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The rich and Wall Street executives have been quaking in their boots recently. Their Ponzi Schemes and bubbles known as the financial markets are in danger of collapsing. And it’s all because of President Donald Trump.

Trump is threatening to levy taxes on products made in China and exported to the USA. These taxes are called tariffs, and here’s what the corporate news media doesn’t want you to know. By doing this, Trump is also threatening to deflate the recent stock market bubble, which is the same thing as saying Trump is threatening to decrease by significant margins the income and wealth of the billionaires who control both major political parties in the United States.

Tariffs are taxes on goods being imported into the USA from foreign nations. US corporations export into the USA tens of billions of products manufactured in China, Vietnam, Mexico and other third world nations. Increased tariffs mean US corporations will need to raise the prices of their Chinese and other third world products, or lower their profit margins.

The profits of corporations are the primary component determining the prices of shares. When profits drop, especially in the long term, share prices fall. So the share price of say, Home Depot could fall from $176 a share to $14 a share. If you own millions of shares you lose quite a lot of money. This is why the threat of tariffs in steel and aluminum has roiled the US financial markets as of late. A lot of paper wealth is going to evaporate as stock prices drop should the tariffs be enacted. Dividends may decline, as well.

Tens of millions of US jobs have been exported from the US to China, Vietnam, India, Pakistan, Mexico, Honduras and elsewhere over the last twenty-five years. This has been done in order to jack up corporate profits by significantly reducing US labor and environmental costs. The difference between the old higher US wages and benefits and the new lower wages without benefits has gone straight into the already fat wallets and bank accounts of the superrich. They have used their ill-gotten gains to bid up the prices of corporate shares, gold, housing, commodities futures, and other investments.

President Trump’s threat to use tariffs against China and other nations means fewer dollars will go into the pockets of the rich if the tariffs are enacted. It also means potentially massive losses in the stock and maybe even bond markets.

Some corporations may even be inclined to export their jobs in China back to the United States if the tariffs are enacted. The middle class will benefit with additional jobs should this come about. In other words, the tariffs could redistribute income from the rich back into the pockets of the 99 percent, and this is something the billionaires will not allow their corporate media outlets to tell you. The proposed tariffs are limited, and therefore will not have much of an impact, but they will have some positive benefits to the US 99 percent.

Currently, six men own more wealth than the bottom 50 percent of the world’s people (See https://johnhively.wordpress.com/2017/02/23/six-men-own-more-wealth-than-the-bottom-50-percent-of-human-kind/). In the USA, the 1 percent own more wealth than the bottom 90 percent for the first time in US history (See https://johnhively.wordpress.com/2017/12/03/in-the-united-states-the-1-percent-now-own-more-wealth-than-the-bottom-90-percent-for-the-first-time-in-us-history/). In the United States, the 1 percent steal as much as 35 percent of the income produced in the USA every year, up from 8 percent in 1979.

Trump’s tariffs will likely put tiny brakes on the continuously growing inequality of wealth and income produced by free trade agreements. Those brakes will likely only slow down the growing income and wealth inequality rather than halting or reversing them. But the tariffs would be a beginning to reversing the massive income and wealth inequality which the rich have successfully conspired to produce over the last thirty-seven years.

A few other things are in order. The USA has the fifteen to twenty largest trade deficits in world history. That means the US imports more goods than it exports. Our largest trade deficit is not with China, as the media claims. In reality, the largest US trade deficit is with US corporations that have exported tens of millions of US jobs overseas. The purpose of exporting tens of millions of US jobs has been to redistribute trillions of dollars from US workers to the rich, avoid US pollution controls (thereby increasing profits),  and avoid US health and safety regulations.

What American Presidents Have To Say About Tariffs:

“America’s growth and future depend on trade. But we would insist on trade that is fair and free. We are always willing to be trade partners but never trade patsies”. President John F. Kennedy.

