Trade deficits are not necessarily a bad thing. There are other ways to create wealth besides just balancing the trade deficit (credit markets do give us the capital necessary for investment, as well as foreign investment).

Using terms such as ‘business liquidity’ completely out of context does not prove that one is knowledgeable in a certain area. Some of your sentences make literally no sense. They appear to be rambles with economic terms thrown in. If not, it would help to clarify on a lot of your statements.

Sure, drawing back trade would create less volatility in markets, but it would certainly reverse a lot of the development that all have worked hard for; this same development which has allowed you to sign on to Yahoo today and write the short essay you just did.

The WTO’s job is to lower trade barriers, not create them. Increased trade is what benefits developing economies such as China, which is what has allowed them to develop economically to the levels they have. Without trade, most economies would end up in the same situation as North Korea; some worse, and only those with largely diversified economies such as the US’s would be able to sustain themselves.

And by the way, just a simple fact–oversupply does not create inflation. In fact, it has the opposite effect–it lowers prices due to decreased scarcity in the market. When something is in abundance, do you tend to pay more, or less for a good? My hope would be the latter, and if not, I hope this occassionally-cruel world has mercy on you.

It’s likely that two years from now, Asia’s economy will pull out of the recession stronger and more competitive than before. My advice to you would be to stop reading crazy left-wing Marxist literature, and read something useful; something written by educated individuals such as Keynes, Hayek, Friedman, or, especially in your case, Jeffrey Sachs. Are you somewhere in the vicinity of Scandinavia? Or perhaps Latin America?
References :
Years of meaningful education and real-life experience.