What can be done with soybeans if China ends buying?
The news today is how Illinois farmers will be hurt by trade tariffs. The purpose to this post is to provide KISS solutions in the interim until our trade partners stop retaliatory trade tariffs the USA is implementing to restore bilateral fairness in unfair bilateral trade deals.
“Bad, bad,” says the buyer, But when he goes his way, then he boasts. (Proverb 20:14)
What’s My Point?
Our trade partners have outsmarted US trade negotiators since the NAFTA and China WTO trade agreements began in 1993. The evidence in my statement is USA deficit trade balances have accumulated to reach an approximately negative balance of TEN TRILLION dollars to date.
For anyone who does not understand the ramifications of deficit trade balances, allow me to pose this question to you.
Consider if the TEN TRILLION dollars had been spent in the USA to pay wages, build infrastructures, instead of other nations, would there be as much unemployment, unlivable wages, health care deficiencies, mental illness, education deficiencies, etc. etc. in the USA?
Even the WTO, World Trade Association, has stated that negative trade balances hurt the trade partner who suffers negative trade balance.
In My Opinion
Our trade partners know they have been enjoying a better trade deal with the USA. Just take a trip to their countries and compare their modern enraptures of the railroad, airports, bridges, dams, manufacturing facilities to the USA. Some USA factories are still using machinery manufactured during the Second World War.
US technology has been exported to other countries. The technology was paid for by USA taxpayers when the companies deducted the expenses from their taxes.
All the threats of complaining trade partners to retaliate is the same sounds you would hear from the above King Solomon proverb. In other words, they know they got a better deal, complain in public, and laugh in private.
What to Do with Soybeans?
KISS is an acronym in the USA military meaning “KEEP IT SIMPLE STUPID.”
If China does not want to buy our soybeans, use it to manufacture a biofuel for USA energy or gasoline.
Use a portion of the tariffs the USA will collect for foreign imports to amortize the higher costs of producing biofuels for energy.
USA Opponents of Tariffs….
Should recognize and acknowledge the USA is not starting a trade war. If our trade partners want to help balance USA trade negative balances, they should build plants in the USA and use USA workers for their products.
In other words, It is time to balance trade in the USA. The USA can employ KISS in two ways if our trade partners will not cooperate to reduce USA trade deficits.
Recognize the USA will, in the end, win any trade war by use of KISS methods I just expanded, or they can KISS another area located on the rear end of very USA worker or buyer’s body.
Regards and good will blogging.