“Protection, which guards and develops our industries, is a cardinal policy of the Republican Party. The measure of protection should always at least equal the difference in the cost of production at home and abroad.” President Theodore Roosevelt

“A wise tariff protects American industries and manufacture. It encourages growth and enterprise among our own people. It opens our mines, it erects our machine shops, our furnaces and factories”.
President William Mckinley

It Was Good Enough For Kennedy, Roosevelt & McKinley. Why Isn’t It For Congress?

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Below is an email Oregon’s US Senator Jeff Merkley. It’s his position on the Trans Pacific Partnership. He’s against it. Wall Street Senator Ron Wyden is supposed to represent the people of Oregon, but he wants us to compete against Vietnamese labor, people who earn .30 cents an hour or less. That doesn’t sound like a senator who represents all Oregonians. Wyden represents only the rich ones, like Phil Knight of Nike, as well as Wall Street investment banks and hedge fund managers in their against the middle class. Thank God we have one honest senator in Oregon. Merkley’s email is below.

Dear John,

Thank you for contacting me to express your concerns about the Trans-Pacific Partnership (TPP) trade agreement. I have heard from many Oregonians who oppose this deal. I appreciate hearing from you on this important issue and I share your concerns.

I do not support the TPP because it would put American workers in direct competition with people earning a dollar per hour or even less overseas. Such an unbalanced trade agreement would be devastating for many workers, families, and communities and put an inevitable downward pressure on incomes for ordinary Americans. (Only Wyden’s Wall Street and other corporate masters benefit from this).

Past trade agreements created an unfair advantage for other countries that incentivized a global race to the bottom on labor practices, environmental protections, and human rights. The TPP has not meaningfully changed from past trade deals that have cost Americans good-paying jobs in several important areas.

Trade agreements need real labor and environmental standards and those standards need tough enforcement. The TPP has not meaningfully changed from past trade deals that have costs Americans good-paying jobs in several important areas.

All free trade agreements since NAFTA have allowed foreign companies to sue local, state, and federal governments if they claim our public health, environmental, or other laws cost them money. These cases are decided by international tribunals, by lawyers who rotate between representing companies and deciding cases. That’s a violation of our sovereignty, and a deeply flawed system. The TPP does not protect consumer, public health, and environmental laws from being challenged in this Investor State Dispute Settlement (ISDS) process. (Wyden is 100 percent for ending our sovereignty and also ending many of our voting rights, because his corporate masters will prosper at our expense.)

The U.S. should not be engaging in a major expansion of trade relations with countries that have an abysmal record on human rights. The TPP does not have appropriate measures to end human rights abuses with trade partner countries.

As you know, Congress must approve any trade agreement before it can become law. I will vote against the TPP should it come before the Senate. Please know that I am committed to fighting for trade agreements that create good jobs and prioritize improving the lives of working Americans.

Thank you, again, for sharing your thoughts. I hope you will continue to send me your views and ideas.

All my best,

Jeffrey A. Merkley
United States Senator

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tlumacki_newbalance_business005

“New Balance management on Tuesday accused the Obama administration of walking back its promised bribe made to them to consider the Boston-based shoe maker for a potential Pentagon contract after the company reluctantly loosened its stance on the Trans Pacific Partnership (TPP), an income and political power redistribution scam for the 1 percent.”

The president bribed the company to back down on its criticism of the jobs destroying income redistribution scam known as the TPP by offering management a pentagon contract. The pentagon, however, does not purchase US made athletic shoes. Instead, it purchases Chinese made Nike, and other foreign brands. The TPP will destroy the last US shoe factories, five of which are in Maine with 1400 employees, along with tens of millions of other US jobs. The Obama administration is intent on redistributing trillions of dollars from the 99 to the 1 percent via the TPP. See The Op-Ed about the Trans Pacific Partnership the Liberal and Conservative Press Doesn’t Want You To See.

