Tuesday, September 15, 2015

The Myth of Free Trade

Free trade doesn't exist as its a one sided deal. Products come in from other countries tariff free, American exports are either taxed or the importing nation's currency is manipulated to reduce the affordability of our products.

What is being missed, is that you cannot manage this problem without the threat of imposing a tariff to correct errant behavior of trading partners. Critics say this will start a trade war, but looking at trade deficits, we seem to already be the casualty of a trade war.
This is how it works. Raw materials and equipment flow across to Mexico tax free to build or supply factories in Mexico. In return, finished products manufactured in Mexico flow back to the US tax free. Raw materials have less value than finished goods, and the reason our trade deficit continues to grow. Meanwhile, Mexico exports its criminal class and poverty to the United States. The Mexican Government actually provides assistance their nationals to penetrate our border, and has consular offices in the US to help them access the US welfare state. In return, Mexican nationals send billions of dollars in remittances back to Mexico (money orders). So Mexico are actually making a profit on the poverty of their own nationals. What a great deal.......for Mexico.

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