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Tuesday, June 26, 2018

A businessman's take on trade

Politicians call buying more foreign goods than we sell overseas a trade deficit.

Billionaire President Donald Trump calls it a loss.

We have run our export-import business at a loss since 1975.

"The deficit in goods and services was $566 billion in 2017. Imports were $2.895 trillion and exports were only $2.329 trillion," Kimberly Amadeo reported.

The problem is worse than it seems.

"The U.S. trade deficit in goods, without services, was $810 billion," she reported.

Our trading partners have stripped away our factories. They gutted our manufacturing base.

Here are our top five trading partners in goods:
China -- $636 billion traded with a $375 billion deficit.
Canada -- $582 billion traded with an $18 billion deficit.
Mexico -- $557 billion traded with a $71 billion deficit.
Japan -- $204 billion traded with a $69 billion deficit.
Germany -- $171 billion traded with a $65 billion deficit.
They are our trading partners the same way a mugger is our banker friend.

NAFTA is $71 billion a year in subsidy to keep the socialist regime in Mexico propped up. They hate us. As a thank you, Mexicans are invading by sending their drug thugs and welfare cheats north to screw up our society.

Over time we have given away trillions to Germany and Japan. Tell me who won World War II. I think our schoolteachers lied to us when they said we won.

Red China though is the biggest detriment to our survival was a society.

For decades, politicians blew off losing on foreign trade. We are told free trade is vital to our economy. How so? We can make steel and aluminum here. We can build cars here. We can make flags here.

What do we need from any of these countries?

They need us more than we need them. The time has come to end these huge losses as a business -- $817 billion last year alone -- and to start earning a profit again.

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9 comments:

  1. Whenever the U.S. spends more for imports than it receives for exports that deficit is withdrawn from our "national bank account." As it is depleted there is less available to spend, therefore slowing our cash velocity and the production of goods and services slows along with shrinking employment.

    President Trump has cut the Gordian Knot that has had our economy tied up for years. Some people aren't happy with his success. TS. Main Street over Wall Street. MAGA. - Elric

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  2. You can build a lot of wall with $71 billion.

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  3. The politician says “we lose money on each transaction, but we’ll make It up in volume”. The businessman cuts out the cancer.

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  4. This is right outta Mr. T’s speech last night in SC, which BTW was fantastic. An hour of straight riffing, off the cuff, off the TelePrompTer, and funny as hell. Folks, we not only have a Prez who knows his shit, we have a Prez who could go toe to toe with Dangerfield. Right these wrongs, Mr. T!

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    1. Sorry, editing issue ...

      TexasDudeJune 26, 2018 at 5:19 PM
      It is a loss! It subtracts from our GDP.

      I walked the streets of Denton,'Texas getting signatures for H Ross Perot to be put onto the Texas ballot because of this.

      I was in my early 20's, already had a medal for the Gulf War, in college, and knew that NAFTA was really SHAFTA!

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  6. Umm... Nobody buys anything unless the thing he buys is worth more to him than the money he has to give for it. Nobody sells unless he can get more for his goods than they cost him. Therefore, both parties profit. As long as transactions are honest and not coerced, nobody loses. It is true, however, that we shouldn't allow ourselves to be dependent on potentially hostile countries for strategically vital products. Defense-critical industries should be protected for reasons of national security, not economics.

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    1. Why can't defense-critical industries be protected for both reasons? - Elric

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