Trump has hauled the trade deficit issue back onto front pages…but the Fake News media is struggling to drown it by focusing only on the stupidest stories that claim Bush said this dumb thing or disputing how many visitors to DC dance on the head of a pin by comparing pictures. Stupid stuff designed to distract from the real stuff but what do we expect from our Fake News media system? Forbes even goes out on a limb claiming ‘Trade deficits DON’T MATTER!’ What? Did I just read that? Amazing how delusional the top rulers of America have grown.
Stupid Forbes Magazine featured this article this week claiming ‘Trade deficits don’t matter!’ I am mentioning this article to show how insane propaganda schemes operate. Forbes believes in making money for rich people and destroying workers by removing jobs or forcing them to compete with cheaper foreign labor while living in a much more expensive country.
It is a standard part of just the usual standard economics that trade deficits do not matter. We have Adam Smith telling us that nothing is more ridiculous than concerns about the balance of trade–and we should note that near all of modern economics is either footnotes to Smith or wrong. But even within this economics tells us further that bilateral trade deficits really do not matter at all. Even if we allow, just for the sake of argument, that America should export around and about as much as it imports (not true but recall, we’re doing this just for the sake of argument) it is entirely irrelevant that trade is balanced with each and every country.
The entire article is based on this premise: it is OK to run trade deficits with A country. But the author doesn’t go on to say, ‘No one can do this with ALL countries.’ The need to feed propaganda causes people to use various deceptions to confuse people and lie to them. Figuring out these lies requires careful thinking and a huge knowledge base.
Since schools teach a lot of garbage, figuring out simple economics is harder and harder to do as one passes through the system and digests lies from professors, etc. Both the globalists and the communists who live on these campuses play tricks on the students leading them into delusional thinking about reality. I never took a single economics course in my life which is why I know so much…due to experience and reading widely.
Reality is a cruel bitch with a whip. She is sister to the Three Norns who weave human fate at the Gates of Death. She cannot be evaded. She also believes in slaughtering the fatted cow, the plump turkey. I wonder why rich people don’t carefully read history. Either the people rise up or foreign powers invade when the Rulers stuff their faces and starve their workers.
Imagine that the US bought $300 billion’s worth from China more than it sold to China–and sold $300 billion’s worth more to Iran than it bought from China, Iran then selling $300 billion more to China than it buys? In this three party system everyone has balanced trade overall–what would be the problem of the unbalanced bilateral trade? It’s even possible, just about, to see that tripartite model working too. Boeings go from the US to Iran, oil from Iran to China and electronic tchotchke from China to the US. Even if we were to worry about trade deficits these bilateral imbalances would not matter one whit nor iota.
A red ink graph I modified way back in 2013 showing the trade deficit which Bush Jr. and Obama both made incredibly worse as they signed one ‘trade agreement’ after another. The Forbes writer is too stupid to see that it is the most unbalanced trade one can create. And…IT HAPPENED RECENTLY. Throughout our history, we ran mostly trade SURPLUSES. Then, beginning with the Vietnam War and the beginning of the EU, it began to run a tad in the red and then fell off the cliff with Reagan.
I have many graphs online and the above is just one of these, from 2014. Here is my 2009 story titled ‘Trade Deficits Kill Empires’:
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.
I hammer away with this story, it hasn’t changed over the years, and it has to be repeated over and over again and yes, there are others more popular than poor little me talking about this but few are as relentless and have international information repeatedly. I wish to thank readers for their support over the years.
Trump immediately begins to renegotiate the disastrous free trade agreement, NAFTA, after the both Bushes and both Clintons set us on the road to ruin. Obama did dispute the agreement but didn’t stop it from stealing US jobs and destroying our economy.
Barack Obama was also critical of NAFTA, and negotiated additional regulations like labor requirements in the Trans Pacific Partnership, which Canada and Mexico also signed, to override issues that had been left out in the first deal.
Note that Obama CRITICIZED it but only slightly modified it. He threw some sop to the unions and the lefties but didn’t really do a thing. Trump is doing a heroic move and what is the left doing? Attacking him! HAHAHA. They wanted FREE TRADE HILLARY. This is insane, stupid and shows how our Real Rulers can manipulate and control forces that should be opposing them.
But Trump intends to withdraws from the TPP as well. He has also has branded NAFTA a ‘total disaster’ and called it ‘the single worst trade deal ever approved in this country’.
And about time. I wondered how many years of red ink we would endure before becoming alarmed.
