Economic Politics

We are all aware America is hemorrhaging money via a an unfavorable balance of trade. For several recent decades more of our money goes out than comes into our country.
If you asked the average American, who is worse from a balance of trade stand point, OPEC or China, most would probably answer OPEC. If you answer OPEC, you would be wrong by a factor of 4. China is four times a bigger problem than OPEC . Our current yearly balance of trade with China is a net negative $277 Billion. OPEC soaks us a mere $87 Billion a year.

Our net worldwide trade deficit (Imports minus Exports) is $800 Billion for the year 2007.

Here are our top five worst offending "trade partners"

China....$277 Billion trade deficit
Japan......74
Canada.....63
Mexico.....62
Germany....43

These five countries are 65% ($519 Billion) of our international trade deficit, and this doesn't add in the $87 Billion going out to OPEC. Included within Canada and Mexicos' US trade deficits is around $90 Billion worth of crude oil imports.

America has long been called the bread basket of the world, 6/10ths of one percent of our workforce are farmers, yet they produce $178 Billion in food. We only consumed $60 Billion of this food domestically, while selling $120 Billion overseas. However unable to withstand prosperity the American consumer eats $92 Billion of imported food, all the while paying American farmers a subsidy not to grow food on idle land. Our Farmers could double their output with little to no problem, the world needs food why not sell it to them.

Everyone is hearing the commercials about America having a one hundred year domestic reserve of Natural Gas. With such a supply why are we importing (20%) 112 billion cubic feet of it each year? That's a Billion dollars unnecessarily spent every year. We even buy $7.5 Billion of Electricity from outsiders when we have nuclear and plenty of coal fired plants.

Our Foreign Trade needs to be run as the business it is, instead of as a diplomatic tool.

So how can we turn this $800 Billion annual trade deficit around? American leads the world in technology in almost every field, Aerospace, Defense Technology, Medical, Pharmaceuticals, Telecommunications, Computers, Refined Chemicals, Agriculture, Transportation, Entertainment, the list goes on and on... Why not charge more for our goods and buy less from others. 30%. If we up our exports by 30% either in volume or price increase and buy 30% less foreign goods, our deficit turns into a surplus. The world needs our goods much more than we need theirs.

China can beat us in the socks market, it's a low tech item, yet why are we buying Chinese made socks? All things being equal I'd rather buy Honduran socks,and help out our Latin neighbors, than from a country who attacks our cyber networks.

Those countries who want to take advantage of our computer innovation, or our aerospace ability should not get it for a song from us. We need a little bit more of OPEC's cold blooded business attitude. The Germans and Japanese have no problem sticking it to us.

We need for Washington and Corporate America to coordinate our international trade efforts. Jobs need to be returned, or if not, these US HQ'ed global companies should be taxed to tears for goods brought to our docks.

Steve