#1 The Biggest Transfer Of Wealth In The History Of The World
Every single month tens of billions of dollars of our national wealth is transferred to the rest of the world. We buy far more from the rest of the globe than they buy from us, and this difference is called a trade deficit. Most Americans don’t even think about the trade deficit, but the truth is that it represents a transfer of wealth that is almost unimaginable.
Every month when the oil-exporting nations of the Middle East send us oil, what do we send to them? Our dollars of course. So we burn up their oil in our vehicles and end up with nothing at the end of the month, and they end up with a big pile of our money. So what happens the next month? The exact same process repeats again.
But it is not just oil-exporting nations that we are transferring our national wealth to. Back in 1985, the U.S. trade deficit with China was 6 million dollars for the entire year. For this past August alone, the trade deficit with China was over 28 billion (that’s billion with a “b”) dollars.
In other words, the U.S. trade deficit with China in August 2010 was more than 4,600 times larger than the U.S. trade deficit with China was for the entire year of 1985.