trade imbalances and a massive buildup of foreign currency reserves
* These trade imbalances and buildup of foreign reserves have resulted in frequent booms and busts since 1971
* The Japanese bust of 1989, the Asian economic crisis of 1997, and the current US credit market collapse have resulted from the post-1971 paper money monetary system
* Abandoning the gold standard has gradually resulted in a very overvalued US dollar, and that the dollar is headed for disaster
* “The dollar standard is inherently flawed and increasingly unstable. Its collapse will be the most important economic event of the 21st century.”
This week, I’m doing another book review, this time on “The Dollar Crisis” by Richard Duncan. Before I begin, I’ll make a prediction, since I’m an investor and my job is to predict. I increasingly believe that the dollar will collapse, and its ramifications could be as violent as when the credit markets cracked in July 2007. Currency collapses are nothing new, just as the bursting of a credit market bubble was nothing new. A dollar collapse could very well lead to carnage in domestic asset markets, whether it be the stock market, bond market, etc. Also, US imports and the overvalued dollar are fueling many of the export-oriented economies abroad, so a dollar collapse could wreak havoc on foreign asset markets as well. And once it happens, we’re going to view the collapse of the dollar as an obvious event that we should have long seen coming. Just as we now view the subprime wreckage and bursting of the real estate bubble as an event we should have easily predicted.
(end quote)
So he says it — the seminal 21st century event will be the collapse of the dollar (and the US empire).
So you “crazy lady” aren’t so crazy after all! Will you be justly credited for your forward thinking (while everyone keeps spouting “NO ONE SAW THIS COMING!!”) as you were previously discarded as a paranoid just talking crazy?
Thanks for your insightful writing. You, Mish, Charles Hugh Smith are always ahead of the curve. To be forwarned is to be forearmed.
The dollar is ‘overvalued’ due to everyone trading with us holding US Treasuries and other debts in order to keep their trade advantages.
Elaine:
I am just astonished that they guys who are doing this to us are so stupid….yes, I said STUPID!
I keep questioning in my mind how these guys can betray the nation of their birth and millions of people, but I think your analysis is correct that they simply have no concept of nationhood or of love of country or of an obligation to anything greater than themselves….only of being part of their limited little group, their mafia.
I can only conclude that when Chinese planners gain full control over US finances, and can dictate terms for the survival of our government and national infrastructure as a puppet state to its creditors, they will have no further use for such fools and idiots…whatever their motivation…and they will be abandoned. I know, I would do so if I were a Chinese planner….because I would have complete contempt for anyone who would sell out their nation for mere greed.
Lets look again at history. The Chinese, under Chang Kai Sheik, suffered terrific poverty and periodic famine, while the Kuomintang government was corrupt to the core, and as I noted in an earlier post about the Soviets, the core government cared almost nothing for the masses…and ruled with elitist arrogance. The Chinese planners today are a very mature and pragmatic second generation descendants of the Mao revolutionaries. They have endured and witnessed the upheavals and excesses that come from revolutionary movements going overboard in different directions that cause unnecessary suffering among the masses….and they do try to minimize this to a considerable extent…even though their rule is still harsh by former American standards.
Still, these folks know the value of loyalty to one’s nation and its people as evidenced by government anger at those greedy capitalists who poisoned Chinese babies…and their punishment was swift and sure for those who did not care about the masses of ordinary people or their innocent children.
Now, if our smug, skimming elites think that they will ever be respected by the Chinese, who will almost certainly control the world’s purse strings in the near future, in my humble opinion, our conniving skimmers will have another thought coming.
And, if they think they can earn the respect of those Europeans and others who they are selling out to, they also will have another thought coming.
As far as rulers of our creditor nations are concerned, for whatever reason, our US elites are selling out our nation to them….whether ideological, or out of naivete or out of pure greed, in my humble opinion, outsiders view them as if they have SUCKER stamped in great big red letter across their foreheads.
That is how I would view them if I were a foreigner….and they would disgust me that they would stoop so low as to sell out their nation.
Just reading in ‘canadian business’ how China is rapidly building capability in the wind turbine and solar industry. And on tv, China moving ahead with production of a bettter electric vehicle , while the americans and ‘Stupid George’ dragged their heels over GW and the electric car.
