South Korea NAFTA Deal Will Kill More US Jobs

ΩΩObama is finished with his and Hillary’s apologies tour of Eurasia and are now back hard at work, killing the US economy under the guise of fixing our export/import problem by expanding ‘free trade’ with all the countries that are running big trade surpluses with the US.  Each time we do this, our trade deficit gets worse.  Always, this is papered over by claims, these trade treaties are creating US jobs.  Of course, it does create more export jobs but at the cost of DOMESTIC CONSUMPTION creation jobs!  So far from increasing jobs here, these actually decrease jobs even though more and more jobs are export-related.  See?  It is what we CONSUME AT HOME that counts, not what we sell overseas.

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ΩΩThis is insanely simple to understand: the US is a huge market.  South Korea, for example, is a rather small market. The Japanese potential market is one third the size of the US but is actually minuscule compared to the US since the Japanese people earn so little money, for the most part.  They live in small houses and in small areas so they can’t accumulate the mass volume of stuff the US, living in huge houses in comparison, can accumulate.

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ΩΩThe key here to understand is, unlike say, Britain or Japan, the US is a huge geographical and geological entity and could easily provide itself with whatever we wish to consume.  Instead, we import much of this stuff and have seen our own industries in very steep decline and they are literally vanishing. Even as the US writhes from job losses, our idiot leaders persist in creating more NAFTAs to our ruination.  But the elites make lots of profit on these deals so they push them relentlessly, the South Korea betrayal being just the latest in a long line of active destruction of US jobs and economic heft.

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ΩΩHere is Mr. Change My Underwear, Obama: US-South Korea trade deal ‘win-win’ | Raw Story

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  • The agreement benefits US workers, farmers and ranchers, Obama said, and was also a “win” for South Korea because it will grant the Asian ally “greater access to our markets and make American products more affordable for Korean households and businesses.”

 

  • Tariff reductions in the deal are expected to boost annual exports of US goods by up to 11 billion dollars, Obama said of the agreement that raised hopes of renewed US leadership in Asia….In Seoul, President Lee Myung-Bak said the agreement would bring “huge benefit” to South Korea and provided “a new window of opportunity for our economy to take off again,” embracing the free trade deals as a strategy to promote an economy long in the shadow of economic giants Japan and China.

 

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ΩΩThe South Koreans aren’t going to buy squat from us except maybe beef.  The Japanese won’t even let us sell beef, by the way!  The average income and house size of the South Koreans is lower or less than the US.  Here are the obvious statistics:  GDP – per capita (PPP) $28,100 which is #49 whereas the GDP (purchasing power parity) is $1.362 trillion which is # 13 and 40% of the economy is industrial, half is service.

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ΩΩWhereas the US is quite different: GDP – per capita (PPP) is $46,000 which is #11 (!!!!!) and our own GDP (purchasing power parity) $14.12 trillion which is #2 after the EU.  Only 21% of our economy is now industrial production, nearly all of it is service.  Now, the true dishonesty of all the speeches and promises by all our Presidents since Reagan has been, these deals will bring us more jobs and wealth whereas it has done the exact opposite over and over again.  If we are lucky and ROK does buy $11 billion more US goods, I bet they will sell us $22 billion more goods!  This is inevitable.

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ΩΩOf course, the same guy who is provoking war with North Korea is excited about this trade deal!  It will cement his own power and make South Korean plutocrats much richer.  The income gap between the rich and poor is much smaller in South Korea compared to the US, of course.  But the real point here is, the US income average is still DOUBLE that of South Korea therefore, they will buy less from us than they will sell to us.  This goes under ‘Duh!’

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ΩΩJane Hamsher: UAW Gets 800 Jobs for Endorsing Obama’s NAFTA-Style Korea Trade Deal, Which Will Cost 159,000 US Jobs

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  • UAW President Bob King decided to endorse trade pact despite strong opposition from his staff.  The UAW then joined with Jamie Dimon of JP Morgan, Vikram Pandit of Citigroup, Tom Donahue of the US Chamber of Commerce and John Engler of the National Association of Manufacturer in congratulating Obama on reaching the deal with South Korea….What does the UAW get for selling out American workers? A total of 55,000 additional cars, or about 800 jobs.

