America has some monetary issues, which need to be addressed. First consumer debt is at issue; the average consumer is upside down in their cars, over extended on credit card debt and living in a house, which they may have 10-15% equity and probably less with all these new home sales on 2-3% down and all the re-financing to pay off short term debt. Second; lets look at Wal-Mart; You buy a product there, 6% goes to the employee, 10% is profit to the company, 80% goes to re-stock or the cost of goods sold. Of the 80% about 20-25% goes to China. Now then how long will it take at 433 Billion dollars a year for China to have all of our money, leaving no money flow for us to circulate? Well if we keep putting money into our economy, it would take forever, but if we do not then eventually all the money flow will go.
Now some of that money comes back since expanding emerging markets need things, but only $1 in six is coming back to us. How is it coming back? Is it coming back in consumables? Are they buying automobiles? No, we cannot produce the automobiles as inexpensive as South Korea, Japan or India; our labor unions, regulations and factored in costs of lawsuits or even threats of potential lawsuits will not allow us to. So these emerging markets will be buying the automobiles, just not from us. Of course if we build factories there without the over regulations and cheaper labor then we can compete head to head with those local unique parameters. Well then will those countries be buying from us as they expand? Yes, but it takes a while and still we have an upside down flow to those countries as well. The trade flows is a serious issue. It seems tough to do business in a country, where your own government is constantly attacking your hard work efforts to supply jobs and capital; this is the current business climate in the United States.
The lawmakers make regulations and then the lawyers find people to complain to bring about regulatory fines or actions and then the lawyers use these for basis of a class action against the company. Thus we allow this to cut off the name that feeds us while the regulators make a name for themselves so they can join their lawyer friends defending the regulation insanity they helped create while they were there. Or these regulators run for office with all their notoriety to make more laws pandering to the voters who have not worked an honest day in their lives. Those politicians that have would not vote that way. Unless the media tells them too as they fear for losing their perceived powerful positions.
With everyone ganging up on the entrepreneurs and companies; the companies no longer feel beholden to the American Ideals that they once had and except for a few hold outs have decided to take their money and vote with their dollars to manufacture elsewhere. Thus a transfer of technology, innovation, outsourced jobs and capital compounds the problems of the trade deficit.
So what is the answer? Well, it is simple really. All laws must be reality based. Must be non-linear. Must disappear if they restrict flow on all sides, on the US side and our trading partners. Free trade means free trade. There is nothing free about the parasites of flow, tariffs, quotas or obstruction. The bigger problem is that the US has the best policies for those we trade with, yet our trading partners have not considered the benefits of the Western World’s WIN-WIN situation, instead laughing at us and when we try counter their attacks they scream and yell and want more free stuff such as gift in the amounts of millions and billions to humanitarian efforts, while calling for sanctions against us with the NGOs, UN and trade organizations.
It is a lot like the person on welfare, give them everything and they want more and if you let them vote they will keep voting for more free stuff. Interesting what the liberal and PC views are doing to the country. And whether you agree or disagree with that statement or the means to get to a peaceful world you will have to agree that it is interesting what happens when we succumb to the belief that we need to regulate morality, make laws to protect the stupidest person in a society and then place the total burden on the few producers, which are left. While simultaneously vilifying the doers, creators, movers and shakers; attacking the innovators and entrepreneurs, bankers and market makers who have built on blood sweat and tears all we are and all that exists.
I hope this makes some sense to those who watch the flows. Apparently some of the most simplistic things in life are being ignored and no one has the balls to fix the real issues in this country when it comes to the essentials of what works, how it works and why it has worked up until now. The system is broken. It needs to be fixed. The Flow of Trade is important, we cannot be taken advantage of or we will trade the middle class of America for it.
If we lose the middle class we lose what it means to live free and then our rights to pursue happiness and all those who died to protect such rights have died in vain and to no avail. I cannot accept that. Let’s stand tall and proud together, get on the same page, admit that the regulatory quagmire, overzealous litigation and attack on American Businesses from the; politicians on both sides, grandstanding Elliot Spitzer’s of the world, PC media and those that do not understand the complete picture; has gone on long enough. Won’t you join me now and demand a reality check. The time has come to make things right. The flow is going the wrong way at the wrong speed. The Flow of Trade is an integral part of they over all system to keep peace in the world, food on the table and move mankind forward together, all of us – throughout the world. Won’t you at least think about it?
“Lance Winslow” – If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs