The decline of the export economy

I've explained in these pages many times how the notion of using exports in order to create value is not a sustainable activity.  Maco eCONomists, government hacks and globalists would all disagree strongly with me, of course.  The reason is that fake money is tied at the hip with the concept of the export economy.  We are told that exports create jobs, blah blah blah.   But a simple analysis reveals that not everyone can be a net exporter.  If someone is a net exporter than by definition someone else is a net importer.  In this case, the net exporter always has to accept IOUs for their goods!  In other words, the goods are not paid for.  Promises to pay are given only in the form of fiat currency.

This is just another twist on the old vendor finance scam.  Either people can pay for the stuff they consume or they cannot.  If they cannot pay today then why will they be able to pay tomorrow?  And if they cannot pay tomorrow then they will default.  Of course, before they are defaulted upon, the globalists/internationalists who run the larger exporting corporations will have paid themselves outsized wages and bonuses for having generated such incredible "sales".  The reason they were able to generate such sales numbers is because they were fake sales.  They were in effect vendor financed sales.  Now that the scam is ending, the CEOs are walking away with massive sums for their "service".  The number of parachutes is growing rapidly which means that those at the top know that the fuel of their con, that being credit, is running low or perhaps even exhausted.  Without credit (AKA liquidity), there is nothing to fund these fake exports.

Bottom line: as the credit dies, so will the vendor finance scam which we call the export economy.  This is going to KILL the big multinationals which are set up in order to profit from this scam.  The lies we are told about exports being good for jobs, etc. will be exposed.  The only valid need for exports is for trade of something that you are very good at making with someone else who has a special and unique product or service of their own.   In other words, diversification of consumption. Such trade needs to be done at parity value OR real money (gold) needs to be used to make up the difference.   Anything else is unsustainable.  It might look sustainable.  It might go on for decades.  But in the end it is not sustainable because the math says so.


You will be hard pressed to find the truth I have stated above presented in such basic and concise terms.  Longer versions exist which talk around the obvious terms of "con" and "vendor finance scam" but at least they are clear in who loses.  If you are asking your self who might that be then you have forgotten a basic rule which is that if you do not know who the patsy is in a con game, it's you.  For example, this link discusses exports in pretty high level terms which, although a bit windy, should not go over too many people's heads.  And I quote: "It is true, for example, that persons engaged exclusively or chiefly in export business might gain on net balance as a result of bad loans made abroad. The national loss on the transaction would be certain, but it might be distributed in ways difficult to follow. The private lenders would take their losses directly. The losses from government lending would ultimately be paid out of increased taxes imposed on everybody. But there would also be many indirect losses brought about by the effect on the economy of these direct losses."

Let me do some word substitution/word insertion to make it simpler:

It is true, for example, that Illuminati globalists running international corporations engaged exclusively or chiefly in export business might gain on net balance as a result of bad loans made abroad (which are tracked by trade surplus figures) through their vendor finance scam operations. The national loss on the transaction would be certain, but it will be distributed in ways difficult for the layperson who is getting fucked in the deal to understand or to follow. The private lenders would take their losses directly. The losses from government lending would ultimately be paid out of debasement of the money supply which is in effect a global tax on everybody. But there would also be many indirect losses brought about by the effect on the economy of these direct losses including people who have given up on working at all and in many cases on life itself because they have lost everything to a pump and dump economy.

The article goes on to say, "Businesses that depend on domestic trade would therefore be hurt in the long run as much as export businesses would be helped.".  So the net is that small US businesses have been getting fucked by the global corporations who use the vendor finance scam enabled by fiat currency and fractional reserve lending.  The rise of huge US corporations is thus mainly a function of debt and when the credit/liquidity runs out, they will get slammed.