WHY IS IT THAT ONLY IN AMERICA IS THE TRADE DEFICIT NOT IMPORTANT...
FOR CENTURIES NATIONS HAVE HAD TO WATCH THEIR CURRENT ACCOUNT...
OF COURSE IN THE OLD DAZE THE GOLD STANDARD WOULD INTERVENE....BUT AFTER BRETTON WOODS THE US DOLLAR WAS THE "NEW GOLD" UNDER THE KEYNESIAN POST-WAR TRADE REGIME...
AND THAT LASTED FOR A LONG TIME...ACTUALLY UP UNTIL SEPTEMBER 2008...
BUT NOW WHAT....?
DOES THE TRADE DEFICIT COUNT IN AMERICA NOW... IF SO...NOW WHAT...?
HOW DO WE REVERSE A TRADE DEFICIT THAT IS MASSIVELY STRUCTURAL...
INDEED, ALL OF THE FACTORIES AND MANUFACTUING JOBS ARE OUT OF THE US NOW...
JUST LOOK AT THE MANUFACTURING JOB NUMBERS...THEY ARE ACCELERATING TO THE DOWN SIDE...BIG TIME!! EVEN AS THE DEPRESSION HIT...!
HERE'S THE PROBLEM...
IF THE TRADE DEFICIT SUDDENLY "COUNTS" AGAIN...?
WE'RE DOOMED...
AND HOW EXACTLY DOES BEING "DOOMED" EXPRESS ITSELF IN A LARGE POST INDUSTRIAL ECONOMY?
THE ONLY HISTORIC PRECEDENT IS THE WIEMAR DISASTER...
AND PERHAPS A FEW LATIN AMERICAN ECONOMIES...
BUT FRANKLY...I DON'T SEE THIS GOING THAT WAY...
I SEE SOMETHING TOTALLY DIFFERENT COMING...
IT WILL BE EITHER A TOTAL CATASTROPHE...
OR PERHAPS A TYPE OF SOCIALISM IN AMERICA...
THIS THING IS NOT COMING BACK...THE WAY IT WAS.
