Monday, August 13, 2012

USA Export Growth is to China

As the USA pursues trade wars with China, the USA economy enjoyed a growth in export sales to China.  420 of 435 US Congressional districts enjoyed a growth in exports to China, and 418 have had triple digit growth since 2002.

Remarkable, if true.  If true, I wonder if orchestrated.  In any event, this is alarming to me since most of what USA export is heavily subsidized, products USA dumps on the Chinese market, and therefore harms our economy.

1. Crops  - Heavily subsidized in USA.

2. Computers and Electronics  - For Chinese to buy electronics from USA, theya re the highly specialized versions which are Government-research subsidized.

3. Chemicals, this is probably legitimate commerce.

4. Transport -  B O E I N G, another heavily subsidized product.

5. Waste and scrap.  This is USA's #1 export in volume, not in price, but in how much space is taken up on vessels.  In USA tens of billions a year is spent on recycling, not counting the countless hours people spend sorting their garbage.  Once sorted, this goes to recyclers, where it is further sorted.  Then maybe 10% is sold, exported, and the other 90%, well sorted, is shipped to the landfill.  Almost all of your garbage ends up in the landfill anyway, but only after incredible amounts of time and money is spent on sorting it out.  China benefits by this highly subsidized trash (which they turn into products and send back to us.)

The solution to the waste is no recycling, but ending the subsidies to the paper, aluminum and plastic packaging manufacturers.  In a free market, there is almost no trash.



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