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Trump’s logic on trade with China and Mexico ? ‘illogical’ ?

March 5, 2016

Mr. Donald Trump wants to impose tariffs on imports from China and Mexico to eliminate our trade deficits. The trade deficit with China was  some $365 billion in 2015 and the trade deficit with Mexico was some $58 billion. America has been running trade deficits with most countries these past 42 years and this is because our ‘dollar’ is the primary reserve currency on this planet. The last trade surplus for the U.S.A. was in 1975. Our trading counterparties can settle imbalances in ‘dollars’ and America can create these ‘dollars’ out-of-nothing to pay for these deficits. What an advantage for American consumers. We can purchase goods from all over the planet and pay with fake/funny money to settle imbalances each year. Our prosperity is dependent upon this continuing advantage! Video to watch:

Is The Donald aware of the consequences of imposing ‘tariffs’ on imports from China and Mexico? I agree that what he desires (trade fairness) is logical!

The deficits continue into 2016 with no let up! China is now desiring a change in our dollar’s reserve status advantage! Is Mr. Trump aware of this history and the consequences of a change?

Mr. Trump is correct in his logic that this continuing trade imbalance must be stopped. What he is unaware of, however, is that stopping our trade deficit advantages will cause shortages and price increases for all the poor and middle class who shop at Wal-Mart, Target, Costco, Sams, etc. To overcome our trade imbalances America must pay their counterparties in real ‘value’ (such as silver and/or gold). The digital dollar (now created out-of-nothing) would vanish as a settlement currency. If this is done, American consumers would discover that their goods and services from their trading counterparties would dwindle to a fraction of what is currently being supplied. Prosperity would stop growing and ‘value’ for ‘value’ would be required. Are Americans ready for real ‘parity’ in trade? I don’t think Mr. Trump or the American consumer is aware of these consequences!

America’s advantage has allowed consumers to ‘over-consume’ for some 42 years! Will Mexico pay for the Trump Wall with a reduction in trade with America? As of today, there is no ‘parity’ in trade!

America has been living off the rest of the world for nearly 42 years. After our prior President Nixon closed the gold window in 1971 America resorted to another deception called the Petro Dollar gimmick. This gimmick allowed American consumers to continue with a ‘valueless’ dollar for trade with our counterparties. All this welfare for Americans may soon come to an END as our trading counterparties (such as Russia, China, Brazil, India, etc.) are now aware of the unfairness which America has assumed by using our ‘dollar’ as the primary reserve currency for all trade imbalances. America’s accounting gimmicks have allowed our consumers to enjoy a huge advantage over all the other Nations on this planet. Trump (if elected) could bring all this to an END! Get ready for some real change in 2017! Watch this video for some history: am:

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