David, “I am just astonished that they guys who are doing this to us are so stupid….yes, I said STUPID!”
Lizards prey on stupid humans.
They find stupidity wherever men are pussy-whipped.
Plovering:
I know that I’m dense, but please explain a little more about your theory….sound’s interesting, since it’s been a bit of a while since I’ve been up to the challenge.
You should change the title to “Empires kill themselves”.
The only way to avoid imperial collapse apparently was never to become an empire in the first place
Elaine, your analysis grossly distorts the truth. The dominating item in the US trade deficit is oil. Period.
We import and we export oil and oil products. According to the EIA, the net US trade deficit in oil and oil products amounts to 12 million barrel per day. At $60 per barrel, this amounts to a sum of $260 billion per year. At $100 per barrel, the cost of oil imports amounts to $440 billion per year. In comparison to these figures, the trade deficit with Germany ($4 billion at its peak) looks like 1% to 2% of the oil bill.
Not discussing the oil bill and instead wasting time and space on small deficits like $4 billion with Germany looks and smells to me like Japan or Germany bashing – not a sound economic analysis.
The second weakness of your analysis is that you do not take into account that the US trade deficit is not the result of a conspiracy of countries like China, Japan or Germany against the economic interests of the US. To the contrary, the US trade deficit is the result of conscious and deliberate decisions taken by many US administrations starting with Roosevelt who successfully convinced the Saudis to trade their oil only against US Dollars. If Germany wants to buy oil for its fleet of cars, they need to earn US Dollars in order to pay for the oil which can be bought only against Dollars. Clearly, they can earn Dollars only by exporting to the US. They are forced to run a trade surplus against the US in order to accumulate the Dollars necessary to buy the oil for their cars. Contrary to the US, Japan and Germany have no national oil production. Every barrel of oil consumed in Germany must be imported.
You should research and the write a piece on a very important statement made by FDR: Nothing happens in public life by accident. If something happens, then it was planned for a long time. The US trade deficit is a case in point. It is the direct result of a long term plan created and pursued by the US government. The opposite of what you are saying is true.
Robert:
So, you are saying that the US is simply printing dollars in order to give them to Germany and Japan for Toyotas and Mercedes so the Japanese and Germans can have dollars to buy oil. But they have a huge excess of these dollars and use them to force down the value of their own currency so they can sell exports.
If oil is the sole reason for deficit trade, then, some US elites might see no need for the US to even have production industries that produce automobiles or anything else for us including washing machines or consumer gadgets, but, then, is China required to purchase Russian oil with dollars or just Arabian oil?
Seems like our trading partners are getting shortchanged a lot in this deal if all we are doing is printing debt certificates or IOUs in return for automobiles and all kinds of other manufactured products….as are the American masses who have to give up their jobs so the Germans, and Japanese can import to us.
I question, how long can this last?
I see several major problems with this scheme. The first problem is that it probably hinges on US military power to enforce the dollars for Oil standard…and this might work for nations that have limited military capabilities, but not for soveriegn nations with nuclear capabilities like China and Russia…if they decide to use other means of payment for oil….creates a confrontation.
The second problem is that this scheme enslaves manufacturing nations like Germany and Japan and China? (don’t know whether China pays Yuan for oil or not) as producers for the US…and all they get is debt certificates for their labors.
Now, the third problem is that this disenfranchises American citizens themselves from the manufacturing, jobs, profit, progress process, and the government has not yet come up with a legitimate system whereby it can put greenbacks into the hands of US citizens. The credit, debt, low interest scheme is not working….because value added wealth is deteriorating and values are falling…homes, and other collateral are leaving the hands of the consumers of this easy credit….so citizens will eventually reach a point of owning nothing and will have to be given outright government handouts…as is happening with the stimulus checks being sent out.
How long will these creditor nations continue to produce for the US in order to get oil dollars?
It seems that this scheme is crumbling as is the US empire…as more and more nations buck this system.
In order for citizens to survive under this system, the nation will have to become a welfare state…where the government simply prints out monthly checks to everyone and they use these to buy imports….talk about communism, but under a system where the state owns nothing because it is all owed to foreign nations…and all we will have left is the ability to print worthless debt certificates.
Such a system cannot last.
