tomder55
Feb 25, 2017, 10:19 AM
Will Herr Donald's policies make things better or worse ?
The Trumpsters were considering changing the rules on so called 'trans-shipped,or 're-exported ' items . Some items we export we first have to import. Well they floated the idea of calling all these items imports for the purpose of defining the trade deficit. As an example ,if we get a boat load of cars from Japan ,and then export half of them to Mexico or Canada ;they wanted to count the whole boatload as imports ,rather than only the ones that are sold domestically .
This of course was book keeping games meant to show that the trade deficit was much worse than it was because they think the trade deficit is a bad thing .
A trade deficit is a reflection of success ;not failure .A trade deficit reflects a country that is rich and can shop for it's goods where it want .It is no indicator that we are 'losing ' in trade as the Trumpsters portray it. We buy about $500 billion in trade more than we sell. What happens with those $$$$'s ? They return to the US as foreigner buy US goods or assets . The foreigners invest in America . Today 6 million Americans work in factories owned by foreign companies .They buy US stocks and Treasury bonds (which help fund all the liberal spending programs :) )We are in fact an attractive place for global savers to park their money.
Why do you think that the trade deficit grows during good times and tends to be reduced during times of economic bad times ? The sure way to shrink the trade deficit is to have a severe recession .
Now about that re:exporting ...If you go to south Florida there are very sophisticated redistribution warehouses that export to Latin American . Imports go into Florida ports (American workers handle the goods )then they get transported to the distribution centers (American truckers employed ) where they pick and pack them (more American workers employed ) and ship them (more American workers employed ) as exports .
To illustrate the confusion of the Trump trade policy ;consider the Keystone Pipeline which is now on the fast track. The purpose of the pipeline is the transport Canadian imported Alberta oil to the refineries of Louisiana that are capable of refining the oil and then shipping it as export. Under the Trump proposal the exporting of the refined oil would not count . But the importing would be an indicator of a trade imbalance . And yet he fast tracked the pipeline ! His own actions illustrate that he really doesn't have a grasp on the realities of trade .
Trump trade data proposal defies common sense, honest accounting | TheHill (http://thehill.com/blogs/pundits-blog/economy-budget/320781-trump-trade-data-proposal-would-defy-common-sense-honest)
The Trumpsters were considering changing the rules on so called 'trans-shipped,or 're-exported ' items . Some items we export we first have to import. Well they floated the idea of calling all these items imports for the purpose of defining the trade deficit. As an example ,if we get a boat load of cars from Japan ,and then export half of them to Mexico or Canada ;they wanted to count the whole boatload as imports ,rather than only the ones that are sold domestically .
This of course was book keeping games meant to show that the trade deficit was much worse than it was because they think the trade deficit is a bad thing .
A trade deficit is a reflection of success ;not failure .A trade deficit reflects a country that is rich and can shop for it's goods where it want .It is no indicator that we are 'losing ' in trade as the Trumpsters portray it. We buy about $500 billion in trade more than we sell. What happens with those $$$$'s ? They return to the US as foreigner buy US goods or assets . The foreigners invest in America . Today 6 million Americans work in factories owned by foreign companies .They buy US stocks and Treasury bonds (which help fund all the liberal spending programs :) )We are in fact an attractive place for global savers to park their money.
Why do you think that the trade deficit grows during good times and tends to be reduced during times of economic bad times ? The sure way to shrink the trade deficit is to have a severe recession .
Now about that re:exporting ...If you go to south Florida there are very sophisticated redistribution warehouses that export to Latin American . Imports go into Florida ports (American workers handle the goods )then they get transported to the distribution centers (American truckers employed ) where they pick and pack them (more American workers employed ) and ship them (more American workers employed ) as exports .
To illustrate the confusion of the Trump trade policy ;consider the Keystone Pipeline which is now on the fast track. The purpose of the pipeline is the transport Canadian imported Alberta oil to the refineries of Louisiana that are capable of refining the oil and then shipping it as export. Under the Trump proposal the exporting of the refined oil would not count . But the importing would be an indicator of a trade imbalance . And yet he fast tracked the pipeline ! His own actions illustrate that he really doesn't have a grasp on the realities of trade .
Trump trade data proposal defies common sense, honest accounting | TheHill (http://thehill.com/blogs/pundits-blog/economy-budget/320781-trump-trade-data-proposal-would-defy-common-sense-honest)