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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: Willie Green
Uganda Trade Deficit Swells
And We have the SAME amount of Public Debt! 62% of GDP !!!
(Okay, Uganda's debt situation is a little better than ours.
Theirs is actually 62.2% and ours is 62.4%
So why quibble over a mere 0.2%???))

Hmmmmm... Uganda's Trade Deficit isn't as bad as ours, either.
It only sucks out 2.36% of their GDP.
Ours is hemorrhaging at a staggering 5.19% of our GDP.

Crap. We're worse the stinkin' Uganda for cripes sake.

161 posted on 02/18/2005 12:54:03 PM PST by Willie Green (Go Pat Go!!!)
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To: Willie Green
"Crap. We're worse the stinkin' Uganda for cripes sake."

Have you considered relocation?

162 posted on 02/18/2005 12:55:09 PM PST by wireman
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To: Nathan Zachary
But according to Willie, it must have been a great economy because we had a trade surplus. ;~))

(Someone should mention to him that recessions will do that. If you want a really big trade surplus, try a depression --- like in the 1930s.)

163 posted on 02/18/2005 12:56:04 PM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
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To: cotton1706

When was it, 1984 we signed the Nafta? I've never looked back since, and I don't intend to.

Lowered dollar is good for us, You'll see. Canadians were awfull ticked when their dollar fell too, but look at them whine now that its on the rise.
The decrease dollar gives us a good kick in the export sector.

Again, communism sucks, and thats the slope you are on if you think tariffs to force you to "buy American" are good.
Russia does that. What color Lada do you want, red white, or blue?


164 posted on 02/18/2005 12:59:01 PM PST by Nathan Zachary
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To: Nathan Zachary
Willie, debt and deficit are two different words that you seem to be confusing.
"Public debt" is not the same as "trade deficit"

I'm not confusing them at all.
Foreign nation's use the money they recieve from our Trade Deficit to purchase the debt issued by our Treasury to finance our government's deficit spending and National Debt. This means that you, as a taxpayer, pay interest to the governments of foreign nations to subsidize "cheap" imports.

165 posted on 02/18/2005 1:00:59 PM PST by Willie Green (Go Pat Go!!!)
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To: wireman
Have you considered relocation?

There's no need. Dubya's aggressively importing Third World conditions to America. I can just sit tight and let it come to me.

166 posted on 02/18/2005 1:04:32 PM PST by Willie Green (Go Pat Go!!!)
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To: Ditto

There was alot of money lost in those days. It could happen again too, by the looks of all the graphs and charts etc. The difference is, the consumer drives the economy, not charts and graphs, and we have a strong consumer market going on right now, it's created it's own monster. That was missing in the late 70's and early 80's. I think we are going to consume right past this bubble.


167 posted on 02/18/2005 1:06:47 PM PST by Nathan Zachary
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To: Willie Green
"I can just sit tight and let it come to me."

Don't hold your breath!

168 posted on 02/18/2005 1:08:52 PM PST by wireman
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To: Willie Green

Willie, our trade 'deficit' is caused by high consumer activity. The DEMAND for goods are high, and the money is spent on these goods as the come in. In otherwords, it's a record of money spent. Our money.

Yes, they have sold us stuff. And now they have some money to spend as well. All that money isn't in the hands of some foriegn nation's government, it's in the hands of various companies who operate in that Nation. Our national Debt is drawn from the world bank, another beast WE created.


169 posted on 02/18/2005 1:13:20 PM PST by Nathan Zachary
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To: Willie Green

That sounds so silly to think that forgign governments, broke as hell themselves borrowing from the world bank, own "treasury bonds" Maybe Bush should borrow more from the world bank and buy up their massive debts and we can stale mate them. LMAO!


170 posted on 02/18/2005 1:19:07 PM PST by Nathan Zachary
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To: Nathan Zachary
Willie, our trade 'deficit' is caused by high consumer activity.

To: Nathaniel Fischer
You are conveniently forgetting to mention that when imports (which are subtracted from GDP) are purchased, the value of the purchase is ADDED to consumption in GDP, so in the net there is no loss to GDP.

Production creates wealth.
Consumption diminishes wealth.

If you produce more than you consume, you get wealthy.
If you consume more than you produce, you go broke.

What don't you understand about that?
105 posted on 02/18/2005 11:40:34 AM PST by Willie Green (Go Pat Go!!!)

