NAFTA Watch – USTR Robert Lighthizer Interview With Laura Ingraham…

As U.S. Trade Officials meet with auto executives surrounding ongoing NAFTA sector negotiations, U.S.T.R. Ambassador Robert Lighthizer appears on Fox News to discuss ongoing trade initiatives with Laura Ingraham.

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It’s challenging to discuss the basic ‘fatal flaw’ within a modern NAFTA in a short discussion segment; however, Ambassador Lighthizer, Secretary Ross and the newly positioned Peter Navarro have a strong position for withdrawal.

The essential problem with NAFTA is an evolution that took place over time.  In its current form NAFTA became an exploited doorway into the coveted U.S. market.  Asian economic interests, large multinational corporations, invested in Mexico and Canada as a way to work around any direct trade deals with the U.S.

By shipping parts to Mexico and/or Canada; and by deploying satellite manufacturing and assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a loophole.  Through a process of building, assembling or manufacturing their products in Mexico/Canada those foreign corporations can skirt U.S. trade tariffs and direct U.S. trade agreements.  The finished foreign products entered the U.S. under NAFTA rules.

Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?

This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.

This loophole was the primary reason for U.S. manufacturers to relocate operations to Mexico.  Corporations within the U.S. Auto-Sector could enhance profits by building in Mexico or Canada using parts imported from Asia/China.  The labor factor was not as big a part of the overall cost consideration as cheaper parts and imported raw materials.

If you understand the reason why U.S. companies benefited from those moves, you can begin to understand if the U.S. was going to remain inside NAFTA President Trump would have remained engaged in TPP.

As soon as President Trump withdrew from TPP the problem with the Canada and Mexico loophole grew.  All corporations from TPP nations would now have an option to exploit the same NAFTA loophole.

Why ship directly to the U.S., or manufacturer inside the U.S., when you could just assemble in Mexico and Canada and use NAFTA to bring your products to the ultimate goal, the massive U.S. market?

From the POTUS Trump position, NAFTA always came down to two options:

Option #1 – renegotiate the NAFTA trade agreement to eliminate the loopholes.  That would require Canada and Mexico to agree to very specific rules put into the agreement by the U.S. that would remove the ability of third-party nations to exploit the current trade loophole. Essentially the U.S. rules would be structured around removing any profit motive with regard to building in Canada or Mexico and shipping into the U.S.

Canada and Mexico would have to agree to those rules; the goal of the rules would be to stop third-party nations from exploiting NAFTA.  The problem in this option is the exploitation of NAFTA currently benefits Canada and Mexico.  It is against their interests to remove it.  Knowing it was against their interests President Trump never thought it was likely Canada or Mexico would ever agree.  But he was willing to explore and find out.

Option #2 – Exit NAFTA.  And subsequently deal with Canada and Mexico individually with structured trade agreements about their imports.  Canada and Mexico could do as they please, but each U.S. bi-lateral trade agreement would be written with language removing the aforementioned cost-benefit-analysis to third-party countries (same as in option #1.)

All nuanced trade-sector issues put aside, the larger issue is always how third-party nations will seek to gain access to the U.S. market through Canada and Mexico.  [It is the NAFTA exploitation loophole which has severely damaged the U.S. manufacturing base.]

This is not direct ‘protectionism’, it is simply smart and fair trade.

Unfortunately, the U.S. CoC, funded by massive multinational corporations, is spending hundreds of millions on lobbying congress to keep the NAFTA loophole open.

The U.S. has to look upstream, deep into the trade agreements made by Mexico and Canada with third-parties, because it is possible for other nations to skirt direct trade with the U.S. and move their products through Canada and Mexico into the U.S.

Additionally, with Canada now joining TPP it has become impossible for the U.S. to remain in NAFTA and simultaneously conduct trade negotiations with TPP nations.

President Trump, Commerce Secretary Wilbur Ross and U.S. Trade Representative Lighthizer well understand this structural problem.  ONLY Trump, Ross, Mnuchin and Lighthizer are willing to confront this problem.  If Trump had lost the election, Clinton would have joined the multinationals and U.S. workers would have suffered greatly.

Lastly, the issue of Canada and Mexico making trade agreements with other nations (especially China), while brokering their NAFTA position with the U.S. as a strategic part of those agreements, is a serious issue that cannot adequately be resolved while the U.S. remains connected to NAFTA.

At the conclusion of Round #6, this was the direct issue at the heart of a very frustrated U.S.T.R. Lighthizer’s strongly worded response to Canada:

[…]  In another proposal, Canada reserved the right to treat the United States and Mexico even worse than other countries if they enter into future agreements. Those other countries may, in fact, even include China, if there is an agreement between China and [Canada]. This proposal, I think if the United States had made it, would be dubbed a “poison pill.” We did not make it, though. Obviously, this is unacceptable to us, and my guess is it is to the Mexican side also. (read full remarks)

So you see, if you just look at the pure economics of the options, and you remember that President Trump is constitutionally antithetical to anyone having influence over U.S. interests other than the American people inside the United States, you can clearly see there is only one-way this entire process ends.

