The Action is simple. The outcome will be dramatic.
Americans will spend about $50 billion on Christmas Holiday gift Giving.
That will be about 1/6 of trade deficit this year not counting oil.http://www.census.gov/foreign-trade/Press-Release/current_press_release/exh9.pdf
In past years these money was spent predominantly on imported products.
This Christmas season we buy only Made in America products.
Essentially the trade deficit would be zero including oil for the month of December.http://www.census.gov/foreign-trade/www/
The that would mean that 110 M US households would have an extra $454 in their pockets after Christmas.
Such a deal.
We could send an email to all 180,000 Pickens Plan members to take this action and pass it on.
At the same time we would promote CNG, ethanol, and propane conversion for automobiles.
At the same time we would promote todays Made in America Solutions of the energy crisis.
Comments, Anyone, Anyone.
Forester Research reports online retail sales this holiday season will reach US$27 billion in the United States. Jupiter Research predict a little more optimistically at $32 billion. It looks like ecommerce is on the rise with Jupiter further predicting a record 114 million users will buy online this holiday season. Going into detail Forester research state that three out of four Christmas shoppers said they plan to shop for holiday gifts online and 75 percent of shoppers said they are likely to purchase gifts online from small businesses. http://www.viart.com/the_online_christmas_shopping_statistics_are_in.html
$30.5 billion - Retail sales by the nation’s department stores (including leased departments) in December 2007.
$23 billion Value of retail sales by electronic shopping and mail-order houses in December 2007http://www.census.gov/Press-Release/www/releases/archives/facts_for_features_special_editions/012876.html
T. Boone Pickens say "Buying foreign oil represents the greatest transfer of wealth in the history of mankind."
Wealth is real assets, cash, gold, real estate, inventory, machinery, and the like.
How do we transfer wealth well it is what is called the trade deficit. Not counting buying of foreign oil the US transfers wealth of $50 billion per month. Here is more info on the trade balance.
The below chart is the US trade Balance history.
The chart below is straight from the the Federal Reserve
. The linked Federal Reserve chart plots savings rate as % of disposable income versus year. I have plotted the savings rate data against age. On the upper scale is the old guy scale, age 57 in 2008. On the lower scale is the young kid scale, age 29 in 2008. The data show that the old guy at age 29 saved on average 10% of his disposable income while the young kid at age 29 saved less than 1% of his disposable income.
The chart below illustrates the wealth exportation. This chart shows the rates of change of savings rate and the trade deficit, 1st derivative
, from 1991 to 2008. These data shows that as the trade deficit is reflected in the savings rate nearly exactly. The more products the US imports the less we save. This correlations has been known to exist by economists for years
. These economists also say that the US savings is held by the foreign producer to be returned to the US in the future
Well the future is Now!
Now China is saving to the tune of $2 trillion as shown in the chart below.
And other countries have huge cash reserveshttp://www.oef.com/Free/pdfs/swf(jan08).pdf
See also figure 23 in this document http://www.ers.usda.gov/Publications/WRS0801/WRS0801.pdf