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INTRODUCTION

**** The number 1 and 1A long term economic crisis for our economy is the trade deficit and illegal immigration. If left uncheck they will reduce America to a 2nd rate power with a large federal government deficit, a huge 3rd world underclass society and an extremely large nuclear arsenal. Economically, over the long term illegal immigration will destroy the community safety net. We mean hospitals, schools, jails, prisons, tax base, public and private social services. There are too many low wage workers and non-workers entering the country for the community safety net to accomodate. Example* When we have a recession and millions of American workers are laid off. They will receive federal, state governments and non-profit organizations in the communities assistance. By the illegal aliens working on low paying jobs they will be among the first to be laid off. There may be millions of illegals laid off across America during the next several recessions in this decade. Our question is who will provide clothes,feed and housing for millions of illegal aliens during the next several recessions in the economy? They do not have accrued benefits. Will the federal or state government take away part of hard working American workers benefits who have been laid off to share with illegals? Or will the federal or state government borrow money to feed,pay rent and buy clothes for millions of illegals and run up our national and state debt. What will the state do? Will non-profit organizations share the help given in the past to unemployed Americans with millions of illegals? This will become a major economic crisis in larger cities with 100,000's of unemployed illegals.* During a recession when jobs become available, who will get the jobs? There could be more than an economic crisis during the upcoming recessions with millions of Americans out of work and illegals are still working *****(California had a budget shortfall of 26 billion dollar and they spent 9 billion on illegals????????????). ***** **** The long term strategy of corporate America is to increase profit and jobs outside of America and reduce jobs in USA. Economically, America's middle class ($200,000 and below) is at severe risk of slipping backward. This myth about the middle class going backward in America is not quite correct. The downsizing in America started in the early 60's with the outsourcing of manufacturing jobs.**THERE IS A DIRECT CONNECTION WITH OUTSOURCING OF MANUFACTURING JOBS AND THE SYSTEM EXTRACTING CAPITAL TO SURIVE. THEREFORE THE SYSTEM THIRST FOR WORKING CAPITAL CONTINUES TO MOVE UP THE ECONOMIC LADDER(FOOD CHAIN) IN AMERICA (TAKING MORE MONEY FROM MIDDLE AND LOWER INCOMES IN ORDER FOR THE ECONOMY TO CONTINUE OPERATING. THE MORE MANUFACTURING JOBS OUTSOURCED TO FOREIGN COUNTRIES THEREAFTER, THE HIGHER UP THE FOOD CHAIN OUR SYSTEM WILL LOOK FOR ADDITIONAL CAPITAL TO OPERATE.

Outsourcing and the trade deficit are parts of an economic puzzle hidden behind import cost, shipping cost, insurance cost, wholesale and retail mark-up.  Our web site will provide as many pieces of the puzzle as possible.**NOTE In the last quarter of 2005 the GDP was reported as increasing 1.7% No one in the news media or washington D.C. reported that the trade deficit decrease the GDP l.07%. If we had a balance trade account the GDP would have been 2.77%. The trade deficit is a DIRECT subtraction from the GDP. The larger the trade deficit or current account is each year - The more it will drive the GDP or America into a negative growth.*****THE FEDERAL RESERVE HAS INSERTED AN ADDITIONAL 293 BILLION DOLLARS INTO THE THE SYSTEM BETWEEN OCTOBER 2005 AND JANUARY 2006. THIS SET THE PRECEDENCE FOR FUTURE INJECTIONS OF MONEY(LIQUIDITY) INTO SYSTEM (MONEY WITHOUT ANY VALUE). IN THE FOURTH QUARTER THE ECONOMY SLOWED DOWN TO 1.7 AND THEN THE ECONOMY SPRING BACK TO LIFE POSTING A GDP OF 5.6 IN THE FIRST QUARTER OF 2006. THIS INJECTION IS ALL INFLATIONARY (LIQUIDITY)MONEY AND THE FEDERAL RESERVE CONTINUED TO RAISE INTEREST RATE TO FIGHT INFLATION. IF THE FEDERAL CONTINUE TO INFLAT THE ECONOMY WITH INFLATIONARY MONEY EVERY TIME THE ECONOMY SLOWS IT COULD BECOME VERY DANGEROUS FOR THE FUTURE OF THE ECONOMIC SYSTEM IN AMERICA.*****

1. WWW.TRADECRISIS concern is what will happen with a continuing huge trade deficit and continuing loss of jobs(specifically quality of jobs{replace by low paying service sector jobs}) and infrastructure in America to help finance our trade deficit year after year. THE ECONOMY IS ASKING FOR INCREASED MANUFACTURING (NOT MORE INFLATIONARY DOLLARS).

