Why is the WTO not doing this?
With trade deficits, deficit spending, and failing credit markets the current level of imports is no longer globally sustainable but free trade in raw material markets is critical to the heart of global production. Given the fact of shared liquidity it seems to be in the mutual interest of shared sustainability that the WTO make a new trade agreement on certain finished goods to save the world economy by limiting their export. This would assure the liquidity of consumer states to earn money and help support producer states such as China and India by promoting the consumer to support their economy. These items could be simple things like no exporting tires under 40" or aluminum assembled products weighing more then 500 lbs. This approach would allow the trade deficit bubbles that caused a drop in GDP both in America and China to deflate creating growth liquidity from a diplomatic agreement with the WTO with mutual benefit.
The falsehood of full free trade can be explained by going to WalMart, looking at unemployment, and the level of charged living on credit. The restrictions on exports should be agree upon by the world government to support long term stability in trade markets. The people who fail to recognize the fact of failed trade policy are a danger to global sustainability and require re-education in economics. The real issue it hand is a one sided trade market and a over borrowed consumer market. This crisis was caused by a over supply of goods from some states and a under supply of liquidity in job markets in other states. Lower labor leads supply over demand and the over supply causes inflation created from credit markets making them crash. The worst part of a dry labor market is that weaker commerce faults the growth of the wealth index in these states up to 50%. If a states wealth index does not grow with the balance of the world economy their business liquidity will lower with it causing implosion of business financial markets from high consumption levels.
The fact is that tariffs are coming weather you like them or not because the world economy no longer can sustain the borrowed liquidity from low production and high consumption. Borrowing the infrastructure of Asia is unsustainable with no outside production and if the WTO does not act Asia’s economy will implode inside of 2 years from now.
It is amazing to find someone that is so knowledgeable as you. The missing piece is the one world government. Our economy must be destroyed to get us to submit to a change to a "Global" government. You, as I, believe in "fair trade" over "free trade". If we had required a balance of trade, in the past, we would not be in the financial disaster that we are in today. We need tariffs to protect and re-establish our manufacturing and services economy. Our politicians have their heads in the wrong place. They oppose tariffs. Canada is our only true fair trading partner. It is no wonder that our "political leaders’" ratings are so low. They are the responsible party, not the WTO.
It is amazing to find someone that is so knowledgeable as you. The missing piece is the one world government. Our economy must be destroyed to get us to submit to a change to a "Global" government. You, as I, believe in "fair trade" over "free trade". If we had required a balance of trade, in the past, we would not be in the financial disaster that we are in today. We need tariffs to protect and re-establish our manufacturing and services economy. Our politicians have their heads in the wrong place. They oppose tariffs. Canada is our only true fair trading partner. It is no wonder that our "political leaders’" ratings are so low. They are the responsible party, not the WTO.
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You are certainly right about one-sided trade agreements and credit spending, however your understanding of world markets is very limited. Take a course in economics, and keep an open mind. It is a good idea to know the discipline you are criticizing.
Trade deficits are not necessarily a bad thing. There are other ways to create wealth besides just balancing the trade deficit (credit markets do give us the capital necessary for investment, as well as foreign investment).
Using terms such as ‘business liquidity’ completely out of context does not prove that one is knowledgeable in a certain area. Some of your sentences make literally no sense. They appear to be rambles with economic terms thrown in. If not, it would help to clarify on a lot of your statements.
Sure, drawing back trade would create less volatility in markets, but it would certainly reverse a lot of the development that all have worked hard for; this same development which has allowed you to sign on to Yahoo today and write the short essay you just did.
The WTO’s job is to lower trade barriers, not create them. Increased trade is what benefits developing economies such as China, which is what has allowed them to develop economically to the levels they have. Without trade, most economies would end up in the same situation as North Korea; some worse, and only those with largely diversified economies such as the US’s would be able to sustain themselves.
And by the way, just a simple fact–oversupply does not create inflation. In fact, it has the opposite effect–it lowers prices due to decreased scarcity in the market. When something is in abundance, do you tend to pay more, or less for a good? My hope would be the latter, and if not, I hope this occassionally-cruel world has mercy on you.
It’s likely that two years from now, Asia’s economy will pull out of the recession stronger and more competitive than before. My advice to you would be to stop reading crazy left-wing Marxist literature, and read something useful; something written by educated individuals such as Keynes, Hayek, Friedman, or, especially in your case, Jeffrey Sachs. Are you somewhere in the vicinity of Scandinavia? Or perhaps Latin America?
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Years of meaningful education and real-life experience.
Stop drinking Greenspan’s Kool aide,we need Bankruptcy reorganization. Go to http://www.larouchepac.com/
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http://larouchepac.com/