Perhaps, this is the terrible dilima the US is facing, we have become dependent upon this oil money, and as long as we were a producer nation, our money was worth something…. however, with outsourcing it is really just worthless paper or compter digits.
Free trade should never have been allowed to happen. However, the rise of China as a world class manufacturing nation threw a huge wrench in all of the elites plans….as did the dwindling supply of oil and the increased consumption of oil around the world.
So, our decline is due to several things…and it seems impossible to me for the empire to continue in the manner in which it has in the past….and our elites have not yet come up with workable solutions to this dilema.
I’ve worked my way throught this line of thought this far. I hope others who have more financial sense than I do can interpret this better for me.
David,
I posted an message earlier about the negative
externalities of gays and lesbians in the vanguard of our society. That message was deleted. I’ll try again.
Chemistry dictates that 5% of males in our society shall be gay. These males have no choice in the matter.
Lesbianism is independent of chemistry and is adaptive. These females made a choice.
The acronym LUG (Lesbians Until Graduation) fairly describes the matter. Whilst 11% of coeds identify with lesbianism in college, the number drops to 1% once they graduate. OTOH whilst 5% of college males identify gay in college, the same 5% identify gay after graduation.
So, we are talking apples and oranges here, which the MSM Lizards misuse to great advantage.
Elaine won’t allow the P word, so I’ll just say that gays and lesbians are on the vanguard of “moral relativism” in our society. They certainly corrupt scouting.
Your turn.
David how about this for an answer.
‘I keep questioning in my mind how these guys can betray the nation of their birth and millions of people, but I think your analysis is correct that they simply have no concept of nationhood or of love of country or of an obligation to anything greater than themselves….only of being part of their limited little group, their mafia.’
Your generation is filled with traitors. Once you tell mom and dad that they are no longer relevant and that they better be nice or they will end up in a bad nursing home, treason is a minor misdeed. When you decide to get a divorce and leave your children in a lurch because you don’t want to bang your old lady or your old man anymore, and that cat/chic from another state is more groovy, treason is mother’s milk. When you hippie/yuppies elect your traitor Bubba to sign NAFTA so you can get Macy’s blouses for twenty dollars, and hundred year old mills in Massachusetts and Carolina close, you are the traitors.
And I suppose Dear Author does not know or care about the assault on our energy industry, our last number one bastion. Dear Author does present good graphs and I commend that, though Dear Author does not always stay with her strong points. Anyhow, Cheniere Energy is building a huge LNG offtake plant in Louisiana, the locus of our domestic NG distribution systems. Now that Dear Author’s friends in Quatar have built their mega gas liquefaction plant, kiss goodbye our thriving domestic gas industry. And for what it’s worth, our Norton deity friends in Europe, Total SA intends to dump all their excess depression refined gas and distillates on our lap this summer. Kiss goodbye our refineries and jobs.
Mr Sczech, while you make a valid point, Dear Author needs to harpie on about three billion dollar deficits since this is our subsidy to her most cherished object of hate over there in Israel. The 400 billion we send to her buddies, the Mohamettans, mean nothing to her.
@payAttention: you have an eloquent way of painting painful truths. Good for you man. Very focused. History will one day validate what you say. Sad truth is this generation was a party to the party in a very big way. They enjoyed the benefits without looking at the fine print. The basic family unit is the glue that keeps a country together. If that is frayed or given little importance then? Useless to talk big if you can’t appreciate talking small, first. We often laugh at the French, yet its citizens are out in the streets, boss naping their elite and holding their government accountable. You have to admire them for that. They still have their cojones!
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The moment a country turns into an empire, that becomes the historical turning point, from growth to collapse. It is just a matter of time. Inspired, illuminated use of historical knowledge by its leadership, not driving ambition, is what keeps a country at the apex of power longer. This has a trickle down effect on the citizenry. Inspired leadership or the lack thereof has a tremendous impact on a country and its people. After JFK it quickly went downhill for the US; it is almost as if the American will died and was buried with him.
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Further, as technology advances the gestation periods for empires, from point of apex to collapse are shortening geometrically. Technology in the right minds is truly a great equalizer. Catching up is a matter of the wherewithal coupled with the latest tech. America has to dig deep into its human resource to find people willing to sacrifice beyond themselves for their country. It’s not too late. What comes out of the ashes may not be an empire, but then only the sexually repressed think in terms of empire anyway.
