Warning: Trade deficit may trigger depression

[dramama]

Economists: It's de-industrializing America, leading nation toward 2nd-rate power status

WASHINGTON – America is selling its birthright not for a mess of pottage, but for a mess of Chinese junk, and the resulting "unsustainable" trade deficit is leading "to the collapse of the dollar, depression and conversion of the United States to a second-rate power," says a new book written by three generations of a family of economists.

"Not only will the United States feel the pain, but other countries will as well," write Raymond, Howard and Jesse Richman in "Trading Away Our Future." "Because other countries are dependent upon the U.S. dollar as a reserve currency and because they are dependent on exports to the United States to sustain their own economies, the eventual collapse of the dollar could wreak havoc on the economies of the whole world."
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=61121

[Tall Timbers]

The national debt is what will bury us. The trade deficit, if there really is one, is difficult to quantify, first because many of the corporations producing the junk overseas are our own companies, or partially owned by us, and 2ndly because a lot of the stuff we make money at isn't even measured in the statistics.

The national debt, our government's always overflowing gift to it's citizenry and the rest of the world, will be our undoing if we're not taken out by war first.

The collapse of the dollar, which is well underway, is in my view, related to our national debt. The eventual complete collapse will wipe out trillions of paper value globally, the fallout will change the face of our world dramatically. Hopefully, for the world, it will happen slowly, as it appears to be doing now. The good side of it, is if we aren't destroyed in war, our international debt will be gone because the debt is in dollars and so will have no value. Americans will be dirt poor (almost all of us), but we can pick ourselves up and start over, probably with a new government... or maybe part of a single global government...

[Holding Pattern]

Take it to a smaller scale... if any individual/family/business accumulated debt in proportion and still continued to spend recklessly and continue borrowing at a furious pace...it simply could not continue.
It happened to us 10-12 years ago...we hit MaxQ and an "adjustment" had to occur... our lifestyles changed, we revised both our "domestic" and "foreign" policies and once the correction in our economy happened, we came out better in the end. It was a tough time in between, but afterwards, it was smooth(er.)