This entry was posted in Big Government, Big Stupid Government, Canada, Donald Trump, India, Legislation, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury. Bookmark the permalink.

102 Responses to NAFTA Watch – USTR Robert Lighthizer Interview With Laura Ingraham…

  1. sundance says:

    Liked by 14 people

  2. Michael Do says:

    Biggest loser if US exits NAFTA. China not Mexico, not Canada

    Liked by 10 people

    • Never surrender says:

      I agree but both are close behind. The passthrough money is huge. I don’t see how Canada and Mexico don’agree to the new deal. A little of something is better than a lot of nothing. Oh, their gonna scream bloody murder, but they will comply.

      Like

      • Carrie2 says:

        Never Surrender, but Canada has apparently chosen to be part of the WTO and Trump is thinking that means no NAFTA agreement with Canada as we will not join that miserable group WTO. I don’t see Mexico doing that because they are apparently more astute about can be possible than Socks has done and not able to see beyond his socks.

        Like

      • USTerminator says:

        If Mexico was smart, they would be industrial and manufacturing powerhouse by now. For almost 3 decades free access to US market and low labor cost, Mexico could have been China of North America and prosper. However, they decide to do nothing but a passthrough ports for China, Asians and Europe while getting little crumbs. Once the US exit NAFTA, the Mexico and Canada to less extend economies will collapsed. Mexico has the most trade treaties with the world, not because anything special but because as a back door to access US market free of tariffs. Once NAFTA is gone, all Mexico trade agreements will be terminated as well leaving Mexico no better than any third world country. If I were Mexico, I would volunteer to build and pay for the wall, agree to the US demand on rule of origin just to keep NAFTA in place.

        Like

        • TheLastDemocrat says:

          Mexico does have a lot of manufacturing industry, and has some that have a century-long history. Grupo Alfa is a long-term industrial group, including steel industry originated to make beer bottle caps. This bit of trivia form my past actually made it into Wikipedia’s Alfa profile. Along with steel G Alfa has a range of manufacturing including chemicals.

          Steel industry has been a challenge, but Ternium (not part of grupo alfa) still carries on. Across time, Mexico has been able to use either its own mined steel, or buy scrap.

          The native steel industry served oil and gas well, but was hit hard with oil price drop of the 1980s. Also with climb in prices of natural gas, which on the flip side Mexico can sell as a resource, as well. They still have a steel industry, but aluminum industry has been vibrant, in recent years, due to automobile manufacturing, especially following NAFTA.

          But yes, it is true that, if well-managed, Mexico could be a way greater powerhouse than they are now. They have everything. Great people, natural resources, tourism, warm-water port access to Atlantic and Pacific, good peaceful neighbors, etc.

          Their downfall is corruption. Many tourists have stories of getting petty tickets for walking or driving, which you are supposed to pay off right there with the cop – and that is basically pocket money and the ticket never gets recorded. All the way up to the narcotics business being mixed up with the government, lousy election processes, etc.

          The drug problem is tempting since it is a very easy way to take natural resources – drugs – and a little bit of labor and entrepreneurship, all as small-scale as you want, and bring in cash money from their wealthy, drug-addled neighbors to the north. The government can play cat-and-mouse with busts every now and then, while being on the take. The open border has enabled them to grow drug industry, and also has been a source for weapons to easily get into hands of drug runners. Also, human trafficking.

          They have a great hand. They need to play it well. If they want to end corruption and cut the ties to the drug trade, they should volunteer to build a wall en el norte, and police their northern border well. But I don’t see that happening anytime soon.

          Liked by 1 person

          • Orville R. Bacher says:

            Just a question. Wasn’t China recently caught shipping Chinese aluminum through Mexico? No crack in any door anywhere, that China hasn’t pried open.

            Like

          • USTerminator says:

            Manufacturing is more than just build factories, put a bunch of workers to make products. That’s too easy to replace or move a moment notice. Building the extensive supply chains that leverage value added that make manufacturing impossible to move or at least very costly and time consuming to execute. China manufacturing is almost impossible to move due to their extensive supply chain networks. Let’s say Foxconn wants to move Iphone manufacturing site out of China to US (assume that same labor cost), Foxconn still have to move most components from China to US because US does not have suppliers that can provide to make iPhones. China could leverage the export restriction that raise the cost or time delay to make iPhone outside China to unacceptable level that Foxconn would dare to move. Mexico on the other hand has no such leverage. Let’s say Ford build plant in Mexico to build cars with most critical components ship into Mexico from China, Japan and US. The price is low because components shipped from China and Japan to Mexico is tariff free and the ship the car tariff free to sell in US. If nothing else, Ford saves the tariff money on the imported components, Mexico gets a little cut, China & Japan make more money and the loser is US due to loss money on tariff and factory jobs. But if US exit NAFTA, all the imported components from outside Mexico lose the cost advantage because now imported cars have to pay the import duty. There is no reason to manufacturing in Mexico any longer since no cost advantage and maybe higher cost due to transportation. US can win either by imposing tariff or manufacturing jobs MAGA!!!

