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Donald Trump closing on leaders in Republican race
Howard Richman, 2/28/2011

Republican voters may have a choice on trade this primary season. Donald Trump, the first of the undeclared Republican candidates for president to call for tariffs on China, has moved up to fourth place among Republican candidates according to the Newsweek Daily Beast Poll. Here are the Republican leaders:

  1. Romney - 19%
  2. Huckabee - 18%
  3. Palin - 10%
  4. Trump - 8%

In the general election, here's how the top four would do:

  1. Huckabee - tie
  2. Trump trails Obama by 2%
  3. Romney trails Obama by 2%
  4. Palin trails Obama by 11%

The Republican nomination is still wide open. It is not even yet clear which of these candidates will actually be in the race.

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Comment by jg bennet, 2/29/2011:

The largest transfer of wealth in history has gone from the American Middle Class into the pockets of despots & multinational corporations due to our trade policies.

Since 2007 we have sent the Chinese over 1 trillion dollars of our money in a dollar draining (never to return) negative trade deficit.

 US World trade deficit from 1987 – 2010

Negative 8.8 trillion dollars

Trump wants our money back!

http://www.census.gov/foreign-trade/balance/c0015.html

DOLLAR DRAIN DEFINITION

The accepted dollar drain definition applies to economies throughout the world, not only those using the dollar as a unit of currency. Dollar drains are trade deficits that result when imports exceed exports in monetary terms. For instance, a country that imports more goods from overseas than it exports to foreign countries is, in effect, sending its currency overseas in return for those goods. This can lead to a shortage of currency in circulation at home, creating a tight money situation in which companies have difficulty obtaining the loans and funds they need to grow or to continue operations. Consumers feel the effects of dollar drains as well, since they cannot obtain loans for the purchase of property or for other immediate needs; a shortage of currency in the home economy affects every aspect of that economy.

MAJOR RISKS OF DOLLAR DRAINS

A ready supply of circulating money is necessary for economies to engage in setting monetary policies; loosening or tightening the supply of money in the market is one of the most important tools government has in determining fiscal policy. When there is a shortage of currency in the economy, the government cannot exercise this control over the economic situation. If the dollar drain continues for a significant length of time, the government may be forced to curtail foreign purchases or to borrow heavily from other countries in order to meet its obligations. This can lead to inflation and devaluation of the currency on the international FOREX market.

 **Most analysts believe the long-term solution to dollar drain is to promote and encourage consumers to purchase goods manufactured in their own country where possible; this can stem the flow of currency out of the country and lessen the trade differential over time.**


Response to this comment by carlo olivero, 3/2/2011:
What we need is not only chinese goods but to decrease our union wages to compare with chinese wages.  I wrote ann article that the Peoria journal Star would not publish.  I called the PJS and told themI would  stop the paper.   They said one reason they wouldn't print the article was I said the average wage rate in China was .75 cents an hour.  The editor said I called the University of Chicago and do you know what the average wage in China is and I said it has to be quite low because there are so many chinese.  He said that the average wage in china is $1.25.  At that time Illinois had a minimum wage of over $8.00.  America is dead as a countary.  We need someone who can bring the country back.  The Republican want to give money to small businesses.  What in HELL are they going to produce that we in U.S. will buy????  We need factories in the U.S. not in china.  Thats why we need to adjust the wage rates in the U.S.  This won't happen, because everyone is for themselves.  I say the only thing that is going to bring the U.S. to its knees is ANOTHER DEPRESSION.  when this happens we start alll over again.  If this doesn't happen we are dead on arrival.  DOA. After hearing Trump I think he would charge the citizens to make a change in the U.S. before its too late.  No Republican got the guts to do what he is saying.  Look at the way the Democrats are crying that this is going to hurt the under-privilage, blacks, mexicans, and all the slobbering over the ding-a-lings. 




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  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

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  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

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  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]