Tag Archive: trade deficit

May 06 2015

TPP: Absence of Currency Control Makes It Unacceptable

Wall Street biggest friend in the Senate Charles Schumer doesn’t like the Trans-Pacific Partnership agreement, not so much for what’s in it but what isn’t, currency controls. Because the secret agreement being negotiated by the Obama administration doesn’t contain a clause that would protect currencies from being manipulated, Sen. Schumer is free to discuss it and why it’s important. In an interview and article at Huffington Post, he goes into the details about his concern and how currency manipulation hurts international trade and manufacturing.

A decade ago, or perhaps a little longer, New York Democratic Sen. Chuck Schumer had an epiphany during a visit to a Crucible Industries steel plant in Syracuse.

His realization has proved enduring, and a decade later, it threatens to derail the grand trade agenda of his fellow Democrat, President Barack Obama.

The lightning bolt that lit up Schumer’s imagination that day was delivered by managers at the specialty steel factory, who complained of a surprisingly simple and profound fact that few people ever consider if they don’t deal in international commodities. Steel fabricators in Schumer’s state were losing sales not because of any failing on their part, but because the government of China was using a trick of the international currency market to keep Chinese manufacturers’ goods as much as one-third cheaper.

The label for the practice is currency manipulation, and Schumer has harped on it ever since — in meetings with business leaders, on the Senate floor, in hearings, and with legislative offerings.

But what exactly is it, and why does does it matter? And why is it so important to many Democrats that if it’s not addressed in the ongoing push for massive new trade pacts, they’re willing to torpedo their own president’s agenda? [..]

The numbers of jobs lost from manipulation, and the flip-side potential gains from ending it, are what make it so important for many lawmakers, on both sides of the aisle. Republicans, such as Sens. Lindsey Graham (S.C.), Susan Collins (Maine) and Jeff Sessions (Ala.), have been strong proponents for legislation that would crack down on currency manipulation.

But for Democrats, many of whom support the goals Obama is striving for in his pursuit of the Trans-Pacific Partnership agreement with 11 Pacific Rim nations, and the Transatlantic Trade and Investment Partnership with Europe, currency manipulation is especially important because many suspect Obama will be unable to enforce the stronger labor and environmental standards called for in those trade deals. [..]

But in a sign of just how important currency manipulation is to several countries that would be included Trans-Pacific Partnership, Obama administration officials who testified on Capitol Hill last month almost universally warned that passing currency measures would be a trade-deal killer.

Apr 30 2015

Why Free Trade Is Bad for America

President Barack Obama has asked congress to abrogate its constitutional responsibility to pass the Trans-Pacific Partnership Agreement (TPP) with little to no debate and no changes or amendments. At this time, the House does not have the votes to pass the fast track bill. He has met with resistance from his own party, going so far as to say that Senator Elizabeth Warren (D-MA) was spreading misinformation and didn’t know what she was talking about, in other words, lying. In reality, it is the president who is lying to the American public to push a free trade bill, that appears to be worse than NAFTA which has nearly destroyed American manufacturing. Thanks to Wikileaks you can read some of the draft provisions here.

Sen. Warren has bee a leader in the fight to stop the fast tracking of TPP, she is now joined by Representative Alan Grayson (D-FL) to stop the TPP.

Watch This Democrat Make The Case For Why Obama’s New Free Trade Deal Would Be Awful For America

By Sam Levine, Huffington Post

After President Barack Obama accused critics of his proposed trade deal of being wrong on the facts, one member of Congress released a lengthy video explaining point-by-point why he believes free trade has hurt the United States and why a new deal would be even worse.

After facing vocal criticism from Sen. Elizabeth Warren (D-Mass.) and other Democrats on his trade deal, called the Trans-Pacific Partnership, Obama accused the members of his own party of spreading misinformation. In a town hall last week, Obama challenged his critics, saying that he would be happy to debate them on the facts of the deal.

In a nine-minute video, which will be sent out to 1 million members of the Progressive Change Campaign Committee on Thursday morning, Rep. Alan Grayson (D-Fla.) seems to try to meet that challenge.

Free Trade More Like Fake Trade

Americans are creating tens of millions of jobs in other countries with our purchasing power, and we are losing tens of millions of jobs in our country, because foreigners are not buying as much of our goods and services.

What are they doing? They’re buying our assets. So we lose twice. We lose the jobs, and we are moving further toward national bankruptcy. That is the end game.

Sign the petition to Stop the TPP at Treachery.com

Nov 21 2012

Laboring Under This Administration’s Anti-Labor Ties

And no, I’m not talking about the past anti-labor ties like former COS Rahm Emanuel who called labor unions “f-ing retarded” and condescendingly opined about “where are they going to go?” if they expect more from Democrats. No, I’m not talking about the NAFTA and China PNTR hatchet man that helped crush US industry before he became mayor of the President’s home town of Chicago attacking the teacher unions that helped elect this President. And I’m not talking the former U.S. Secretary of Commerce and JP Morgan Executive that also worked with Rahm and the Clinton administration to pass NAFTA either.

Of course, there still are plenty of anti-labor ties to choose from such as Jeffrey “China! China! China!” Immelt who serves as chairman of his outside panel of economic advisers while retaining his post as chairman of the board and CEO of the GE; the non tax paying conglomerate that outsourced its X-ray division from Wisconsin to China. Of course I don’t need to which brings me to the main point of this piece.

(h/t Rick Pearlstein)

Nov 12 2012

One Economy under God by T’Pau

Has it occurred to you how strange it is that your job can slip across international boundaries, but you are prohibited from crossing the same border to follow that job? It should.

Multinational Corporations have been busy for the last twenty years creating a new type of serf. In feudal Europe and Asia, serfs were tied to the land by a master, called the lord, and obligated to work for him. Now, the 1% are creating serfs out of whole nations of people. Sure, those lands are huge-nations-but they are still boundaries that bind you, and prevent you for selling your work freely, while multinational corporations are borderless entities.

Seeking to continue the tail spin to the bottom of wages, big business has been busy writing international treaties, allowing jobs to shift to ever lower paying environments with the least protections for workers. Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, United States, and Vietnam are already involved in the latest negotiations, the Trans-Pacific Partnership. If signed the treaty will be a “docking agreement” open to any country to sign later. Canada and Mexico are expected to join this month. Japan and China are being courted to join. It is the largest trade agreement the world has ever seen.

The treaty creates an ├╝ber-government superseding and overriding existing law in sovereign nations–seeking to stamp out democracy. In old feudalism, it was the Catholic church that held dominion over the nations of man. Now “the market” has taken the place of God. Profits are all that matters. Anything the market endorses is right because the market is infallible, unchallengeable. Keep democracy out of it.

The powerful and wealthy have finally found a way to regain the power they once held in feudal times. They have done it in ways intentionally hidden from the majority. Most of us don’t even realize we are in a battle for the type of global governance we will have in the future. For the last 50 years corporate leadership have simply bought our democracies and media outlets, making it easy for corporations to gain the upper hand, and convince voters to support governance that is secretive and totalitarian, without letting voters know they are doing so. Now the 1% want to solidify that power into an actual international treaty. They are seeking one economy under the rule of American corporations. They are, in fact, seeking world dominion.