            Like

      • Greg61 says:

        Never underestimate the power of stupid when it comes to Trudeau

        Like

        • Orville R. Bacher says:

          Loved his idiot trip to India. An airhead just like his Momma, on display for all the world to see…uhhhh, uhhhh, uhhhh….

          Like

  3. Troublemaker10 says:

    That was a great interview. I think this it is the first time I’ve heard Lighthizer speak. He’s very effective.

    Liked by 7 people

    • calbear84 says:

      I agree. Ambassador Lighthizer is a real asset to our president. Have to say I’m getting pretty tired of Laura’s ‘devils advocate’ interview technique: “Some people say Trump is a fool…what do YOU say?”

      Liked by 6 people

      • sat0422 says:

        Laura needs to stick to radio or swap timeslots with Shannon Bream. Bream is skilled at what she does and Laura struggles to bring her show together. Sooner or later, Shannon will be prime time.

        Liked by 5 people

        • TheWanderingStar says:

          “Laura struggles to bring her show together.”

          I agree. She might start with strengthening her content with facts and avoid sweeping generalizations such as, “…hard core Trump supporters don’t care about the Wall…”. We need the Wall and we need to choke China off on the shores of Mexico and Canada.
          #EXIT_NAFTA

          Liked by 4 people

    • LEET says:

      I especially like Lightizer’s response to Laura’s (stupid, unfounded and oft repeated) Trump doesn’t “understand policy nuances” he “blows up negotiations” blah blah blah….. Lightizer’s response….Look we have Trump on record talking about these issues when he was 35 years old …He understands them VERY WELL!

      Also, loved Lightizer’s comment that China “takes technology” …..steals would be a more appropriate word but I understand him not wanting to inflame.

      Liked by 7 people

      • rashomon says:

        After WWII, the U.S. effected the Truman Doctrine for countries threatened by the Soviets and the Marshall Plan to rebuild Europe, then sent Ed Deming to Japan to modernize its economy which rubbed off on South Korea. What was done to modernize America’s steel mills, coal mines, oil and natural gas industries, textiles and furniture factories, etc. Not that government should be involved in such activities, but the U.S. taxpayer was THERE for every other country, many of which planned and activated both World Wars to the benefit of the professional politicians and world banksters. No more endless warfare that only fills the pockets of the elite and advances the welfare of few.

        PDJT knows exactly what he is doing and hasn’t changed his dialogue one bit since the talking heads started interviewing him as a young entrepreneur. Our flim-flam, whatever- way-the-wind-blows politicians can’t say the same. We have no idea what most of them stand for from one election to the next.

        It’s about time we celebrated the U.S. of A. Just how successful would all these other countries be today IF they hadn’t been given or stolen American’s ingenuity? In 250 years, this country has afforded more people more security, independence and wealth than any of the rest have managed over thousands of years. Now we have to fight to keep this buggy on the road.

        Liked by 4 people

        • Indimex says:

          Great comment!

          Liked by 1 person

        • TheLastDemocrat says:

          Great comment.
          However, I believe Deming went to Japan to help institute population surveys – as part of a plan to implement population control. He began in statistical process control sampling in industry, but his name came up in conversation and he ended up using stats/sampling knowledge in U.S. census efforts. From that, his name came up in conversation in Emperor MacArthur’s reconstruction administration.

          I have looked for very clear documentation of this speculation, and have not found it, but I speculate that when Deming figured out they wanted to establish Ministry of Population for those reasons, I believe he found other things to occupy him during the occupation – such as applying industry production knowledge.

          Fortunately, he was allowed to basically change his assignment. Most of the rest is history. Except for the fact that others in the reconstruction were more socialist than capitalist, and hampered recovery for the first couple of years.

          Like

          • TheLastDemocrat says:

            Japan had huge population control efforts beginning in 1920s, and were generally at replacement-levels up to WWII; post-WWII they had a baby boom, but the reconstruction re-applied population control very strongly again, and they quickly got back to replacement-levels.

            Like

            • Beigun says:

              Yes. Large numbers of Japanese went to the “Colonies” like, Korea, Manchuria, Saipan, etc., for population control. It is called Imperialism.

              Like

    • Doc Moore says:

      Laura generally drives to get her point made. In this particular clip she works to get support for the idea that Trump is acutely knowledgeable and aware of the minutia in these intricate deals. While results clearly show that he must be, Lighthizer failed to corroborate it.

      Like

  4. usayes says:

    Ha! I love the China Xinhua News (aka Chinese western “press”) – not a mention of withdrawal from NAFTA… just “slowed negotiations.” Who are they saving face for? Themselves???

    What on earth are they going to do with all that drywall??? 🙂

    Liked by 4 people

  5. wheatietoo says:

    The problem I see with Option #1 is policing it.

    We can’t depend on the ‘honor system’…so it would be up to us to verify if Mexico and Canada were playing by the rules they agreed to.
    They would resent this.
    Then we would be portrayed as the ‘bad guys’ for simply policing the agreement.

    It may turn out to be a headache that is more trouble than it’s worth.

    Liked by 8 people

  6. filia.aurea says:

    Here’s hoping the next big announcement will be “U.S.A. exits NAFTA”. There is no “NORTH AMERICAN UNION” (listen up Cruz & CFR). We can negotiate with Mexico and Canada individually, and loose all the unnecessary b.s. complications. #MAGA.

