America has some monetary issues, which need to be addressed. First consumer debt is at issue; the average consumer is upside down in their cars, over extended on credit card debt and living in a house, which they may have 10-15% equity and probably less with all these new home sales on 2-3% down and all the re-financing to pay off short term debt. Second; lets look at Wal-Mart; You buy a product there, 6% goes to the employee, 10% is profit to the company, 80% goes to re-stock or the cost of goods sold. Of the 80% about 20-25% goes to China. Now then how long will it take at 433 Billion dollars a year for China to have all of our money, leaving no money flow for us to circulate? Well if we keep putting money into our economy, it would take forever, but if we do not then eventually all the money flow will go.

Now some of that money comes back since expanding emerging markets need things, but only $1 in six is coming back to us. How is it coming back? Is it coming back in consumables? Are they buying automobiles? No, we cannot produce the automobiles as inexpensive as South Korea, Japan or India; our labor unions, regulations and factored in costs of lawsuits or even threats of potential lawsuits will not allow us to. So these emerging markets will be buying the automobiles, just not from us. Of course if we build factories there without the over regulations and cheaper labor then we can compete head to head with those local unique parameters. Well then will those countries be buying from us as they expand? Yes, but it takes a while and still we have an upside down flow to those countries as well. The trade flows is a serious issue. It seems tough to do business in a country, where your own government is constantly attacking your hard work efforts to supply jobs and capital; this is the current business climate in the United States.

The lawmakers make regulations and then the lawyers find people to complain to bring about regulatory fines or actions and then the lawyers use these for basis of a class action against the company. Thus we allow this to cut off the name that feeds us while the regulators make a name for themselves so they can join their lawyer friends defending the regulation insanity they helped create while they were there. Or these regulators run for office with all their notoriety to make more laws pandering to the voters who have not worked an honest day in their lives. Those politicians that have would not vote that way. Unless the media tells them too as they fear for losing their perceived powerful positions.

With everyone ganging up on the entrepreneurs and companies; the companies no longer feel beholden to the American Ideals that they once had and except for a few hold outs have decided to take their money and vote with their dollars to manufacture elsewhere. Thus a transfer of technology, innovation, outsourced jobs and capital compounds the problems of the trade deficit.

So what is the answer? Well, it is simple really. All laws must be reality based. Must be non-linear. Must disappear if they restrict flow on all sides, on the US side and our trading partners. Free trade means free trade. There is nothing free about the parasites of flow, tariffs, quotas or obstruction. The bigger problem is that the US has the best policies for those we trade with, yet our trading partners have not considered the benefits of the Western World