“Speaking to the Boston Globe, New Balance’s vice president of public affairs, Matt LeBretton, said the sneaker company was told it had a chance at a lucrative deal with the Defense Department if it relented criticism directed at the Trans-Pacific Partnership, a potential trade agreement between the U.S. and 11 Pacific Rim countries.”

“We swallowed the poison pill that is TPP so we could have a chance to bid on these contracts,” said Matt LeBretton, New Balance’s vice president of public affairs. “We were assured this would be a top-down approach at the Department of Defense if we agreed to either support or remain neutral on TPP. [But] the chances of the Department of Defense buying shoes that are made in the USA are slim to none while Obama is president.”

Click here for more on the story from the Washington Post.

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In 2012, in a town hall in India, then US Secretary of State Hillary Rodham Clinton said,

“Outsourcing jobs is part of our economic relationship with India. I think there are advantages with it that have certainly benefited many parts of our country (the USA), and there are disadvantages that goes toward the need to improve the work skills of our own people (those who lose their jobs), and create a better economic environment. It’s like anything. It’s got pluses and minuses.”

What Clinton didn’t say is who benefits and who loses when she supports exporting jobs. Let’s get something straight, nearly thirty million US jobs were exported from the US from 1990 to 2010. Millions more have been exported since. Notice in the graph below how the exporting of US jobs increased with NAFTA, which Clinton supported. Hillary has also supported the Trans Pacific Partnership (TPP), until she came under intense criticism as a presidential candidate. No doubt, she still supports it because Wall Street does, and she is Wall Street’s candidate.

manufacturing-jobs-exported-per-year

The United States is in the seventh and likely final year of an economic boom. The statistics are staggering about what exporting jobs have brought about here.

  1. Income inequality perhaps never experienced in US history.
  2. The 99 percent has gone from earning 92 percent of all income produced in the USA in 1980 to 63 percent today.
  3. 48 million people on food stamps, which is nearly one out of six Americans.
  4. A middle class that has shrunk from 61 to 49 percent of US adults from 1970 to 2016.
  5. Wages that have declined in real terms for 36 years.
  6. A rising homeless population.
  7. Wealth inequality never experienced in US history.
  8. The worst economic expansion in terms of wage growth and jobs growth since the Great Depression.
  9. Slower job growth than under President Jimmy Carter, back when the population was 65 percent of today, and the Gross Domestic Product was 45 percent the size of today.
  10. A tax base that is shrinking every year as the jobs are being exported, and this has brought about higher college costs, shrinking social safety nets (such as social security), decrepit public infrastructure, and many more negative things.
  11. A massive trade deficit the United States has with US corporations manufacturing abroad and then exporting those products to the USA.

Obviously, exporting jobs is not a winning formula for the vast majority of US citizens, but Mrs. Clinton thinks so. The rich, of course, benefit from exporting jobs.

When jobs are exported (and let’s face it, jobs are the number export product of the United States), the difference between the old higher US wages and the new lower wages in China, Vietnam and elsewhere, go straight into the pockets of the super rich via higher corporate earnings, rising share prices, and surging dividends.

So the good things about exporting jobs that Hillary spoke about in the video are that exporting jobs is the fuel that causes the stock markets and corporate profits to surge at record levels. Clinton doesn’t seem to give a rat’s ass about the massive collateral damage to the 99 percent, much of which is listed above.

That’s why every geographic area of the United States outside of the old confederacy is Bernie Sanders country, and why he will win the Democratic nomination.

That why Bernie Sanders whipped Hillary Clinton badly in Kansas and Nebraska on Saturday, March 5. He won by 68 percent of the vote in Kansas, and 55 percent in Nebraska. Hillary, as expected, took 70 percent of the vote in Louisiana.

Clinton has yet to prove she can win decisively outside of the southeast. She appears to be nothing more than an over-hyped regional candidate. True, Clinton edged out Bernie in Iowa, Nevada, and Massachusetts, but outside of the South, it is Sanders who has dominated the Democratic primaries.