    Liked by 8 people

    • starfcker says:

      NAFTA was originally supposed to promote trade between the United States, Canada, and Mexico. During the Bush years, the game change dramatically. An awful lot of planning that went into the NAFTA superhighway project, which would have made the Pacific port of Lazaro Cardenas in Mexico a super port, with rail and highway moving Chinese goods straight up to Kansas City. From there, goods could be bomb-bursted throughout the country. Rick Perry had quite a bit to do with it, when he was Governor of Texas, calling it the Trans-Texas corridor. Most people have forgotten all this stuff.

      Liked by 8 people

      • greenmakescents says:

        You’re right, its funny how things like that are forgotten after time, even after huge public out cry. Lots of the new toll roads in Texas, in fact with a tx tag you can use toll roads in TX and KS.

        Liked by 1 person

      • kroesus says:

        IIRC that “Highway” was to run all the way through MN to the Canadian border

        Liked by 1 person

        • sat0422 says:

          Yep, lots of road building that should be been all over the country and not for NAFTA. I believe that there will be some economic fall out when we withdraw from NAFTA even though I agree with the WD. Job loss for truckers and higher prices for imported goods is what I see but then, I am no Trump, Lighthizer, or Wolverine. LOL

          Like

          • G. Combs says:

            “…. Job loss for truckers…..”

            NO‼️‼️

            The job loss for truckers was when the USA gave MEXICAN truckers the RIGHT to drive trucks in the USA and TOOK those jobs away from AMERICAN TRUCKERS.

            I for one, want to see QUALITY made US goods instead of Chinese CRAP. I am sick of having stuff break within 3 months and then having to buy replacements. I haunt flea markets to get old US made high quality goods.

            Liked by 10 people

            • elize says:

              Couldn’t have said it better! I’m old enough to remember my family owning good quality American made products. And young enough that when it was my time to be making said purchases I felt like I was stuck with dollar store quality product options.

              It disgusts me.

              Liked by 3 people

              • rashomon says:

                And I remember when trucks driven by Mexican firms started invading our highways and threatening the lives of anyone who shared the road with them.

                Liked by 3 people

                • Alligator Gar says:

                  Old enough to remember the Teamsters war against the Independents. Old enough to remember my bff in high school’s Independent trucker dad carrying long arms in his rig and us praying for his safety on every run. Old enough to remember thugs hijacking rigs full of meat because nobody could afford meat in Carter’s America….yeah. The Mexican truckers never had to contend with that, so *bip* ’em.

                  Like

            • Bendix says:

              I’m thinking the price of groceries went up to where families can’t afford produce, even with NAFTA, so what good is it?

              I’m sick of garden tools and hammers that can only be used once.
              I’m sick of clothing ordered in the same brand, style, and size, which has different fit, and varying quality of fabric and construction, because it was made in a different country on a different day.

              Like

            • And those trucks coming from Mexico tore up our roads since they were allowed to be exempt from U.S. trucking regulations.

              Liked by 2 people

      • pyromancer76 says:

        I remember well. This is one reason that I always send some suspicious-cat looks former Gov Perry’s way. One of the other reasons are all those useless “windmills” covering so much of Texas. How much did he get for that boondoggle?

        Liked by 1 person

        • Blacksmith8 says:

          I don’t know ask Pickens. Most of those inefficient bird killing fans are operated by a Pickens subsidiary and almost fully funded by some stooopid green tech grant from Washington.

          Liked by 3 people

          • elize says:

            We had to drive to “the city” (an hour drive and not a major city) for a doctors appointment the other week. The windmills were sitting on one side of the country hwy and I lol and pointed out to my husband….”Look at all the smart birds sitting In the field on the opposite side of the hwy.” 🙂

            Liked by 2 people

          • TheWanderingStar says:

            Pickens also has a major stake in the natural gas industry. The wind doesn’t always blow and blow and velocities sufficient to turn those turbines. What’s an electric grid to do? Along with the each wind farm comes an equal amount of capacity generating (natural) gas turbines along with the necessary gas lines for transport – also a niche for Pickens investments.

            Pickens saw as did many O&G industry types that natural gas was a great play for the wind turbine movement. Haven’t looked at statistics recently but Spain & Germany and other EU wind proponents went whole hog on wind turbines and quickly became the largest importers of natural gas. France with their nuclear power grid also benefited by being able to export large amounts of electricity to those same countries. So, Pickens being a capitalist, is reaping both the benefits of natural gas while at the same time profiting from government SJW subsidies. Go figure.

            #Break_Wind

            Like

      • Carrie2 says:

        starfcker, can’t we just say we and our America have been too kind to want to help others outside of our country because we have the power and will. Trump doesn’t mind being helpful but as he always says America First. Grew up with the Made in America was the sterling quality item every country and people wanted. Why not again? Deals can be made that benefit both countries and their people, but it can’t and won’t be one-sided any more. Charity begins at home first and foremost so to speak, and then you help out others as we have graciously been doing way too many years and now those particular countries are spoiled and think they still should get what we have and screw us. No more, no more!

