AMERICA – ENGINE TO THE WORLD
So America buys 350 BILLION dollars more than it sells to China. It buys 67 Billion MORE from Mexico than it buys from Mexico. Said another way America is the source of the two nation’s stability and wealth. A Half Trillion in annual buying in only two nations.
However, the USA can’t buy more than it sells forever and time is running out to rebalance trade accounts. The problem is world regulations. Today it is every nation for itself. This breeds trade wars.
When one looks at trade wars we are not trying to avoid a trade war globally we have been inside one for years. The USA has lost the trade war by assisting globalization to stabilize nations. The desire to build FULL PARTNERSHIP has failed as a USA invention due to a lack of FAIR TRADE regulations.
Today the digital marketplace has removed the ability of old regulations created in another age and time, to adapt to the new conditions of world trade.
To accommodate a more desirable FULL PARTNERSHIP between nations a new model for regulatory framework must be initiated. We have advocated here repeatedly a need to develop a three-year ECONOMIC CONSTITUTIONAL CONVENTION between the G 100 nations is the missing mechanism required. This ECONOMIC CONSITITONAL CONFERENCE would seek to develop a NEW REGULATORY FRAMEWORK for global regulations that include investment and capital flows. The new REGULATORY FRAMEWORK proposed would then move into adoption by G 100 nations.
The treaty resulting would install a NEW Global Regulatory Framework for economic prosperity where we all were invested in one another inside a new regulatory framework of FULL PARTNERSHIP and FAIR TRADE. Speculation influences would be finally contained. Capital markets would reform into ethics and integrity only a NEW FRAMEWORK can produce. INTEGRITY would be a level playing field and retruned to the marketplace.
Trade imbalances would be inside the NEW FRAMEWORK rebalanced over time.
The trade wars that have created HALF A TRILLION dollars ( US ) in trade imbalance between only two nations – the two largest – define the unwanted dependency one nation to the other – that breeds instability SUPER CRASH and world war if not repaired.
Time is running out.
The insanity of the OLD REGULATORY FRAMEWORK per digital and internet ages of today have passed their adoption point to the needs and requirements of nations in our age of SUPER CHANGE. Today’s trade wars build spirals of DISTRUST and OUTCOMES that are not desired. Policy for nations rests on OUTDATED REGULATORY FRAMEWORKS for a digital entwined world of trade.
The box top rules for world trade are obsolete.
A NEW FRAMEWORK is required.
If we compete we all lose.
If we cooperate we all win.
But WILL WE?
That is the question.
Berny Dohrmann – Illuminating the Elephant in the room – always economic— February 15, 2017