It's a Bad Time for a Trade War People

Good Morning Readers! I thought I might be a little less angry today - compared to yesterday's rant - by discussing a topic and taking a position that may shock some of you, at least those who consider me a radical, Republican-Bush-hating menace to society. Believe it or not, I plan to defend a program created by the Bush Administration, and one that unions despise. I know, it shocks me too.

It involves the right of Mexican trucks to enter the United States. The program started under the Bush Administration and was bitterly opposed by many Democratic lawmakers and by the Teamsters Union. Lawmakers are preparing to cut off the money for the one and a half year-old pilot program that opened the way for up to 500 Mexican trucks from 100 operators to drive deeper into the United States.

Originally the U.S. has allowed only a few Mexican trucks to drive beyond a southern border buffer zone, although it agreed under the Clinton Administration, under the North American Free Trade Agreement, to allow Mexican trucks full access to U.S. roadways beginning in 1995.

As far as I can tell from my research, Mexico allowed the same access for U. S. truckers. Fair is fair! President Clinton negotiated and signed the agreement, and unless they start to pick and choose NAFTA clauses too, it's up to us to keep it. Congress, especially Democrats, must give in on this one. Mexico can take retaliatory action by placing very expensive tariffs on U.S. goods.

Who knew, but after Congress announced its intention to kill the program last week, Mexico said it would increase tariffs on 90 industrial and agricultural goods, likely to include politically sensitive farm products. John Deere and the rest of agricultural America are already hanging by a thread. Congress can be so stupid some times.

You see, Mexico was smart and thought ahead by obtaining a judicial ruling in 2001 under the North American Free Trade Agreement (NAFTA) allowing it to impose sanctions, so Congress is playing with fire - an especially hot fire during this horrible JOB KILLING recession. How can you weigh the Teamsters against the farm workers? It doesn't work that way. We have to find a better solution.

We cannot afford sanctions from one of our LARGEST TRADING PARTNERS at this time! It's too risky for rural America. Thousands of jobs are at risk. (Btw, screw you Republicans who accuse me of being a West Coast elitist. I do care about the red states too, even if they don't know how to vote properly.)

The sanctions, which Mexican officials say are set to be imposed later this week, will be one of the largest acts of retaliation against US exports. US goods exports to Mexico totalled $151.5 BILLION last year. On Monday, Gerardo Ruíz Mateos, Mexico’s economy minister, said: “We believe that the action taken by the US is wrong, protectionist and in clear violation of NAFTA.”

The White House and U.S. trade representatives are supposedly examining all possible options, but but that won't help keep American JOBS when the Mexicans decide to make good on their threat. The only option is for Democrats to tell the unions that farm jobs are important too, and that sometimes one union has to BACK DOWN and try to solve this problem in a more creative win-win fashion - such as help the Mexicans improve their trucking industry, or negotiate benefits for our truckers in Mexico. There must be a better solution.

The Senate is considering a $410 billion House-passed spending bill that halts funding for the Mexican truck program. Two years ago, the Senate voted 74-24 to cut off the program's funding. Voting with the majority at the time were Barack Obama and Joe Biden.

Interestingly, now that George Bush is gone, Senate Republicans don't even plan to keep supporting the program. It makes you wonder whether they only supported the program to get the Hispanic vote in the first place - they could assume the Southern trucker vote was in the bag. That would be my guess. They're hard to figure out when it comes to this issue. They hate unions, yet they also don't like the idea of Mexican truckers taking American jobs.

They're sort of schizophrenic on this one. Border state Republican nut job Senator John Cornyn, R-Texas, who tried to keep the money flowing in 2007 on behalf of George Bush, is now giving up and moving on. Oh let's face it, they really didn't care in the first place. For them, it was all about getting a few labor, or worker-bee, votes from people who they think can't even spell trucker, must less drive one properly.

The really weird open question for me involves the union claim that Mexican trucks are unsafe. The unions are claiming that most Mexican trucks entering the US are run by so-called “drayage” operations that use older vehicles more likely to fail inspection tests. Scary, especially on wet roads!

However, it's still an open, and political, question because a study funded by the US Department of Transportation - under George "he lies too easily" Bush found that when comparing like with like, Mexican trucks were often safer than their US counterparts. Can we trust that report? My gut tells me no, but who knows. US trucks are run ragged and can look pretty rough sometimes. Regardless, the issue of truck safety is important and should still be resolved.

