Taxes and the Economy

Information about Taxes, Government Spending and the Economy
Trade Deficits - product of failed economic policy 

 

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MYTH: Easter is derived from false pagan goddess

What Is A Christian Nation

Biblical References in Give Me Liberty Speech by Patrick Henry

HISTORICAL RECORD: Winter Months Grazing for Sheep in Bethlehem area

Fox News December 24, 2013: Too cold for shepherds in December

The Real Lincoln - Despot

Is the Constitution Really Inimical To States Rights? - Part Fourteen

MYTH: Too cold for shepherds to Tend Flocks in December - Part 2

Gun Control Coming to the Senate Floor on Monday

74th Anniversary of 'Gone with the Wind' premiere

The First Thanksgiving Day - flyer

The Death of Jefferson Davis - December 6 1889

Marietta Daily Journal - on The First Thanksgiving

Demonstration against Lindsey Graham & Southern demographic displacement

MYTH: Too Cold For Shepherds in December

December 4 was First Thanksgiving, in Virginia, not Plymouth

Next League Demonstrations Against Southern Demographic Displacement

Federal Government Propaganda Machine

What is wrong with Thumping the Bible?

Drones for our protection. For those who will believe anything!

Failed Economic Policies - Another $58,800,000,000 of debt for June ...
by Mike Crane

The Commerce Department has released the June 2005 Trade statistics. So far 2005 is on track to to establish another record breaking year of failure. If the rest of this year continues at the average year to date we would have an annual trade deficit of $690,800,000,000.00 - another record breaking year. Never before in the history of our country has such dismal failure been so well received.

Month

2001 S urplus
 (Deficit)
2002 S urplus
 (Deficit)
2003 S urplus
 (Deficit)
2004 S urplus
 (Deficit)
2005 Surplus
(Deficit)
January (35.2) (29.6) (41.4) (43.1) (58.3)
February (29.4) (32.6) (40.4) (42.1) (61.0)
March (32.7) (31.5) (43.7) (46.0) (55.0)
April (31.5) (34.0) (42.5) (48.3) (57.0)
May (28.0) (34.0) (40.8) (46.0) (55.3)
June (29.5) (35.4) (40.0) (55.8) (58.8)
July (30.1) (34.1) (40.8) (50.1)  
August (28.4) (36.2) (40.2) (53.5)  
September (30.8) (36.6) (41.3) (51.6)  
October (30.8) (35.0) (41.5) (55.5)  
November (29.7) (39.7) (40.0) (60.3)  
 December (26.6) (43.2) (44.0) (56.4)  

The new age rocket scientists called economists are claiming that these alarming numbers are the result of rising oil prices. Sounds good doesn't it, the siren song remains the same - "The US economy remains strong and the trade deficit is a result of increasing oil prices."

But a look at the actual numbers, some call these - facts - does not support this siren song:

Total Imports: $165,600,000,000.
Oil Imports: $19,900,000,000.

If we didn't import a drop of oil, we would still have a trade deficit for June of $38,900,000,000.

The truth remains the same:

The international trade position of our country continues to deteriorate at a steady rate. Month by month, year by year - the trend continues.

Meanwhile the Bush Administration and leading Congressional leaders of both parties have passed CAFTA (See: CAFTA passed House by two votes ... ) agreement seemingly oblivious to the long term implications of these failed economic polices. In fact what they call "Free Trade" is misnamed, it is "Expensive Trade" and since this idea narrowly passed Congress in 1992 (NAFTA) our country's international trade position has steadily deteriorated. Now they are setting their sights on the next Expensive Trade Agreement, the FTAA mis-named the Free Trade Area of the Americas.

Continued Decline

Take a quick look at the chart on the left. Now remember this is the chart provided by the US Commerce Department.

This is not a chart of success it is a chart showing the results of a failed policy.

In our life times this country has made the transition from the world's largest creditor nation into the world's largest debtor nation. That is not the legacy of a successful policy.

It should be obvious to all that such levels of debt accumulation can not continue forever. But instead of beginning to look at these trends in a realistic manner, our elected officials seem content to ride the downward slope.

To repeat the basics:

Trade in Goods

failed trade policies Factories are moving to foreign countries.

Empty factories do not produce goods to be exported, even if President Bush, Congress and other elected officials tell us this is good for us, empty factories just do not produce much!

When Americans need the products those factories used to produce they have to buy imports. As long as more factories move to foreign countries than move to our country, we will export less and import more!