 

  • The Economic Policy Institute estimates that the Korea Free Trade deal (KORUS) will cost 159,000 American jobs over the next five years.

 

  • Sander Levin, Chairman of the Ways and Means Committee, worked the phones aggressively to whip support for the bill. Heavy pressure is being brought to bear on United Steelworker President Leo Gerard, in an attempt to keep the AFL-CIO on the sidelines. Getting a rather cheap “give” from the Koreans to the auto industry to buy off the UAW was actually quite clever — because the steelworkers are also being told that with all the cars that will be sold to Korea, there will be US steel used to make them.

 

  • Of course, that’s a crock. Korea would still face a lower tariff (2%) in the US than the US will face in Korea (4%).

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ΩΩJane Hamsher is correct.  But note how the Democrats are cooking up this deal just like NAFTA and are using the Clinton lies, totally recycled!  It wasn’t Clinton who warned us of the ‘giant sucking sound of US jobs’ leaving the country, it was Ross Perot, the Ron Paul of the Clinton/Bush Sr election.  A man I voted for, incidentally, due entirely and only on the issue of trade.  Note how Levin, Michigan’s Senator, is pretending this deal will create jobs in his ravaged state.  But this is pure Potemkin window dressing.

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ΩΩThe promise of jobs is exactly like the ‘balance trade with Boeing jets’ deals: total hogwash.  Yes, there will be some few union workers who will get a few more years of labor out of these deals but at the price of killing EVERYONE else’s jobs!  So what, if this makes a handful of people happier?  It will continue to kill our entire nation and destroy even more of our industrial base!  So it is a totally bad thing.  Totally bad.

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ΩΩMore important data:  FTD – Statistics – Country Data – U.S. Trade Balance with Korea, South

2010

  • Exports   28,868.0
  • Imports   35,513.5
  • Red Ink  -6,645.5

2004

  • Exports  26,186.7
  • Imports  46,167.9
  • Red Ink   -19,981.2

1985

  • Exports  5,956.3
  • Imports  10,013.3
  • Red Ink   -4,057.0

 

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ΩΩSo, in 2010, our trade deficit was less than half of what it was in 2004 but this is due entirely to a global depression and the fact that so many US workers have lost jobs, they can’t buy endless foreign goods so much anymore.  But look at 2004!  Nearly $20 billion in the red that year!  Today, in a great depression, it is still bigger than when it was 25 years ago!  When we had far fewer ‘free trade’ treaties.    Now, on to the issue of American steel.  China, not the US, is the #1 steel maker.  We are far down the list behind many Asian and European countries.  http://www.census.gov/foreign-trade/Press-Release/2010pr/10/steel/stltext.pdf

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  • The U.S. Census Bureau announced today that preliminary October steel imports were $1.8 billion (1.6 million metric tons) compared to the preliminary September totals of $1.9 billion (1.9 million metric tons).The October change in steel imports based on metric tonnage reflected decreases primarily in blooms, billets, and slabs. Decreases occurred primarily with Canada, Germany, and Russia. Increases occurred primarily with Mexico.

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ΩΩWe import nearly 2 billion metric tons of steel!  Are we a nation with no iron?  No ability to make steel?  Nonsense!  This is exactly the industry we should never, ever allow to collapse.  This is life and death for our empire.  Hell’s bells, the stupid embassy cables are not endangering our country, it is our stupid trade deficit and the fact that we let our own government destroy our own steel industry here!

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ΩΩIf we want to have industries here buy US steel, we can slap a tariff on all the many countries flooding our markets with their steel and double ditto for the cars: we can produce all the cars we need, here, ourselves.

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ΩΩThis isn’t some foreign conspiracy, though.  The entities pushing this mess along are our own corporate executives who own Congress and run the White House.  Here is an example of how they loot other countries of their industries and play tax avoidance games:  Cadbury’s secret Swiss move will cost UK exchequer millions in tax | Business | The Guardian

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  • The new US owners of Cadbury’s chocolate are working on a secret plan to shift key parts of the 186-year-old British business to Switzerland in a move likely to deprive the UK exchequer of millions of pounds of tax.