Not counting the super delegates, most, of which, have declared for Clinton, Hillary leads in delegates 659 to 455. However, most of the Southern states have voted in the Democratic primary (save for Florida) and the rest of the nation appears to be Sanders country.

Sure most of the super delegates temporarily support Clinton, but if she loses the popular vote in the primaries, which is highly likely, the super delegates are not bound to Clinton. They will switch to Sanders, or experience the end of the Democratic Party by sticking with Hillary.

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According to Ecowatch.com,

The text of the Trans Pacific Partnership is out and the news isn’t good for the 99 percent. The TPP will steal your voting rights on the state and local levels, because it will weaken consumer protections, undermine U.S. food safety standards and prevent commonsense food labeling. The language included in the TPP is more aggressive than previous trade deals and provides broad new powers for other countries and foreign corporations to challenge U.S. food safety and food labeling measures. In other words, the TPP will override any laws on these issues you vote for on the state and local levels.

In reality, the TPP would be a violation of the US Constitution, unless 67 US senators vote for it. which is required by the US Constitution. However, the corrupt corporate wing of the US Supreme Court will rule in any challenge to the TPP, should it become law, that persons challenging the illegal provisions of the TPP will need to prove they have been damaged. In other words, the court has ruled that if your government is doing something illegal, such as the illegal domestic spying by the NSA, and its very profitable contractors, you need to prove that you have been personally damaged by the illegal activity. The court will continue to support the illegal activities of the government so long as these activities are profitable to large corporations and investors.

“The TPP is a giveaway to big agribusiness and food companies that want to use trade deals to attack sensible food safety rules, weaken the inspection of imported food and block efforts to strengthen U.S. food safety standards. The food and agribusiness industries inserted language into the text of the TPP that will undermine U.S. food safety oversight and expose consumers to risky imported foods.”

The TPP will also lead to the loss of millions of American jobs. Those jobs will be exported, and the difference between the old US wages and the new Chinese and Vietnamese wages will be redistributed to the 1 percent via higher corporate earnings, stock prices and dividends. See What the Corporate News Media Refuses to Tell the Public About The Trans-Pacific Partnership: It’s a Massive Income Redistribution Agreement That Will Drive the Middle Class Further into Poverty, While Enriching the Already Wealthy, And Driving Millions of People into the United States Illegally to Depress US Wages Even More–JohnHively.wordpress.com

This TPP scam is Wall Street Senator Ron Wyden’s baby. Thank you Wall Street Ronnie!

Read the full story by clicking on the following link, TPP Text Reveals Broad New Powers for Corporations to Attack Food Labeling Laws–Ecowatch.org

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A new  study by the Social Security Administration shows that in 2014, slightly more than 51 percent of Americans made less than $30,000, and nearly 63 percent made less than $40,000. In other words, the middle class is dying and its being sucked dry by a parasite known as the 1 percent. At a time when the cost of living continues to rise across the country even as salaries have stagnated for years, it’s sobering—though not unexpected—news about the economic challenges facing a number of American families. The Trans-Pacific Partnership (TPP) is the latest assault to destroy the middle class. This middle class destroying accord has been ushered through the senate by Wall Street Senator Ron Wyden. Here’s how Wyden’s scam works.

Enactment of the Trans-Pacific Partnership (TPP) will force China to manipulate its currency more than is currently the case, and this will enrich wealthy US corporations that have shipped hundreds of thousand and millions of jobs to China, such as Nike, Microsoft, and Apple, as well as their rich shareholders, and CEOs, while destroying US export jobs, and redistributing massive amounts of income from the 99 to the 1 percent. The TPP will also send millions of undocumented immigrants into the USA, driving down wages here. But let’s begin with currency manipulation.