        Liked by 2 people

        • Alligator Gar says:

          Here’s a “made in America” story. My mom was a skin flint. I never got name-brand jeans. I got “Sears” jeans for school every August and wore them until I couldn’t. The first “real” jeans I ever owned I inherited from my dad. They were his caving jeans from his days working on the Saturn V booster rockets and occasionally going into caves in NE Alabama. Real US made Levis. I still have them somewhere, though I haven’t been able to get them buttoned in a few years……maybe my son can inherit them…..

          Liked by 3 people

      • filia.aurea says:

        It was all a ruse, just like the “Common Market” was in Europe. First steps in destroying financial self-sufficiency, national borders and culture. Mr. Perry has his hands full right now, incompetence in controlling and managing nuclear waste has led to five sites within the U.S. actively leaking radiation.

        Like

  7. stephenreed says:

    Seems to me that Trump can win over thr entire working class for the Republicans. He talks tariffs.

    Liked by 2 people

  8. fleporeblog says:

    2018 is going to be the year of trade negotiations and tariffs. The Chinese are about to get their clock cleaned when it comes to steel and aluminum. Within the next month or so, our President is going to drop the hammer 🔨 on them. NAFTA and China 🇨🇳 are literally costing us 3% to 4% GDP. You want to start getting into the 5%, 6%, 7% or even 8% GDP range, you have to kill NAFTA and China 🇨🇳!

    I wrote the following when the 4th Quarter and Annual GDP was released:

    From the thread linked above:

    Realistically, a goal of 3% for the 2018 year is what we should all aim for. The idea of 4% or 5% is not realistic at this time. The reason being our need for imports. We saw Chrysler announce they are closing a factory in Mexico and expanding their
    factory in Michigan. Campbell Soup is closing their factory in Toronto, Canada and bringing their entire operation back to the US.

    Samsung and LG are opening new factories in SC and TN this year. Mazda and Toyota are expanding their production in the US with their factory in Alabama.

    If the Mexicans and Canadians don’t agree to our terms with NAFTA, we need to get the hell out of there immediately. This will cause many new announcements of companies coming BACK to the US. Putting these tariffs on solar panels and washing machines may effect the price by $50 but it allows Whirlpool and other US companies an opportunity to compete.

    Our President will be announcing massive tariffs on steel and aluminum within the next 90 days. Once again it will cost US consumers some additional money but it will bring our steel and aluminum companies back to life.

    Everything I described and much more that will occur that I didn’t mention will truly have AMERICA BACK AND BETTER THAN EVER! Cutting our need on imports has a multiplier effect. Our GDP by 2019 and 2020 will be closing in if not at 4% Annual
    GDP.

    By the time our President walks away in January 20, 2025, 5%+ GDP will become the new normal because factories will once again be up and booming like they did before NAFTA and China’s introduction into the WTO.

    Liked by 8 people

    • TheWanderingStar says:

      Fle – I’ll gladly pay more for goods that contain a lot more USA content and a lot less China content. Substandard products, components and stolen IP cost the USA more every year. Buy USA!

      Liked by 5 people

    • pyromancer76 says:

      Anyone notice that our trade deficit has become more unbalanced? I am imagining that this is a temporary feature of the transformation of the open-border U.S.A. back to the American Republic once again. All those new manufacturers still need lots of parts and materials. They are not all manufactured in the U.S. as yet.

      I also believe that “inflation” will increase as Americans are paid the wages they deserve. Yes, things will cost more, but we will be able to search for quality once again. Good ol’ competition. No more inferior China stuff that will break (or bend – garden tools) very, very soon.

      Remember, in a comment in the past I included an observation from Trona, California. We drive through on trips to Death Valley (spectacular). It has been something like a “ghost town” with most plants shut down. Lately they are all up and running. From the Searles Valley website:

      “Searles Valley Minerals processes brine solutions from Searles Lake to produce boric acid, sodium carbonate, sodium sulfate, several speciality forms of borax, and salt. Unlike other mining techniques such as open pit mining, our three facilities in Searles Valley use a unique, ecologically friendly process that starts with solution mining.

      Bulk products from Searles Valley Minerals help manufacturers create products that make your life better. Our customers are industrial and agricultural, yet our consumers are you. Your automobile contains many products made with soda ash and borates such as window glass and windshields. Industrial laundries use our salt. Dye and detergent makers use our sodium sulfate in their products….”

      Liked by 4 people

    • Paco Loco says:

      ….And interest rates will raise to 6% causing serious debt problems for the Federal government. In the US economic growth comes with inflation because of how the central bank operated. The dollar will tank too. It’s a mess that the Feds have percepitated by going off the gold standard, letting the dollar float and borrowing (printing money) creating the monster deficits. Trump will be hailed as the wizard of Oz if he can fix this complicated financial mess the Uniparty has created with deficit spending and no budgets.

      Liked by 2 people

      • rashomon says:

        So let’s get rid of The Fed, a private entity with no concern for our citizens’ welfare.

