How will the USA pay for its trade deficit ?

trade deficitAmong the 2012 presidential debates that spread quickly and increasingly over this country, quite a few yet not as much as expected concern the economic situation of the United States of America.
Strangely enough, these same economic debates will have been characterized by two essentials elements : the overly pronounced taste for globalism of our candidates and the complete absence of solutions concerning the trade deficit.

For the first one, no real surprise you don’t step out of five decades of blatant ethnomasochism as easily. For the second characteristic on the other hand, even though I half expected it I must say I am nevertheless taken aback by the stupid of those who desire to govern us.

On the economic table,you might have witnessed a few lonely tirades about the public spending, and even less numerous interventions about the unemployment, which Ron Paul blames on the… FED. How original.

I truly have a hard time seeing how monetary creation, if that’s what Ron Paul reproaches to the FED in the first place, leads to unemployment since on the contrary, in the short term monetary creation will bring devaluation of the currency, and lead to more exports. It’s only in the long term that monetary creation can show its perverse effects, more on that later.

But aside from Ron Paul’s usual ramble, very few mentions to our current economic situation have been noticeable, like for example our record high trade deficit. It’s also funny to notice that we barely use the term “trade balance” anymore, only “trade deficit” implying that our balance couldn’t be positive.

Only once again, and if you dispose of whatever political experience or plainly common sense you may already have noticed, purposely ignoring an issue won’t make it fix itself. We’ve had proof for the public debt, the ethnomasochism, the anti-Americanism and countless other political experiments.

The truth about the trade deficit in America

Every candidate talks openly about such concepts as wealth redistribution and common wealth, but what they seemingly fail to notice is that to have any wealth to distribute you have to produce it first. And as we fail to produce any wealth, actually we lose some each day hence the term trade deficit, our economic system is only feeding on a smaller and smaller piece of cake : our past gains.

The only companies actually bringing money into the USA are the very old ones, often times the ones labelled as corporations by the mass media, and they are also believe or not the most taxed entities in this country.

But taxing our big companies is not and was never enough for our economic system not to collapse under the weight of the drag that is our American Business Model.

To substitute to our nonexistent and even hugely deficient production of wealth, there are three solutions.
1. Tax money
2. Print money
3. Borrow money

Needless to say that our government is applying all three of these, and rather ineffectively.

But don’t forget that Americans are sheep, and whole common wealth system is designed against them. In the long run that is.

The system is designed by essence for the supply to meet the demand by all needs necessary, disregarding our sovereignty and our long term national interests (the liberals always talk about collective interest, but what is more collective than our own nation I demand).

Americans are such sheep that as long as the supply meets the demand, or in this case the demands, they won’t protest. They all want the “miracle pill” to solve all our problems, and that’s exactly why charlatans such as Ron Paul can rise effortlessly on top of all political polls.
Americans aren’t lucid at all when it comes to political and economical decisions, and these democratic debates often turn out to be one way overbidding schemes.

– We aren’t producing enough wealth and bringing enough money in our country ? We can either change our ways and adopt a more patriotic form of citizenship, or we can just tax the rich and the companies. The latter solution is easier, more demagogic and by the time the consequences will arise there will be a new president in the office to put the blame on.

– We can’t tax the rich anymore but still aren’t bringing enough money in our country ? We can either change our ways and adopt a more patriotic form of citizenship, or we can just borrow our money with massive interest rates from other countries, most of which openly consider themselves our enemies. The latter solution is easier, more demagogic and by the time the consequences will arise there will be a new president in the office to put the blame on.

– We can’t borrow anymore money but still aren’t bringing enough money in our country ? We can either change our ways and adopt a more patriotic form of citizenship, or we can just print more money disregarding the issues linked to devaluation. The latter solution is easier, more demagogic and by the time the consequences will arise there will be a new president in the office to put the blame on.

The candidate Ron Paul and several other conservatives have strongly opposed the concept of monetary creation, at least indirectly, and the “FED system”. Unsurprisingly, none of them has ever brought up the consequences of ending a system on which our whole economy is now dependent.

And for once in the history of the United States of Demagogy, there is a possibility that the supply won’t meet the demand, simply because there is no more supply. There are no more fake issues, “miracle pills”, Jesus-is-our-savior-he-will-fix-our-economy-vote-Santorum-2012, nonviable settlements, wrong answers and non-solutions to disconnect the American people from the market.
Our politicians believed they could just ignore the reality of economic war and the market altogether, but they are only just starting to see the consequences of fifty decades of internationalism and ethnomasochism.

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