 

  • Kraft, which took control of Cadbury in an £11bn takeover this year, intends to turn the firm into a subsidiary of a new Swiss company. The new structure would slash its bill for UK corporation tax. Last year, Cadbury handed over £200m to Her Majesty’s Revenue and Customs.

 

  • Kraft’s plans, uncovered by the Guardian, are likely to fuel anger at the manoeuvres used by big corporations to avoid tax. A fast-growing group of activists, inspired by the UK Uncut group, plan to protest tomorrow in nine cities across the country against what they view as unfair tax avoidance by big companies on high streets.

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ΩΩThe Guardian’s coverage of the US embassy cables was immensely superior to the Zionist media in the US.  And note how they uncover other nefarious stuff like this deal.  Naturally, the US media is mute on this story.  I have followed it for the last 2 years and predicted that the offshore pirate elites in the US would raid this corporation and then remove it entirely from England and then re-import the candy thus, making the really bad UK trade statistics worse than before.

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ΩΩThis Kraft buy was a naked looting operation designed to harm England and enrich a few creeps in the US who use our nation as a looting base and where they are now muscling Congress and the President to continue the bad Bush tax cuts that expanded the gap between the rich and poor so greatly while at the same time, is bankrupting our government. They don’t care if they bankrupt governments!  All this means is, cutting welfare and health and they hope, excess population will die in the streets.

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ΩΩECB bows to German veto on mass bond purchases – Telegraph

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  • Jean-Claude Trichet, the ECB’s president, said emergency lending support for eurozone banks would be extended until at least April next year, citing “acute tensions” in the market.

 

  • The delay removes the risk that Frankurt might soon pull away the prop holding up the Irish and Greek banking systems, as well as the Spanish cajas – or savings banks – and the sovereign states behind them. Traders say the ECB intervened directly in the weakest bond markets on Thursday to drive down yields and calm nerves.

 

  • However, Mr Trichet said there had been no decision to step up purchases of peripheral bonds to a whole new level – the so-called “nuclear option” – despite the potentially dangerous rise in Spanish, Italian, Belgian and even French yields over the past three weeks.

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ΩΩThe German workers will be looted just like the Irish, and they are very angry about this and we shall see an open revolt against fellow EU members even as Ireland’s poor people understand, they have also been shafted by the EU elites almost all of whom are Bilderberg gangsters.  That is, they are NOT representatives of their countries, the guys in Brussels are all co-opeted into the ruling elite’s social systems so they end up worrying about protecting pirates and gnomes bent on looting whole countries for their own profits.  This rage will have consequences as History tells us over and over again.

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ΩΩHere is what is going to happen to the UK and US retirees:  Hungary Follows Argentina in Pension Fund Ultimatum (Update2) – Bloomberg.com

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  • Economy Minister Gyorgy Matolcsy announced the policy yesterday, escalating a government drive to bring 3 trillion forint ($14.6 billion) of privately managed pension assets under state control to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim….Hungary, the most indebted eastern member of the EU, is following the example of Argentina, which in 2001 confiscated about $3.2 billion of pension savings before the country stopped servicing its debt. The government in Buenos Aires nationalized the $24 billion industry two years ago to compensate for falling tax revenue after a 2005 debt restructuring.

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ΩΩThe rich gave themselves tax cuts while putting all of the SS tax money into the General Fund and now are telling us in no uncertain terms, this retirement money is gone and we have to cut Social Security.  Not only that, they will steal PRIVATE pensions, too.  Not to mention, they will steal all gold hoards, too, you will see. Why do I say this: simple!  History clearly tells us, this is what they do!  So they will do it!

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ΩΩOf course, the US elites will loot retirees.  They don’t care if retirees die, these people are, to them, a waste of space, natural resources and they vote so eliminating them via starvation and lack of medical care and heating/cooling is obviously a great plan if one is a heartless bastard and what are our corporate heads and bankers, anyway?  Bleeding heart liberals?

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ΩΩAnd in the UK, they are going to tell the children, no more extra bowls of gruel for you:  Child benefit should be frozen, says Frank Field – UK Politics, UK – The Independent.  This comes on the heels of demands there be more inflation!  The Federal Reserve wants more inflation, too, coupled with cuts in social services and retirement funds!

