We are sending trillions of dollars abroad oblivious to the tremendous power such great wealth can give to those with chauvinistic or dogmatic designs
DENVER, Sept. 24, 2010 — The following is the third of a four-part statement by J. Moromisato.
3. Trade War by Any Name: Money Myths Are at the Root of America's Decline (Part 3)
We tolerate a half trillion dollar annual trade deficit because our economists believe that we are sending abroad "worthless pieces of paper" and receiving real goods in exchange.
The myth of the advantages of free trade is so ingrained into economists' minds that they will forever refuse to be swayed by the facts.
The biggest deficits in our bilateral current accounts (2008 total = $706 billion), which include the total money flows between the U.S. and other countries, is with:
China (44% of our total deficit),
Japan (13%),
Mexico (11%),
Germany (6%),
Canada (5%) and
Venezuela (5%).
On the other hand, the import of crude oil accounts for about 50% of our trade deficit, thus, nothing short of a well thought out and properly implemented program would be able to solve our trade deficit problem.
Had the $700 billion paid to foreigners in 2008 been paid instead to U.S. producers, there would have been 14 million more jobs than we actually had. It would have literally wiped off our unemployment.
The idea that free trade agreements would help balance our trade is contradicted by the facts: about 16% of our total trade deficit — and growing — is with our next door neighbors and largest trade partners, Mexico and Canada, after 15 years of free trade.
Our total trade deficit during the last 30 years is about $6 trillion — half of that money has gone to China, who is now busily using it to extend its influence and to propagate its rather biased worldview among Third World countries. A recent heading in Bloomberg BusinessWeek reads: "The deal is simple. Australia gets money, China gets Australia."
We are sending trillions of dollars abroad oblivious to the tremendous power such great wealth can give to those with selfish and uncompromising designs.
Meanwhile, the U.S. government is financially constrained in reaching out to our friends and potential allies abroad. The decline of our country is as real as undesirable for us, and I believe for the rest of the world as well.
The question is not when the trade deficit will end. The question is how long are we going to tolerate our jobs going abroad by the millions? Or, is it too late already?
[Visit http://www.DenverPlan.com for more details]
(The fourth part of this statement deals with the ways to stop America's decline)
Contact: J. Moromisato, (303) 321-0577
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