The Expensive Trade Agreements - misnamed Free Trade Agreements are resulting in moving factories and goods producing facilities to foreign countries. CAFTA which was recently shoved through Congress will only create more empty factories - resulting in Americans having to buy more imports.

Trade in Services

Every time an American company outsources jobs to a foreign country, those services are no longer available to sell to foreign companies and are now imports. While we still have a trade surplus in services it is shrinking and at the current trend will be a deficit around the end of this year.

Empty call centers, development centers, bank transaction handling centers, etc do not provide many services. When these services are obtained from foreign countries the cost adds to the trade deficit.

From the US Department of Commerce own numbers for June: Services exports increased $0.1 billion from May to June. Services imports increased $0.2 billion from May to June. The trend continues, another $100,000,000 of "good for us" outsourcing!

Agriculture

Agriculture has been producing a positive trade balance for decades. But even this mainstay of American Trade is sliding toward a negative balance. In May, Agriculture was down to breakeven, continuing the trend downward toward a deficit in what has been a positive balance for decades:

U.S. exports of food, feeds and beverages rose by $558 million to a record $5.6 billion in May. However, imports in the same agricultural categories also set a record of $5.6 billion in May as American consumers continued to demand a host of foreign food products.

In June: Foods, feeds, and beverages were virtually unchanged.
 

American companies are shunning agriculture products grown in our country under high standards to import food stuffs grown with much lower standards. trade deficit in manufacturing jobs

Conclusion:

In conclusion - every component of international trade is on a downward trend. There is one category that shows the extent to which President  Bush's economic policies are destroying our international trade position - advanced technology. Now most would believe that our country leads the world in advanced technology, which at one time we did. But no longer:

Feb - Advanced technology products (ATP) exports were $14.9 billion in February and imports were $18.3 billion, resulting in a deficit of $3.4 billion (See: Bush Economic Polices - Screen doors on submarine - same concept).

March - Advanced technology products (ATP) exports were $19.5 billion in March and imports were $21.0 billion, resulting in a deficit of $1.5 billion.

May - Advanced technology products (ATP) exports were $17.2 billion in May and imports were $21.0 billion, resulting in a deficit of $3.9 billion.

June - Advanced technology products (ATP) exports were $19.3 billion in June and imports were $22.9 billion, resulting in a deficit of $3.7 billion

Even in advanced technology products  - empty factories and development centers do not generate much! And the trend continues.

American jo bs that are sent to another country have something in common with empty factories, call centers and development centers. A lot of Americans who used to think every thing was going well  - used to work there.

Today they do not!

How Continuing Trade Deficit affects you, the citizens

Some may ask, "Why should I care?"

The answer to that will fall into two categories; those that are directly affected and those who are not.

Directly affected:

Those who are directly affected by loss of job or reduced income resulting from the effects on the job market will probably not ask the question. It is pretty obvious that empty factories, call centers and other facilities do not employee many people. Those who no longer work in the facilities that have moved to foreign countries do not need further explanation. Instead they should be asking why their government, elected to represent them has established policies that ignores them and instead favors special interests?

This is a question that has to be directed at both the Democratic and Republican leadership. We have focused on President Bush, not because he originated these policies, actually former President Clinton is the one who pushed NAFTA through Congress.

But President Bush is in charge now, bears responsibility for his actions and his Party continues to support and accelerate the failed policies. He pushed CAFTA through Congress with Republican support. His re-election campaign and the Republican National Committee outsourced 10,000,000 campaign phone calls to India instead of using Americans. You can not blame Clinton for CAFTA or the recent mushrooming of oursourcing.

Not directly affected:

You only think that you are not directly affected. The debt being accumulated is being done on a credit card - so to speak - which has not only your name on it, but the names of your children and grandchildren.

Either you, your friends, your associates, your relatives, your parents, your children or grandchildren are the Americans who would have been working in those empty factories now dotting the landscape or which will be empty in the future. You have been or will be affected to some extent.

In addition, the trend can not continue forever. Will the failed policies be revised to initiate some reasonable fiscal responsibility or will our country just ride the downward slope and let some correction occur that may not be pleasant or planned?

bush economic policies

The continuing downward trend of our Trade Deficit is a formula for disaster.

A couple months ago the new age rocket scientist, Alan Greenspan stated that we had a problem, that ever increasing Trade deficits can not continue forever. Then Warren Buffet echoed our claim that the Bush policies are destroying your grandchildren's future

Instead of moving toward an "ownership society," Buffett suggested, with admitted hyperbole, that the economic burden ahead is more likely to result in a "sharecropper's society" dependent on foreign landlords.