PayAttention:
“Your generation is filled with traitors. Once you tell mom and dad that they are no longer relevant and that they better be nice or they will end up in a bad nursing home, treason is a minor misdeed. When you decide to get a divorce and leave your children in a lurch….When you hippie/yuppies elect your traitor Bubba to sign NAFTA so you can get Macy’s blouses for twenty dollars, and hundred year old mills in Massachusetts and Carolina close, you are the traitors.”
PA, besides your being badly hung up on (fake) partisan politics and old Bubba Clinton whose veto on NAFTA would have been overridden by the Republican Congress who sponsored NAFTA to begin with, you do have some valid points about the yuppie generation. The wealthy ones, are to a large extent, the spoiled, silly, narcissistic beneficiaries of much too much coddling and too much idealized, irrelevant “free to be you and me” (but without national or social responsibilities) education that refused to recognize the world as a competitive place where one should not just give away the work of 10 generations on a selfish whim or notion. Your point on this is very valid.
Now, PA, I think our “Dear Author” does us a great service, possibly more so than we realize. And as I search across the web, and I’ve done so, many times since Bush co. came to power, Elaine is one of the few writers who attempts to put together a coherent picture about what is going on…and as far as I’m concerned, she does a superb job. That is why I embarrass myself at times with my loyalty to her.
Oh, I catch myself disagreeing on minor points, but overall, I find that my thinking consistently follows along most of the same lines as hers in regard to what we talk about.
I’m a natural paranoiac. I admit it. And, once in a great while, I would have suspicions about Elaine working for this or that entity, but, then, she would swing her deadly sights onto another heretofore sacred object of disgust, and blast away.
And her intent appears to be to provoke a response, and clear, rational thought. You can attack her visions, but they are amazingly coherent, and on track.
And if we carefully work through each of her topics in a rational, objective way, I think we do ourselves and others a service, even readers within our government who might have limited exposure to alternative, reasonable visions.
As this nation comes upon increasing difficulties which usually take some time to become apparent to everyone, Elaine has often already posed forward looking questions in this forum for us ordinary Joes and Janes like myself to think about and comment about….
And as long as we do so in a respectful, caring, patriotic manner, we just might have a tiny bit of positive influence upon events that affect our world.
Yes, the Big Oil people have held this nation hostage for a hundred years as is evidenced by a million miles of asphalt (made from oil) roads and a lack of rail transportation in the US…and even the locations of towns and villages within the US.
And, as alternative energy resources come into being, the same people who dominated big oil will certainly attempt to dominate and make huge profits from these new sources.
@David & payAttention: I was not sure who was being referred to by the words “Dear Author”. Have reread the post carefully and clarified the reference.
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@payAttention: I’m with David on his view of Elaine. When he said, “her intent appears to be to provoke a response, and clear, rational thought”, he hit the nail on the head. Elaine, I, and others here have agreed to disagree on any number of issues, but we respect each others opinions and views. Beyond that, it is important to have intelligent repartee and an exchange of ideas, while enjoying the process and walking away with something. She does her homework and thinks things thru; that is not a compliment, its a fact.
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Also she is not bigoted, she may call a spade a spade but she will do this without being antithetical and she corrects people who do so on this blog. She is not anti-Jewish nor is she anti-Muslim. But she will point out both the strong and weak points of both, and the good or evil they do. This allows the reader to make up his own mind. Only bigots are afraid of the truth.
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I still think your painted those truths earlier very eloquently. Pain is universal brother, we all have experienced it. The key is to help one another shoulder to shoulder, not by pulling oneself up by putting another down. Peace.
Following an interesting and clear example of how inept and transparent the PPT scammers have become: http://tinyurl.com/pen7y2
:
Jump to 2:30 minutes of the interview. Notice how towards the end Richard Suttmeier tries to obscure the allegations of Dan Shaffer the market technical analyst. Very clumsy and desperate. Good illuminating watch.
After we end free trade between nations, and apply tariffs to their goods, so they can tariff ours, we need to work on trade between states.
Why shouldn’t Ohio apply duties to imports from New York, and vice versa?
Smith, I hope you figure out what a United State is. China, for example, is a United State, despite the US trying to pry China apart.