Dude, I already addressed your obsession with consumer worship.
Please don't keep repeating infinite variations of the same question when you don't bother responding to the questions I ask of YOU.

171 posted on 02/18/2005 1:26:20 PM PST by Willie Green (Go Pat Go!!!)
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To: Nathan Zachary
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.

We send out MONEY for what we consume, which we either print or borrow from the country we trade with [that means we don't have it, which means DEFICIT]

172 posted on 02/18/2005 1:26:53 PM PST by ex-snook (Exporting jobs and the money to buy America is lose-lose..)
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To: Willie Green
" Ours is hemorrhaging at a staggering 5.19% of our GDP."

Worry when it hits 12%. We got a long ways to go before we hit hard times.

173 posted on 02/18/2005 1:30:06 PM PST by Nathan Zachary
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To: ex-snook

No, we spend available income to stoke our trade deficit.
Do you print money in your basement? I'd never admit that.

If you go buy a cheap electronic good made in china, you stoke the trade deficit. Same thing for Dutch choclate. It's disposable income YOU spend, not the government.

I as an "importer", buy stuff from the salesman for that company, who happens to be in say, S. Korea.
I don't run to Bush and ask him to print me money. I have it, and that means, NO DEFICIT. Just because business' around the nation import things, doesn't mean we all get the money from GW, and add to some debt fund.
Just the same however, those count as goods we import as a nation. Trade deficit means we import (because we have money to spend) more than we export. We also buy goods made right here in the USA, at 3 times the rate we spend on imported goods.
You are chasing paper dragons.


174 posted on 02/18/2005 1:39:23 PM PST by Nathan Zachary
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To: Willie Green
"What don't you understand about that?"

It's you that can't understand things, and over simplify what a deficit trade is. But you are trying to say, is that our total exports are our total wealth , and our total imports are our total wealth spent, and then some. That, is wrong. Our exports are only PART of the wealth we earn as a nation, you forget to add what our 300 million strong economy spends and generates from within.

175 posted on 02/18/2005 1:51:22 PM PST by Nathan Zachary
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To: oceanview
if you present americans with the cost of something priced in real dollars, unaffected by global effects - the cost of a college education, the cost of paying for private sector healthcare or health insurance - what happens? they run screaming to the government for subsidies. why? because most of them can't afford to pay for those things. 

being able to ONLY afford imported chinese products is not a sign of wealth. my wealth is not measured by how many many $9 toasters I can buy.

I go into Wal Mart and see a lot of people who can only afford cheap items and made in China items. It is not a sign of wealth that so many can only afford cheap Chinese imports. Go into a Harbor Freight Tools store sometime for some real fun. I would  not be surprised if the PLA or some other ChiCom entity owns them

176 posted on 02/18/2005 1:51:54 PM PST by dennisw (Seeing as how this is a 44 magnum, the most powerful handgun in the world .........)
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To: Nathan Zachary

"What you are trying to say..."


177 posted on 02/18/2005 1:52:21 PM PST by Nathan Zachary
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To: Nathan Zachary
YOU don't have a money deficit. Wonder why interest rates are going up and the dollar is sinking. Lucky we don't have to ship them gold to balance the trade deficits.

China will keep accepting our paper as long as they can buy out IBM's PC business. Maybe they could even invest in Wall Street that sure would jack up our corporate values.

178 posted on 02/18/2005 1:52:54 PM PST by ex-snook (Exporting jobs and the money to buy America is lose-lose..)
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To: An Old Marine

..explain economics to liberals. Its like trying to explain sex to virgins...OUCH! That's gonna leave a mark.


179 posted on 02/18/2005 1:57:36 PM PST by UltraKonservativen (( YOU CAN'T FIX STUPID ))
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To: dennisw
"I go into Wal Mart and see a lot of people who can only afford cheap items and made in China items"

How would you know what people can and cannot afford simply by watching them shop at Wal Mart? I often go to Wal-Mart in my t- shirt and scruffy jeans when I need something, but I'm far from being poor. As for buying tools, I buy expensive tools of good quality, (snap-on) but for all I know they could be made in china. You wouldn't know it from the price though. Same as Mac or craftsman tools.

180 posted on 02/18/2005 2:00:08 PM PST by Nathan Zachary
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