Vietnam is one of the nation’s involved in negotiating the Trans Pacific Partnership. China’s annual minimum wage is nearly twice that of Vietnam. The wages in China at those Nike and Microsoft and Apple and Hewlett-Packard factories and their suppliers and contractors and subcontractors have been going up rapidly over the past fifteen years. Those labor costs have been able to go up because the Chinese government has increased the profit margins of its US manufacturers by manipulating its currency. But there’s another reason why China needs to manipulate its currency vis-a-vis the dollar.

There are nearly 313,000 Nike workers in Vietnam, and nearly 250,000 in China. Vietnam has lower labor costs than those in China. The Chinese government, however, has been able to offset its labor cost disadvantage by manipulating its currency. So it can keep those jobs in China, and still allow the wages of Chinese workers to expand. But that might not be the case should the Trans Pacific Partnership (TPP) become reality.
Tariff is another word for tax. When a US company like Nike manufactures its products in Vietnam, and then exports them to the US, a tariff is charged against the products of between 10 and 15 percent. So another $10 to $15 dollars is added to the cost of a $100 pair of Nike’s Vietnamese made shoes exported to the USA. That means less profits, lower dividends, and lower share prices than would otherwise be the case without tariffs. The US tariffs on US corporate goods manufactured in Vietnamese factories helps to offset some of the Vietnamese labor cost advantages vis-a-vis the cost of Chinese labor.
Under the TPP, those tariffs will be gone, giving Vietnam a much larger labor cost advantage over Chinese workers. In which case, the Chinese government will have two options; let millions of Nike and Dell and Apple and Microsoft jobs head south to Vietnam, along with the jobs of contractors and subcontractors, or manipulate its currency even more, which means all of those US corporations manufacturing stuff in China for export to the US will see unprecedented and explosive growth of their profits; and all of this will occur at the expense of small and medium sized US companies that make stuff in the United States and export them to China.
That means several unpleasant things will occur to the US economy:
1. US unemployment will grow with the TPP, as exports to China diminish.
2. Inequality in wealth and income will continue to increase, destabilizing the economy further.
3. The stock market bubble will continue to expand, and the coming stock market crash will be even worse than imaginable.
4. US businesses will need to export more US jobs to China, and all of these bad things will trickle down to more crowded classrooms, less government services, reduced wages, fewer jobs, more poverty, and much more negative stuff for the 99 percent, as the taxes from those jobs are shipped overseas.
5. All of which means the US trade deficit will become greater because all of those things made by US companies in China will continue to be exported to the US, and the number is bound to increase with the TPP.

The super rich will become even more super richer, while the middle class will continue to evaporate.
Take a look at the graph below. On the left side (the Y axis) is the Yuan, which is the Chinese currency. The US dollar is on the bottom line (the x axis). Now look at the two intersecting lines, which is the supply and demand for dollars. In this example, 600 yuan can purchase $100 in the currency markets, which is roughly what the two currencies currently exchange for.

11154641_10204446842350989_5616777928675178894_o
So when Nike, Microsoft or Apple Inc. manufacture a product in China that costs the consumers, say, 600 Yuan in China, given the exchange rate, the same product will cost $100 in the United States, after, of course, it is exported from China to the USA. Assume these US corporations have a 25% profit margin. That means these companies get 150 Y profits in China per product, and $25 profit when they export their products to the United States.
Under the same conditions, this is true for companies that manufacture products in the USA, and then export them to China. American manufacturing companies earn $25 per $100 of product sold in the USA, and 150 Y when their products are exported from the USA to China.

The government of China has often manipulated the value of its currency. So what happens when it does this? It purchases dollars. This shifts the D1 line to the left, because there are less dollars on the market, which is shown in the graph below as line D2. This makes the Yuan less expensive in terms of dollars.

11053693_10204447926978104_6739155664968129642_o
Why are the higher up folks at Nike, Microsoft, Apple and hundreds of other US corporations that are producing goods in China for export to the United States against any legislation that seeks to address Chinese currency manipulation? The answer is easy; it increases their profits!
When the Chinese government manipulates it’s currency by purchasing dollars, 800 Y will now purchase $75. Do the math; 600 Y will purchase now $56. What does that mean?