About oil: damn right, it is a problem. We import too much. But the trade DEFICIT with oil producing nations who export oil to us is SMALLER than the trade DEFICIT we have with non-oil exporting manufacturing nations.
Also, I am an oldster who wants gold to be the basis of international trade. This, then, resolves trade deficits by sucking out all the gold from trade deficit countries.
After all, the US killed the gold standard precisely because we began to run a persistent trade deficit….WITH MANUFACTURING NATIONS, not oil producing nations.
Germany and Japan, to be exact. Our attempt at getting around our MANUFACTURING trade deficit was to float the currency while killing our home based manufacturing. Isn’t that insanity?
@JSmith: you are thinking along the same lines as Sheriff Richard Mack in the vid posted by PLovering in LA Shaking. Taking back control from the Federales to the locals. If the Federal government continues to misrepresent the American people this just might be the only option left, before secession that is…
Another thing: Nixon killed the gold standard when I was only 21 years old. I did try my damnest to influence events before the age of 21 [a reference to all my speeches and work on creating demonstrations since I was 16 years old!] but I had NO POWER [except to stop traffic and maybe paralyze a city for a few hours].
Nixon did it! He was a WWII guy. So was Reagan! They did their stupid things despite me yelling like a banshee on the sidelines.
The reflexive blame on my own generation is stupid. I began arguing about the dangerous course of our empire BEFORE a single baby boomer even graduated from college. Thank you.
Running away from our obligations? I don’t recommend that at all. It leads to a culture that is cynical, lax and reckless, not sobriety and hard work.
As for breaking up the US: I keep saying, it is very simple. We imitate our rivals and compete with them. For example, our trade rivals do NOT encourage ‘consumerism’ they have a VAT [value added tax] on nearly everything.
They also have very high taxes on gasoline! The more successful a trade rival is with us, the higher their domestic consumption taxes are.
The US public has to grow up. We pay TOO LITTLE in CONSUMPTION taxes. And have TOO LOW WAGES. See?
Which is why few people would vote for me. Imagine, in our childish culture, saying, ‘We must raise taxes not on income but on how we consume, especially quadruple gasoline taxes!’
I would be lynched. But this is the very simple solution.
Unfortunately Elaine, you are anything but representative of your generation. You are 1 in 1,000,000, maybe even 2,000,000. If your generation were even 15% like you then your country would not be in as deep a hole as it is today. If they had even a tenth of your cojones what a difference that would make…
“Smith, I hope you figure out what a United State is.”
??? Your railing about free trade makes me wonder why someone in Ohio would want to buy, say, agricultural products from New York when we have agriculture here. If NY produces something Ohio doesn’t and vice versa, then we can talk trade.
“I am an oldster who wants gold to be the basis of international trade.”
If you were really an oldster, you’d want gold to be the basis of all trade. Personally, I’d rather not haul a sackful of doubloons or pieces of eight to the local hardware store… but that’s just me.
“We pay TOO LITTLE in CONSUMPTION taxes. And have TOO LOW WAGES. See?”
High wages, offset by equally high taxes. Yeah… I see. You make more on paper, but, net, you’re no better off than you were with the low wages. Roger that.
“They did their stupid things despite me yelling like a banshee on the sidelines.”
Have you considered “because of”?
Well, I am late to the party, but I am not sure if you guys have figured this out yet for yourselves
Elaine is not anti-Jews or anti-German, she happens to be anti-Chinese
Hence the need to accentuate China’s responsibility in all of this while carefully avoiding main stream media’s choice words to appear to be a neutral party.
See after hanging here awhile the feeling one get is that the US is not destroying itself, China is destroying the US.
I am NOT ‘anti Chinese’. I have a Chinese son in law, damn it. I admire the Chinese. But I also live in America and my Chinese son in law does, too.
Surrendering all our industries to China hurts AMERICANS. Smith, you have concept problems with the idea that we are a nation? Where is your yapping coming from?
Many Americans want to kill this nation. The GOP even boasted about drowning our government in a bathtub. Well, they drowned it in red ink.
I believe the Chinese are smart, building up China, making China stronger. I admire this. I admire their hard work and focus, too.
I want both, here! I want us to be like the Chinese, our government making the nation stronger and wealthier, not weaker. This is beyond simple.