3. WWW.TRADECRISIS macro economic theory is based on the economic system in America and its struggle with deficits and outsourcing. Because of overconsumption in the USA, the economy is losing money from the system faster than we can afford. This is causing economic disruptions throughout the system. The federal government has subsidized the difference. From 1983 to 1998 the federal government average borrowing 300 billion dollars a year and applied to the economy. A direct subsidy to our economic growth each year during this period of economic expansion. President Clinton's administration balance the budget and took away the 300 billion dollars subsidy from the economy in 1998,1999,2000. In 2000 the foreign investors start withdrawing his investment in America. Also, the current account-trade deficit added 1.1 trillions dollars to the economy lost from 1998 to 2000. A total of 2.2 trillion dollars drop out of the system from 1998-2000 to create the recession. Starting in October 2001 President Bush's administration borrowed 7.5 trillion dollars and applied to the economy. From 2001 to 2007 our current account-account trade deficit total 4.1 trillion dollars creating the recession of 2008. Each time the Federal government inject huge amounts of money into the economy (including tax cuts and lowering of interest rate), this money will not increase the turnover ratio in all communities. This excess money leave the economic system before increasing the turnover ratio in most communities. Eventually, these huge amounts of excess monies will increase the trade deficit,decrease the GDP and slide the economy back into recession. Until the manufacturing base is restored and the money turnover ratio is increased in the lower income brackets, the economy will continue too falter.**** It is only a matter of several years (3 or 4)before the federal government will have to stop borrowing money to subsidize our over consumption. If they continue it will bankrupt the US government. Now the question is "who will finance our over consumption"?

WWW.TRADECRISIS developed an economic program to eliminate outsourcing and drastically reduce the trade deficit. The key element of our program is a city sale tax. S. Hayes Inc. plan calls for a city with 100,000 or more in low to moderate income to pass a 1/4 cent city sale tax. This money will be held by the city. Before a company in the city, state or America ship jobs to foreign countries or companies who have left America and wish to return all or part of their jobs to America, the city will enter into negotiation with the company to move jobs to low and moderate income area in their city. At this time the city will enter into contract to pay the company the difference in salary between the present salary of the worker and the salary of the foreign worker. If the job will be sent to a foreign country or is presently in a foreign country(upon return to USA), Every quarter the city will issue the company a check for the difference in salaries.{Example: If the foreign worker is paid 50 cents per hour and the USA worker is paid $9.50 per hour, the city will reimburse the company a $9.00 per hour difference between the foreign worker's salary and the USA salary.} Under our program the worker has his pay check, the plant is still in America paying taxes and the cost of keeping the jobs in America will have been spread through out the community with very little economic impact. After several cities have sign up for our plan, the cities will bid on jobs attempting to leave America or coming back to America (This could have a significate effect on our military equipment, parts and future military designs being sent to foreign countries). The city that win will relocate the jobs and plant into their low and moderate income area.

