I have a question for those screamers who claim to be students of the Chicago School of Economics. Or have a gig at one of the business television networks.

 

What part of the Bill of Rights says “Congress shall make no law or allow no tariff abridging the right of citizens to gather at Walmart and buy cheap Chinese crap”?

 

To listen to most of the folks on CNBC, Fox Business and Bloomberg, you’d think they replaced the Second Amendment with that.

 

I’ve been in business, negotiating deals, for most of my adult life.  A bad deal is when you memorialize being taken advantage of.  A good deal is when all parties to the deal get something they want.

 

Our trade deal— from the beginning of modern time to date—with China can generously be called a bad deal.

 

Apparently we want the cheapest flat screen television sets so badly we’re willing to give up our rights to sell stuff in China to get them.  And if President Trump thinks that’s a bad deal and wants to impose tariffs to correct it, the companies importing and selling those sets scream that the American consumer is going to take a beating.  As opposed to the American worker, who of course, are one and the same.

 

Then, when it all is sorted out by the Wall Street Journal, that beating appears to be about $800 a year per family.  And, keep in mind that the Journal is also populated by many of the same screamers on TV.

 

The big weekend story was that Apple could be hurt because most of its products are assembled in China.

 

As an iPhone user (in fact, I use just about every Apple product except the Mac) my humble suggestion to Apple CEO Tim Cook would be build your products in, say, Viet Nam or, here’s a real idea: how about Minnesota, down the street from where Mike Lindell makes My Pillows?  No matter how much you say the words multi-national, living in Cupertino has to be nicer and more efficient than Beijing.

 

At some point you have to realize that the word “nationalism” is not a four letter word.

 

Steve Jobs and Bill Gates started their companies because you can do that in the United States.  They expanded to markets like China in a search for new markets.

 

And, let me tell you a little about our “friends” in China.  They owe me and millions of other Americans millions of dollars in defaulted bonds which their government doesn’t want to pay.  Those bonds were issued before China became Red China and many of us either bought them or inherited them.  (You can read about that at the American Bondholders Foundationhttp://www.americanbondholdersfoundation.com)  They were sold by Wall Street firms who today are still selling Chinese debt.

 

So, I’m not very sympathetic to the words “trade war” because I doubt that the Chinese have the economic muscle to cause us much pain—not nearly as much as the folks on business TV would like us to believe.

 

Simply put, President Trump is right and these guys are wrong.  After all, God, it is said, invented Economists to make Astrologers look good.

 

And if it costs us $800 a year per family—or even significantly more—to make that point to the leaders of Red China, buy less cheap Chinese crap and more stuff made in America.  It will strengthen our hand and, in the long term, make our lives better.

 

Trump advisor Larry Kudlow explained the issues very succinctly to Chris Wallace on Fox News Sunday.  “Intellectual property theft has to be fixed. Forced technology transfer and ownership of American companies has to be fixed. Cyber interventions have to be fixed. Tariff and nontariff barriers have to be fixed. And there have to be very, very strong enforcement provisions.”

 

To say that none of this is worth taking strong steps like tariffs is exactly like the Democrat House saying that there’s no crisis on the border.

 

This President fixes things.  The Chinese aren’t used to dealing with a President who fixes things.

 

They will learn soon enough.

 

In the meantime, while they are dancing, pay attention to Kudlow’s observation about that, “Some of the Chinese officials have said the agreement was too unbalanced.  No.  The relationship has been too unbalanced and because of these problems of unfair and sometimes unlawful trading practice, we have to have a very strong agreement to correct, to right, these wrongs before we would be satisfied.”

 

----

 

Fred Weinberg is a columnist and the CEO of USA Radio Network. His views and opinions, if expressed, are his own and do not necessarily reflect the opinions of GCN. Fred's weekly column can be read all over the internet. You can subscribe at www.pennypressnv.com. His column has been reprinted in full, with permission. 

Published in Opinion

If you think the American economy is booming now, just think what it would be like if American collegians had an extra $1.5 billion to spend—especially with President Donald Trump’s tariffs set to raise the prices of imported consumer goods despite he and his administration saying the tariffs won’t result in price hikes.

 

Well, if prices aren’t increasing, tariffs aren’t working. The point of a tariff is to make locally produced products more attractive to local consumers by raising the price of imported alternatives. This, in theory, would result in more local production and fewer imports. But a tariff is paid by the importer of a product, not the exporter. So the 25-percent tariff Trump recently leveled on Chinese imports is transferred to the American consumers of those goods, not the Chinese producers.