The Mexicans have been extraordinarily patient on this issue, and I think we need to address it for the good of the economy, for the Mexican and American worker, for the safety of American roads, and to stop a ridiculous new trade war. President Obama and Democratic leaders should come up with a big picture solution fast, and stop this before it gets any worse. They are our neighbors, our friends, and they deserve a reasonable solution.

Tuesday's Political Rant - Michael

It Seems History Has a Sense of Humor

Good Morning Bloggers - Well, the holidays are over - thank God - and now we begin to focus on the inauguration and the upcoming storm of activity by the new Obama Administration. Something tells me that's it's going to be a fascinating year of analyses, praise and criticism.

Before we get to the more practical matters of turning the Bush DEPRESSION into a RECESSION, I would like to comment on the state of the far right, or what some might call their EXTREME DENIAL and lack of support for change. There are many reports, and lots of FOX "News" coverage, about how Obama will be making a mistake if he tries to be "too extreme" in his policies.

They do credit him with appointing a "moderate" team so far, but they won't stop criticizing him for plans to push FDR-like programs. You know, health care reform and stuff that WE AMERICANS voted him into office to fix.

They also won't stop repeating their BS about HOW he was elected. Did you know that he was elected due to "white guilt" and a strange and "irrational" hatred of George Bush, and not for his policies or "socialistic" ideas? I know, it's news to me too. It seems they feel the American people really didn't vote for change. I know, I know, WEIRD!

Wow, it would appear the Republican far right has gone past denial into some sort of alternative universe. A good example of their extreme thinking erupted this Christmas with the release of a new CD by a leading contender to become chairman of the Republican Party, Chip Saltsman, featuring a parody song called Barack the Magic Negro. It's repulsive, but many of them think it's hilarious. I think it serves as a great port-hole into that other universe.

I'm proud to say that many leading Republicans were horrified after he distributed the CD, but I'm less proud to report that a reasonable survey of right-wing websites and news organizations show comments very supportive of the parody. Rush Limbaugh LOVES it. It would appear that far right Republicans seem to have trouble distinguishing between good parody and racism.

The Republican party needs to recover from HEAVY electoral defeats over the past two years, and it won't survive unless it reaches out to younger and ethnically diverse voters. So, what is their method of recruiting such voters? To release a parody mocking Barack Obama's ethnicity and skin color. Sung to the tune of Puff the Magic Dragon (also a parody), the lyrics have left most intelligent Republicans cringing.

Chip Saltsman, a former leader of Tennessee Republicans, who is seeking to take over the party's national committee, sent the CD to party members as a Christmas gift. But unlike him, few found it funny. Let's hope that Chip finds a new career, better suited to his talents. How about sewer worker, or Tennessee Klan leader?

Anyway, that CD is only one example. Others include the fact that Sarah Palin has been named "conservative of the year" by more far right Republican organizations than you can count. Just do a search, and you'll find there are too many to name here. You don't even hear John McCain being mentioned anymore.

It's all about her these days. The woman is an IGNORANT fool with little education and a love of killing things, and they love her. She knows NOTHING about the world, or the economy, and they LOVE her? What the hell is wrong with them? Did you know that her 2009 calender is a top seller on Amazon? Okay, I admit it, they scare the hell out of me.

I'm also very disturbed by the right's denial about America's new faith in Obama. They seem to think it's a media construct. They also keep saying they would have won the election if they had been "tougher," and "stuck to their conservative principles more." What the hell is wrong with the far right? They LOST because of that conservative hard-headedness. Most of America wants to come together, they want GOVERNMENT TO HELP THEM, and they refuse to see it.

I know I shouldn't care, because it is their funeral, but I still want to understand them. Why do they keep hitting their heads against brick walls? Why do they keep thinking that the majority of Americans want a Sarah Palin? Where are the polls that make them believe that BS? I don't get it. It's like 30% or more of the country is either retarded or mentally unstable, capable of believing whatever BS they want to.

Oh well, I'll have to let it go. Let's just watch them bash, crash and burn. The majority of us will move on to fix the problems they created. They will do what they do. Just like the Republicans who praised Hoover for years after he left office, claiming that the roaring twenties were the best years of America, the far right will continue to sing the praises of Bush and claim that Obama does not represent the true America.

