A trade deficit is when you earn $20 an hour and buy a car for $180,000 on a 3 year contract. Since you earn less than $40,000 a year before taxes, even if you don’t eat, you’ll still be at least $90,000 short when it’s last-payment time. Obviously, trade deficits are for stupid people.

The United States trade deficit is $800,000,000,000. Or, Eight hundred billion dollars, if that’s easier to read. A year! Not just total, but recurring every year.

If we are spending overseas nearly a $trillion$ more than we earn back every year, how are we paying for it? By borrowing! From China. By borrowing from Saudi Arabia. Americans borrowed more than $6 trillion from foreigners to pay for two decades of trade deficits. Our current national debt is over $9.4 Trillion.

Most of our oil comes from the Saudis, which we’re paying for with increasingly inflated dollars. Every time they raise the price of oil, the corresponding value of our dollar goes down, as it takes more and more dollars to buy the same amount of oil. The Saudis then take this money and loan it back to us, as well as buy up our manufacturing, our banks, our finance institutions, our real estate, anything of value they can get.

The Chinese have put their money on the dollar standard, and sell their goods to us at exchange rates that are becoming more and more artificial as the value of their yen goes up while our dollar goes down. Meanwhile we’re buying $250 Billion more from China than we sell to them. According to Forbes, Chinese growth has pushed up global petroleum prices nearly five fold in six years. 5 times increase. From about $23 a barrel to $110 a barrel in 6 years!!!

The Chinese loan our money back to us and also are buying up as much of our country as they can. Plus, they’re literally holding vast sums, hundreds of billions of dollars.

In the meantime our wages have not increased nearly as much, so we have flocked to Wal-Mart and other stores that sell goods produced much cheaper in China than we can now make them, because they use slave labor. So our manufacturers shut down here and our we lose our jobs.

You see how simple all this is? It’s no great mystery.

Our US living standards have been stagnant for years and will worsen once China goes off the dollar peg. So far prices of the Chinese made goods on Wal-Mart shelves have not risen, because the Chinese currency, pegged to the dollar, falls in value with the dollar. In a word, tottering US living standards are being supported by China’s willingness to subsidize US consumption by keeping its currency grossly undervalued. This according to Global Research.

China will have to raise the prices of their goods dramatically soon because the rising cost of oil will force them to. When they do, everything we buy will cost more but we will still be getting paid the same wages as before because wage increases always lag way behind cost increases.

Meanwhile the world population is rapidly increasing and everyone is building on flat land, which of course used to be farm land. Fuel is necessary for food production, from the tilling and fertilizing to the harvesting and processing. Less land, more people and higher costs combined with lower wages in comparison to rising inflation.

Food riots are already happening. “Bangkok, Thailand – - Rice farmers here are staying awake in shifts at night to guard their fields from thieves. In Peru, shortages of wheat flour are prompting the military to make bread with potato flour, a native crop. In Egypt, Cameroon, and Burkina Faso food riots have broken out in the past week.”

We have all noticed the rapid increase of food prices. Food and fuel threaten to overtake our rent or home payment as our largest monthly expenses.

Summation: A major recession is unavoidable. Prices of all goods and services are going to dramatically increase while wages stay the same or even decline as less jobs become available and competition for them increases. Simply put, things are going to get worse.

All the illegal aliens that are sucking at the tit of our economy are going to come under increasingly hostile fire as more enforcement is demanded to shoo them back to where they came from and free up their jobs for Americans. They’re costing us fortunes in our prisons and on our welfare doles and forcing the closure of hospital emergency rooms because they have no insurance and won’t pay. They’re driving up our auto insurance costs by having non-insured accidents. Things are going to come to a head. With less work available here anyway, a lot of them are already giving up and going back.

This mess we’re in is entirely the result of the policies of George W. Bush. All of it is his fault. All of it has happened during his tenure and is directly caused by him. He’s had over 7 years to correct any problems he may have inherited. Instead of making things better, he’s made everything worse.

You can see how simple all this is and surely you can see what you would have done differently to prevent it. If you can’t, then you are probably one of the people now hoping for a government bailout on your oversized mortgage as referred to in the first paragraph of this article.

Baaa.

This entry was posted on Monday, March 31st, 2008 at 3:17 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.