Meanwhile the Bush Economic Polices continue their march into our country's history. Seemingly oblivious to the long term effects of these economic policies the Bush Administration continues to feed the public one crisis after another while using the power of the government to build "political capitol" (see: Bush Trade Policy - a look behind the scenes of a failed economic policy - its ugly! ).

We no longer have the capacity to produce enough goods to balance the Trade deficit. This was recently confirmed in a report in a Chicago paper (http://www.suntimes.com/output/business/cst-fin-hale10.html):

But what pundits have failed to notice is that the U.S. lacks adequate manufacturing capacity to eliminate the external deficit.

U.S. manufacturers currently produce about $1.5 trillion a year in goods, and have a capacity utilization rate of nearly 79 percent. The current account deficit is equal to 40 percent of American manufacturing output.

If all of our remaining facilities ran at 100% capacity for the rest of the year and exported every bit of additional product - we would still have a trade deficit! But instead of polices to increase utilization and capacity of our facilities we have government polices in place which encourages their relocation to foreign countries!

Until the failed policies are changed - there is nothing to stop the downward trend!

Lets repeat that statement, it is very important:

Until the failed policies are changed - there is nothing to stop the downward trend!

There should be little question about the effects of the current economic policies. The trends are so obvious that you do not even need to be a rocket scientist to figure out where they are headed. Do not be misled by small month by month fluctuations. Our international trade position is steadily deteriorating.

It is up to you the American citizen to decide how long - you - are going to let it continue. The most recent Expensive Trade Agreement - CAFTA - was passed by the narrowest of margins in the US House of Representatives, by one vote. Many of you have voted for and supported members of Congress that turned their back on you under intense Bush Administration and corporate lobbying. You have the power to "retire" these corporate representatives and get replacements who will represent you - not special interests. Every one of the US Representatives that voted for CAFTA (Roll Call Vote: http://clerk.house.gov/evs/2005/roll443.xml#Y) is up for election next year. Are you going to send them back so that they can vote for FTAA?

The Southern Party has released a position statement that would change the failed and misnamed "free trade" to one of FAIR Trade (See: A Southern Party of Georgia Position on solving our country�s Trade Deficit ). If you are concerned about this issue - we hope you will take a few minutes to read this position statement. We also appreciate any help in passing this information on to others.

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U.S. Census Bureau
U.S. Bureau of Economic Analysis
NEWS
U.S. Department of Commerce � Washington, D.C. 20230


FOR IMMEDIATE RELEASE
                  8:30 A.M. EDT FRIDAY, AUGUST 12, 2005

CB05-117
BEA05-36
FT-900 (05-06)

For information on goods contact:
U.S. Census Bureau:
Nick Orsini     (301) 763-6959
Vanessa Ware    (301) 763-2311

For information on services contact:
U.S. Bureau of Economic Analysis:
Technical:  Christopher Bach    (202) 606-9545
Media:      Ralph Stewart       (202) 606-9690

                U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES
                                June 2005

Goods and Services

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the
Department of Commerce, announced today that total June exports of $106.8 billion
and imports of $165.6 billion resulted in a goods and services deficit of $58.8
billion, $3.4 billion more than the $55.4 billion in May, revised.  June exports
were virtually unchanged from May, and June imports were $3.4 billion more than
May imports of $162.2 billion.

In June, the goods deficit increased $3.3 billion from May to $64.0 billion, and
the services surplus decreased $0.1 billion to $5.2 billion.  Exports of goods
were virtually unchanged at $74.5 billion, and imports of goods increased $3.2
billion to $138.5 billion.  Exports of services increased $0.1 billion to $32.4
billion, and imports of services increased $0.2 billion to $27.1 billion.

In June, the goods and services deficit was up $3.9 billion from June 2004.  Exports
were up $12.6 billion, or 13.4 percent, and imports were up $16.5 billion, or 11.1
percent.


Source: http://www.bea.gov/bea/newsrel/tradnewsrelease.htm
 

Excellent Reference site:

The Grandfather Economic Reports - http://mwhodges.home.att.net/

Several of the charts and graphs that are used on the Southern party web site are from this excellent web site. We recommend that you visit it frequently and spend some time reading the variety of economic reports available.

Permission granted to reproduce, staple, fold, mutilate and remove the little do not remove tag and anything else prohibited or restricted. For terms of use, click here.

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