Charles Skelley: Any nation with a trade deficit needs more Working Capital in its export industries – so I will add $300 billion to US exporters

The most effective way to put Working Capital to use is by making increments to a previously successful business (as contrasted to starting a new business). The US export industries have large amounts of bank debt. And this is where political action should be focused for reducing the US Trade Deficit.

As President I will ask Congress to nullify $300 Billion of debt which US exporting companies owe to the Federal Reserve Banking system. This is the most direct way to stimulate US exports. And it is a way to partially compensate US exporters for the economic imbalance that US president Nixon created when he opened trade relations with China in 1971.

The combined tangible Book Value of all US corporations will increase by approximately 5% as a result of $300 Billion in debt forgiveness. Hopefully this will translate into a 2.5% to 5% increase in US GNP, and will neutralize half of the US Trade Deficit.

Congress should choose wisely how to get the most “bang for the buck” from this $300 Billion of exporter debt forgiveness. But balancing the US Trade Deficit should always be near the top of Congresses’s priorities.

The only times when a nation has “exactly enough Working Capital” is when the trade deficit (or current accounts balance) is zero.


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