It is my understanding that China holds trillions of dollars in T-thingmajiggers which could have a devastating effect on the economy. But maybe that’s what is needed is to call their bluff.

We don’t need open trade with China at our expense. We do need close ties with our northern and southern neighbor and again I agree, we need to throw all this PC crap out the window and get trade negotiators to the table that will not give concessions as easily as they have in the past

As far as taxes, tariffs, trade agreements and subsidies go; they’re all intended to level fields but they don’t always work as intended. As in the case of targeted taxes, any attempt to manipulate free, open and unregulated trade through the means of incentives or disincentives will always result in unintended consequences. But, of course, free and unregulated trade is a pipe dream.

All that said, it doesn’t mean that we should stop trying to build a better world economy; and, in my opinion, opening the door to new possibilities has a greater upside potential than attempting to protect the status quo.

[quote comment="304"]The days of isolationism are behind us. Like it or not, we live in a world economy. And that can be a good thing if we make it work to our advantage.[/quote]

True, But it seems we always get the short end of the stick on any trade agreement or we are depending on someone else to open their markets, which they don’t (Japan, China, etc…) While we remain wide open, setting the example, but getting taken advantage of at the same time.

Now China owns enough of the US through purchase of our T-Bills that were they to dump them on the open market, it would destroy the American economy and life as we know it. And it would have a domino effect. In other words, China has us all by the short hairs.

It wasn’t NAFTA that caused this, and we can’t blame NAFTA. NAFTA is an agreement between three countries. The US, Canada and Mexico.

We got into this predicament through granting China MFN (most favored nation) status as well as other trade agreements and by our own inherent greed. The same happened with Japan. We helped build them into the economic powerhouse they are today.

We have to get with the program. The days of isolationism are behind us. Like it or not, we live in a world economy. And that can be a good thing if we make it work to our advantage.

I heard today that Richard Nixon gave China the Trade agreements THEY wanted so they wouldn’t invade Taiwan. No wonder it’s one sided and we have such a trade deficit.

China is going to build an auto plant in Tijuana to make cars to be sold in the US. Thanks to NAFTA. Mexico might get a few jobs, but at what cost?

NAFTA is just not right. I agree we should do something for North America, but all we did was help China more.

We are far beyond the point that we can afford to maintain the isolationist, protectionist attitude that a minority of very vocal Americans have. We are in a global economy, like it or not.

I fully expect the outcome of the GM strike to cause the company to move some production to Mexico and Canada. Canada will be blameless and Mexico will take the brunt of the blame when in reality, it is the workers and the union which will have caused the job losses.

Some may not realize it, but GM’s wage and benefit package costs the company $78.00 per hour per worker as compared to $49.00 for Toyota, yet the wage packages are comparable. A company cannot survive with that great a difference in costs and stay competitive. Do we want to blame NAFTA and the Mexicans on this? Some will but the reality is, Toyota has a better business model.

I’m looking forward to more of your observations on this