Counting Re-Exports As Imports Is The Latest Trump Voodoo Economics Doll

199
Republish
Reprint

Trade deficit: snooze. Your paycheck: wut?

The swamp drainers in the White House are about to catch Americans who rely on exports for their livelihood off guard. They are considering a change in the way the U. S. trade deficit is calculated to make things like NAFTA look worse than they are. The idea is to eliminate “re-exports” (imports that are exported without any value-add) from the trade deficit calculation and, in effect, bolster the import numbers. Take a gander at this:

As the Trump administration is learning in spades, campaigning (holding self-aggrandizing rallies) is easy; governing is hard. Why? Because there are numbers involved. Statistics. Probability theory. Science!

As everyone knows, Trump has a problem with numbers:

As usually happens in politics, outrageously irresponsible budgeting is often justified by a too rosy GDP growth outlook. The Trump administration’s consideration of reclassifying re-exports is no exception. With any luck, however, wiser heads – like that of Janet L. Yellen, the Fed’s chairwoman – will prevail.

Case in point: unlike the #MAGA-maniacs, the Fed believes the current pace of job growth, a key economic indicator bolstered in part by Obama’s policies, is unsustainable and therefore unlikely to rise. As a result, paychecks – maybe even yours – will level off or even dwindle, and with them, federal tax revenue.

Not to worry: Trump’s economic advisors are on the job. Among them are hedge fund managers, bank executives, and even a cigarette manufacturer whose main role is probably to fuel the proverbial smoke-filled room. Here they are:

The group includes such stalwarts as Stephen M. Calk, who was sued by CitiMortgage for $4.5M in 2014 for fudging on asset reporting for a previously owned bank. Only one, David Malpass, has ever worked in the federal government.

Mr. Malpass, you’d better brush off your CV.


All images via screen capture.

Click here for reuse options!
Copyright 2017 DeepStateNation.com