The Deadly Math Of America's Faux Prosperity: Washington Borrows, Consumers Spend, China Supplies

Sometimes math is a real bitch. Donald Trump is a smart guy.  I know he knows math. Too bad he’s ignoring it. Here’s the gig.  The title says it all.  Government spending is rising rapidly.  More actual money is flowing into the US economy.  Where is that spending going?  To buy cell phones, computers, cars, office supplies and all the rest.

It doesn’t matter if the purchase is made at Best Buy through a Purchase Order, the money still goes to stuff built and imported from China.  The second order effect is that even if it goes to subsidize a farmer in Iowa or a defense contractor in California, that money winds up in the hands of a consumer who does what? Goes to Best Buy and buys a new TV.  This isn’t rocket science folks, it is simple cause and effect.

 

https://tomluongo.me/2018/07/13/deficits-dollar-equals-china-trade-deficit/

 

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