Posted on 07/12/2018 4:59:13 AM PDT by reaganaut1
When pork prices collapsed amid a global trade war during the Great Depression, the Roosevelt Administration in 1933 had an idea—slaughter six million piglets. Put a floor under prices by destroying supply. It didn’t work. Now the Trump Administration may try its own version of Depressionomics by using the Commodity Credit Corporation (CCC) to support crop prices walloped by the Trump tariffs: Hurt farmers and then put them on the government dole. How about not hurting them in the first place?
That’s the question as Mr. Trump escalates his trade war, on Wednesday proposing 10% tariffs on $200 billion in additional Chinese goods. China says it is “shocked” by the new border taxes and will look to retaliate again—and no doubt U.S. agriculture will again be one of its main targets.
Enter the forgotten but alas not gone CCC, the financial institution that FDR charged with solving the problem of depressed markets caused by weak demand. Farmers were told to plant less in exchange for a floor under prices. The CCC financed the purchase of surpluses through nonrecourse “loans” to farmers, and held the crops in storage.
When market demand improved, the Agriculture Department was supposed to sell the stored commodities at higher prices. Nonrecourse meant that the farmer didn’t have to repay the loan, and the USDA often couldn’t unload the surpluses because demand didn’t recover.
The Depression ended but the CCC kept going. In 2012 Congress put limits on CCC purchases of surplus commodities and on price supports after the Obama Administration used it for a costly 2009 disaster program without Congressional approval. But then out of the blue this year, Congress lifted the limits on CCC’s power to remove surplus crops from the market to support prices.
(Excerpt) Read more at wsj.com ...
Sorry — “port roasts,” not “port roads.” LOL.
If the President can get what he wants from Putin this week, maybe Russia will be our first real free trade partner... The Left’s eyes, would pop right out over it.
What the hell is wrong with this phone? Is it kosher or halal? It doesn't recognize the word "PORK!" LOL.
May. LOL.
The NO Wall Street Urinal may became a pro American news source. May.
The Wall St. “Editorial Board” wrote this crap.
Who is their “Editorial Board?”
They don’t make it easy to find out.
After getting past their virtue signaling garbage, a couple of names appear:
Paul A. Gigot Editor, Editorial Page, The Wall Street Journal
Daniel Henninger Deputy Editor, Editorial Page
Looking into the character of these snarlers it’s not surprising to find they are part of the liberal country club.
As for their economic credentials, they forget that economics is not a science, it is astrology, led by dismal principles.
The trade war will be won as China has no choice but to face decreasing revenue space while the American economic tree moves in and sprouts new branches.
You have it correct.
Rather than pay the tariff on Chinese steel, purchasing agents will buy steel from India.
If China resists, they will lose much of their manufacturing base as it moves elsewhere.
All of them put America last.
No, it's July.
Because they provide your bacon and fatback? Because without ham how can there be red-eye gravy for your grits?
That’s rich coming from an AFL-CIO flack.
Labor unions suck and that means labor union supporters suck.
The farmers are temporarily inconvenienced as their Chinese inflated markets are restructured.
They don’t see the bigger picture that they grew into that Chinese space while 100 times as many American producers were shut out and taken over by Chinese manipulators.
Every time the investors have a few hours to digest what any new tariffs might really mean to the economy, they start buying again. This morning, 1 hour before the market opens, the Dow Futures are up 185, NASDAQ Futures are up 39, S&P Futures are up 15 and GE is up by 12 cents a share. But it all spells doom and gloom for the US economy because of Trump...
So, what leverage would you use to remove the unethical tarrifs and governmental price controls China, Canada, Mexico and the EU put on goods from the US?
Honestly, what is your solution? The solution is to put high enoug tarrifs on them to get them to eliminate the tarrifs they have in place. I shouldn’t have to explain something that should be blatantly obvious to even a second grader to someone who has been on this board any length of time. Common freaking sense.
Trump has said if they want to get rid of all their tarrifs, we’ll get rid of ours.
We didn’t start the trade war, but are damn well going to end it.
A huge amount of the pork sold here comes from Canada. At least it did before the tariffs.
Should not the Bolshies want this too?
Probably that ZTE phone and autocorrect.... ;) (J/K).
If you are pro American labor/working class does that make you automatically pro union?
Do you breathe through your mouth? Did you brush your tooth today?
LOL.
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