Trade Deficits have become a fact of life for the U.S. and while the Necro-Global Elite will tell you Trade is the lifeblood of the U.S. Economy, clearly they don’t understand baseline economics or the consequential effects of their ignorance.
Since the passage of NAFTA, the U.S. Trade Deficit with Mexico has gone from a Trade Surplus to a Cumulative Trade Deficit of $930 Billion. Likewise, over nearly the same period the Trade Deficit with China grew to over $10 Trillion. Remember, these are Trade Deficits with just two Countries; Deficits! This means, in the simplest of terms, that more money is going out of the Country (U.S.) than is coming in! Further, when you consider the loss to the U.S. Economy, of this exporting of wealth versus the multiplying economic effect of that money having stayed in the U.S. and reinvested domestically (in simple terms think of it as planting one tomato plant which grows 50 tomatoes) the Economic loss to the U.S. Domestic Economy is staggering, possibly has high as 10:1.
If one considers an economic principal known as the Velocity of Money, the manner in which your spending of an earned dollar of income creates an exponential growth in consumer spending and then, to this, add the lost economic value of Tax Revenues, the Increased Gov’t Spending simply to subsidize the loss, the cost of infrastructure decay and before you know it the number can quickly explode to 30:1, i.e., $30 in Economic Loss created for every $1 of Trade Deficit! So much for the so-called value-added benefit of slave labor or the obscenely overstated value of Globalized Trade Agreements.
Let’s be clear about Trade and the efficacy of this grotesquely misunderstood concept: If a nation is not trading value for equal value-in-kind then it is neither equitable nor is it sustainable (specifically for the one not receiving equitable value). Further, U.S. Consumers purchasing product from a Domestic Entity whose products is obtained from an off-shored “source” is not an equitable value exchange; what it is IS a tax scheme that allows the Domestic Entity to off-shore profits in order to escape taxation. A facility for leveraging economic activity in exchange for economic/political influence and perhaps, worst of all, a most despicable tool for suppressing wages and demeaning the sovereign individual.
The solutions for this mess are quite simple but the first task that must be addressed is to grasp the significance of the following: The U.S. is one massive marketplace that contains, by virtue of its existence, implicit organic and progenerative economic value. Access to this marketplace should not be free, it should not be bartered and it must never be leveraged to Corporate Gain. For the privilege of being able to access this marketplace of talent and resources it must be accompanied by a price-of-entry and most definitely not a cost to the American People. For this reason I find it wholly inconsistent with rational thought for Government to use its Policy Apparatus to entice Corporations with the gift of lower tax rates when it is the People, by their demand for the products and services these entity’s offer, who create the marketplace they feed upon.
Curtis C. Greco, Founder
