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:
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>
$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.
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.
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