Tag Archives: Export

Would Free Trade Be OK If The U.S. Had A Trade Surplus?

By Nathan Lewis – There are a lot of issues surrounding trade – for example, the tendency of trade agreements to come attached with globalist institutions that erode national sovereignty. The European Coal and Steel Community (1951) not only allowed trade in coal and steel, it introduced a whole new supranational government structure, including three branches of government and a parliamentary body, that later grew into the European Union. This sort of thing should be avoided with extreme prejudice.

Today’s environment of floating fiat currencies introduces new problems. The devaluation of the Mexican peso in 1995, shortly after the passage of the North American Free Trade Agreement in 1994, caused all sorts of hardship for U.S. competitors that cannot be attributed to any meaningful “comparative advantage.”

At present, gross exports of goods and services are about 80% of gross imports. The 20% difference is the “trade deficit.” Today, gross exports of goods and services are greater than at any time before 2007 – around 12% of GDP. We don’t seem to have any trouble selling our wares to foreigners. We are selling more to foreigners than ever. In the 1960s, when the U.S. had a trade surplus, total exports were about 5% of GDP. Imports, of course, were less than this.

If the amount we sell to foreigners has been steadily rising, why can’t we manage to run a trade surplus? more> https://goo.gl/oiM9eC

Germany poised to overtake U.S. as world’s No.2 exporter this year

By ReutersEurope’s biggest economy, currently the world’s third-biggest exporter after China and the United States, has seen its share of world trade fall to 7.5 percent by last year, from a post-German unification peak of 11 percent in 1991-92, according to DIHK Chambers of Commerce.

German exports, from BMW cars to washing machines to heavy machinery for manufacturing and agriculture, totalled 1.1 trillion euros last year. more> http://tinyurl.com/n4cona8

More signs of the currency war

By Clyde Prestowitz – The South Korean government’s imposition of capital controls is imminent in an effort to control inflation and the value of the won. In particular, South Korea is considering reinstating a 14 percent withholding tax on foreigners’ earnings from sovereign debt. This tax had been removed last year in order to pave the way for Citigroup to list Korea on its World Government Bond Index, which is apparently tracked by important investors such as Japan’s pension funds.

Does anyone still believe we are not in the middle of a currency war? more> http://tinyurl.com/3aczyyg

U.S. plan hits opposition at G20, FX accord remote

Timothy GeithnerBy Abhijit Neogy and Toni Vorobyova – The swift rebuff of a U.S. call for numerical targets for “sustainable” trade surpluses and deficits underscored the difficulties facing Group of 20 finance ministers gathering in South Korea as they try to defuse tensions over currencies and economic imbalances. more> http://tinyurl.com/2u3rr6q