It means that when Nike manufactures a pair of shoes in China which costs 600 Y there, in the US it should cost $56 rather than $100, thanks to China’s currency manipulation, but that rarely happens. The US corporate propaganda machine will lie to you and tell you it makes Chinese imports less expensive. However, the truth is China’s currency manipulation increases the profits of Nike. Rarely, if ever, do prices go down for US citizens in this scenario.
Nike still gets 25%, or 150 Y, in profits when its shoes are sold in China. When it exports the same shoes to the USA from China, Nike still gets 25% profit on $56, which is $14 dollars. However, Nike still sells its shoes for $100 in the United States, which means another $44 in earnings per pair, in addition to the $14.
That means Nike’s profit margin on a $100 pair of shoes goes from 25% at the old exchange rate to 58% at the new exchange rate. This sends its earnings and stock prices higher. The same thing occurs with Microsoft, Dell, Hewlett-Packard, Apple, and all US corporations manufacturing in China, and exporting their products to the United States.
So who pays the price for this?
The 99 percent do; if you work for a living in the United States, or if you’re a small or medium size business owner. Here’s how.
Suppose you are a US manufacturer producing shoes in Oregon that sell in the USA for $100. You ship them to China at 600 Y for $100, and earn 150 Y, or $25, in profits. Now suppose the Chinese government manipulates its currency by purchasing tens of billions upon tens of billions of dollars. The supply of dollars on the international currency markets shrinks, making dollars more expensive, and as noted above, the D1 line shifts to D2, which represents the new supply of money. BTW, the space between D1 and D2 represents the amount of dollars the Chinese purchased.
Those $100 US made shoes now costs 1000 Y in China. Okay, my graph isn’t too high tech, but the actual figure is 1066 Y, if you do the math, but let’s stick with the 1000 Y, for simplicity sake. There’s still a 25% profit margin per pair of shoes, but at the 1000 Y price, there’s not a whole lot of buyers in China. The US manufacturer could lower the price of the shoes to 750 Y, but he or she isn’t making a penny at that price, and they’re still overpriced for the Chinese market. Say goodbye to the Chinese market for all US products at the new exchange rate.
US exports to China are going to shrink quite rapidly under this scenario. This means fewer American jobs, and declining wages for everyone. It means less tax dollars going to schools and other government services; it means no retirement pay for a larger percentage of the 99 percent.

