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 ideaslaughter six million piglets. Put a floor under prices by destroying supply. It didnt 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?
Thats 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 againand 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 didnt have to repay the loan, and the USDA often couldnt unload the surpluses because demand didnt 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 CCCs power to remove surplus crops from the market to support prices.
(Excerpt) Read more at wsj.com ...
Anecdotal i know, but most of the Indian Steels we have ever used have been of poor quality. Their RTJ and Bonnet gaskets are not too bad, but thier bar stock is suspect.
Agribusiness wanted COOL repealed and got it.
They’ll get no sympathy from me now.
There is no way the mid west will ever vote Democrat.. You are on drugs.
If we make public economic trade policy vase on what pig slopers think the USA has no hope.
Maybe China will rethink it’s 25% tariff on US manufactured goods.
I have a hunch that Trump and his team will work out all these Tariff issues in the next 2 months.
The 30 year globalist experiment in "Free Trade" is an abject failure. Why? because the rest of the of world didn't play along and used the USA like a cheap whore.
Matthew 7:15-20 New King James Version (NKJV)
You Will Know Them by Their Fruits
15 Beware of false prophets, who come to you in sheeps clothing, but inwardly they are ravenous wolves. 16 You will know them by their fruits. Do men gather grapes from thornbushes or figs from thistles? 17 Even so, every good tree bears good fruit, but a bad tree bears bad fruit. 18 A good tree cannot bear bad fruit, nor can a bad tree bear good fruit. 19 Every tree that does not bear good fruit is cut down and thrown into the fire. 20 Therefore by their fruits you will know them.
Unions are a bad tree bearing bad fruit. When you post garbage that comes straight from the Unions it’s obvious you aren’t interested in the common working man.
You don’t want to know what I think should happen to the WSJ editorial board.
Dr. CARSON your presence is requested in the cabinet room to discuss domestic food changes to the food stamp and the WIC program...
IOW use only basic foodstuffs grown and processed on U.S. soil. Eliminate gourmet selections, alcohol and tobacco products. cleaning products, paper products, and other items used for sanitation should also be exclusively produced in the US with raw materials coming from us providers from sources within the country.
While we’re on the subject U.S. military clothing items from hat the boots should all be produced using United States manufactured textiles exclusively. Buttons, zippers, elastic, Velcro... Should all come from the US exclusively. In other words 100% sourced and made in America.
So you ignorant < expletive deleted > you quote the Bible but have no clue as to the status of unions in the USA. STHU loser. Go away.
As long as they have tariffs on our products, have barriers where we can’t even export to the other country, and where they force 51% JVs and steal IP, we absolutely must have tariffs on those countries. That doesn’t touch the fact that we impose massive regulations (labor, environmental) on US businesses and then allow MNCs to skirt them by going to third world countries, hurting US workers (at the very least we should have a tariff equal to that for countries with dissimilar laws)
Exactly
Actually - the tariffs we charge would easily cover offsetting any loss from US production for any industry, since we import so much more than export.
Farmers will go broke in masses in next 2 years.
Re: We expert agri products ( the ghetto of economic wealth creation ) and import high tech consumer electronics. Thats so smart. /sarc
sounds like the business plan for a third world economy LOL
Exactly - that’s why the “free traders” argument is insane. The other side has been fighting the trade war for 3 decades. We just haven’t been fighting back.
Re: The trade war was already on, we were just not firing back!
How True
Yup - since “free trade” took off - wages for the bottom 80% of workers has been zero adjusted for inflation, GDP has grown at only 2% (vs our LT average of 4%), and we went from no trade deficit to over 1/2 trillion a year.
In the early 1900s and going back to our founding, tariffs paid the bills in DC. Why is only 1% of our tax revenue tariffs today?
All cotton, rice, corn and soybean farmers get subsidies.
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