Wednesday, April 25, 2018

Stay the "Painful" Course on Tariffs- War Now Before its too Late

FEAR has kept the American worker in chains. Our tariff-free borders, foreign currency manipulation, health care free products, government subsidies, and low wages have crushed the American worker while leaving companies survivors. Yes, we all want cheaper goods but can we afford to have them with massive job loss. Large trade deficits are an economic death spiral for America. So why do so many "businesses" oppose tariffs. The answer is really simple. Banks make huge profits on international trade, some companies are addicted to cheap subcomponents, companies are thinking fore- short-term profits,, and the economic establishment sees rade as a social and political factor, not an economic one. Stand now or America will follow to dependency on foreign countries.

Sunday, April 8, 2018

10 reasons we will win a trade war with China

Tens Reasons Why the US will Win a Trade War with China
1.       We have to win! China is not only making our consumers dependent but our strategic and military supply chain. Their huge profits from surplus importing are being used to build a military to overtake us. They consider us their enemy. They need our dollars if they are to reach their goals of world military dominance.
2.       China is far more vulnerable to tariffs. Like the US in the 1930s, China’s economy and employment is dependent on selling their surplus. The US as a debtor nation was less exposure to tariffs on our production. This is not the 1930s and the Great Depression when we depended on surplus selling. Should China drive our dollar down, our products will be cheaper on the world market.
3.       We can leverage our market strength. For 60 years (the golden years 1860 to 1930 for manufacturing and American prosperity), America tariffed imports heavy running the government without business and individual taxes (1911 they started) and having the biggest congressional problem be how to spend the huge dollar surpluses.
4.       China is an international trade outlaw nation and we can build economic alliances to end their economic terrorism. As an outlaw, we can isolate them. Cut off their surplus and China’s economy tailspins. A united alliance isolating China eliminates the fear of a 1930s international trade war.
5.       Jobs will be created by the growth and building of factories in a trade war because we are a debt nation on trade. Jobs will grow for the long term.
6.       The US has the resources to be self-sufficient. Yes, it would take some pain in the short run but long term we can be self-sufficient and employment and the economy will grow.
7.       Like our soldiers, freedom drives our nation’s bravery in the face of great challenges. China and others talk of China not buying our debt to frighten us. This option is unrealistic for many reasons, of course, we can opt for the unrealistic option of not paying on the debt they hold.
8.       We have been in a trade war for decades, but the real problem is that China is waging and winning economic warfare on us. Remember China owns our debt, not us or our resources. We control the major cost stream of energy.  
9.       Long run our agricultural machine will survive and prosper in a trade war. The world needs our food and we are capable of growing what is most in demand. In an all-out war, the government can apply price supports and strengthen demand.

10.   Remember China wins by promoting fear. Fear is their only weapon and it is but a short-term one. Expect them to talk of great tariffs against our imports. For twenty years, they have used fear to strip us economically and prevent us from taking action. According to the advice of their famous general Sun-Tzu, they are winning by fear, not by waging a real trade war. If we face that fear as we have done in past wars, we will win the war.