Europe has to figure out if it is the Holy Roman Empire again. It has to figure out, are they like China or like the US?
The US is a bad model. We even have governors who are Republicans, screaming about how they want to ditch the US itself and run off, alone. Ditto, the GOP VP candidate!
How insane is this?
Simon, are you Chinese? 😉
No, as far as I can tell
“For example, our trade rivals do NOT encourage ‘consumerism’ they have a VAT [value added tax] on nearly everything.”
VAT is a method of artificially jacking up the price of goods and services that a government department doesn’t think people should have, or should have much of. It’s sneaky, in that VAT is assessed all along the production chain and ends up with the would-be consumer.
An honest way to go about the same task is to have a Soviet-style Department of Permitted Possessions, which decides how much of what a citizen is allowed to have at any given time.
It’s not what we’d call “freedom”, but the problem with freedom, of course, is that people misuse it and do things they shouldn’t.
Gotta fix that.
Well if you are anti-consumerism, VAT is like manna from Heaven
“Smith, you have concept problems with the idea that we are a nation? Where is your yapping coming from?”
Just taking your own ideas and pushing them a little further.
Ohio is losing industry to states with lower taxes (not NY, to be sure.) So why not tariff products inbound from lower-tax locales?
The right dose of medicine cures you, an overdose can kill you
There is no point promoting mercantilism within the state, for the idea is to compete with foreign powers, not proles within your own borders
They are beat with cheap labor imports, at any case
The US production system is now 70% consumerism. And this is making our entire nation run in the red and thus, bankrupting our entire economy. Ergo: it has to be stopped.
JSmith:
We’re doing VAT already except on domestic products….like cigarettes and now soft drinks….and booze and I’m sure there are other things.
Smith, A main point you are missing is that with VATs or tariffs on imports, our government recovers the lost revenues that it needs to sustain itself and to reduce our massive debts……
And those fine folks who went running like stupid wild men and women to China with US machinery, to grab all of the cheap, near slave labor they could, certainly deserve huge tariffs imposed on their products as those products come into our country….those are not American made products. They are Chinese products…even if an American outsource hired them produced(for a relative pittance).
Those unpatriotic scumbags simply said by their actions, “Fuck all of you, my fellow Americans,….to hell with all of you! I got mine, you get yours, and screw you if you complain. Cause I’m gonna make a bundle. Oh! I’ll pass it all off as being forced to be competitive and everyone will believe me….” Bullshit!
If this had been true, outsourcers would have reduced the cost of Chinese made quality products to the same levels as products the Chinese themselves were selling, but they didn’t.
I think of furniture, for example. The really good stuff now retails in the US higher than when Americans made it…..and the outsourcer skims maximum profit….to hell with the fact Americans are going broke….bleed them out as they die by selling to them on credit and squeeze every last dime from them that you can.
Or, in the case of reduced price furniture, they sell a cheaper made, very shoddy product…made from soft woods painted over to conceal their inferior quality instead of Oak or Cherry like the quality stuff…and the Chinese are very good at this and have a long history of covering soft woods with lacquer to make pretty products.
The point is that these outsourcers are screwing the nation and the people of the nation….and they deserve the highest tariffs Possible….
Personally, I don’t care if they and their investors go completely broke….they have done absolutely nothing that really benefits me or our nation in the long run….and I want my pound of flesh taken off of their fat asses.
Yes, JSmith, we need high tariffs and VATs put upon these folks…and use the money for welfare projects to help displaced American workers.
This video explains how the shadow banking system which according to Gordon Brown has the equivalent of the world’s GDP to manipulate the world markets, prices of commodities, food etc. $60 trillion worth of influence running roughshod over the whole world and controlled by a few twisted minds. You’ll find this interesting OH!
Just look at the enormous wastage the current economic regime has produced… without this hyper spending frenzy that filtered down to the even lowliest of the proles it is no wonder we need the cheapest labor we can get, otherwise no one can afford this stuff
Even with the cheapest labor, we still need to borrow and use various financial schemes just to MAINTAIN the current living standards… ergo it is unsustainable
While a handful of entrepreneurs with the means of production controls 90% of all the world’s wealth
Yup that’s the deal and it stinks.
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