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ΩΩOur cities are dying:  Camden, America’s Second Most Violent City, Lays Off Half Of Police Department.  When NYC reduced police protection, I had to form a private street patrol.  I had an alliance with the Guardian Angels who patrolled the crime-ridden subways and since my street fed directly into the subway below, we had a great alliance for tracking criminals seeking to run down there to get away from us above.  Well, I earned the name, ‘Housewife from Hell’ from the Daily News back then.

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ΩΩWe will all have to be Housewives from Hell if we want to survive in the future.  Since the plan is to openly slash the very last feeble defenses protecting our jobs and things WILL get worse, since the Democrats don’t care any more than the GOP about saving our nation, we will be on our own eventually and trust me, it isn’t impossible to live this way if you can form militias like I did (yes, we did use muscle, we didn’t simply report things, we actively battled people and I personally, brought criminals physically down) then we will be looted by the underclass which is going to be put on starvation rations soon.

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ΩΩOf course, the best thing is to stop the very rich.  They, in turn, are prepared to turn our military, which has been turned into a mercenary gang, against the population in the cities and streets.  We shall see which side our military chooses.  Nothing disgusts me more than to see the former Ron Paul Tea Party group taken over the the GOP and turned into a fighting force for the looters and pirates.  But then, Fox TV is run by a foreign pirate.

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ΩΩNow for some Madoff news, from the UK:  Madoff trustee sues JP Morgan for $6.4bn | The Guardian

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  • A lawsuit filed in New York by Irving Picard alleges the bank ignored well-documented suspicions about Madoff and continued to collect fees and profits….He said that while many financial institutions enabled Madoff to carry out his fraud, JP Morgan was “at the very centre of that fraud, and thoroughly complicit in it”. It was primary banker to Bernard L Madoff Investment Securities (BLMIS) for more than 20 years, and was responsible for knowing the business of its customers, he said.

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ΩΩI found this wonderful photo from Ireland:  Ireland’s austerity plan: the nation’s pain in pictures – Telegraph.  And what is the difference between Madoff and say, Dimon?  I see none at all.  When are we going to see the top group at that very old pirate bank, JP Morgan, do the perp walk?

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ΩΩHasn’t even one had sex with a Swede and had the condom tear?  Come on, Interpol!  Go find these poor women and bring down these miscreants!  Well, these bankers certainly raped SOMEONE!  Lots and lots of people.  Male, female, young and old, widows and orphans, too.  They raped everyone they met.  They are perhaps the biggest rapists on this planet. They rape entire countries!  Good lord, arrest them already.

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ΩΩChina stock crash reportedly sparked by bank Caixin Online – MarketWatch

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  • In a commentary contributed by Shi Jianxun, a professor at Tongji University, an unnamed international investment bank allegedly sent emails to investors, advising them to sell their shares. The article, titled “Where is China’s stock market heading in the next two decades?” said that rumors of impending stamp taxes also sent the market into a tailspin.On Nov. 12, the Shanghai Composite Index (CN:SHCOMP 2,842, -1.18, -0.04%)   fell 5.16%, the largest single-day drop in 2010 so far. The China Securities Regulatory Commission has started a probe into the alleged manipulation and has not released their findings.  On Nov. 12, the Shanghai Composite Index (CN:SHCOMP 2,842, -1.18, -0.04%)   fell 5.16%, the largest single-day drop in 2010 so far. The China Securities Regulatory Commission has started a probe into the alleged manipulation and has not released their findings.

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ΩΩAll of the stock markets are prone to collapse since they are gambling houses run on emotions and out of control computers.  Combine computers with fear and you get sudden rises and falls.  This hysteria needs something to slow it down, not speed it up. The macro-fast speed deals that are done nonstop by the top international investment houses like JP Morgan and Goldman Sachs are destablizing all financial and market systems and everyone else imitating them are amplifying this to a great degree. Soon, we will reach infinite speed since the only thing slowing down stuff now is the speed of light.  The one thing we must fear is the Goddess of Infinity.  She can’t operate in reality for all things are limited in reality.

