justoffal
Diamond Member
- Jun 29, 2013
- 38,470
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Special interest money pouring into the country from foreign governments and into the pockets of people who make the decisions has determined that the United States take the peon position in the trade agreements between these countries and the United States. Canada, Mexico and China are among the leaders in this area. China has been especially aggressive in pursuing the demise of the united states as the only obstacle between it and total world domination. China has had many willing partners in the White House and in the national legislature to help it accomplish that goal.
Perhaps the most insidious part of China's trade barbarism is the fact that it regularly pegs the Yuan at about 1/8 to the dollar rather than letting it float naturally with the trade balances. This keeps the pressure up for a steady stream of imports from China making it much more expensive for the United States to sell back to them in dollars.
The most recent trade imbalance with Canada has reached an annual total of 69 billion.... While that's really a drop in the bucket compared to the national GDP it's still significant enough to show a very poor trend in business relationship. There's no excuse for it to be that wide.... Simple principle.... I buy your pie crust... You buy my apples. This is not hard to understand, you don't need a degree in economics to sort this out.
Mexico is a more complex issue. Not only is Mexico a major trading partner of the United States it's also a major trading partner of California and Texas separately and probably Arizona. I don't know if both of those states keep track of the trade balance between them or if the total of the entire country also takes into account those numbers. There's a lot more going on with Mexico than simply a trade deficit though.... Many American businesses are complicit in this activity by actively seeking to build factories in Mexico to exploit the cheap labor. This denies tax revenue to the United States and should be levied appropriately. If a corporation's true desire is to build in Mexico then I recommend they move to Mexico.
Trump has started nothing, all he has done is draw attention to an issue that should have been paid attention to already.
Jo
Perhaps the most insidious part of China's trade barbarism is the fact that it regularly pegs the Yuan at about 1/8 to the dollar rather than letting it float naturally with the trade balances. This keeps the pressure up for a steady stream of imports from China making it much more expensive for the United States to sell back to them in dollars.
The most recent trade imbalance with Canada has reached an annual total of 69 billion.... While that's really a drop in the bucket compared to the national GDP it's still significant enough to show a very poor trend in business relationship. There's no excuse for it to be that wide.... Simple principle.... I buy your pie crust... You buy my apples. This is not hard to understand, you don't need a degree in economics to sort this out.
Mexico is a more complex issue. Not only is Mexico a major trading partner of the United States it's also a major trading partner of California and Texas separately and probably Arizona. I don't know if both of those states keep track of the trade balance between them or if the total of the entire country also takes into account those numbers. There's a lot more going on with Mexico than simply a trade deficit though.... Many American businesses are complicit in this activity by actively seeking to build factories in Mexico to exploit the cheap labor. This denies tax revenue to the United States and should be levied appropriately. If a corporation's true desire is to build in Mexico then I recommend they move to Mexico.
Trump has started nothing, all he has done is draw attention to an issue that should have been paid attention to already.
Jo
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