America Is Being Transformed From A Wealthy Nation Into A Poor Nation At Breathtaking Speed
March 12, 2012 3:59pm PST
America is losing wealth far faster than any other nation on earth is. In fact, since the mid-1970s there has been a transfer of wealth of almost 8 trillion dollars from the United States to the rest of the world. Sadly, most Americans have no idea what is happening. Most of them are completely unaware that America is being transformed from a wealthy nation into a poor nation at breathtaking speed. Most Americans just assume that America will always have the largest economy on earth and will always be the wealthiest nation on the globe. Unfortunately, just because something was true in the past does not mean that it will be true in the future. Right now, the United States is bleeding wealth at a pace that is almost unimaginable. Every single month, tens of billions of dollars of wealth is permanently transferred from the American people to the rest of the world. That means that the overall economic pie is shrinking. While the rich and the poor are busy fighting over the distribution of wealth in this country, the size of the pie that they are dividing up is continually getting smaller. America is poorer than it was last month, and next month it will be even poorer. If this continues, it will result in a complete and total economic nightmare.
Let’s break this down to a real simple example. Imagine that you are playing a game with a whole bunch of people, and you have been chosen to play the role of the United States. So you go stand on a giant map of the United States and you are given much more money than anyone else in the game. However, with each turn 50 billion dollars is taken out of your pile of money and is given to the other players.
What is going to happen eventually?
Yes, that is right – you are going to run out of money at some point.
In order to continue playing you will need to borrow more money from the other players or you will need to print up some more money.
Does that sound familiar?
In January, the U.S. trade deficit with the rest of the world hit 52.6 billion dollars.
That means that we bought 52.6 billion dollars more stuff from the rest of the world than they bought from us.
That 52.6 billion dollars is gone and it is not coming back. Next month another 50 billion dollars will leave the country.
Are you starting to get the picture?
Imagine a giant hourglass filled with dollar bills. Dollars are pouring out of the United States and into the pockets of foreigners at a pace that is absolutely astounding.
In 2011, the U.S. trade deficit with the rest of the world was about 560 billion dollars.
We have a trade imbalance that is more than 5 times larger than any other nation on earth has. That means that we are getting poorer at a far faster rate than anyone else is.
Most of the money that we spend does not even do any lasting good.
For example, a huge chunk of our trade deficit is spent on importing oil. Once we burn that oil up in our cars it is gone for good and we have nothing to show for it.
But the people we sent our money to end up with bulging bank accounts.
How in the world do you think those oil barons build those outrageous palaces and are able to afford those exotic car collections?
They buy all those things with the money that we sent to them.
Meanwhile, our once great major cities are degenerating into festering sores.
Our foolish policies are causing our own destruction.
Another reason why we have such a huge trade deficit is because of our trade relationship with China.
Our trade deficit with China was approximately 26 billion dollars during the month of January.
That is absolutely horrifying.
For the entire year of 2011, our trade deficit with China hit a grand total of about 295.5 billion dollars.