Western PA as a Case in Point
US trade deficit 2012
By EMS News
Beaver County Blue via Culture of Life News
The US continues the program of selling commodity raw materials while importing manufactured goods. This futile trade deal is also not working because always, the value-added labor that goes into production is lost when a country trades this way. If a country has a small population and lots of raw materials, it can get rich doing this but not a country with 350 million people. Even Saudi Arabia, due to making birth control illegal, has a rapidly growing population that is eating into oil export values and soon will erase it entirely. Japan, with half the population of the US, is seeing its trade decline, too. While importing energy due to Fukushima.
The trade deficit was hardly mentioned during the last election. It is as if it doesn’t exist. Even though it is the core problem within our economy, one that has been papered over, literally, by the US printing trillions of extra dollars. Inflation has been kept down due entirely to trade partners holding excess US dollars in FOREX accounts overseas. But the US is desperate to generate some funds to cover the river of red ink flowing through our economy so of course, we do this by exporting lumber, gasoline, gas and oil as well as other primitive commodity products.
Naturally, this doesn’t plug the giant hole in our economy! Nonetheless, DC pundits and politicians tell us gravely, we must do this more and more and eventually it will fix things. Here is the latest delusional story from DC misleading people about the trade deficit: Natural gas exports: A boon to the economy – The Washington Post