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Can Renewable Energy Help Reduce the Trade Deficit – Depends on the Will and Wisdom of our Policy Makers in Washington

August 16, 2010

An editorial in The New York Times, “Return of the Killer Trade Deficit,” is sobering and resonates with an extremely tragic note, see http://tinyurl.com/barry-stevens10

If a fire alarm sounds, do not the fire fighters immediately rush to action. In the U.S. the alarm signaling  a worsening trade deficit has been ringing unnoticed for some time. Why has our policy makers in Washington been deaf for so long? Not a time for our leaders to take a laissez faire attitude. America is in dire straits.  What the heck are we doing? It’s no longer a question “of show me the beef,” but a question we can’t even “find the beef.”

Where does renewable energy come into the equation? It, like other sector in our economy, can play its part by reducing imports. Renewables should not be viewed solely in terms of a savior for Climate Changes but as a way to finally stop the export of our precious dollars for foreign oil. Surprisingly, today, we have the capability to use our domestic resources to provide clean and affordable energy.

Makeup your own mind. The article states:

“….. trade statistics released last week indicate that American consumers are sucking in large quantities of imports as spending recovers, while weak demand in the rest of the world is crimping American exports.”

“….. China is mopping up demand everywhere you look with its artificially cheap supply of goods.”

“The bulging American trade deficit means that rising consumer demand is flowing to suppliers overseas rather than fueling growth at home.”

“….. China cannot keep hogging the global export market.”

“…..  United States trade deficit ballooned to $49.9 billion in June, the biggest since October 2008. In July, one month later, China recorded a $28.7 billion trade surplus.”

“…..  the United States’ bilateral deficit with China rose 17 percent in June, to $26.2 billion — the biggest in 40 months.”

“…..  the United States — beleaguered as it is — has been left as a lone source of demand growth. Meanwhile, Beijing’s reluctance to end an economic strategy based on cheap exports is cementing its position as the world’s demand hog.”

“….. to rebalance their (China) economy and rely more on internal demand and less on exports.

The central bank announced in June that it would allow China’s currency to start inching up against the dollar — but it has risen less than half a percent.”

 I am sorry, but Dam it, why are we so blind to the facts and slow to react.

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