US Exporting Less Importing More : Bigger Margins

The United States economy is failing not into a recession, that is our current economic condition, but into a depression.  The failure of the ‘trickle down economics’ has reared its ugly head.  The consequences of putting CEO, Corporations, Industries, and Financial Institutions and other countries in front of the basic demands of tax paying citizens has made Domestic Policy more relevant issue in the 2008 Presidential Election.

Any basic demands of tax paying economy include basic essentials including service infrastructure (fire, utilities, police, transportation), national health system, educational system, employment, purchasing power (PPP), healthy GDP and strong GNP.

• GDP : measure the market value of the goods and services produced by a country
• GNP : measures the production of all Americans (wherever they happen to be working – so it would include outsourcing)
• PPP : purchasing power parity, a criterion for an appropriate exchange rate between currencies. It is a rate such that a representative basket of goods in country A costs the same as in country B if the currencies are exchanged at that rate.

So, what does the United States actually produce, what is the US GDP?  We actually produce allot, good healthy food.  We export just about all of it.   Here is the summary of just food sources.

Agricultural Products
State by State Export Imports

EXPORT

Wheat, Rice, Feed,Grains, Soybeans, Sunflower, Peanuts, Cotton, Cotton Seed, Tobacco, Fruit, Tree Nuts, Vegetables, Animals/Meat, Hides/Skins, Poultry, Fats, Dairy, Feeds, Seeds, Sugar, Tropical products, oilseeds, essential oils, beverages, nursery and greenhouse, wine, and misc vegetable products. All for a total just under $82 billion dollars.

California is one of the US biggest exporters at $11 billion dollars this past year, up from only $10 billion in 2006.  This great export will change now that California is passing a law that all government needs will be purchased using local produces and tax incentives to buy/sell locally.

Going north Alaska ‘is the weakest link’ with exporting the smallest amount $2.6 million, by a huge margin, than any other state.  Even Wyoming (the smallest population US State) exported $61.4 million and Hawaii (the smallest in size) exported $87.6 million.

Did you know that we import electricity to the United States?  We are second to Germany in importing electricty (see map).  Germany has an infrastructure that depends on inport/export including electricity.  Unlike the United States our main export is electricity, so why are we paying for import?  This current Administration has proven that the US citizen servitude is not the bottom line, it is their pocket books.

IMPORT

The United States imports mostly everything we export, except it comes back as processed material. All unprocessed materials is a hell of allot we export or used to produce in the United States.

Almost 53% of imports is sugar, sugar-based products, coco and cocoa based products.  This is a real import due to the US climate. But it is just 53%.

The rest of the 47% is noting but processed foods and by-products of processed foods.

NOTE: This past year there is a a -15% in imports, which means the countries are not process the food and returning it to our shelves . . . they are eating what they buy.  What does short/long affect on US economy?  If we do not produce and process our own foods within the next 3-5 years our food supply will cost more than our gas.

We hear in the news that turning towards Ethanol will raise our food prices.

“The price of corn, the main feed for livestock, has driven the cost of feeding chickens up 40 percent, according to the National Chicken Council. The council says that chicken, the most popular meat with consumers, will soon cost more at the grocery store. The industry worries the competition from ethanol could cause a shortage of corn.” (Fox News)

There will be no shortage of corn if the United States stop exporting corn and animals/meat. This not only will allow for Ethanol production, create a self sustained country, but exporting our Ethanol with a surplus.

Recent Export of Corn

• The United States within August 2008 exported 57.0 thousand metric tons to North Korea (Read more . . . .)
• The United States export corn to Ethanol friendly countries. Guess what they do with our corn? We export so much corn that Japan is our biggest corn junkie (Read More . . .)
• The United States does business with Cuba, which we are not allowed to visit.  They export corn to Cuba. (Read More . . .)  Over the interests of the United State Citizens the Bush Administration has been exporting corn to Cuba!

The basic problem in the current administration has not focused on Domestic Policy. It is time to keep our products home, process our food here, and put the corn in our gas tanks.

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