The Bush Legacy Project will continue to spin, lie, and tell tall tales to small groups of Republicans who want to hear their version of history, because they don't want to face the truth about what really happened. Did you know Hoover was a great president? They say history will vindicate them, but we all know it won't. The rest of us can't afford to wait for them; we have to get to work fixing things.

Monday's Political Rant #1 - Michael

Update - Wow, many ordinary Republicans are defending Saltsman. I guess they're tired of hiding and finally want to come-out-of-the-closet to share their racism with the world. Smart Republicans know it's NOT a good strategy, because what some call a simple rejection of political correctness, most of the American people call ugly racism. Wow, you guys are screwed!

The Ominous Signs Keep Coming

Hello Bloggers - I've been saying it for a while, and I will continue to say it - the DOLLAR IS IN TROUBLE! Bloomberg is reporting this morning that the world’s biggest currency-trading firms say "the dollar’s appeal as a haven amid the financial crisis all but evaporated."

Come on people, do you need me to hit you over the head with a frying pan? If you want to grow your money over the next ten years, diversify your savings now or you will be stuck in cheap dollar investments. Think about it this way, people overseas invested in US/dollar investments because it was safe. Now it's not, got it? The dollar is one more victim of the nightmare that is George Bush.

"The U.S. currency slid to a 13-year low against the yen today and had its biggest one-day decline versus the euro after the Federal Reserve reduced its target interest rate yesterday to a range of zero to 0.25 percent, the lowest among the world’s biggest economies."

“Prospects ahead appear particularly ominous for the world’s reserve currency once global economic stability starts to build up.” The Fed’s debt purchases will cause the dollar to weaken to $1.4860 per euro, analysts led by Robert Sinche, New York-based head of global currency strategy at Bank of America Corp., wrote in a report yesterday."

Wow, it's happening even earlier than I thought. People are pulling their money out of the US faster now, and it will only get worse. I knew the dollar would collapse, but I thought people would wait until after the crisis calmed down a bit more. Oh well, at least the Republicans will have a harder time making the upcoming depression look like a problem for the Democrats. The earlier it hits the better I guess.

I don't know about my fellow Americans, but I'm looking at international investments, especially nations with strong natural resource holdings. It makes sense to look to nations/currencies that will BENEFIT FROM THE US SPENDING but NOT SPEND THEMSELVES.

Canadian-dollar investments/natural resource bonds look good to me. I'm also looking at Eurobonds. You can always come back home when things calm down. I'm only suggesting we don't get trapped. I'm looking north and overseas for my financial safety.

George Bush left so many problems, and according to most experts the only way to get out of the hole is to spend, so no matter what happens the dollar will suffer.

As always, I would like to thank my Republican friends again for electing MORONS who got us into this mess. Your HORRIBLE JUDGEMENT has led us to this crisis. I think you should all be BANNED FROM VOTING until we can repair the damage you've caused.

The signs keep coming people.

Thursday's Financial Rant #1 - Michael

Political Rant: Desperate GOP Hastily Calls Economic Crisis the "Obama Recession"

Good Morning Bloggers - I would like us to remember something important, because it might help us keep things in perspective as Obama assumes power.

Last Thursday, only two days after the presidential election, I heard a pundit on FOX "News" use the term, the "Obama recession." On the Stephanie Miller Show this morning she pointed out that Rush - the "drug-addled-gas-bag" - Limbaugh used the same term last Friday. I'll bet this is only the beginning.

I think it's reasonable now to assume that the Republican spin machine has started its job of trying to pin the blame for the economic downturn on our new president-elect. I think it's too early. They probably should have waited until he takes office. Oh well, they must know something I don't, or they've screwed-up.

Let's watch to see how much traction they get. Let's see if the term the "Obama Recession" takes hold. If they succeed, they will have once again pulled off one of their classic deceptions. Language is powerful people.

As Thom Hartmann says in his great book Cracking the Code, Republican propaganda turns torture into "enhanced interrogation" and borrowing money from our children and deficit spending into "taxes are evil." The list goes on and on.

It would appear they've set their evil sites on making Bush's bungling into Obama's personal recession. I guess time will tell if it works.

Monday's Political Rant #1 - Michael