 

The trade war isn’t taking money out of the pockets of Chinese manufacturers; it’s taking money out of the pockets of American consumers of Chinese products and Chinese consumers of American products. And since the United States runs a $375 billion trade deficit with China, the only way Trump can “win” his trade war is if Chinese economists can’t do the math to match Trump’s tariffs dollar-for-dollar. It’s even becoming more likely trade with China ends altogether. China has already cancelled planned trade talks with Trump.

 

It is impossible for America to run a trade surplus with China because China produces more products Americans consider essential than America produces for the Chinese, including car, computer and mobile phone components. It’s lower labor costs and Americans’ addiction to consumption allow China to perpetually have the upper hand in a trade war. If an iPhone were made entirely in America, it would cost as much as a brand new car, so while Trump might be making some American-made products more attractive to American consumers, he’s doing so at the expense of American consumers who can’t do without many of the Chinese imports found in their technology and automobiles. Even the Tesla Model 3 can only be 95-percent American-made at most.

 

Since Americans will be paying more for computers, mobile devices and cars, it’s not entirely unreasonable to forgive the $1.5 billion in student loan debt and allow those accepted into college two years of college education free of charge. Students and parents are going to pay more for the devices required to attend college, and colleges are going to pay more for them as well, which will be reflected in tuition costs, which will further increase student loan debt while decreasing consumers’ available income for spending in the American economy, potentially sinking the stock market.

 

There are other reasons besides boosting the economy for the government to payoff student loan debt. First, today’s Associate’s degree, usually obtained in two years at a community college, is the equivalent of a 1980s high school diploma. Advances in technology have made working in what is now a global economy much more complicated and necessitates further education be obtained. Students are not leaving high school with the education necessary to provide for themselves let alone a family, and it’s not their fault.

 

Secondly, with 17 states offering tuition-free college programs, the trend seems to be students at least delaying the accumulation of student loan debt for two years, potentially lowering accrued interest as well as principal loan balances. In short, future college students in the United States will be saddled with considerably less student loan debt than current and past college students. Meanwhile, entire generations (and student loan debt does span generations), are suffering student loan debt and unable to stimulate the American economy by spending money on anything but debt and living expenses.

 

Finally, the collective credit rating of American college students, past, present and future, would receive a boost that could spur entrepreneurial growth and investment in businesses as a whole. America was the land of opportunity, where you could go from “rags to riches” with enough hard work. America used to be the best place to start a small business and be your own boss. That isn’t the case these days because despite incomes increasing for middle-class Americans, their purchasing power has barely budged since 1965. You can’t grow an economy in which most consumers have hardly more purchasing power than their grandparents did over 50 years ago, and consumer confidence in the stock market can’t increase if consumers have no means to express their confidence by purchasing stocks.

 

Lifting the $1.5 billion in student loan debt owed by 44.2 million American borrowers would allow 44.2 million Americans to spend their student loan payment, averaging $351 per month, stimulating the American economy instead of simply paying off interest. Lenders can’t be the only ones making money if the American economy is going to grow.

 

--

If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Drop Your Energy Bill, Free Talk Live, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, The Tech Night Owl, The Dr. Katherine Albrecht Show   

Published in Opinion

In late Sept. 2017, North Korean Supreme Leader Kim Jong Un called the United States President a “mentally deranged U.S. dotard" in response to insults hurled by Donald Trump during his first speech to the United Nations. Trump called the North Korean dictator a “madman” on a “suicide mission” and that the U.S. would “totally destroy” North Korea if it or its allies were attacked.

Mighty Trump Says “Might” be Open to Talk

The dick measuring continued, with Trump basically saying “mine’s bigger than yours” in a tweet on Jan. 2. He was referring to the size and power of his nuclear launch button after Kim bragged that the United States was within range of North Korea’s nuclear weapons and he had a nuclear launch button on his desk. Eight days later, the White House released a statement announcing the Trump Administration might be open to holding talks with North Korea. It was an obvious attempt to reign in the war rhetoric so everyone could enjoy the Winter Olympics in Seoul, South Korea without worrying about a nuclear attack, but it was more than welcome given the threats of nuclear war made by both bullies with no regard for anyone else on this playground called Earth.

Trump’s official White House statement was hardly responsible for Kim and Trump planning to meet within a month. The statement put much of the worried world at ease despite Trump committing to nothing at all. Considering U.S./North Korea relations consisted of name calling and threatening nuclear war seven months ago and dick measuring four months ago, “might be open to holding talks” sounds really good to a lot of frightened people. So good, in fact, Trump supporters in Michigan chanted for him to win the Nobel Peace Prize. But Trump isn’t even the second-most important player in this nuclear football game. Back in Sept. 2017, when these two “leaders” started threatening each other’s nations with nuclear war, I wrote that Trump’s hands were too small to handle North Korea alone. I was right.

