Thursday, March 19, 2009

Trade Wars; featuring Team America, Team China and now Team Mexico.

During his 1st term, Bush imposed high tarriffs on steel from China. China complained to the WTO. The WTO does favor China. Therefore, Bush's economy cannot be solely blamed on Bush.

We love the developers at Microsoft who embraced the free market solution to this problem. Infact, the developers of the antipiracy screens should be our Secretary of Commerce.

The anti-piracy blackscreen, like man created aircraft that can fly faster than the speed of sound; only demonstrate the powers of the human mind. China then twisted the story and filed suits...

It is the WTO who favors China in terms of piracy.

Mind you, many economists believe that the global economic meltdown was stemmed by the U.S. trade deficit, with China.

I say we ditch the WTO. Americans are seen as the world consumers, it's a mistake that we have not used our stance effectively to protect our internal markets. Sheesh.

When Obama signed the $410 Omnibus Earmark Bill, he enacted legislation to cancel the pilot program that allowed Mexican truckers to use American roads (and going against the NAFTA Agreement). This was done because of complaints by a specific Union and the issues cited were safety concerns. Obama said that he's a skeptic of NAFTA. He has a Chinese individual as the Secretary of Commerce who embraces Free Trade. Locke may very well understand Chinese mentality, which is an asset. However, what is Obama's stance again? Obama's Secretary of State just begged China to buy more treasuries while Obama's Treasury Secretary simulaneously told China to raise the value of it's Yuan.

My own feelings about Obama is that he favors unions and special interests over principles. He doesn't seem to understand economics (The way he put his administration together shows that he doesn't seem to have a consistant game plan) and still he's very good at selling his ideas to the masses. A trick to marketing is convincing the buyer to believe they need or want your product.

So back to Mexico. Today they started a trade war with the US by imposing high tariffs on exports from the U.S. I say we take this a step further and punish people and businesses who employ illegals without sponsoring their Visa's to work here.

What is so funny about the Mexico trade war is that Mexicans can too easily cross the border to evade the high tariffs on American exports. They can too easily cross the border into San Diego for a very craved Inn and Out burger and whatever else they buy in the U.S. It would be nice to see the immigrants pay their share of income taxes to the U.S. as well.

We will see how this works out. Again, my bias is that the government should take no action in the economy and let it work itself out. The free markets are inevitable. Just like gravity. It's impossible to defy it.

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