Message to Donald Trump – your understanding on ‘trade’ is fallacious!
Tonight’s win in Michigan and Mississippi shows that voters are buying into the Trump line on many issues. His views on international trade, however, are ‘ass’ backwards! Let’s think about what The Donald is saying and thinking! Let’s think about what he is proposing with China, Japan, and Mexico (as well as other Nations which have a chronic trade deficit with America). The Donald wants fair trade (this is good), however, his concept of our prior deficits with Nations like China, Japan, Mexico, etc. is that these countries are manipulating their currencies so as to unfairly manipulate trade with America. This view is invalid! America is the cheater and our counterparties are actually the victims. Does The Donald understand what has happened these past 42 years in trade? I don’t think he does! Let’s review!
The Donald needs to rethink his international trade views! His understanding is ‘ass’ backwards! Is he aware of our history? Does he comprehend why we have our huge trade deficits?
Donald claims that China is taking advantage of America because of our trade deficit of some $366 billion in 2015 and with slightly smaller (yet huge) deficits in prior years. America also realized trade deficits with Germany of some $74 billion, Japan of some $69 billion, and Mexico of some $58 billion (all in 2015). The Donald claims that all these countries are taking advantage of America and this will stop when he becomes President in 2017. The cheaters will be forced by The Donald to stabilize their currencies so as to eliminate their cheating and manipulations. Is this a valid argument? I would suggest absolutely NO! The real culprit is not our trading counterparties but it is America and her currency the ‘dollar’ (acting as the Reserve Currency on our planet). Let’s review!
The trade deficit with China was $366 billion in 2015. This deficit has benefited American consumers and our politicians! A new RESET would be needed if this imbalance were to be fair going forward!
Who has benefited these past 42 years since America reneged on the gold exchange standard (1971)? The real benefit these past 42 years has been the American consumer and the American politicians (unfairly when understood). All these merchandise trade deficits with the above Nations and many others has benefited American consumers and our spendthrift government. Goods have flowed into America at prices much lower than what American citizens could produce via their manufacturing and entrepreneurial skills. Wal-Mart, Target, Costco, Sams, Home Depot, Lowes, Kroger, the military industrial complex and thousands of other retail and governmental establishments have received products from our trade deficit countries at much lower prices and with a quality which America could not achieve with their higher skilled workforce. All these trade deficits have been a huge ‘boon’ to the American consumer and our spendthrift politicians these past 42 years!
All the above products have benefited American consumers! This has occurred due to unfair trade accounting with our counterparties! The American ‘dollar’ has allowed our government to act as a spendthrift Nation!
What The Donald does not understand is that our trade currency is also the Reserve Currency on our planet. This emerged after the Bretton Woods Monetary Conference of 1944-46. Then in 1971 our President, Richard Milhous Nixon, reneged on allowing our foreign counterparties to trade fairly (via a gold exchange standard)…as agreed to at this Bretton Woods Conference. This was a huge crime against our trading counterparties. This criminal action resulted in further criminal action by our politicians. Then in 1974-75, Nixon and Kissinger arranged a Ponzi currency agreement with Saudi Arabia so as to make our fake/fiat/floating/index dollar marketable to all our foreign counterparties who now could not receive our gold in exchange for imbalances in trade. America forced every counterparty to purchase crude oil via our Ponzi fiat dollar so America could benefit from this mandated behavior. This created what we call the Petro-Dollar. All this was unfair trade with America benefiting (hugely).
Fair trade occurred from 1944-46 until August 15, 1971. This is when President Nixon closed the gold exchange standard to our foreign counterparties! The result was our fiat/floating/index/Ponzi petro dollar from 1975 to 2016!
All these currency gimmicks (by American politicians) have created this unfair trading activity which we now witness (deficits for America and surpluses for those countries which supply us cheap products). All these unfair actions allowed American consumers a huge undeserved ‘wealth effect’ from all these deficit trade Nations like China, Japan, Germany, Vietnam, South Korea, Mexico, etc. What Mr. Trump does not understand is that America has created the trade problems these past 42 years…NOT China, Japan, Mexico, etc. America is the villain and these surplus trading counterparties are the victims. The Donald has his understanding ‘ass’ backwards! Wake-up, Donald, and read this missive! A change in this advantage (via our corrupted ‘dollar’) will force our Nation into ‘austerity’ like we have never experienced in our 242 year history. Are you AWARE of this?
America now has a cyber/digital/fiat/floating/Ponzi dollar! Are you aware of this Donald?
Read this missive and my prior missives on Value, Money, Dollar history, our corrupt Federal Reserve, our Cyber money situation, etc. Your understanding is lacking because you do not comprehend the history which has transpired these past 42 plus years. America is the real cheater and currency manipulator…NOT our counterparties (China, Japan, Germany, Mexico, etc.). What we need is a RESET of the entire international trading order so as to get back to reality. If you are elected expect the biggest economic depression in the history of planet earth. Economics and finance are at the core of our problems. This you have correctly! Our $19 trillion national debt and our continuing annual deficits can not be resolved with your current thinking and understanding! That is my view, Donald! I am: https://kingdomecon.wordpress.com.