Graph: Balance on Current Account (BOPBCA) – FRED – St. Louis Fed
The US trade deficit has grown to gigantic oceans of red ink thanks to the ‘Free Trade’ theology. This system makes the top 1% obscenely rich while destroying wages of all Americans. We now have virtually no protection of native jobs or industries and this shows up in many ways. At first, Americans celebrated cheap imported foreign goods but ever since free trade began, US working wages have either stagnated or collapsed and the job situation for the lower classes has deteriorated greatly and many now seek to be thugs, robbers, drug dealers and other illegal professions leading to a huge overload in the prison system and a high death rate for the poor and social disintegration wrecking entire cities as if someone bombed them.
After Congress’s Pinch, Envoys Say, U.S. Trade Suffers for Want of Jet Fare – NYTimes.com
Cutting the overseas travel budget of a few dozen trade negotiators hardly seems a comparable threat to America’s national security. Yet it could have as large a ripple effect on the nation’s global competitiveness as the budget cuts squeezing the Pentagon under the austerity program known as sequestration.
The Office of the United States Trade Representative has been waging a lonely battle for its budget, which shrank 7 percent to $47 million this year because of sequestration spending caps. Officials in the office, pointing to the 2014 budget proposal in the Republican-controlled House, fear that they could end up with even less money next year.
The above graph clearly shows that all these stupid trade negotiations have been a total, historical, utter failure. The fact that our media ignores this always pisses me off. Liberal alternative media barely mentions this and right wing positively ignores this. Only a lonely few of us discuss this at all! My clarion calls since day one that the #1 danger to our nation is our trade deficit is ignored by nearly everyone. Now look at the graph below:
Balance on Investment Income (BOPBII) – FRED – St. Louis Fed
This is the banking money sent overseas to make the rich richer. Note too that this is a classic hockey stick graph! ALL hockey stick graphs show immanent collapse. All hockey stick graphs showing the growth of anything, once it begins to head to infinity, turns suddenly and drops to zero or mirror negative numbers. This is true in all natural and interestingly enough, all unnatural systems.
This is due to the harsh fact, NOTHING in creation can EVER go to infinity. Nothing. This is why astronomers who think the universe will expand faster and faster forever are wrong. The universe, in fact, may already be collapsing into itself. The US BOPBII business is on the verge of collapse. Right now, Japan is desperate to keep its huge trade surplus with the US growing and deliberately doubled the yen money making machine in the Bank of Japan.
This temporarily moved the yen from 72 to over 100 to the dollar. Last week, the yen grew stronger and the export cartel in Tokyo freaked out so today, the yen grew weaker again as they frantically pump the Bank of Japan to overtly manipulate their currency so they can continue to destroy our domestic economy. The US which belly ached about this currency manipulation business remains totally silent as does our media which isn’t infuriated with the violation of trade rules set up by the floating fiat currency/free trade negotiators.
The NYT is pro-free trade and thus, never ever mentions the trade deficit. In the above article, an example of trade negotiations suffering from lack of travel money for the jerks who do these idiotic, fatal deals, is all about South Korea. Supposedly, we will have more ‘free trade’ with them and this will sell more US cars in South Korea!
HAHAHA. As if! SK population is much, much smaller than the US. They export far more cars than they import. And they have zero intention of importing much of anything and the market there can’t take it, anyhow. Like Japan. Our trade deficit is no longer plunger deeper and deeper into the red but is floating fatally far into the red and this can’t go on forever. We lost trillions this way so far and can’t do this forever. It is impossible.
And fatal. And all of Congress bellows about ‘jobs’ while working insidiously to export investment money and import foreign labor goods. Thanks to our corrupt election system.
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14 responses to “Budget Sequestration Prevents US Free Trade Negotiations, All Of Which Are Total Failures Anyways”
When I ran a small manufacturing company in the UK, it was a rule of thumb that for every manufacturing job lost, 5 more would go in the general economy. This was before Gordon Brown’s ‘weightless economy’ arrived. Brainless, more like. And then, as if by magic, people forgot what it was like to actually make things. This is what needs rekindling in people.
Gordon Brown’s brainless economy was just a ‘neoliberal light’ economy. In these days of 3D printing and robotics I wonder what kind of manufacturing jobs can be ‘clawed back’.
We can’t all make leather purses, shoes and jewelry can we? Manufacturing of cars and similar objects will be robotized. Most new jobs added in the US are in the service industry, ie feeding people food, drinks and lodging.
We need a complete rethink of our social and economic models. The money and resources are there, but of course atm they are purposefully wasted to enrich the heartless, gutless pinheads at the top – people like Bezo who don’t give a shit what havoc they wreak as long as their bank accounts fill up with enormous numbers and they can look down their noses on other people and sip champagne while the plebs below them die from malnutrition and flawed health care.
When does the dollar die? EMS, you have studied ‘reality economics’ for a long time. What does yr crystal ball foretell?
A recent study by economist James Hamilton notes the US debt at far larger than what is publicly stated.
“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap,” Kotlikoff said in an interview with National Public Radio. “That’s our true indebtedness.”
Excerpt above from Russia Times:
“The total dollar value of notional off-balance-sheet
commitments came to $70 trillion as of 2012, or 6 times the size of the reported on-balance-sheet debt.”
Excerpt above from abstract in original Hamilton report (53 pages) PDF:
Japan launches 1st carrier since WWII, although they call it a “destroyer”. You’ll find that confusing as articles will say “destroyer” but show photos of a carrier. Wiki calls it a helicopter carrier but it can launch F-35s as well as V-22s.
Izumo (22DDH Class) at Global Security:
Daily Mail (best headline ever) “It looks like an aircraft carrier, it sounds like an aircraft carrier… but the Japanese are adamant their biggest ship since WW2 is a ‘flat-topped destroyer'”
Jimmy I was going to write about the Japanese carrier.
It is huge news in China!
I suspect that the Chinese are laughing their collective @sses off at Japan’s idiocy; this Japanese “battleship” would never get anywhere close to China before the Chinese sent it straight to the bottom with a sunburn missile. Aircraft carriers are worse than obsolete, they’re expensive floating deathtraps that are useless against a modern military.
Elaine, I was just thinking what if the floating currency ends as a global currency instead of a new gold standart ?
@IAmSpartacus Carriers are good if you want a false flag or want to invade a defenceless place. Like, Taiwan or Philipines. Japan needs territory.
Won’t happen. History is clear: the #1 mercantile empire gets to decide ‘what is money’. China is now #1 in trade. The US runs deep in the red so we aren’t even in the game anymore, we are the destination of all other nations, not even carrying goods in our own ships anymore.
So the next coin of the realm will be the yuan.
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