In a perfect world this is what would happen. As history has shown though, mercantilist’s have many means to continue to distort trade. Has Japan ever become a large importer from the US (rhetorical).

It appears that balanced trade is something that can only happen by force.

Our computer programming technology and expertise (ala Microsoft etc.) helped our balance of payments considerably in the past, but the lack of technical education in this country today has reduced and will soon totally destroy this export capability. The foreign countries have become better than the USA at creating new computer software programs, since the USA has chosen to de-emphasize technical and scientific education in our universities. Asian Countries are now the producers of new computer technology, not the USA.

Engineers who are working in Foreign Countries and sending (most of) their dollars home to the USA improves our balance of trade. In the past, foreigners believed that US educated and trained Engineers were superior to their in-country educated Engineers. This advantage has almost disappeared since the USA stopped emphasizing engineering education, science education, and other technical education in our Universities. I have been the engineer of record for the construction of projects in Asia, Europe, Middle East, Caribbean, and South America. US citizens are unaware of the lifestyle advantage that we are accustomed to and take for granted. If our economy collapses, we can become a starving third world country overnight.

We must somehow create funds to finance the re-creation of a superior Human Technical Base that is required to win any technology war.

We need to reverse course of our educational system and re-emphasize science and engineering to create many more medical doctors, engineers, scientists, and educators as the educational system did prior to the 1970′s. The USA scientists, medical doctors, engineers, and educators must also become much better educated, much more intelligent, and otherwise much more superior to any foreign educated engineer and/or scientist in order to design, create, innovate, and produce new technical products that foreigners do not have, so that the foreigners will then buy these new products from the USA, in exchange for their foreign gold and US currency which could then be sent to the USA companies.

Only if our future products are technically superior can we export those products in return for their foreign payment (gold and US dollars) to the USA, unless we can somehow produce these products cheaper than the foreigners. We must also prevent foreign countries from pirating and/or copying our new innovative products. We might need to use the force of law and/or the force of our military might to prevent any pirating of our technology.

Only US import tariffs high enough to prohibit imported products from being imported and sold in the USA will create re-industrialization, stop the flow of title to privately owned US assets from the USA, re-create the value of the US dollar, and also create manufacturing jobs for US citizens.

If US citizens are not willing to work for lower wages than the foreigner workers employed in foreign countries are paid, then the USA cannot compete based upon lower product costs. If the USA cannot compete on lower costs, then maybe we could be competitive internationally through other areas such as superior technology, as the USA did to win WWII and for a couple of decades following WWII, but the USA is no longer the World Technology leader that the USA was until maybe the 1970′s. Asian countries are now are the technology leaders. The best & brightest students in the USA have pursued the more financially rewarding non-scientific financial careers, instead of educations that might have created technically innovative products that people in foreign countries might purchase.

The USA is selling our children’s legacy, including title to all of the wealth accumulated by previous generations in order to pay people in foreign countries to work and produce the things that US citizens consume, so that this will keep the USA from re-industrializing and having US citizens working to produce the things that US citizens consume and to pay for federal government spending. This is “sort-of like” US citizens selling our body parts to keep from working! The US government calls this “Investing in America”. US citizens are racing to sell title to everything in the USA of value that was created by previous generations in order to keep from working.

The USA will very soon run out of title to any privately held assets that foreign manufacturers will want to purchase or redeem with their freshly printed US government currencies and securities that they purchased at Federal Reserve auctions with the US Dollars that they earned by making items for US consumers.

The government raises money by selling freshly printed-paper T-Bills, US Government Bonds, and other US currency instruments in return for privately earned and held foreign US Dollars that foreigners earned by manufacturing things for international trade, mainly consumer goods for the USA importers, at US Federal Reserve Bank (the FED) public auctions. The buyers are private individuals, banks, and government agencies in China, India, Brazil, Pakistan, and other industrialized countries who earned US dollars from US importing companies.

These paper bonds and documents are redeemed for title to US located proprtyies and other assets that were generated by previous generations in lieu of US government redeeming these paper documents for gold.

These privately owned US located assets are finite, and the day will come when there will be nothing left to sell to foreigners in exchange for our freshly printed-paper T-Bills, US Government Bonds, and then we will then have to re-industrialize because US citizens will then no longer be able to pay foreigners to work and make the things that US citizens now consume.