Trade Deficit Xfers Wealth From The 99% to The 1%

[SuburbanFarmer]

The posts above are correct but off-topic. My OP title is: "Trade Deficit Xfers Wealth From The 99% to the 1%." That means they ARE important to consider.

p.s. Yes, I know Capitalism xfers money from the 99% to the 1%.

It doesn't transfer wealth any more than a trade surplus. It makes no difference.

[Martin Hash]

The posts above are correct but off-topic. My OP title is: "Trade Deficit Xfers Wealth From The 99% to the 1%." That means they ARE important to consider.

p.s. Yes, I know Capitalism xfers money from the 99% to the 1%.

It doesn't transfer wealth any more than a trade surplus. It makes no difference.

Let me do this again...

What do foreign countries awash with $ do with those $? Buy Treasuries.
Who pays off Treasuries? Taxpayers.

Now add the lower prices Trade brings to the cost of paying off the Treasuries and you end up with a price closer to the price if the product was made domestically, so average taxpayers are paying about the same overall with the 1% getting the difference, which is the Trade Deficit.

[SuburbanFarmer]

The posts above are correct but off-topic. My OP title is: "Trade Deficit Xfers Wealth From The 99% to the 1%." That means they ARE important to consider.

p.s. Yes, I know Capitalism xfers money from the 99% to the 1%.

It doesn't transfer wealth any more than a trade surplus. It makes no difference.

Let me do this again...

What do foreign countries awash with $ do with those $? Buy Treasuries.
Who pays off Treasuries? Taxpayers.

Now add the lower prices Trade brings to the cost of paying off the Treasuries and you end up with a price closer to the price if the product was made domestically, so average taxpayers are paying about the same overall with the 1% getting the difference, which is the Trade Deficit.

2 different issues.

Yes, the debt is owed by the US citizen, to whomever felt like buying it. Yes, the US citizen owes the interest on that debt. Yes, that (obviously) is being paid to the 1%. It does not matter who owns the debt - they are getting richer by 1-2% or whatever - barely keeping up with inflation.

Trade Surplus or Deficit has absolutely nothing to do with Budget Surplus or Deficit (government debt). The US government is not buying the shit traded, or selling it. US corporations are selling less shit in China than Chinese companies sell here. That's the Trade Deficit. It has nothing whatsoever to do with the Federal Debt, other than the fact that our country is not making as much sales or corporate tax on those sales. Again, this has very, VERY little to do with trade, and is more about tax laws and regulations being completely broken, along with shoveling money to any special interest that comes knocking.

[Martin Hash]

Refuse to understand if you want?

p.s. And stop conflating paying off Treasuries with paying interest on Treasuries (which is essentially 0% currently, so it makes little difference.)

[SuburbanFarmer]

Refuse to understand if you want?

p.s. And stop conflating paying off Treasuries with paying interest on Treasuries (which is essentially 0% currently, so it makes little difference.)

If you've made a connection between Trade deficit and Budget deficit, I fail to see it.

And when you (government) sells a treasury, they sell it and the interest as a fixed amount. The interest (yield) is known at the time of sale.

All of the 10-year bonds sold in 2007-2008 to make up for our little oopsie are coming due this year and next, btw. You'll see some pretty incredible wealth transfer then.

[Martin Hash]

In the end, Treasuries are used to finance everything, but I'm talking specifically about the Trade Deficit. Okay, I'll try again...

Another nation cannot just exchange their currency for Treasuries, otherwise they would simply print their way into having America taxpayers be their slaves. No, they've got to use $, and they've got to get those $ from someplace. Congo & Kyrgystan don't have a lot of Treasuries but China does: why is that?

p.s. I have different threads about each of the ways other nations get our money: "Free" Trade, Aid, crime, Trade Deficits.
p.p.s. I also have threads on why governments can't "borrow" money.
p.p.p.s. Globalists applaud all this intertwined international debt because it redistributes wealth from the U.S. to the rest of the world.