Over the past fourteen years, since China was granted most favored nation trade status, Nike’s stock price has risen over a thousand percent, from $10 a share to over a $100. Chinese currency manipulation has helped fuel this bubble. So if you purchased a million shares of Nike in the year 2000, today the value of those shares would be over $10 million. With the TPP and Chinese currency manipulation, the value of Nike’s stock will continue to increase, but only at the expense of everybody else. Much of the US stock market bubble is fueled by the same force, and that goes for the stock prices of Apple, Microsoft, Dell, Adidas, Hewlett-Packard and many more. And if the TPP passes through congress, more US manufacturers will need to shift production to China.
However, it’s going to be worse than you can imagine.
Millions of jobs in Mexico, Central America, Peru and Chile will also be threatened with exportation to Vietnam and China under the Trans Pacific Partnership (TPP). In which case, US exports will decline.
Maquiladora zones are located in Mexico and elsewhere in Latin America. These are free trade zones established by the United States and the host nations, such as Mexico, Honduras and El Salvador. The zones allow US manufacturers to assemble products in the zones, and then ship them duty free to the United States. Wages are bone poor in the Maquiladora zones, as low as $7.50 a day in Mexico’s northern zone, but they are higher than in Vietnam and China. China’s minimum wage is a little more than double Vietnam’s .28 cents per hour.
The parts assembled by US manufacturers in the Maquiladora zones must be made by US companies. This has been negotiated. In 2013, US corporations shipped $51 billion worth of parts manufactured in the United States to the over 3000 US factories in the northernmost Maquiladora zone in Mexico. That zone is twelve and a half miles deep and stretches from the Gulf of Mexico to the Pacific Ocean.
That 51 billion dollars of exports supports 250,000 American manufacturing jobs. The people who earn a living with those jobs spend their hard earned cash in their neighborhood grocery stores, stereo stores, clothing stores, computer stores, automobile dealerships, real estate companies, restaurants and more. That’s how those 250,000 manufacturing jobs keep another 400,000 to 800,000 people employed in other areas of the economy.
That doesn’t count the tens of thousands of Americans that mine the iron ore, or the rock, or chop the trees to make paper and houses, or manufacture cement, or who mold metal into products, and other producers of raw materials, or the people who operate the electric companies that power those 250,000 soon-to-be-lost manufacturing jobs. But that’s not all.
Just like the jobs that will be lost to Chinese currency manipulation via the TPP, all of these jobs pay state, federal and local taxes that support schools, road building and maintenance, forest service jobs, fire and police, and a lot more government jobs.
The TPP appears to be geared toward rendering obsolete the Maquiladora zones. Why else would Vietnam be a party to this agreement? The Vietnamese aren’t going to be purchasing a lot of American goods and services simply because those people can’t afford to do so.
When the TPP becomes law, kiss those jobs in the Maquiladora zones goodbye. Kiss that $51 billion dollars in US exports goodbye. And that’s just for the exports to one of these zones.
In El Salvador, 230,000 apparel workers will likely lose their jobs, which will be shipped to Vietnam if the TPP becomes law. Tens of thousands of workers in other central America nations will also lose their apparel manufacturing jobs in the zones. These people sew many of the clothes people wear in the United States and elsewhere.
Over 200,000 American workers supply the parts necessary to manufacture those clothes. Fabric, yarn and thread are made in US factories, and are then exported to Central America. Kiss those exports goodbye. Kiss those American jobs goodbye, as well as the hundreds of thousands of US jobs supported by those textile jobs.
If the TPP becomes law, we’re looking at the loss of billions of dollars of exports yearly, and millions of US jobs. And that’s only with the loss of two Maquiladora zones. Thank you Senator Wyden!
With the loss of jobs in the zones on such a massive scale, wages will drop like dead flies in Mexico and Central America. That happened in Mexico after Nafta, which drove millions of people into the USA illegally.
Hundreds of thousands, and perhaps millions, of people will be forced to migrate to the United States illegally, and not because they want to migrate. This will depress the wages of millions of American citizens and put incredible pressure on our social service tax dollars, which will be greatly weakened by the loss of jobs.
So who benefits from the TPP? The difference between the old higher wages and the new lower wages will go straight into the pockets of rich shareholders and CEOs via higher corporate profits, rising dividends, and soaring share prices. Working people will pay the price. In other words, the TPP will redistribute massive amounts of income from the 99 to the 1 percent. That’s what it has been negotiated to do.

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Wall Street President Barack Obama has come one step further along with the announcement that the Trans-Pacific Partnership (TPP) has been finalized in the Atlanta sessions that ended last weekend. His Democratic henchman, Wall Street Senator Ron Wyden, must have been smiling with the announcement, since he is the chief Democratic supporter of the TPP in the US senate.

The Democrats are desperate since they have been losing ground in congress and the polls since 2010. Their fundraising falls far short of Republican efforts, and their base is falling by the wayside for reasons described below. President Obama has been intent on securing the Trans-Pacific Partnership (TPP) for his Wall Street benefactors, as well as other sources of big campaign contributions and other sizable perks. If he can’t secure this for Big Donors, what good are the Democrats?

The TPP will show how adept the Democrats are at caving in to Republican Party since the TPP is falsely marketed as a trade agreement when it is designed to redistribute income and political power from the 99 to the 1 percent, just like all previous so-called trade agreements.

