Friday, January 27, 2017

Trade war?






"Part of the problem we have right now rests with the Minority Leader in Congress. While he enjoys playing parlor games to stretch out the approval process for President Trump's cabinet, life is going on."



Well it sure did not take long for this to happen. The dogs of war are about to be unleashed. Not a shooting war - a trade war. Like I say, it sure did not take long. Less than a week by my book. And Mexico is still trying to shake off the cobwebs to figure out what just happened. They are so used to dealing with a "Caspar Milquetoast" type of President, this week has been a rude awakening. This President does not fire warning shots. Either play ball or pay the price.

Here is a news flash for President Pena Nieto. The best way to deal with our new President (who by the way, is a deal maker), was to make him a counter offer. Not to walk away from the table. Now hardball might ensue. A 20% import tariff. And Mr. Pena Nieto, I think you know this. A trade war would hurt the United States just a bit, but it would be a killer to Mexico. It would be a war with no winners. However, a tariff would pay for the wall.

President Pena Nieto also needs to understand this immutable fact. President Trump cannot stand having a trade deficit with any country. To him, it means the playing field is not level. We are losing jobs to other countries. And we do have a trade deficit with Mexico. About $60B.

There is nothing I would like better than to have a free, open and prosperous Mexico. A country where people love to live and work in. A country which has put an end to the drug cartels. But that is not the case.. Right now, Mexico is corrupt. Out of control. As are many Central American countries. That is why the people want to come to America. Even with sky high risks, they will take the journey all the way to our boarder.

Here is where reality needs to be brought into the picture. The wall will take just about forever to build. The last time we addressed the southern border, it took six years to put up 700 miles of fences. To build a concrete wall that would stretch the 2,000 miles would take (according to one expert), sixteen years of all out effort.

Part of the problem we have right now rests with the Minority Leader in Congress. While he enjoys playing parlor games to stretch out the approval process for President Trump's cabinet, life is going on. Secretary of State Tillerson is experienced in dealing with Mexico. Methinks if he was a part of the mix right now, the trade war issue might not be an issue any longer.  

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