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To: DB
"Starting a trade war in a recession is stupid on steroids."

Our "trading partners" have been in habit of blaming America for their domestic difficulties for a long time. Even with our own impending inability to buy, they'll blame Americans in general for starting the trade war that they started long ago. ...not to mention their many barriers in place all along against buying many products from us.

We have plentiful and varied natural resources in the USA. If we behave as the best of our fathers did, we'll win.


20 posted on 02/02/2009 11:11:56 PM PST by familyop (combat engineer (combat), National Guard, '89-'96, Duncan Hunter or no-vote, http://falconparty.com/)
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To: familyop

If they have trade barriers against buying our products then why do they trade with us? Do you know what a trade is?

You want to buy an item from overseas, so you give them your money. Let’s say it’s a dollar. They don’t use dollars, so they sell the dollar for an equivalent amount of their own currency. That dollar is then used to buy American goods again. If not by them then by somebody. This allows trade to function.

If they simply hold the dollar in reserve, then that dollar is never redeemed for a good or service. We’re ahead on the deal. If they keep the dollar and use it in their country (as some countries do) then we’re neither ahead nor behind. They have our dollar, we have a dollar’s worth of their stuff.

When you have floating exchange rates (as most exchange rates are these days), then it simply doesn’t matter whether the trade happens across a state line, a national line, or whatever. There is no “loss of wealth,” we aren’t “sending our dollars overseas,” since those dollars come right back to us.

Do not buy into the myths of big labor and big business. Be a capitalist.


78 posted on 02/03/2009 2:34:32 AM PST by LifeComesFirst (Until the unborn are free, nobody is free)
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