Category Archives: NAFTA

The Chinese Finger Trap

Remember the Chinese finger traps? Those bamboo tubes that you would stick your finger in one end, then the other end. And when you tried to pull out the “trap” closed on your fingers. The harder you pulled, the tighter the trap. You can still get those things at Amazon. Made in China, of course.

https://en.wikipedia.org/wiki/Chinese_finger_trap

Seems to me as though Mr Trump, in his dealings with China, has fallen prey to this old Chinese trick. Like the 4 year old pulling frantically to get loose, Mr Trump has stuck his tiny fingers of “tariffs” into the Chinese trap of “retaliation”.

There is an old saying : “When your only tool is a hammer, everything looks like a nail”. It seems as though Mr Trump has only one tool in his arsenal. Tariffs. And when tariffs don’t work, pull harder. More tariffs. Harder. More tariffs.

As in his dealings with China, Mr Trump just announced more tariffs with our second most important trading partner, Mexico. Unless they somehow stop immigration he will ratchet up tariffs. Keep in mind that about 40% of Mexico imports are actually dependent on US parts sent to Mexico for final assembly.  Tariffs will impact negatively on US industries .

Back to China. China has a long history of hardship and conflict with the West. The communists took over precisely because of the failure of the nationalist government to deal with foreigners. China is the “Middle Kingdom”. The two characters in the written Chinese language stand for those two words. China has always seen itself as the center of the universe.  Americans are tribal , but compared to Chinese ethnocentrism, Americans are downright globalists. The Chinese will not submit to humiliation. Never.

So, China can and will survive any hardships. After all, the leadership of China does not need to worry about elections. They can dictate  and absorb any economic downturn.

US trade with China accounts for about 13% of China’s trade with the rest of the world. A big chunk. But over the last 20 years China has been expanding markets to the rest of the world. Today, China has a higher percentage of trade with Australia than it does with the US. More trade with the EU. More trade, by far, with the rest of Asia. More trade with Africa and Latin America. In fact, China has focused on Africa and Latin America and has rapidly expanded into those markets. China can withstand a 13% trade hit. Can the US withstand a 16% hit on the other side?

So, Trump’s tariffs will not work. He is caught in the Chinese finger trap with no way out. He just pulls harder and harder.

Trump will not take advice. But on this one, he should. He should find a 5 year old. Because, as any 5 year old can tell you, getting out of the Chinese finger trap is easy. Just give in a little bit. Loosen the grip. Stop pulling so hard. Relax.

You would think the world’s greatest “deal maker” would know by now. Or maybe Trump never played with a Chinese finger trap. Or maybe he got stuck and could not extricate himself.  Perhaps he had to be cut out of the trap by his daddy? At any rate, he is stuck now with no way out.

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Filed under Chinese, economics, Economy, Foreign policy, Free Trade, NAFTA, Politics, Trump, United States

Sore Winners, Sore Whiners

In 2016 the folks who voted for Donald Trump got what they wanted. Donald Trump. The Republican party took control of the Senate, the House of Representatives, the White House and the Supreme Court.

Since the election Mr Trump and the Republican party have been able to name 2 new justices to the Supreme Court. These justices will help determine the laws for the next 30 years. They will likely overturn a woman’s right to choose. They will likely continue to support voter suppression laws. As promised.

Since the election Mr Trump and the Republican Party have passed a $1,500,000,000,000 tax cut, with $1,200,000,000,000 of that going to the top 1%. As promised.

Since the election Mr Trump and the Republican Party have done much to gut the Affordable Care Act and cut spending on social programs. They have gutted environmental protections. Sold public land to gas and oil and timber leases for corporate profit. Built the pipeline. Added billions to the military. As promised.

Since the election Mr Trump and the Republican Party have dropped out of the Global Warming agreements, dropped out of the US-Asian trade agreements, imposed tariffs on China and Europe and in general done everything possible to destroy international treaties and cooperation. As promised.

So, why are they so mad? Why are they so unhappy? Why are the Trump supporters still chanting “Lock Her Up”? Why are they frightened  all the time? Why do they fear 5 year old Honduran girls? Why so much hate? Why so much whining and complaining?

They wanted a conman, a xenophobe and a racist. They got it. They wanted a political party that suppressed the votes of minorities and that redefined American as “white”, not “diverse”. They got it. They wanted a political party that put profits ahead of people. They got it.

So why the whining? The Republican Party and Donald Trump have had complete control of the political process for 2 years and have accomplished almost everything they wanted. So, why the whining?

There is nothing they cannot make a law about. So, why the whining?

Never in US history have so many “winners” turned into so many “whiners”.

It would be interesting to find out why the folks who won the last election are so miserable.

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Filed under abortion, ACA, Congress, Constitution, Democrat, Foreign policy, Free Trade, GOP, government, healthcare, NAFTA, Obamacare, Politics, president, Republicans, right to life, SCOTUS, Social Security, Society, Supreme Court, Trump, United States

Contestant #5: Sanders the Socialist

5th in a series of biased analysis of announced candidates for the office of President of the US.

From Bernie Sanders Issues website: https://berniesanders.com/issues/

The senator from Vermont, a native of Brooklyn, is a self-proclaimed socialist and independent.  Since everyone knows what a socialist is, there is almost no need to go into detail. A socialist is one who hates America, wants to eat babies and tries to destroy all that is good in the world. Someone from, let’s say, Sweden.

That said, Bernie’s website has the usual vague generalities on some topics, specifics on other topics and simply ignores other topics.

For example, he pretty much ignores social issues like gay rights, abortion, etc.

He opposes Wall Street bailouts. He wants to rebuild the crumbling infrastructure. He wants women to have equal pay as men for equal work. He wants tax reform. He thinks the middle class has been screwed. All noble concepts. But the devil is in the details, and he is short on details.

His main area of concern is for working families. He is very specific on raising the minimum wage (to $ 15.00). He wants a one payer health care system. And he wants to make it easier for workers who want unions to unionize. These are areas where he has been consistent throughout his long career.

Most telling, he has opposed all the free trade agreements, going back to NAFTA. That is one area where he differs from most other candidates. He has a record of fighting to keep jobs in the USA. Unique among the candidates. Ever.

He does not seem to have used his political office for personal gain and has no outstanding scandals. But I am sure Fox News is working to create something as we speak.

All in all, a tried and true socialist. Can he win a major election with those credentials? Is it possible ? Does  a socialist have a chance of winning the highest office in the land?

About as likely as a socialist being elected to the US Senate. Or a black guy winning the presidency. Twice. We shall see.

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Filed under Bernie Sanders, CAFTA, candidate, economics, Economy, Free Trade, minimum wage, NAFTA, PNTR, socialism, socialist, unions