Moon Works His Magic

The hands that could handle Kim, China and the U.S. belong to South Korean President Moon Jae In. Moon threatened Kim, too, but unlike Trump, he didn't tweet or speak a single word. His actions spoke volumes.

In July 2017, North Korea tested a missile that could theoretically reach the U.S. mainland. Moon responded with his own missile test, sending a message that South Korea could take out Kim if attacked. He also ordered the full deployment of the missile-defense system despite China’s concerns. Moon had to convince Chinese President Xi Jinping not to take economic retaliations in response to the deployment of the missile-defense system. Xi acquiesced, and Moon earned the trust of both Trump and Xi in the process.

Moon then went to work playing good cop prior to the Winter Olympics. When Kim announced North Korea’s interest in attending the Winter Olympics in Seoul, Moon agreed to host them despite South Koreans taking issue. Trump and his defense team contemplated a “bloody nose” strike of Pyongyang to punish Kim prior to the Olympics to make him more eager to negotiate peace and denuclearization. But Moon talked them out of it, assuring the U.S. that Kim would not receive any concessions.

Thank the Sanctions

The real reason Kim sought Korean peace and is ready to talk denuclearization is because he can’t import the materials he needs to grow his nuclear arsenal, and his people are growing more and more desperate by the day due to economic sanctions limiting their access to things they need to survive.

South Korean researchers expected United Nations’ sanctions to start giving North Korea “severe economic difficulties” come March. The U.N. Security Council unanimously approved sanctions banning the import of all natural gas liquids and condensates and capped imports of crude oil. For a nation already struggling to keep the lights on in its capital, losing access to more energy sources limits the exports North Korea can produce and transport, too.

China is responsible for 85 percent of North Korea’s imports but has been limiting its exports of crude oil, refined oil products, steel and other metals to the nation since Jan. 6, as the U.N. mandated. Russia, responsible for 2.3 percent of North Korea’s imports, is also adhering to the U.N. sanctions. Putin has to expel roughly 30,000 North Korean migrant workers along with limiting oil and oil products exports and banning textile exports. Both nations have been accused of subverting the sanctions, with Russia allegedly serving as a middle man moving North Korean coal. Allegations against both nations have not yet been substantiated, but North Korea has long subverted sanctions by trading goods at sea rather than on land. Those maritime trades are being stopped more often, though.

Kim knows his people will eventually be desperate enough to revolt and overthrow him, and he certainly doesn’t want to be the last of the Kim regime, nor does he want the nation to fail. Neither do his neighbors. No one knows what would result from a failed North Korea, but both China and Russia fear a unification with South Korea would lead to American military bases along their shared borders with North Korea. That’s a pretty reasonable assumption and something Trump will no doubt demand when he visits North Korea within the month. Regardless of what comes of the denuclearization talks between Trump and Kim, Moon has proven to be most presidential and most deserving of a Nobel Peace Prize if Korean peace is indeed realized after 68 years at war. 


If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, Know Your Rights

Published in News & Information

Addressing the United Nations for the first time, Donald Trump’s mouth brought the nuclear threat level to its highest point since the Cold War. Trump threatened to “totally destroy” North Korea if it continues its pursuit of nuclear weaponry capable of attacking American soil and said he wouldn’t hesitate to act alone. He should hesitate, however.

Dictators with Dicks: The Age-old Problem

We’ve known this to be Trump’s stance since the featherweight, dick-measuring contest began between “Tiny Hands” Trump and North Korean dictator “Rocket Man” Kim Jong-un. Trump said Kim was on a suicide mission during his address to the UN, and he’s right. Kim’s life and the life of every North Korean depends on how comfortable Kim is in his own pants, which probably doesn’t leave many North Koreans comfortable.

The whole situation is terrible for North Koreans and has been since their “liberation” from Imperial Japan by the Soviets as a result of World War II. The communist Soviet Union and capitalist U.S. failed to negotiate a future for a united Korea during the Cold War, so Korea remains divided with the two Koreas still technically at war. But there’s no satisfaction for Kim in attacking South Korea -- only a successful attack on American soil will satisfy him.

