The Credit Crisis: A mask for the effect on the US economy from the trade deficit
This is a continuation of my last post but I wanted to cover why the “Credit Crisis” has really just been masking the underlying reasons for the decline in the economy. See this site for some insight on the current trade deficit.
The trade deficit definitely has something to do with the current downturn. If you continue to give away your money, you don’t have as much money to your own country. Of course the US prints a ton of money each year, but that site listed above shows that, just since 2003 we have given away almost 400 Billion to other countries. This can easily be mitigated by tariffs.
The devaluation of the dollar is another reason why our economy is going to crap. “Oh, but this is a good thing, because it makes people want to buy our products and services because they are cheaper!” The people that say this are very nearsighted. From an economic theory standpoint, yes, this would make sense. When looking at the actual results, we have to ask ourselves, “If we care so much about the trade deficit is all that we are going to do about it devalue the dollar?” If we cared so much about the deficit we would have done something long ago, like tariff, or legislate. The US is too busy appeasing foreign countries with lax trade agreements to cover the stuff we do like go into Iraq for clearly OIL reasons.
There is a class war going on right now. The elite are currently suppressing the middle class and the above are just methods of doing so. It baffles me how people can’t see that George W Bush has so much personally invested in DEFENSE and OIL. Its no wonder that we started a war for OIL! This is a bi-partisan issue!
The moral of this story is: WE ARE F-ED. GOOD LUCK REPAIRING THIS MESS!
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