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ΩΩBut in numbers?  This is how she exists: she is numbers.  Very dangerous indeed.  And the one thing that amuses her is to lure humans into the infinity cycle where they think they will be infinitely rich and thus, remain in her grip.  And then, when real limitations rear their ugly heads, things crash.  All systems running to infinity suddenly all collapse when it becomes impossible to translate infinite numbers into any real, existing thing whether it be micron units of germs or the entire size of the universe itself.

sunset borger

 

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10 Comments

Filed under .money matters, Free Trade

10 responses to “South Korea NAFTA Deal Will Kill More US Jobs

  1. nah

    Ross Perot, the Ron Paul of the Clinton/Bush Sr election. A man I voted for, incidentally, due entirely and only on the issue of trade. Note how Levin, Michigan’s Senator, is pretending this deal will create jobs in his ravaged state. But this is pure Potemkin window dressing.
    .
    the worst part is the Republicans TO THIS VERY DAY CRUCIFY HIM to get elected… fools like rush limbaugh lamenting 3/4 George Bush Presidencys and the detrimental effect it has had on the US… so the Republican/Tea party blindly obeys and supports their failed policys because
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    AT LEST THEY ARENT DEMOCRATS
    -or Ross Perot
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    The caputured MSM US government line towing press is a disgrace of its profession every time i go to a foreign paper to get meaningful coverage on US issues… is it a head in the sand or just a late to the party viewpoint they want to embody
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    Just the facts is bullshit if you just spew AP… hear no evil see no evil speak no evil facts…. RIIIIIGHT
    .

    .
    the most we can do

  2. Johnny

    Its going to take a third party made up of Indies, and Dems to oust the elite. I just can’t think of one person, but thats not to say he/she isn’t out there…………..waiting.

  3. PFO

    Hello Elaine,

    Outstanding analysis of our trade foibles!

    For many years I was involved with the development and management of US foreign trade zones:

    http://ia.ita.doc.gov/ftzpage/

    This program, established by FDR in 1934 and based on the Hanseatic Cities of Germany:

    http://en.wikipedia.org/wiki/Hanseatic_League

    has created/preserved many thousands of jobs and billions in wages and economic activity.

    As an example, the NUMI auto plant in Fremont, California is a sub-zone of San Jose FTZ 18. GM and Toyota supplied parts to manufacture, I believe the ‘Tercel’ and the ‘Prism’ GEO cars. They must have been well-built because my neighbor has a 1991 Prism that looks new.

    In the late 1980′s and early 1990′s the Yen-Dollar exchange and low cost of manufacture at NUMI allowed the export of these cars to Japan!

    E.g. REAL FREE TRADE!

    ALL Japanese auto plants in the South are active foreign trade zones and NONE of the US plants are now active!

    In your neck of the woods there are four trade zones:

    FTZ No. 37 Orange County
    Grantee: County of Orange
    Orange County Foreign Trade Zone
    255 Main Street
    Goshen, NY 10924

    FTZ No. 121 Albany
    Grantee: Capital District
    Regional Planning Commission
    One Park Place
    Albany, NY 12205

    FTZ No. 201 Holyoke
    Grantee: City of Holyoke
    City Hall, Room 10
    Holyoke, MA 01040

    FTZ No. 268 Brattleboro
    Grantee: Brattleboro Foreign-Trade Zone LLC
    8 University Way
    Brattleboro, VT 05301

    You and your associates can store, assemble or manufacture and distribute foreign merchandise customs duty and local-state-federal tax free!

    The greater the domestic value [materials/labor/overhead] of the finished product the lower the final customs duty or tax!

    AGAIN, REAL FREE TRADE!

    Finally, you can designate virtually any industrial or commercial site as a new or sub-zone of an existing FTZ. Perhaps the:

    Berlin, New York Freeport

    will be the most successful FTZ in the Northeast?

    Regards,
    PFO

  4. Steve Murgaski

    About trade: the numbers gloss over the importance of exporting value-added goods, as opposed to commodities. Even if the US exports enough beef to balance its imports of Samsung electronics, that still wouldn’t be a good deal in the long-run. Commodity prices have a bad habit of fluctuating unexpectedly. American cowboys could find themselves unemployed much more easily than Samsung’s computer engineers, because of the vagaries of weather.

