What the world needs now in addition to love is wisdom.
Monday, August 15, 2016
King Solomon, Donald Trump, Fair Trade Post Three (Repost)
Why, in my opinion, our Congress has done a much better job to represent other nation’s interests, infrastructure, workers, and future, than the USA?
In my previous post I stated I will explore the detrimental effects of trade deficits to any nation. Just so you understand, the larger the amount of the deficit to a nation the greater the accounting loss on the balance sheet an Accountant would classify as ‘lost opportunity.’
Do not say, “Why is it that th former days were better than these?” For it is not from wisdom that you should ask this. (Ecclesiastes 7-10)
Say not thou, what is the cause that the former days were better than these? This is a common opinion, that in all ages prevails among men, that former times were better than present ones; that trade flourished more, and men got more wealth and riches, and lived in greater ease and plenty; and complain that their lot is cast in such hard times, and are ready to lay the blame upon the providence of God, and murmur at it, which they should not do; (Gils Exposition)
Purpose of this Post
I believe in the above wise saying. What I will suggest though, is for you to just imagine what could be done in the USA with these total of these sums.
531 billion dollars……being circulated in the nations that enjoy trade surpluses instead of the USA. The dollars benefit their nation in the form of wages to workers. The workers then using the dollars to buy goods and services from other workers who then use the dollars to buy goods and services, etc. etc.Think how many modern plants with modern machinery were purchased to improve productivity of manufacturing in those nations. Think how their deteriorating roads and bridges were built in other nations than the USA.
402 billion dollars…….per year being paid in interest to holders of the US National Debt fast increasing to 20 trillion dollars. How would education and health care benefit from the use of these dollars instead of being paid out to mainly foreign holders of US Bills, Notes and Bonds?
A TOTAL of 933 billion dollars of “lost opportunities,”in 2015. Trade deficits have been occurring every year, after year, after year, ever since Bill Clinton term as President.
It is now water over the dam and wise King Solomon advises us to forget about the past. Just think about it in terms of folly brought about by our Congress, Trade Negotiators, and American Voters.
However, if we continue on the same path of folly, our nation will in the near future default on interest payments if taxes are not increased for everyone, rich or poor. The consequence of a default will be holders of American dollars all over the world will panic and the dollar and all savings and all pension plans and 401K plans will become worthless paper.
It has happened a number of times in the last century in various nations. Frankly in future posts I will explain how it might work out to reunify the USA in the future. However, it will not be a pleasant experience in my opinion.
I also believe there is still time for the pendulum to move back in a sound fiscal direction again if we elect some wise leaders that will be frank and truthful and have skilled experience to understand and renegotiate our trade agreements to benefit both trade partners more fairly.
In My Next Post
I will explore how Congress was sold the benefits by well intentional economists, but now proven failed, economic theories, and because of unskilled trade negotiators and perhaps greedy political special interests.
If you are interested in a previous post of mine, read in the sources below how I calculated how many livable wage jobs would be created in the USA if just the US trade deficit dollars remained in the USA.