        Liked by 2 people

      • Orygun says:

        We have been in an economic war for years and the complicit media just would never talk about it. The one thing that has kept us from collapsing years ago was the dollar being the standard. The military war is not attainable to the left so the economic war has been waged for years.

        Endless wars and stupid spending was designed to bring this country to its knees. I will forever be grateful to President Trump for trying to unravel a mess purposely put in place for decades.

        Liked by 1 person

    • Winston says:

      Not going to happen I’m afraid.Like most illiterate economists,Keynesians for short,
      you ignore DEBT and that is the growth killer.Until the debt is defaulted on, there’s not ever going to be growth at that level.But one mans debt is another mans asset.
      A major reset is the only way out,everything else is tinkering around the edges.
      Major resets in history have always caused world wars,doubtful it will be different this time.

      Liked by 1 person

      • fleporeblog says:

        In this case, DEBT is not holding back GDP! IMPORTS are what is killing our growth. The deficit in 2017 was $652 Billion Dollars. If we were to cut that in half and the money we save is actually being produced in this country, you are talking about 6%+ GDP.

        China is so in DEBT yet they are producing 7% to 8% GDP each and every year. That has to do with their ability to EXPORT.

        https://www.theguardian.com/business/2016/jun/16/chinas-debt-is-250-of-gdp-and-could-be-fatal-says-government-expert

        From the article linked above:

        China’s total debt was more than double its gross domestic product in 2015, a government economist has said, warning that debt linkages between the state and industry could be “fatal” for the world’s second largest economy.

        The country’s debt has ballooned to almost 250% of GDP thanks to Beijing’s repeated use of cheap credit to stimulate slowing growth, unleashing a massive, debt-fuelled spending binge.

        Liked by 1 person

        • Winston says:

          They’re a still developing nation that now owns all of our productive assets.
          Apples and oranges.
          With REAL inflation running at over 5% we are still contracting.Using the BS 2%
          inflation rate as our GDP deflator is hiding a -3% contraction in REAL GDP.
          The GDP is meaningless on numerous levels anyway with financial engineering accounting for over 40%, and govt spending being added instead of subtracted from the total.
          GARBAGE IN=GARBAGE OUT.
          PDJT knew it when he ran, now he embraces it, a big mistake IMO.
          Shadowstats.com will put you right,better to know the truth than parrot BS.

          Like

        • Beigun says:

          China has simply followed Japan, as did Korea. China is late to the game:

          US trade deficit roll call:
          Japan: 60 years
          Korea: 30 years
          China: 20 years.

          The US has over 100 consecutive years or trade red ink with NE Asia. Any connection to the decline of the middle class?

          Who started manufacturing autos in Mexico? Not China, but Japan. Japan leads in the top thee exports from Mexico to the US and has been there since NAFTA.

          So, like Sun Tzu, we are looking at China when talking about NAFTA, but it is really Japan that will suffer. Japan, not China, uses satellite countries for export to the US.

          Deception is the art of war and business.

          Liked by 2 people

  9. fleporeblog says:

    Here is what our President and his killers are asking for that Canada 🇨🇦 and Mexico 🇲🇽 haven’t conceded to date! I agree with SD that the death 💀 of NAFTA is inevitable. Unless these two countries cave!

    1) One of the most controversial issues has to do with how cars are manufactured. In NAFTA, it’s called “rules of origin.” The rule determines the portion of a product that must be manufactured in North America in order to avoid import taxes.

    Under current rules, at least 62% of the parts have to come from North America to avoid border taxes. It doesn’t matter if the car parts are made in Mexico, Canada or the United States, as long as they were produced in North America.

    The U.S. proposed raising that threshold to 85%. The U.S. also proposed that half of the parts that come from North America must originate from the United States.

    2) The U.S. is also advocating for a “sunset clause” that would make the agreement expire every five years unless each country decided to sign on for another five years.

    3) Our Knegotiators are looking to change the way disputes are settled under NAFTA, with a series of proposed adjustments to two key chapters of the agreement.

    The U.S. introduced its demands for Chapter 11, which regulates the investor-state dispute settlement process, where companies can sue governments when legislation has a negative impact on profits, and chapter 20, the regulations for state-to-state dispute resolutions.

    The U.S. is looking for changes that would remove the teeth from both chapters.

    For example, the American proposal on chapter 11 would make the current arbitration system voluntary, meaning countries would have to opt-in.

    When it comes to the state-to-state dispute resolution process, the panels that make decisions would become advisory.

    Liked by 2 people

  10. Turranos says:

    It’s long past the time to right this ship. With PDJT at the helm we will sail towards a brighter future.
    We do need to buy extra hearing protection now because the COC and it’s ilk will be howling incessantly.

    Liked by 2 people

  11. Bob Thoms says:

    Ingram is a light weight.

    Liked by 2 people

  12. donny says:

    It’s too late in the night for me. I read the article and most of the comments. I have gaps, have to hit the sack and come back to this article after some sleep. I remember the last comment because I can see it as I type. “Ingram is a light weight’. Doesn’t matter, the message got through. Yes, Laura is Laura, she is media. So is Tucker and Sean. They are full of themselves, they sometimes talk over, interrupt even, but you have to give them this. Even being the self-important stars they are, they are the only ones giving our side a voice. We need them, no matter how flawed. Let’s heap praise instead. After victory we can reconsider things. Good night Treepers, Thanks Sundance.