Kenneth Smith Ramos, head of the NAFTA office in Washington DC, pointed out that Canada and Mexico import more than $500billion in goods from the US a year.
Here is Mr. Smith’s bio: it is weird that his bio’s name is ‘Smith’ but his ‘name’ elsewhere in the bio is ‘Ramos’. He works for the Mexican embassy. He is a Mexican/American who went to Georgetown University and Johns Hopkins University.
He told Politico: ‘We are your top clients. Mexico is not a country that simply comes to ask for concessions from the United States. We work together with the US.
‘We sell a lot to the US, but we buy more from the US than all the BRIC [Brazil, Russia, India, China] countries combined and all of Western Europe combined. So that has to be valued, and we have to work together.’
Critics blame NAFTA for creating a massive $54billion US trade deficit with Mexico, adding that the surge of imports from Mexico into the US coincided with a loss of 600,000 American jobs over 20 years.
What is the point of ‘trade’ when it runs always in the red, destroys one’s own employment situation and causes wages to drop at home leading to the twin dragon of the trade deficit: the equally gigantic budget deficit?
The green line shows the US deficit level of the year this graph was made. That is, it is below the Mexican surplus by quite a bit.
It is even bigger with Japan.
And catastrophic with China! From my own blog discussing the above graphs back in 2009 when Obama announced he was going to ‘fix’ free trade…like he ‘fixed’ the warmongering after getting the Peace Prize.
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.
Now off to Japan with today’s news there: Buffeted by change, U.S. auto workers resigned to uncertainty ‹ Japan Today: Japan News and Discussion after all, cars is what Japan trade with the US is all about. Japanese workers are severely overworked and repressed and live miserable lives now as they are squeezed hard to improve exports:
While the 2008 crisis did force the Big Three to cut production, automation, competition from Asia and the free-trade pact linking the United States, Canada and Mexico also put dents in the domestic industry.
“The trade agreements have caused wage suppression,” said Scott Houldieson, a regional UAW executive and employee at a Ford plant in Chicago.
Gilliken also expressed frustration with southern US states, where foreign auto makers such as Volkswagen have opened factories to take advantage of an anti-union environment where they can impose lower salaries.
While the 2012 comeback of the American car helped stabilize the workforce and led in 2015 to the first rise in wages for a decade, workers find themselves on no surer footing.
A new recruit earns between $14 and $20 an hour with no retirement benefits and often no health coverage, and must wait years before collecting other benefits.
A comment from an American reader of Japan Today News:
I voted for Ross Perot. I wish I had him in this election but Trump seems to be actually trying to do what Ross said he wanted to do. People who want things about sex are upset with Trump but this is due to them not understanding the severe danger we are in due to ‘free trade’ which the Clintons imposed on the Democratic Party base.
Our former manufacturing cities voted heavily for Hillary not because she was going to fix trade, they were mostly people on welfare and government jobs wanting to keep the gravy train going even as these once-thriving cities die. These were not ‘workers’ demanding good rule that would protect them.
These are looting populations that have high crime, high murder rates, who torment all the surrounding communities that vote very heavily for Republicans now, the DNC/labor relationship is now supported only by public employee unions in the big, dying cities and this is collapsing into ruins as these cities go bankrupt, one after another.
NYC voted for a number of years for GOP mayors who cleaned up the city and stopped a lot of crime but a DNC guy runs it now and crime is shooting upwards, murders happen every day now, chaos is rising there and they voted for Hillary because she would keep this getting worse and it seems many NYC residents (a lot of illegal aliens there, too, who voted) want chaos so I, once known by the Daily News as The Housewife From Hell, will not visit that place again until some smart person rises up again and takes on the lunatics and the super rich who band together to loot the rest of us.
Here is a sampling of today’s NYC crime news: several shootings, road rage driving car into store, nearly killing child, black thugs stab subway riders, etc. Shootings are going up and up and up. And will continue to rise so long as a DNC mayor protects criminals and attacks cops verbally.
NYC spends billions of dollars a year to house a gigantic population of people who want to live there but have zero use to the city, they are leeches and come from all over the world to park themselves in NYC subsidized housing and then collect welfare payments that are bankrupting the city.
The Democrats call these freeloaders ‘hard working families’ when that is not true at all. The ‘hard workers’ have to compete with an army of invaders from overseas and many difficulties like crime and overcrowding and high house costs will decline if this flood of chiselers were deported or money stopped flowing to them, tax money from the Feds as well which are then added to our budget deficits which are ridiculously high and very dangerous to citizens.