Given the living conditions of North Koreans, consisting mostly of back-breaking work done despite so few calories consumed, we have a sense of how little Kim values the lives of his people. There is just one thing that concerns a dictator, and that’s the dynastic legacy. Kim has already starved his people to death and likely had his own brother killed, so Kim has played the part of ruthless dictator pretty well as far as Kim standards go. His father would be proud.

But if North Korea wages a devastating attack on the capitalist dogs, the Kim Dynasty and Kim Jong-un will be forever remembered as the rogue nation that got to the Americans. Kim has to decide whether the 160,000 American civilians and 7,000 American military personnel in Guam are worth the lives of roughly 25 million North Koreans. Kim could have attacked Guam yesterday, so it’s unlikely that’s his preferred target. It’s just one Kim can threaten right now.

America’s Options

A preventative attack on Pyongyang won’t necessarily prevent anything at all. If there’s anything we can assume, it’s that Kim has taken extreme measures to protect and preserve his ability to wage war. If America attacks first, Kim will go underground and be even more dangerous.

If the hunt for Osama bin Laden is any indication, Kim Jong-un should be well protected from a nuclear attack on North Korea. If an unorganized, terrorist organization relying on caves and flip phones can protect the most hunted man in the world for a decade, the North Korean military can protect Kim Jong-un for longer, even from a nuclear attack. It will be a bullet or a noose (or old age) that ends Kim Jong-un -- not a bomb.

A covert assassination attempt on Kim could be devastating if it fails. A failed assassination attempt on Kim would surely result in a counterattack by Kim. And if the assassination were successful, the United States would surely install leadership nearly as corrupt as Kim himself. It wouldn’t be the first time nor the last.

The best option for America is to negotiate a deal for the complete disarmament of nuclear weapons globally. This whole idea that having nuclear weapons prevents nuclear attacks is ridiculous and is the entire basis for the Kim Dynasty’s reason for pursuing nuclear weapons.

In the latest collection of interviews entitled Optimism Over Despair: On Capitalism, Empire, and Social Change, Noam Chomsky explains this ridiculousness thusly: “It is quite remarkable to see how little concern top planners show for the prospects of their own destruction...there was no plan, not even a thought, of reaching a treaty agreement that would have banned these weapons, though there is good reason to believe that it might have been feasible. The same attitudes prevail right to the present… (60).”

The only way to assure nuclear attacks won’t occur is to do away with every nuclear weapon in the world, but no country -- especially the United States  -- is considering disarmament at a time like this, even if it should.

This is a moment when Trump and America need a little help from its friends. UN sanctions on North Korean trade won’t be enough to slow the country’s growing weapons collection. Trump even chastised Russia and China for continuing to do business with North Korea. China represents almost 85 percent of all North Korean trade, and 24 percent of Russia’s exports to North Korea are refined petroleum products that fuel the country’s missile and nuclear arms program.

The best thing Trump could do is stop threatening military action and ask China and Russia to stop trading with North Korea. What he’ll have to give up to get those concessions might not be to his liking, but neither is nuclear fallout. So what will it take to convince China and Russia to stop trading with North Korea?

Working with China and Russia

China can’t be guaranteed that they won’t be attacked if they were to cut off just the .18 percent of its imports from and .28 percent of its exports to North Korea. That’s a total of just $5.29 billion in trade for a country that does over a trillion dollars in both imports and exports annually.

China desperately needs American investments in Chinese businesses to increase. Foreign domestic investment in China in 2016 was $170.557 billion -- the lowest it’s been since 2009. Now Trump can’t guarantee more American money will be invested in Chinese businesses if China stops trading with North Korea. Hell, he couldn’t say a bad word about Nazis and saw his entire business advisory councils resign. But he can close a business deal, allegedly, so this is an opportunity for Trump to do what he does best: collect and spend money.

For that $5.29 billion in trade China will have to find elsewhere, Trump should offer a bit of an investment in the country that struggles to attract foreign investors due to its state-controlled economy. There’s enough money in the White House and Congress to do so.

In 2011, the total net worth of the entire U.S. Congress was just under $5 billion, so there’s plenty of money that could be put together as an investment in Chinese businesses in exchange for them crippling North Korean trade. The problem with this option is it makes Kim Jong-un and North Koreans even more desperate and, perhaps, more war-willing.  

Russia holds the key to the end of the North Korean conflict. Losing Russia as a trade partner won’t likely make the lives of North Koreans much worse, but it will slow the military’s “progress” towards a nuclear weapon that can reach American soil.

