First post: 6/5/2009
Last post: 6/13/2009
Total posts: 3
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It does not matter how we reverse the balance of trade as long as we stop the flow of gold, dollars, T-bills, Government Bonds, title to US located property, and other US assets from this country to other countries, in payment for the things that they make for us to consume and for US dollars to pay for our government expenses.
A Trade Deficit is created when the USA importing, transportation, distributing and retail sales companies such as WalMart, Home Depot, NTB and etc. pay companies and individuals in foreign countries like China with US dollars to manufacture the things that these US businesses import, distribute, and then sell to the US consumers. Manufacturers such as GM, Ford, GE, Chrysler, GE, Westinghouse and etc. manufacture vehicles, appliances, and equipment made with imported parts that they paid the companies in the foreign countries with US currency to manufacture these parts for assembly of the finished product in the USA that is then sold to US consumers.
The US government also "borrows" US dollars (actually they sell freshly printed-paper T-Bills, US Government Bonds, and other US securities at public auction to China, private individuals, and other industrialized countries that earn US dollars mostly by manufacturing things for international trade) to pay US government expenses including negative balance of trade, wars, military jets with active duty military USAF pilots for the personal use of specially privileged members of congress (Pelosi), employee payrolls, government retirement checks, courts, federal police, failed business bailouts, cash bonuses to the various Wall Street forgers of SEC documents that contributed to political campaigns, Las Vegas corporation junkets for failed corporation employees, house mortgages for big spenders with bad credit, new multi-million dollar French manufactured personal corporate jets for political contributor's bankrupt corporations, pork barrel projects, research contracts, welfare, social security, Medicare, Medicaid, SSI, expensive corporate vacations, new infrastructure, wealth re-distribution, mental health, imported consumer goods and etc., and any other thing that congress and the president decides to use taxpayer money to acquire, build or just give to their political contributors and various other privileged individuals with borrowed US dollars. If taxes taken in each year are not sufficient to pay these expenses, then the government just prints more paper T-Bills, Government Bonds, etc. and borrows US dollars from people who are holding US dollars (foreign manufacturers) in exchange for these freshly printed T-Bills, Government Bonds, etc.
China does not have to support the dollar by purchasing Washington's freshly printed-paper T-Bills, US Government Bonds, and other US securities at public Federal Reserve auctions. China and other foreigners may instead spend the dollars and other freshly printed US paper money that they earned with their industrial manufacturing capacity to purchase title to US real estate, farms, agri-businesses, food supplies, dairies, forests, industries, breweries, hotels, factories, casinos, financial institutions, retail businesses, and most other assets located in the USA that they do not already own, since the US government does not allow anyone to redeem these dollars for gold. The US government calls this "(Foreigners) Investing in America". We are racing to print money and then sell title to everything in the USA in order to keep from working, and live on imported consumable products. This is sort-of like selling our body parts to keep from working! When we run out of title to properties to sell to the manufacturing nations, we will become a third world nation of unemployed street beggars, with no assets left to sell in order to raise money to re-industrialize. The real estate properties that the foreigners buy will retain their value (gold exchange value) as the dollar value diminishes.
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