In order to get his deal, the president and his negotiators had to engage in serious back door deals with senators, congressional representatives and foreign trade negotiators. For example, in order to get the deal out of the gridlock of negotiations, the president and his team caved in to all of Japan’s demands on agriculture. See why-japan-did-americas-dirty-work-in-the-tpp-ustr-gave-away-the-agricultural-store–nakedcapitalism.com.

The president also made it easier for Japanese automobile parts manufacturers to export their stuff to the US, which will cost the US jobs. The price to get Japan in on the deal was destroy US jobs in auto parts.

The final battle against the middle class will now be waged in the halls of congress. It will be led by Wyden and Obama, along with a bevy of Big Cash politicians from the Republican Party. The news media will remain largely mum on the subject. It’s better to keep the little people illiterate about the issue, than arouse their indignation and protests via honest reporting.

The Democratic base has been falling by the wayside since Obama began his tenure as president. “Hope and change” was a nice slogan as the president gave the rich everything they wanted, including 95 percent of all income growth since Obama took office. The 1 percent steal 37 percent of the nation’s income, up from 8 percent in 1980. That’s what they’re buying with those campaign contributions and other perks.

Little by little the Democratic base has come to realize how indifferent the president is to their concerns, how much he actually favors the rich, what a lie “hope and change” was, since there was no “change,” and this is reflected in recent elections as more and more of the base has increasingly decided to stay home at voting time. That’s precisely why the Republicans have such large margins in both houses of the US congress.

If the TPP passes through congress, within a decade the 1 percent will steal 50 percent of the nation’s income, driving millions of people into poverty in the process.

Take China for example. China is not a part of the TPP, but Vietnam is. Wages in China are about twice is high as in Vietnam. In order to keep jobs in China, the Chinese government will be forced to manipulate its currency vis-a-vis the US dollar. Chinese exports will become cheaper in the US, while US exporters will be encouraged to export US jobs to China. But there is also a devious side to this situation. Prices of Chinese imports won’t decrease in the US. Instead, profit margins will increase.

Any company manufacturing in China will see an increase of its profits, and they won’t need to do a damn thing to make that happen. Corporations like Microsoft, Nike, Dell, and Apple will see massive rises earnings and their stock prices, as income is redistributed from US export workers losing their jobs to US manufacturers producing goods in China. Their rich shareholders will reap a massive bonanza at the expense of people who actually work for a living. See Four-graphs-that-will-make-you-boiling-mad-about-the-trans-pacific-partnership-or-why-president-obama-along-with-executives-from-nike-microsoft-apple-and-other-us-corporations-steadfastly-support–JohnHively.wordpress.com

This isn’t lost on everybody. Some people are already coming out against

AFL-CIO President Richard Trumka:

“We are disappointed that our negotiators rushed to conclude the TPP in Atlanta, given all the concerns that have been raised by American stakeholders and members of Congress. The Administration had a hard time reaching this deal for good reasons: it appears that many problematic concessions were made in order to finalize the deal. We ask the Administration to release the text immediately, and urge legislators to exercise great caution in evaluating the TPP. As we’ve said, rushing through a bad deal will not bring economic stability to working families, nor will it bring confidence that our priorities count as much as those of global corporations. We will evaluate the details carefully and work to defeat this corporate trade deal if it does not measure up.”

Communications Workers of America President Chris Shelton:

“Negotiators from the 12 Trans-Pacific Partnership trade deal countries, meeting in Atlanta, have announced an agreement. Despite all the hype, and given what we’ve learned over the past many months and years of negotiations, it’s clear that this TPP remains a bad deal for working families and communities. The corporate lobbyists who make up the majority of U.S. trade advisers have been pushing hard for an agreement, mainly because they’ve known all along that what’s in the TPP represents a sweet deal for multinational corporations and the 1 percent. For the rest of us—U.S. working families and communities, and workers in the other TPP countries—this agreement is bad news.”

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