Russia’s exports to North Korea constitute .025 percent of all of its exports, but as I mentioned earlier, it’s what they export to North Korea that matters. With U.S. sanctions already in place against Russia for many reasons, there’s plenty of negotiating that could be done to get Russia on America’s side against North Korea. Some of those sanctions might even have an adverse effect on the rest of Europe, so there’s much for Vladimir Putin and Trump to discuss besides Russia’s involvement in the 2016 Presidential Election.

--

If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Drop Your Energy Bill, Free Talk Live, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, Know Your Rights

Published in News & Information

While thawing glaciers release explosive methane that destroys the ozone and icebergs the size of Vermont threaten to increase sea levels by inches, Donald Trump kept his promise to withdraw America, the world’s second-leading producer of carbon emissions, from the Paris Agreement on climate change. Apparently, Trump’s America is too good or too greedy to care for the Earth we all call home.

Thanks to Trump’s uninformed decision, he’s actually made China and the European Union look good. Despite China and the EU ranked first and third in carbon emissions, respectively, they intend to form an alliance to further lower global carbon emissions. Both are still committed to the terms negotiated in the Paris Agreement, and the EU has even offered China $11.2 million to support China’s plan to cut carbon emissions.

So America is becoming imperial China, and communist China is becoming America, and not just when it comes to climate change. This sudden love of American nationalism is simply the American version of Chinese sinocentrism. But believing you are the center of the world does not make it so, and there are plenty of disadvantages associated with that arrogance.

Trump’s nationalism is making it more difficult for America to do business overseas everyday. He hopes to create American jobs but shrinks the market for American goods every time he does something like leave the Paris Agreement or Tweets about the North American Free Trade Agreement (NAFTA) or any other trade agreement. If you don’t think trade partners take notice of that and act accordingly, you’re as ignorant as you are arrogant.

The things Americans perceive to be necessities are not made in America. Computers, televisions, mobile phones, handheld devices and their components are mostly made in Asia. As of 2011, China produced over 90 percent of all personal computers, 80 percent of all air conditioners, 80 percent of energy-saving light bulbs, 74 percent of solar cell production, and over 70 percent of all mobile phones. Do you think the prices of those items will increase or decrease as a result of China spending to limit carbon emissions while America does nothing to curb climate change?

Think we can build those things here in America? Think again. An American-made iPhone would cost $2,000 because Apple pays a little over $5 to construct a $600 phone. The whole idea of bringing back American production jobs is preposterous, which is why Trump’s nationalistic words and actions are so dangerous. Unlike China, America doesn’t have the production-based economy to back up its nationalism. If the things Americans needed were actually made in America by Americans, then sinocentrism would make sense. But that’s not the case at all. In fact, America depends on its trade agreements like NAFTA, and those agreements are not the reason for decreasing production jobs. NAFTA has been particularly good to farmers and ranchers and those in the automotive industry. Yet many of these farmers and ranchers and automotive workers supported Trump for uninformed or misguided reasons.

America made its bed with foreign automakers long ago, offering deep tax cuts and free money to build giant plants to put Americans to work building foreign cars. That’s not a recipe for success if one of your nation’s cornerstone industries is automobiles. That also can’t be undone, so bitching about the lack of auto exports because America doesn’t have the same deals in place with those automakers who fleeced the U.S. will get us nowhere. Building an automobile that everyone in the world wants will, however, allow for increased auto exports, and I fully expect the Tesla Model 3 to be that automobile. Hell, if Americans could get over their uninformed or misguided opinion that American cars aren’t as reliable or “nice” as foreign cars, there’d be little reason to bitch about the state of the auto industry. Frankly, if you’re an American driving anything but American, we should ship you overseas, not the cars.

America can also take pride in decreasing petroleum imports. The Tesla Model 3 should continue contributing to this decline, as will the Tesla Solar Roof and the fastest growing industry in America -- renewable energy. When America’s strongest industry’s mission is quite literally curbing climate change, there’s no need to risk relations with trade partners by withdrawing from a climate change agreement. It’s oxymoronic, but that’s what we’ve come to expect from Trump.

Cutting yourself off from the world and doing whatever the hell you please doesn’t mean you’re the only place in the world. You still have neighbors to whom you have to placate, and whether you acknowledge their existence or not, that doesn’t mean they don’t have a way of fighting back. I fully expect America’s imports of Chinese products to increase from the current $462.8 billion figure specifically due to a raise in cost and not in quantity. That’s what I would do to a trade partner who said he was going to help me do something and then didn’t.

--

If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Drop Your Energy Bill, Free Talk Live, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, The Tech Night Owl, The Dr. Katherine Albrecht Show

Published in News & Information