TRADE DEFICIT SOARS INTO OUTER SPACE
By William J Gill
Americans for Trade Defense

The chronic trade deficit, which is the biggest single contributor to the worrisome federal budget deficit looming larger by the day, has crashed through the stratosphere on its way to Pluto and perhaps beyond.

On the goods only/balance of payments basis, the trade shortfall set another monthly record in August, hitting $42 Billion, $274 million for those 31 summery days. Not too many years ago that figure would have been considered earth-shaking as a full 12-month annual deficit! Now it is just shrugged off by the know-nothings, who, incidentally are essentially the same bunch of so-called neo-conservatives marching us into war with Iraq.

China one again piled up the biggest surplus against us: $10,856,000,000. That was more than double the $5.269 Billion chalked up by Japan, which used to be the perennial top dog but is now in third place, edged out by the European Union with $5.223 Billion it can cash in against the U.S. for the month.

However, our NAFTA “partners” — Canada with a $4.150 Billion surplus, Mexico with a $3.482 Billion — came up with a monthly total of $7.632 Billion, placing their combined “team” in second place behind China if you prefer to look at it that way, as I admit this writer does.

Imports for August topped $102.289 Billion, putting them on track for an annualized invasion of $1 Trillion, $227 Billion, $468 Million, though the West Coast dock-worker lockout could cut that somewhat. It may also keep the trade deficit for the year under the $507.288 Billion annualized rate it was running for the month.

If you found any of these figures in your daily newspaper, please let me know. Chances are it only reported, if at all, the goods and services trade deficit, which was $38.140 Billion in August, a substantial $4.134 Billion under the goods only/balance of payments shortfall. Keep in mind one phone call from a bank in London or Tokyo transferring $5-or-$10 Billion to New York is treated as a “service” and chops that amount off the deficit. (Just one of the magical tricks played on the public in the “free” trade con game.)

Forgive me for also reminding you once again that even the closer-to-reality goods only/balance of payments deficit is very probably only about half the actual figure. The Commerce Department does not count illegal drugs, which must now have a street value between $200-and$300 Billion per year, making them the No. 1 import. In addition, our subsidized foreign trade “partners” mislabel all kinds of exports to the U.S., giving them far lower values on Customs declarations. That way they reduce greatly the minimal tariffs we have left. No one knows how much this common practice adds to the real trade deficit but it could be as much or more than the not-recorded illegal drug billions.

If you are still awake after trying to digest all these mink-bending statistics, try to visualize the human toll they are taking on your fellow citizens whose jobs are shipped to China, Mexico or Timbuktu. Or the impact these horrendous trade deficits have on thousands of American communities. Or on the budgets of our states, which are now almost all in virtual bankruptcy. Then try to add up the taxes these deficits cost you personally when you pay your share of the welfare costs for workers whose jobs disappeared overseas.

Yes, it is depressing to think about all this. But unless we confront this terrible trade problem head-on and awaken our people to demand a real change in this insane trade policy, the United States may one day be in the same bind Brazil, Argentina, et al are in right now.