Have you noticed that Economists always assume that they have customers? If you have customers, then economics becomes very easy. Remember the old saying that, "if you invent a better mouse trap customers will flock to your doors"? It sounds good, but nothing could be farther from the truth. That is the point of this blog.
We have a trade imbalance with almost every country in the world and China is the worst. Did you ever think about why that is? In the early days of the USA, our economy was "weak", or was it? What did we have to sell? Fish, fur, lumber, tobacco, Gold and cotton. Notice that all of these were products based on the exploitation of our natural resources. We had no "value added" products that were based on the productivity of our labor. Is this starting to sound familiar? What do you think that China would look like if they did not have a "sucker customer" with money to sell their "value added" products too? China would still be in the poor house. We are the world's "customer"!
The problem with being the world's customer is that you can not keep it up for ever. At one time Spain was the worlds customer, but not any more. Why do you think that was? They stole all the Gold from the New World, but when that was all spent and they had to rely on their "value added" products, they ended up in the poor house.
Canada is one of our good trading partners and I think that Canada is one of the few countries of the world that we have a positive balance of trade with. Why is that? How can Canada buy more from us than they sell too us? The have all kinds of natural resources and a small population and they can sell those natural resources all over the world for a good profit so they have the money to buy from us.
What products do you think that we sell too China? It is not high tech. We buy our high tech products from China, like Apple computers. We sell China Coal, Corn, lumber and Soy Beans which are all products based on the exploitation of our natural resources. Notice that China does not buy corn from Mexico. Further, China does not really buy lumber from us, They buy logs and saw the lumber with their own cheap labor in China.
What countries are our customers today for our "value added" products? Good question! I think that Boeing is our biggest exporter. How is that? Most of those deals are to countries who don't have any money so we end up "giving" them the money to buy the planes. The problem with Boeing is that they are buying many of their major components from China. It will not be long before Boeing is out of business and we are buying our planes from China. I think that Air Bus is also the biggest exporter of "value added" products for Europe too. France is one of the big exporters of arms. Remember that French wine is really the exploitation of their natural resources.
What is the future for the USA if we continue to be the world's biggest and stupitest "customer" for "value added" products? With Obama's policy of letting so many immigrants come to the USA who want to come, how do you think they will be able to pay for themselves? All they can contribute is more "value added" labor that we now have too much of. What we earn from the exploitation of our natural resources will be further diluted by their numbers mouths until we all end up in the poor house.
For the record, look at Russia! Their population is going down while the value of their natural resources is going up. If you can follow that, it means the Russians are getting richer and we are getting poorer. We have to start being honest with our selves and wake up our economists who seem to be living in a make believe world. Do you personally know of anyone who is involved in "value added" who is selling their product to China? I did not think so and that is the problem.
We have a trade imbalance with almost every country in the world and China is the worst. Did you ever think about why that is? In the early days of the USA, our economy was "weak", or was it? What did we have to sell? Fish, fur, lumber, tobacco, Gold and cotton. Notice that all of these were products based on the exploitation of our natural resources. We had no "value added" products that were based on the productivity of our labor. Is this starting to sound familiar? What do you think that China would look like if they did not have a "sucker customer" with money to sell their "value added" products too? China would still be in the poor house. We are the world's "customer"!
The problem with being the world's customer is that you can not keep it up for ever. At one time Spain was the worlds customer, but not any more. Why do you think that was? They stole all the Gold from the New World, but when that was all spent and they had to rely on their "value added" products, they ended up in the poor house.
Canada is one of our good trading partners and I think that Canada is one of the few countries of the world that we have a positive balance of trade with. Why is that? How can Canada buy more from us than they sell too us? The have all kinds of natural resources and a small population and they can sell those natural resources all over the world for a good profit so they have the money to buy from us.
What products do you think that we sell too China? It is not high tech. We buy our high tech products from China, like Apple computers. We sell China Coal, Corn, lumber and Soy Beans which are all products based on the exploitation of our natural resources. Notice that China does not buy corn from Mexico. Further, China does not really buy lumber from us, They buy logs and saw the lumber with their own cheap labor in China.
What countries are our customers today for our "value added" products? Good question! I think that Boeing is our biggest exporter. How is that? Most of those deals are to countries who don't have any money so we end up "giving" them the money to buy the planes. The problem with Boeing is that they are buying many of their major components from China. It will not be long before Boeing is out of business and we are buying our planes from China. I think that Air Bus is also the biggest exporter of "value added" products for Europe too. France is one of the big exporters of arms. Remember that French wine is really the exploitation of their natural resources.
What is the future for the USA if we continue to be the world's biggest and stupitest "customer" for "value added" products? With Obama's policy of letting so many immigrants come to the USA who want to come, how do you think they will be able to pay for themselves? All they can contribute is more "value added" labor that we now have too much of. What we earn from the exploitation of our natural resources will be further diluted by their numbers mouths until we all end up in the poor house.
For the record, look at Russia! Their population is going down while the value of their natural resources is going up. If you can follow that, it means the Russians are getting richer and we are getting poorer. We have to start being honest with our selves and wake up our economists who seem to be living in a make believe world. Do you personally know of anyone who is involved in "value added" who is selling their product to China? I did not think so and that is the problem.
