Friday, July 29, 2016

Oh No! Trump To End USA/WTO Fun!

I would love to hear what policies Trump cites that any person who does not like Trump find objectionable.  I keep finding delightful policies, such as ending USA participation in the WTO.
"It had nothing to do with imports, it had nothing to do with trade competition," he told reporters after a WTO general council meeting. "I don't think we do enough in making the case for trade because we think trade is so obviously positive for any economy. It's like trying to argue with a friend that he needs to breathe."
He's right, but disingenuous.  

1. The USA set up the WTO to make rules everyone except the USA was required to follow.  Now that China has joined the WTO, USA can no longer play the hypocrite.  So the WTO is no longer of any value.  Makes sense to pull out.
Alluding to Britain, Azevedo said: "You don't unilaterally decide what your commitments are with the other members. We'll have to negotiate those commitments ... How do you get there? It could be very simple, or it could be very convoluted and complicated."
2. Free trade is a matter of eliminating all tariffs, quotas and regulations, then making the importer responsible for what is imported.  Free trade is necessarily unilateral, since it requires no agreements. Adopt free trade, country'll grow.

3. Lending credit instead of money led to the gargantuanism which wiped out small and medium USA manufacturers.  

4. Lending credit instead of money obliged large business to relocate any new factories, necessarily involving new technologies, overseas to launder profits.  No one "loses" to new technologies, one strategizes given the rules.

The solution to the problem is bank deregulation.  By ending the regulations that allow bankers to arrange #'s 3 and 4 above, the problem cannot end.   Neither Trump nor any other candidate is suggesting the problem get fixed, only to be made worse.

Read the whole article and see the point: the WTO chief just wants to keep his gig.

Feel free to forward this by email to three of your friends.


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