    Liked by 5 people

  13. scott467 says:

    “Unfortunately, the U.S. CoC, funded by massive multinational corporations, is spending hundreds of millions on lobbying congress to keep the NAFTA loophole open.”

    __________________

    What can Congress do to STOP the president from pulling out of NAFTA?

    Suppose multinational corporations and the COC (Chamber of Corruption) gave ALL the money in the WORLD to Congress.

    All of it. There’s not a penny left on planet earth that isn’t in Congress’ crooked pockets. They are all bribed to the maximum extent possible.

    What can they do to stop DJT?

    If there is anything the criminal RepublicRats CAN do, then obviously they will. What is it that they could do?

    And if they CANNOT do anything to stop DJT, then why are the America-hating Globalists throwing hundreds of millions of dollars at our bribe-snorting Congressional criminal-class?

    Liked by 2 people

  14. jeff says:

    How ironic that Rafael Ted Cruz and Paul Ryan were uniparty instrumental in crafting legislation to take TRADE PROMOTION AUTHORITY away from the people”s representative CONgress and firmly plant it in the executive . Including FAST TRACK TPA !!

    “Unfortunately, Ted Cruz is part of the Wall Street purchased construct that is currently infecting our entire body politic. The connections to the U.S. CoC legislative agenda, and Goldman Sachs are evident within action not words, along with KtP and obviously his wife Heidi Cruz [ employed by Goldman Sachs, and adviser to Council on Foreign Relations].”

    https://theconservativetreehouse.com/2015/12/11/yes-unfortunately-ted-cruz-did-support-trans-pacific-trade-deal-tpa-with-video/

    Council on Foreign Relations being SHADOW GOVERNMENT FF to 8:00 CFR council on Foreign Relations https://www.youtube.com/watch?v=4NAz4cnoj7w

    Now with AMERICA FIRST President Donald J Trump wielding that power he not only pulled out of the TPP he can exit NAFTA as well . The optics being option #1 or #2 BOTH leading to AMERICA FIRST leverage for the American worker / economy .

    The GLOBALISTS have been GRINDING DOWN AMERICA for decades and their KEYNESIAN punditry would GRUBER us on the weapon of mass deception that America’s best days are behind her . GASLIGHTING with ” tortured language ” and pinko commie lollypop and rainbow economic rhetoric .

    Myself I know some of the best CAPITALISTS in the world . They all follow the simple rule of PROP JOE from the HBO TV series THE WIRE . ” buy for a $1 sell for $2 ”

    From the many wonderful owners of small to medium cap business’ I have met they all follow that simple plan of CAPITALISM . Making a living SERVING their fellow man . Setting aside excess profits to reinvest in themselves and their own business’ to grow and expand on that simple model .

    The KEYNESIAN’S model is to play with other people’s money ( taxpayers ). They first enrich their cronies with lavish STUDIES in their FEDERAL /STATE DEMOCRACY models . THIS IS THE DEEP STATE model . A parasite on the Taxpayers dime . Growing and expanding the size and scope of the parasite class !! Then as is Maryland they central planners build a HOTEL with taxpayers debt laden funny money .

    Baltimore’s former Mayor Stephanie Rawlings Blake is a poster child for the Keynesian leadership . She wore the right clothes . Applied the business makeup ,Instituted the right STUDIES for lavish fees , Spoke eloquently in platitudes and nuance, yet ultimately she became famous for …” ROOM TO DESTROY ” . For the most part she couldn’t run a lemonade stand FOR PROFIT let alone run a city . Her credentials were limited to her namesake , black , female , and democrat .

    And just in case someone heard in their head upon reading this quip … ” RACIST” … We can apply this to Nancy Pelosi , Elizabeth Warren and a host of other ETHNIC groups of the D tribe of communists .

    The KEYNESIAN model is to lose OTHER PEOPLES money on every deal …and attempt to make up for it in VOLUME !! Then use the punditry to GRUBER the unwashed flyover people this it just how it is in America !! The NEW NORMAL BS !!

    Then when all the money is spent and gone …BLAME someone else for failing and raise money on that for your next election …rinse and repeat often

    Liked by 3 people

  15. Cat Lady says:

    NAFTA was destructive enough, even without the loopholes!! Dumping timber cut from Canadian national forests at subsidized prices, thereby flooding the US market with cheap timber, has been DEVASTATING to US timber farmers, which in many cases are family farms!! The timber market crashed in the 1990s and has never really recovered!!

    Liked by 2 people

    • Carrie2 says:

      Cat Lady, and maybe why we have so many terrible fires because of dead wood and not clearing our forests. Hmmm, wonder who decided this? If I remember correctly, a stupid Congress mostly of democrats.

      Liked by 1 person

      • Cat Lady says:

        Absolutely!! Controlled burning (and other sound forestry practices that include regular harvesting) not only eliminates underbrush that is the fuel for the TERRIBLE fires we’ve had the last few years, but also provides food for wildlife (new growth and shoots)!! Oh, but NO, we can’t burn the forests because that’s bad for the environment!! Gimme a break!!

