U.S. Free Trade Deficit Correlated To As Much As Half of the U.S. National Debt

Abstract

"The U.S. free trade deficit has accumulated to $6.57 trillion over the last 20 years and $7.5 trillion since 1971. The U.S. national debt now totals around $12.1 trillion. In fact, from 1990 to 2007 the trade deficit totaled $5.51 trillion which was fairly close to the national debt in those years that totaled $6.1 trillion. Thus, the trade deficit has accumulated to a sum of the same type of magnitude as the national debt. For every type of trade, whether it is an import or an export, there are tax consequences. Such consequence of a trade deficit may be correlated to the national debt. Our study in fact finds that there exists in the raw data an 87% mathematical correlation between the national debt and the free trade deficit in logically selected time periods when stable (non excessive) government spending and trading occurred. As well the X-Y relationship observed in the raw data indicates the trade deficit is mathematically correlated to as much $6.4 trillion, a little over half of America’s current national debt."