From The Vaults

Trade War

Here’s the real reason America’s economy is sinking. It’s what’s causing other major problems like deficit spending.

      Trade war

For several decades now, several countries have been waging an all-out trade war against the USA.  Japan sells millions of cars to Americans each year, but withholds permission for American products to be sold in Japan.  “Just fill out this application for permission to import your goods” they say.  Years later, they’re still “processing” the form.

Their conglomerates make huge profits selling goods in their protected home market, which they use to subsidize exports to America.  For example, Mitsubishi appliances sold in Japan subsidize Mitsubishi cars to be sold here at or below cost.  They target one American industry after another to be destroyed by subsidized competition.

And now China has taken the aggression to a whole new level.  China does not allow its currency to be traded on open markets like every other major country in the world.  China dictates the exchange rate of its currency with the dollar.  They keep it artificially low, which keeps the prices of China’s products artificially low (as measured in dollars).  Coupled with the fact that all labor in China is essentially slave labor, there’s no way anyone can compete with their prices.

The USA has laws against: unsafe working conditions, pollution, child labor, sub-minimum wages, theft of intellectual property, etc.  Violating those laws is considered cheating.  If our government keeps our companies from getting an unfair price advantage by ignoring those laws, why do they let China do it?

The unions are right about this issue.  American workers do NOT have a level playing field on which to compete!  Any country that cheats by ignoring our standards SHOULD be sanctioned with tariffs!  Instead, our tax system is actually a NEGATIVE tariff!  Our system taxes American production and lets imports off scot free!  We need to abolish all income taxes and enact the Fair Tax.  That will tax imported goods just as much as American goods.  No more free pass for imports!

The multi trillion dollar trade deficit is the REAL fatal wound to our economy!  If we would stop letting these other countries bleed us of all our dollars, there would be NO NEED for any deficit spending by our government to keep our economy afloat!  Don’t worry about China depending on us for their market.  In one night, they can put in place a new financial system that would let their own people buy their products.

And don’t fall for the argument that trade with China is converting them into a free country.  It is not!  Trade with China is what gives that repressive government the resources to stay in power!  China plans to eventually use those resources to control US as much as they repress their own people!  China still plans to hang the west!  (All their military literature still says that!)  And they’re using us to give them the rope they’ll use to hang us!

China is conquering us the same way the ancient Chinese general Sun Tzu wrote in “The Art of War.”  The ultimate victory is to manipulate your opponent into becoming your servant without even having to actually go to war!  That is exactly what China is doing to us!  And neither one of our major parties is making a peep about it!

Jeff Putman



1 comment to Trade War

  • Jeff, there is a lot of truth to what you say. Also consider that in the 1950s and 1960s, corporations and their unions gave a “choice” of overpriced and shoddy goods. Service? forget it; it was surely.

    American workers and the corporations have awakened and smelled the coffee. It’s time to level the playing field without forgetting the consumer.

    BTW, even if the playing field were leveled, I doubt our budget would be balanced because politicians are addicts who cannot stop spending.

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