America’s economy is locked in a downward spiral toward socialism.

January 12, 2022

Empty store shelves. Runaway inflation. Labor shortages. Auto production way down for lack of chips. The Federal Reserve ready to start jacking up interest rates and start dumping bonds into the market. And have you noticed what’s happening with the trade deficit?

Probably not, so I’ll fill you in. It exploded in September, soaring to $81.4 billion, crushing the previous record of $73.2 billion set the previous month. As announced by the Commerce Department last week, the trade deficit in November was just shy of that September record. But that doesn’t begin to tell the story. The deficit in manufactured goods soared to a new record of $96.3 billion in November, eclipsing the previous record set only two months earlier by a whopping $5 billion.

Look at this chart of the trade deficit in manufactured goods: https://petemurphy.files.wordpress.com/2022/01/manfd-goods-balance-of-trade.pdf. We’ve been told that those empty shelves are due to Covid-related labor shortages at overseas manufacturing plants. In light of the trade data, that’s clearly a lie! If it were true, imports would be declining instead of shattering records. And the trade data is corroborated by the massive backup of container ships waiting to unload at west coast ports.

The fact is that warehouses across the country are stuffed to the rafters with goods, so much so that they can’t keep track of where everything is. Items that you see missing from the shelves are here in abudant supply, but buried so deep in the warehouse by more recent shipments of other things that they can’t even get at it. As a perfect example, the state of Florida recently discovered a stash of a million Covid test kits that had expired, buried so deep amid other stuff that they had completely lost track of them. So they’ll head straight to the landfill.

Our economy is stuck in a downward spiral. Trade deficits suck money out of the economy – money that can only be pumped back in through deficit spending. A trade deficit of $96 billion per month requires federal deficit spending of at least a trillion dollars per year just to keep it from sinking into recession. The only way to pump that much deficit spending into the economy is through social programs – socialism – that only fuels more demand for imported goods, making the trade deficit bigger. More deficit spending, more inflationary pressure and higher interest rates, more disincentive to work for a living. More labor shortages. More socialism.

The U.S. ran its last trade surplus in1975. Thanks to both parties’ embrace of globalism and free trade since the end of World War II, we’ve now had forty-six consecutive years of trade deficits that have transformed America from the richest country the world had ever seen – the world’s preeminent industrial power – into a skid row bum, begging the rest of the world, especially China, to loan us money by buying our debt. The optimism I felt when the Trump administration recognized the problem and began slapping tariffs on Chinese imports is gone.

There’s no hope that Biden will lift a finger to address the trade deficit. Trump left him a perfect tool to tackle it – the “Phase 1” trade deal with China, in which China itself agreed that if they didn’t meet quotas for increasing the purchases of American-made goods, then the U.S. would slap a 25% tariff on the half of Chinese products that weren’t already hit with tariffs. By the end of 2020 they had failed miserably, making a mockery of the deal. Not only did Biden not follow through on the deal, it was many months before he even acknowledged its existence. With only one month of data left to be tabulated for 2021, China’s performance vs. their obligations is even worse. Still the Biden administration won’t act. Not surprising. Biden’s decades of experience in the Senate make him one of globalism’s architects.


“The Real Threat to American Democracy”

January 7, 2022

https://www.project-syndicate.org/commentary/real-threat-to-american-democracy-by-michael-lind-2022-01

I came across this opinion piece a couple of days ago as I browsed Marketwatch, which reprinted it with the permission of Project Syndicate. In the opinion of professor Michael Lind (clearly no fan of Trump) at the Lyndon B. Johnson School of Public Affairs at the University of Texas, the real threat isn’t Trump, even if he were to re-take the presidency in 2024. The real threat is what led to the rise of Trump: “… the disconnect between what the bipartisan US political establishment promises and what it delivers.”

Embraced by both parties for decades, globalization has failed to deliver any benefits for the American people. Instead, it has transformed America, once the richest and greatest industrial power the world had ever seen, into a skid row bum, broke and utterly dependent on the rest of the world – most notably China, a communist regime that would like nothing better than to destroy the U.S. and assume its role as the most powerful nation in the world – for its most basic needs.

Both parties are equally culpable for getting us into this mess, not because they believed in it, but because it’s what their corporate benefactors paid them to do. They went along because they didn’t understand how disparities in population density drive massive global trade imbalances, making it certain that badly overpopulated nations, desperate to employ their bloated labor forces, would ravage America’s economy. Globalization was never about benefitting Americans. It was all about using America’s wealth to boost corporate profits by turning such nations into western-style consumers at America’s expense.

Lind closes with this:

Many of the architects of these colossal disasters have gone on to establish lucrative careers as respected experts. Few have suffered financial or reputational losses. When a national establishment fails so often and at such cost, and when mainstream media sources remain complicit in those failures, no one should be surprised if citizens look to alternative media sources, including crazy ones, or turn to outsider politicians, including narcissistic demagogues like Trump.

… the real long-term threat to American democracy is the lack of popular trust in conventional politicians whose policies have repeatedly failed. And for that lack of public trust, American elites have nobody to blame but themselves.


Tucker Carlson’s Surprising “Take” on Overpopulation

January 5, 2022

https://www.foxnews.com/opinion/tucker-world-we-live-in-cannot-last

While browsing the news on the internet this morning, I came across a couple of very interesting and surprising opinion pieces from two different commentators. They deal with different subjects, but subjects that share the common link that is the focus of this blog. I’ll first address the opinion piece by Tucker Carlson of Fox News (link provided above) because I found it to be the most surprising.

Now, before I start, and so that I don’t lose half of my readers right out of the box, don’t get the impression that, because I read Fox News, I’m a Republican and posting this just to advance the Republican agenda. I scan all the major news outlets, including Fox, in order to get stories that the others often won’t even cover. I’m an independent and have bashed both parties especially hard for doing the bidding of their corporate benefactors when they champion policies designed to keep growing our population when it’s increasingly evident that, while boosting GDP and corporate profits, it’s eroding our quality of life.

That said, I was curious where Carlson was going with this piece titled “The word we live in cannot last, but that’s not necessarily a tragedy.” What is it about our world that he thinks can’t last? Too many liberal politicians? Too much “wokeness?” Too much drift toward socialism?

It’s none of that. Yes, he gets in a couple of digs aimed at Democrats – nothing surprising there. What is surprising is that it’s an overpopulated world that he sees that can’t last. He asks the question, “… how many people is too many?” I was shocked! That’s exactly the question that my proposed amendment to the constitution would force politicians to consider when setting immigration policy. Why can’t politicians see it and do something about it?

He then goes on to answer that question:

In Washington, you will never hear that question. More bodies in a country mean more power for the people who run it. Big nations need big governments. Politicians always want more people to rule, so the incentive for unrestrained population growth is baked right into the system. 

The consequences of that?

The larger a bureaucracy becomes, the more impersonal it gets. Past a certain size, organizations of any kind lose their regard for people. As they get bigger, they get blunter, more soulless and cruel. 

It’s true. If there’s one thing that economists get right, it’s the law of supply and demand. As the supply of anything increases, the cheaper it gets. Humanity is no different. The more our numbers grow, the more devalued and cheaper human life becomes, to the point that an individual is practically worthless. You don’t matter. There’s plenty more eager to replace you.

It’s gratifying and encouraging to see that other people with influence are beginning to see the big picture and ask the right questions. I encourage you to read the whole piece yourselves, and I’ll leave it at that.