        Liked by 2 people

    • TheLastDemocrat says:

      I just bought a bunch of pine boards.

      To my surprise, they were labeled as being from Sweden. Sweden? We can’t grow and plane a pine board more cheaply here?

      Like

  16. frank field says:

    I suppose that means our trade deficits will simply go to other nations until or unless we manufacture the auto components here. I wish it was clear how to rapidly set up manufacturing here to fix the trade imbalance. I try to stay away from Chinese imports.

    Like

    • Navybuckeye says:

      I think we have the means already. They are just dormant. Yes, it will take some capital to get it moving but it would be capital well spent. I’m from Youngstown Ohio. There are plenty of factories that are old, shutdown but still have a good sound foundation to build on.

      Not only is the infrastructure there (yes it needs updated and modernized to an extent) but so is the workforce with experience. Yes, many of those individuals are close to retirement but they still have time to train and bring on a new generation of American factory workers. Those kids who should not be in college can now have a real outlet to get work and make a difference.

      There are places like this all over the country. All over. Although, the liberals out there will try to ensure that these places are never resurrected because of butterflies, frogs, birds and plants.

      Liked by 2 people

      • Bendix says:

        I think you are right. Factories need updating even when they’ve been in continuous operation, so that’s not really an issue.
        Those old buildings were built to last. They were also built near the necessary resources, which sometimes just means a highway.
        I notice when there is talk of some giveaway to some yuge global corporation like Amazon, or maybe some chip plant, the time frame for getting it up and running is NEVER an issue, and environmental concerns fly out the window.
        It’s only when we talk about MAGA that all the negativism and whataboutism comes into play.

        Liked by 1 person

  17. thesavvyinvester says:

    Sundance,

    No one is asking why the loopholes? I can give you and answer, it is not just the money, it is the regulation. Does anyone see with removing regulation 22 to 1 new one will set the table so that things can be made here again? Does anyone get why we have all the “Wilburines” on this team? Does anyone get how this IMHO has been planned out brilliantly?>

    I don’t want to get into the particulars, however I was privy to a conversation as to the how and why’s of importing a partially manufactured part from another country and bringing it into Canada and then to the U.S. for final machining all to beat tariffs and IMHO the burdens of all our labor and clean plant rules. Look, our manufacturing base are not Luddites, they don’t want people out of work collecting on Fuda or Suda bennies because they got hurt on the job, and they want to go fishing in a clean stream with their kids, so enough of all that stuff already, lets get back on track and wrap up either winning on major changes to NAFTA or deep 6-ing it, and begin Making it in America isn’t that Great Again

    Liked by 2 people

  18. Paco Loco says:

    Do you remember when conservatives used to talk about “ a sound dollar”? The value of the dollar has been destroyed by deficit spending and uncontrolled money printing by the Fed. The Fed needs to be audited and what will be revealed will be the biggest rip off in history. It’s time we looked at ways to eliminate debt financing and ending the corrupt central bank that has inflated the value of the currency to be nothing more than the paper it’s printed on.

    Liked by 2 people

    • TheLastDemocrat says:

      Exactly. Not worth the paper it is printed on.
      When I was just beginning to drive, in the 80s, a gallon of gas was $1. Now, it is $2.50.
      Folks, this is Venezuela-scale inflation!

      When I used to run to the grocery store for my ma, when I was in high school, a gallon of milk was a dollar plus change, and a loaf of sandwich bread was a dollar and some change.

      Now, a gallon of milk is $2.50, and a loaf of sandwich bread is $2.50.

      We lived in a house that cost $60K, and it recently sold for $150k, four decades later.

      If we don’t slow this weakening of the dollar down, we will have to carry our dollars in a wheel barrow just to go buy a loaf of bread!

      Like

  19. Publius2016 says:

    Getting out of NAFTA will be the most epic trade battle in the History of the United States! Remember how we got here in the first place…like links in a chain the Globalists used the Cold War to play the grande game…once the Cold War was won, the Globalist continued to link each country in geographic zones…MultiNationals moved to tax haven countries and an alternate monetary system of payments sprung up…the 911 attacks moved the financial system from NYC to London…One reason Russia is in the cross hairs is that they tried to unite the former Soviet blocs into one area against the Globalists…China is now being used to paper the world with the Yuan with one belt one road…Globalists will control monetary policy once completed. President Trump and his Team of Patriots stand in the way of the Globalists. It’s simple: AMERICA FIRST! The Dollar The Wall EVERYTHING

    Liked by 1 person

  20. WSB says:

    So, I am assuming that the MSM fake news of the day, that the President is open to and may reconsider negotiations on TPP are just that…fake news?

    Like

  21. phoenixRising says:

    Liked by 1 person

  22. Bendix says:

    Regarding the talk about President Trump’s savvy or lack of it, as it pertains to trade matters – who exactly has a PhD in global trade?
    President Trump attended business school, did he not?
    I daresay most politicians can’t say that.
    Where were all the economic “experts” when things deteriorated to this point? Why didn’t they notice what was happening, and stop it?

    Like

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