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Record US Trade Deficits Spell Impending Economic Defeat
AmericanEconomicAlert.org ^ | Thursday, February 17, 2005 | William R. Hawkins

Posted on 02/18/2005 9:55:18 AM PST by Willie Green

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To: mlc9852

I'd have to look, but for the past 50 years I think that we have never not had a trade deficit.


121 posted on 02/18/2005 12:00:45 PM PST by roaddog727 (The marginal propensity to save is 1 minus the marginal propensity to consume.)
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To: Huck
That' s true. I remember seeing the cover of National Lampoon magazine in 1989/90 and it said Welcome to the 90s with a big grinning Asian man behind a desk extending a handshake

I remember the big stink when the Japanese bought Rockefeller Center (for about 3 times what it was worth). Were people worried that they would ship it back to Japan?

In terms of our trade balance, here's a question: Excluding oil, if tomorrow Americans stopped buying foreign goods, whose economy would be more damaged, ours or China's?

Economies based on exports, such as China and Japan, are highly susceptible to destabilization.

122 posted on 02/18/2005 12:01:07 PM PST by Modernman ("Normally, I don't listen to women, or doctors." - Captain Hero)
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To: rcocean

Garbage in, garbage out.


123 posted on 02/18/2005 12:01:16 PM PST by Protagoras (Un-apprehended criminals have no credibility when advocating for the WOD)
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To: mlc9852

Uh, during most of our history, Willie?

Say, during and after WWII? All of the fifties and sixties?

I'll go find a map for you.


124 posted on 02/18/2005 12:01:29 PM PST by Helium Rat
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To: 1rudeboy

I do. And I've noticed that we rarely get rulings in our favor and frequently get rulings against us. I'm for withdrawing from the WTO. It's a useless body and an arm of the UN. I am not for any international body telling us, a free people, what tax laws we can and cannot have.


125 posted on 02/18/2005 12:03:05 PM PST by cotton1706
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To: cotton1706
So you're saying that a one to two percent tariff on selected imports will cause such conternation in Europe and Asia that it will cause such companies to collapse or go out of business.

On $1.7 trillion of imports, a two percent tariff amounts to $34 billion. That's not enough to fund the spending in Iraq and Afghanistan for six months. Be advised though that Congress would be happy to tax us the $34 Billion and then spend $50 Billion of it. No thank you.

126 posted on 02/18/2005 12:04:12 PM PST by You Dirty Rats (Mindless BushBot)
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To: 1rudeboy

Have you read my other posts? I'm for eliminating the income tax and all corporate taxes. I want the 16th amendment repealed. I'm aware that tariffs are taxes. I'm also aware that when we started lowering tariffs, we started increasing income and other taxes. Tariffs are indirect taxes and are more in keeping with Liberty than direct taxes. I'm as conservative as they come, in the tradition of Hamilton, Lincoln, McKinley, Coolidge, and Reagan.


127 posted on 02/18/2005 12:07:21 PM PST by cotton1706
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To: Betaille

Why are you telling me this? I was pointing out what the article said. Geez.


128 posted on 02/18/2005 12:07:42 PM PST by usafsk ((Know what you're talking about before you dance the QWERTY waltz))
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To: You Dirty Rats

I agree that we could not survive with just tariff revenues in this period as we did in the past. But they should not be ignored as a revenue source. In my view they are preferable to income taxes. If I had my way, we'd have a national sales tax supplemented with tariff revenue. I'm for indirect taxes. They're more honest and we were a freer people when we had them.


129 posted on 02/18/2005 12:11:12 PM PST by cotton1706
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To: Willie Green; Dog Gone; Grampa Dave; Southack; Steven W.
Treasurys Slump After PPI Surprise

Hey Wille! Here's some more bad news!! You bedder bail outa them Bonds!!! (Bail-Bonds, get it?)

130 posted on 02/18/2005 12:12:31 PM PST by SierraWasp (The Dems have lost whatever "redeeming social value" they ever had!!! Just ask Zell...)
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To: Willie Green
Thanks for ping.

" Bush Administration's reaction to them indicate the greater danger to the American economy and nation"

From reading some of the replies I get the impression that we should double our deficit every month and the economy will get better at an even more rapid rate. Another day older and deeper in debt.

