The First Economic Disorder

1. Cause a persistent trade deficit, hollowing out our industrial base.
2. Enable a persistent and alarmingly high federal budget deficit.
3. Destabilize the value of the dollar, fomenting euphorias and panics.

The first of the world dollar standard’s economic disorders:

1.  The world dollar standard causes a persistent trade deficit, hollowing out our industrial base.

The U.S. trade deficit grew to $497.8 billion in 2010, from $374.9 billion in 2009.  This means that Americans bought almost half a trillion dollars of goods and services from abroad more than what we sold.  Many people sense that it is wrong to spend more than you earn, particularly at this scale.  They are right.