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Trade Deficit, a look at the latest statement of Federal Reserve chairman Bernanke
by Mike Crane

The May 2007 Trade statistics were released on July 12 and remain at a very high level. In fact the song remains the same -  the trade deficit remains at an unacceptable and unsustainable level.

The chart at the right is taken - month by month - from the U.S. Bureau of Economic Analysis monthly press releases. These are just the numbers reported by the government. A copy and link to the most recent BEA press release is always at the bottom of the page.

This remains a track record of failed economic policies, which apparently are continuing unabated.

Many of our new age rocket scientists called - economists - blame our Trade Deficit on petroleum products.

The following is just one example:

Fed's Bernanke says US trade deficit has shown signs of looking 'a bit better'
07.18.07, 1:20 PM ET

WASHINGTON (Thomson Financial) - The US trade deficit has 'shown signs of looking a bit better,' Federal Reserve Board Chairman Ben Bernanke told Congress today.

He said the underlying improvement had 'been disguised' by increasing oil prices. Without oil, Bernanke said there were 'encouraging signs' that the underlying deficit was beginning to stabilize.

Last week, the Commerce Department said the US recorded a 60.0 bln usd trade deficit in May.

The Fed chairman was testifying before the House Financial Services Committee. He was asked why the trade deficit had not improved significantly with the decline of the dollar.

Bernanke said changes in the value of the dollar, the Chinese yuan or other currencies would not be enough in themselves to deal with the deficit. More saving in the US and more consumption in China and elsewhere are also necessary.

Actually we have imported less oil than we did a year ago. From the same government figures:

Now give this some thought. If our economy is growing as fast as these government officials (including the Bush Administration and leading Republicans/Democrats) claim, why are we importing less oil? With higher oil prices and a growing economy the dollar value of oil imports would be going up - not down.

Of course those of you who read last month's article (See: Trade Deficit, another look at how you are not being told the whole story) on the trade deficit know - our economic growth figures are over stated.

Federal Reserve chairman Bernanke's statements are not false, they are just another example of mis-leading American citizens.  Of course the Federal Reserve is not technically a government agency, even though it can have a dramatic impact on the life of you and your family. You - the citizens - need to use your own truth meter to decide the level of trust you place in their statements.

Now lets look at Federal Reserve chairman Bernanke's statement about what he considers a solution from the article above:

More saving in the US and more consumption in China and elsewhere are also necessary.

He is of course on the mark on we need more savings! But look at the other suggestion, "more consumption in China and elsewhere are also necessary." In other words, our failed economy is China's fault!

How about a solution that makes a bit more sense:

"We need more Americans working here to make products for use here and in other countries!"

We have a trade deficit because we have moved the production of the products Americans buy to foreign countries! Our economic policies are controlled by special interests, primarily multi-national corporations, and our policies encourage the movement of facilities to foreign countries for "cheap labor."

Note that if every factory in our country ran at 100% capacity the rest of the year and exported every extra item produced - we would still have a trade deficit! We have unsustainable trade deficits because we no longer have the production base to supply our own population! Virtually every item in the 42.7 billion dollar (non-oil) deficit for May could have been produced here, by Americans working in what are now empty and closed facilities.

The final comment about Federal Reserve chairman Bernanke's statement is that he is encouraging the steady decline of the Dollar (federal reserve note, dollars ceased to exist about 40 years ago). He is encouraging the decline of the dollar against the Chinese yuan and other currencies as if that is a good thing. It is not! Lets repeat that with a bit more emphasis:

The decline of the dollar against other currencies is NOT a good thing.

The official policy of our country is to have a STRONG dollar, but in fact our economic policies are based upon creating a WEAK dollar! Declining value of the dollar is just erosion of the purchasing power of your hard earned money, being given away to multi-national corporations due to their influence on your government. Then you get to pay for the government to boot!

Before political correctness this would have been called "corruption." Today under political correctness run amok it is called "free trade." If it is "free" why are you, your children and grandchildren facing the largest accumulation of debt in the history of the world? Are you going to think it is free when you are faced with payback time? Then you will understand why the Southern Party has labeled it - "expensive trade!" It is free for those that benefit and expensive for those who will pay the bill!

When your children or grandchildren are facing this massive debt, the economists will call it the free flow of capitol across a global market or some such politically correct term.

We urge, beg, plead and pray that you will give this some thought and then begin to take some action to stop these flawed economic policies based upon cheap labor for the elite few. If you - the citizens - do not force a change - your and my grandchildren will be that cheap labor.

In closing this month:

Warren Buffett - hardly a Southern Party member - has come to the same conclusion:

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.

What you can do.

If you are concerned about these economic policies, at some point you need to ask yourself the question, "what am I going to do about it?" Go back and look at either the chart at the top or other graphs and the previous articles. Month after month, year after year, there can be very little question what the trend is and what you can expect if nothing changes.

Are you concerned enough to consider some things that you can very easily do to begin raising awareness of the future problems? If so please consider:

1) We need your help in passing this information on to others. How many people do you know that would be concerned or interested? If everybody that reads this page - finds one new person a month, in the 2008 elections we can retire most US House Representatives or US Senators up for election across the country that are selling your grandchildren's future. That is a lot of results for very little effort, but the list has not grown at that rate. Last month the list receiving these updates only grew by just over 50, perhaps too many were relying on the other person to find their new person or only 6% are concerned.

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2) Consider joining the Southern Party of Georgia or one of the Southern Parties springing up in other States (Southern Party of North Carolina, Southern Party of Mississippi and soon Southern Party of Virginia, Texas and Tennessee) and helping our efforts to expose the dangers of creeping globalism.

Southern Party of Georgia
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These are simple steps, require very little effort and even the financial request is not a burden. When Republicans and Democrats call you (they can afford telemarketing, many cases using call centers in India to help stabilize salaries in India while they fall in our country) they ask for much more. We need your help more than they do and when you help Republicans and Democrats you get more of the same thrown in.

“Nobody made a greater mistake than he who did nothing
because he could only do a little.”
― Edmund Burke (1729 - 1797)

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About the author:

Mike Crane is the 2nd vice chairman of the Southern Party of Georgia and a candidate for the 51st Senate District in Georgia. Despite gathering over 7,000 petition signatures in 2004 and 2006 combined - he was denied ballot access both elections.  While 70% of the Georgia State House districts and 56% of Georgia Senate districts had one candidate in November, Georgia tax dollars were used to prevent political competition.

Has the time has come to end Banana Republic style elections in Georgia? Has the time come to have some real political competition? If you think so, consider helping us.