Bush won't be holding the bag. He will be long gone when the bill collector appears, the dollar will be near worthless, jobs long gone, enterprises here will not be US owned and we won't be able to sell securities. Pessimistic? No, I'm an optimist that our economy will last 4 years.

131 posted on 02/18/2005 12:13:37 PM PST by ex-snook (Exporting jobs and the money to buy America is lose-lose..)
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To: Willie Green; foobeca
Go take a Econ 101 class at your local friendly neighborhood community college.

Not necessarily good advice.

Better advice: Read Thomas Sowell's Basic Economics and Applied Economics. http://www.amazon.com/exec/obidos/tg/detail/-/0465081452/qid=1108757593/sr=1-2/ref=sr_1_2/104-4653038-6452764?v=glance&s=books http://www.amazon.com/exec/obidos/tg/detail/-/0465081436/qid=1108757593/sr=1-1/ref=sr_1_1/104-4653038-6452764?v=glance&s=books

They'll cure what ails you!
132 posted on 02/18/2005 12:15:01 PM PST by The Great Yazoo (Why do penumbras not emanate from the Tenth Amendment as promiscuously as they do from the First?)
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To: cotton1706

So lets see, toss a tariff on everything, as you say, for revenue, triggering a tariff war. Americans will pay for it just the same, because it's added to the cost of the goods. In turn, besides driving up the costs of the goods overall, other countries will put a 2-3 or whatever % general tariff on all American goods, after all, whats good for the goose, is good for the gander.

Fed. sales tax does the same thing,ie fill coffers, but allows free flow of goods.

The stagnant days, were the 60-70's when there were too many tariffs, making foriegn business dealings a pain in the @.




133 posted on 02/18/2005 12:15:51 PM PST by Nathan Zachary
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To: Helium Rat

OK, the US ran a trade surplus until 1978. Maybe there was a time in the past when we had trade deficits like those of the last 25 years, but I can't seem to find it.

Beginning with the oil crunch, it would seem, we have had nothing but deficits.


134 posted on 02/18/2005 12:15:54 PM PST by Helium Rat
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To: cotton1706

"I'm for withdrawing from the WTO. It's a useless body and an arm of the UN"
____________________

Interestingly, a solid conservative like Bill Buckley would disagree with you.

http://www.townhall.com/columnists/wfbuckley/wfb20031206.shtml


135 posted on 02/18/2005 12:16:58 PM PST by Mase
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To: Modernman
I don't know diddly about macroeconomics, but if you live long enough, you do see the doom and gloom get recycled and retold with unwavering passion, and I guess after a while you sorta just ignore it. Sorta like mideast peace talks. The very words are akin to white noise in the background...

trade deficit....mideast peace talks...just these continual meaningless buzzwords that never develop into anything but what they are.

136 posted on 02/18/2005 12:20:15 PM PST by Huck (I only type LOL when I'm really LOL.)
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To: SierraWasp
Hey Wille! Here's some more bad news!! You bedder bail outa them Bonds!!!

Yep, that's all part of Dubya's fiscal "genius", inflation and interests rates rise, Americans work harder -- earn less -- and pay more for the products they buy --- and taxpayers watch more of their funds go into the treasuries of foreign nations to pay interest on the National Debt.

Good grief.

137 posted on 02/18/2005 12:20:22 PM PST by Willie Green (Go Pat Go!!!)
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To: ex-snook

What bill collector? What bill? We don't have a MONEY deficit, we have a TRADE deficit. That simply means, we CONSUME more than we send out. It's already PAID FOR.


138 posted on 02/18/2005 12:21:41 PM PST by Nathan Zachary
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To: Nathan Zachary

Oh wait, according to you's, that chineese coffee maker I already paid for, I'm going to have to pay for again sometime down the road. I get it now. (sheesh!)


139 posted on 02/18/2005 12:24:42 PM PST by Nathan Zachary
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To: Nathan Zachary

Once again. I'm not talking about protectionism. A protective tariff and a revenue tariff are two separate things. And yes, if your product was one that we chose to raise revenue from, then a tariff would be placed on it. But I'm also for lowering income and/or corporate taxes at the same time we place tariffs. You may have extra profit as a result of the corporate or income lowering and keep your plant open here.


140 posted on 02/18/2005 12:25:22 PM PST by cotton1706
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