Authors like this are one of the biggest problems we have. We are _transferring_ our wealth by the trillions to foreign entities, enemy states. That same transferred wealth returns to lead USA by the nose, buying everything in USA, such as our government, corporations and institutions.
When we buy something we need to have a clue about what impact it has on our own country. The price of something isn’t it’s actual value. It’s value is better measured by the good/bad it does. Putting USA citizens out of work for selfish convience. Destroying our wealth. Obvious to me.
Cheaper prices for consumers, but the consumers don't have jobs, which have been exported to China. We have tens of millions of uneducated and unskilled labor and we import over a million more each year thru our immigration policies. Where is the money going to come from to support our welfare and entitlement systems?
The companies are in business to make a profit. It has nothing to do with some phony euphemism about "finding ways to help meet that demand." They are sending their factories into places like China and India to get the cheapest labor possibile in order to maximize profits. That is well and good, but with 25 million Americans looking for full time employment, one wonders where the jobs are going to come from, especially for the unskilled in the US and the millions more pouring across our borders, legally and illegally.
Trade deficits have ruined our economy. If we had balanced trade or tariffs we would not be in hock to China for the Treasuries they obtain because we import more than we export. We don’t ship back gold to balance, we send other countries ownership of America.
A trade deficit is prima facie evidence that we are simply inflating at a higher rate than our trading partners. Dollars flow out; foreign goods (at less inflated prices) flow in.
Foreign exporters holding our U.S. dollars cannot spend them in their respective countries; they eventually must exchange them for their own currency. If laws permit, they will often exchange the U.S. dollars they hold for gold — thus, during a trade deficit, the dollars eventually flow back into the U.S. but gold flows out. International trade agreements in the past have often required that foreign countries “peg” their respective currencies to the value of the dollar; foreign exporters cannot get rid of the U.S. dollars they have for gold, but must directly exchange dollars for their own native currencies. Foreign central banks often have to create more of their own currency in order to have enough to make the exchange — thus, trading partners end up by inflating their own currencies. What this amounts to, in essence, is that we actually do have an important export: we export inflation.
Assuming, for the sake of argument, that foreign exporters are not buying U.S. gold (perhaps as per trade agreements), they will be forced at some point to inflate their own currencies at the same rate as the U.S., and that will equalize the trade deficit; for at that point, their goods will also be more expensive, and will no longer be a competitive threat to expensive U.S. goods.