The Perils of Importing More than We Export
The United States continues to import more, and export less each year, while our production levels drop and we continue the sell off our large companies to foreign interests. As a result, tax revenue has receded and we now have fewer American owned companies remaining to produce wealth and generate taxes. Our government, already drowned in foreign debt, must continuously borrow more to operate and pay its bills.
This cycle of debt enlargement has impacted every level of our economy. Government debt is now more than $14 trillion. The 2007 balance of trade deficit (debt) was $731 billion, while China made a $371 billion profit during the same year. In 2009, the trade deficit was $506.9 billion, an improvement, but still completely unacceptable.
The following figures represent the balance of trade deficits per year from 2000-2009. It is through these means that foreign interests buy us out.
- 2000 – $446.2 = $848,997 per minute
- 2001 – $421.9 = $802,854 per minute
- 2002 – $475.3 = $904,385 per minute
- 2003 – $541.5 = $1,030,335 per minute
- 2004 – $665.6 = $1,266,421 per minute
- 2005 – $783.8 = $1,491,250 per minute
- 2006 – $839.4 = $1,597,139 per minute
- 2007 – $823.1 = $1,566,195 per minute
- 2008 – $834.6 = $1,587,998 per minute
- 2009 – $506.9 = $964,505 per minute
This is a grand total of $6.3 trillion in trade debt in just a short 10 year time span – money that can only come back to buy us out!
It is prudent to note that the difference between imports and exports in 2009 and 2008 is due to a drop in all economic activity, not because of a substantial increase in exports relative to imports.
No country can continue to exist on debt, especially when there is very little probability of ever repaying it. How can we continue to delude ourselves with the idea that we are a superpower? Our standard of living and economic strength is dependent on ever increasing imports and our entire economy can only be temporarily sustained by ever increasing debts. As we witnessed briefly in 2008, our bubble will burst, and when it happens again the crash of 2008 will appear to have occurred in a time of prosperity.
Our lenders will inevitably discontinue loaning us any more money. What motivation could they have to continue? Our productive capabilities have become uncompetitive and insufficient. Our manufacturing infrastructure and our source of a competent manufacturing labor force has been dissolved and replaced overseas. How will we possibly function when the money runs out? Something needs to be done, and it needs to be done soon. The process will be difficult, but the negative consequences of the alternative (continuing on our current path) pales in comparison.