    Another point is that a lot of South Korea’s industries are foreign owned. They were badly hit by the late-90′s Asian Financial Crisis. Some American investors probably make a lot of money out of growth in the Korean economy. But that wouldn’t translate into American jobs — unless you believe in trickle-down economics.

  5. emsnews

    Evidently, South Korea won’t let in ANY beef. And is already screaming about letting in ANY US cars!

  6. PFO

    Hello Elaine,

    YES, it appears Korea is not interested in importing USA manufactured cars:

    http://adage.com/article?article_id=66731

    http://www.asiafinest.com/forum/lofiversion/index.php/t181296.html

    All the more reason to introduce Daiwoo, Hundai and other Korean monopolies to the tax advantaged benefits of USA foreign trade zones.

    There are over 300 FTZ’s all over the country, any dozen of which include facilities to accommodate assembly/manufacture of GEO’s KIA’s, etc. with 50% USA components and 50% Korean components and 100% USA Labor.

    Simply, FAIR TRADE!

    Kindest regards,
    PFO

  7. Steve Murgaski

    “All the more reason to introduce Daiwoo, Hundai and other Korean monopolies to the tax advantaged benefits of USA foreign trade zones.”

    These types of ‘zones’ are notorious for bad working conditions. It sounds like selling bits of the country to transnational companies, to bribe them to invest there. “Don’t worry about taxes, or duties, or labor laws. In your zone, you’ll be king. Just please please please build factories there.”

    Is the US really in such a tough spot that it must do that? Or was Naomi Klein dead on with her Shock Doctrine idea?

  8. emsnews

    Correct, the trade zones are pure third world gaming. Won’t fix what is wrong. Why not just slap realistic tariffs on things they import which we can produce here, after all?

  9. PFO

    Hello Elaine & Steve,

    Re: “These types of ‘zones’ are notorious for bad working conditions. It sounds like selling bits of the country to transnational companies, to bribe them to invest there. “Don’t worry about taxes, or duties, or labor laws.”

    FTZ’s have as good/bad working conditions as the quality of the management’s compliance with environmental/labor/US Customs cargo security & operations codes. And BIG FINES for any mistakes keep most on the up and up!

    Most FTZ land/plant is owned by city’s, county’s, ports, or EDC organizations. Most sub-zones are private companies. As far as I know, only the Japanese auto plants in the South may be foreign owned.

    Ideally, a Cooperative of Americans would own an FTZ facility and joint-venture with foreign groups or corporations:

    http://www.mondragon-corporation.com/ENG.aspx

    Customs duty and local, state & federal taxes are due when the foreign merchandise leaves the zone for import into the USA. If exported, no duties or taxes apply like NUMI.

    These tax advantages, combined with superior technology and infrastructure helps American workers stay competitive with workers in other countries.

    “In your zone, you’ll be king. Just please please please build factories there.”

    Smart FTZ Managers know who is importing goods in their area and approach the American buyer first to see if they need FTZ storage of JIT inventories.

    Thereafter, the American company approaches their foreign suppliers and promotes their manufacturing facility, designated as a sub-zone or non-contiguous site.

    This keeps Americans in the driver seat and enhances our competitive advantages vis-a-vis the NWO.

    Elaine wrote: “Correct, the trade zones are pure third world gaming. Won’t fix what is wrong. Why not just slap realistic tariffs on things they import which we can produce here, after all?”

    Elaine, Hong Kong, Singapore or the Hanseatic Cities of Hamburg, Bremmerhaven & Hannover are hardly ‘third world’. They are free trade zones with their own banks, governments/regs., world-class manufacturing and infrastructure and even their own MONEY!!

    Nothing but fear and ignorance stops Americans from living the same way.

    Permit me to fix your last sentence:

    Since our kleptocracy won’t slap realistic tariffs on things they import which we can produce here; Why not just designate our local American companies as part of the local foreign trade zone, so they can enjoy productivity & tax advantages over their foreign competition after all?

    Thereafter, BUY AMERICAN becomes a powerful option to dealing with that kleptocracy.

    Regards,
    PFO

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