At the present time the most startling economic statistic in America is we are losing money for one ($50,000) job every TWO SECONDS through the trade deficit. This is enough money to give every unemployed person in America a job. There is money leftover to give everyone working part time a full time job and anyone who has stop looking for a job. Each imported billion dollars represent money for 18-20,000 jobs(OR MONEY FOR 14,120,000 JOBS THIS YEAR). We ask every person our organization meet a question. And S. Hayes Inc ask this question on our website. "America lost 500 billion dollars in 2003 to the trade deficit. This is 5 cents on every dollar produce in our country during 2003. The key question for the consumer to answer is very point blank. This money had to be replace before the end of the year for the economy or GDP to be brought back to par.{WE ARE NOT TALKING ABOUT MONEY FOR THE GDP TO GROW EACH YEAR. THIS IS ANOTHER UPCOMING ECONOMIC CRISIS WITH FOREIGN INVESTORS.} Our question is "Where did the $500 billion dollars or 5 cent on every dollar come from to help replace the 500 billion dollars lost to the trade deficit?" Good examples are outsourcing,illegal immigration(flooding economic system with cheap labor and reduced wages),{increase speed of money turnover of top 10% incomes in America. This economic problem has increase the speed of money turnover ratio in the lower income brackets{ The further back from 90% incomes the faster the speed and less money turnover}, city budget cuts, state budget cuts, lay offs, jobs creations and teacher-school cuts. The weakest parts of our economic system help cover up this massive transfer of wealth (the trade deficit) each year. In American our manufacuring base can not produce the needed increase in manufactured goods for the economy to expand. Therefore, the excess amount of goods needed are imported from foreign countries. Looming crisis is as the economy expand it will push the trade deficit higher and cause additional capital to leave America for payment of additional goods. The expanded spending will increase the amount to be borrowed from from foreign sources. Long term effect it will increase the trade deficit WHICH IS A DIRECT SUBTRACTION FROM OUR GDP. Another subtle long term problem in America is the increase pressure placed on the economy from inflation imported by foreign purchases of assets which will distort the relationship between asset prices and the underlying fundamentals in our economy. I can not tell which one is the most destructive to America. Also,included are the trade deficit dollars issued to foreign countries for merchandies. The future of the dollar is on a long term economic destructive path for America to follow. Some trade deficit dollars are recycled back to America by foreign countries buying U.S. securites. America pay interest on this money. The same money is put back into the system and we(the consumer)use the same dollars (rewash) to purchase more incoming goods and some of the same rewash dollars go back to foreign countries . This process is repeated and repeated. Dealing with 100's of billions of dollars the long term economic implications of our trade deficit process and the future destructive capability for the economy is real. The mythical monthly amount of foreign capital to help cover-up our current account each month has drop below the trade deficit figures for April and May of 2005. If a shortage of foreign capital continue the economic growth will cease. We could see the m-3 money supply drop further and a subsequent shortage of capital in the entire economic system for years to come (or a significant rise in outstanding dollar generate by the federal reserve-end results is inflation-}.**** Recently the federal government raised the red flag of economic conspiracy plot by the government. They stop releasing the m-3 money supply figures for America. Now we can not tell the amount of money in the system. A general example suppose the Mayor will not tell the city council or public how much money the city has. This raises a serious macro economic RED FLAG with www.tradecrisis.org.**** If America can not lure enough foreign capital to pay for our economic growth (year after year) then the entire weight of the current account deficit will have to be subtracted from the GDP each year. In 2007 we can consider 1/14 of the GDP value of the entire U.S. system leaving America to help pay for cheap goods. As of 2007 America need to borrow 3 billion dollars a day or 830 billion dollars a year from foreign sources to help keep our country running. ****An inverted yield curve developed in the system. Let no one say this is not dangerous. The system took significant economic hits in order to survive all out recessions in 1995 and 1998. In 1998 the federal reserve banks and reserve banks around the world poured billions of dollars into their economy and southeast Asia in order to keep the system running. In 1995 the dollar had a large fall to the downside which effected all ten economic items on our website page concerning "recession" and our letter to the "NAACP" on our letters page. Add in all of the other major economic short coming and something will happen sooner or later. One have to ask "How strong is America?" As reported by the US Commerce Department. IF WE DO NOT HAVE A SEVERE RECESSION IN 2006 THE CURRENT ACCOUNT DEFICIT WILL BE 800+ BILLION DOLLARS ON DECEMBER 31. Our question is "where will the 800+ billion dollars + come from this year. If we do not have a recession in 2007, the current account will be 800+ dollars and then 2008,2009 and on and on?" Furthermore, the trade deficit is increasing at a alarming rate of 10 to 20% each year. Again one have to ask "How strong are America and the Federal Government?" SOMETHING IS WRONG. Before an election, one of our goals is to challenge each local, state or national official commitment to reinventing the economic sovereignty and manufacturing sector in America. SIX MONTHS AFTER A LOCAL ELECTION IF THE MAYOR AND CITY COUNCIL HAVE NOT STOOD UP AGAINST AMERICA'S NO. 1 AND 1A ECONOMIC CRISIS(ILLEGAL IMMIGRANTS AND THE TRADE DEFICIT) WE SUGGEST A PETITION AND RECALL ELECTION FOR A NEW MAYOR AND CITY COUNCIL. ALSO, OUR SUGGESTION TO END ILLEGAL IMMIGRATION IN AMERICA: EACH CITY PASS 3 LOCAL ORDANCE 1.STIFF FINE FOR LEASING OR ENTERING INTO CONTRACT TO BUY WITH ILLEGALS 2.STIFF FINE FOR EMPLOYMENT OF ILLEGALS 3. 15 DAYS FOR ILLEGALS TO LEAVE CITY OR BE ARRESTED. The economic clock is ticking faster in the 21st century and we can not afford the luxury of having individuals in offices who do not understand 21st century economic. The illegals and the trade deficit will cause irreversible harm to our system if left uncheck. We need an overhaul of the federal, state government,and a third option (a third political party built on 21st century economic)or both. There is a 65% chance of a trade deficit led recession. On our website WWW.TRADECRISIS called BACK TO BACK RECESSIONS in 1999. The first recession has come and past but the second upcoming recession is due by the end of 2007 (a trade deficit led recession). This type of recession(a weakness in the economy) will start foreign investors withdrawing investments from America and thereafter a sharp decline in the dollar value world wide) will put MILLIONS OF AMERICANS OUT OF WORK AND 100,000'S OF SMALL AND MEDIUM BUSINESSES WILL BE CRUSHED WITHIN A SIX MONTHS PERIOD AND AMERICA's ASSETS REDUCE 10 to 20%. HELP US BRING THESE ECONOMIC ISSUES TO LOCAL AND NATIONAL ATTENTION. {AMERICA NEED OUR HELP} (**NOTE** If history is of value. The New York Times in 1929 printed probably the no. 1 reason for the stock market crash and eventually the depression was started when foreign investor pull their investments out of the stock market. Other similarities to 1929 are 1. The federal reserve borrowed money in 1927-1928 and poured into the economy. 2. the stock market went down 3.decline in GDP.4.creation of new job decrease 5. decline in dollar value world wide. AT THIS TIME IN AMERICA'S HISTORY, WE NEED A PRESIDENT IN THE WHITEHOUSE WHO UNDERSTAND 21ST CENTURY MACRO ECONOMIC AND UPHOLD THE CONSTITUTION AND OUR LAWS.

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