Open markets, not open borders

caravan

During this midterm election cycle in the USA, much of the media spotlight has been on the migration caravan from Honduras marching through Mexico to “confront” the immigration policies of the US government.

It is curious to observe the vitriol the Democrats are casting on the Trump administration with accusations of racism and xenophobia in immigration issues.  Their beloved ex-president Obama expelled more Latin illegals than any Republican president of recent office and arguably did more to set race relations back 60 years by almost always siding with ghetto thugs over police in so many race driven riots and disruptions during his eight years in office. Now that Trump is taking a strong position on defending the borders, the main reason he got elected in the first place, the Liberals are trying to paint him as some tyrant who hates foreigners…especially Latinos.

While we don’t always like his antics or positions…on immigration, he is right on to more vigilantly enforce immigration and border laws that so many previous administrations have not. The “bleeding heart” liberals are obviously pandering to poverty in order to get more votes and power.  The recent flaming of class warfare is primarily about the fight between socialism and capitalism…problem being that in most of the world we have no pure forms of either.  We basically have various forms of Big Government controls via high taxes and welfare in order to meet all the false promises and hopes these governments run on.

The Trump administration is right to be tough on borders and immigration.  At the same time, their penchant for trade wars and pushing global tariffs is ill-advised. The false brashness regarding the USA economy is alarming.  While markets and job growth may be at all-time highs compared to recent administrations, the REAL economy and plight of the middle and lower classes in the USA have not improved.  The chasm between rich and poor as well as the growth of the military industrial complex are growing exponentially and heading for a significant implosion of “voodoo” economics that will devastate stock markets and currency positions. The reality is that the USA debt continues to grow by 1+ Trillion dollars per year while typical American’s personal debt ratios are also increasing at alarming rates.  Many knowledgeable and conservative economists are predicting a recession (no one calls it “depression” anymore) within a couple of years.

The only way we see out of this future implosion of economies is to start growing markets and producing more income for USA companies and small business.  Pure capitalism is the best medicine for paying off debt and producing jobs and profits.  FED manipulations of money supply and interest rates do not produce profits.  It only falsely staves off the day of reckoning that most rational people know is coming.

While we applaud the administration’s pursuit of “fair deals” in trade and diplomacy, we don’t think aggression, taxes, and tariffs are the way to build economic coalitions in the current world order.  USA protectionism will just continue to isolate the US economy even more than it already is.  Tariffs hurt the working class in foreign countries much more than the corporate or ruling government classes in China, Russia or elsewhere.  As “the people” suffer more based on USA economic aggression, it just reinforces the power base of the tyrants who run those countries.  It simply tarnishes the USA image to the poor masses of the world and also hurts many legitimate and once profitable USA companies and global enterprises who build markets and profits based on steady production and consistent tax regulations.  When any government unilaterally alters international customs or trade agreements, it usually comes at a high cost in jobs and profits in private business.

To that end, we encourage the Trump administration to be tough in negotiations and new trade deals but don’t just blindly blowup decades of deals and relationships that are having many unintended consequences.  No matter what the FED or administration says, the USA economy is on very fragile ground.  Sure, the rich global corporations are doing “better” for now…but the real economy is getting dicier every day. The USA and world are more divided every day on what the solution is.

We fall on the side of capitalism over socialism…but you cannot “legislate” based on this simple divide.  We need to UNIFY the world on capitalist principles, not “divide and conquer”.  If we keep dividing humanity further between the haves and have-nots…soon NO ONE will have any semblance of security or order within their borders.  The rich will live in walled enclaves paying for military protections while the poor masses will be marching around those “walls” until socialism and the welfare state takes its course.  Current structures will collapse and a new order will arise.  Let’s just hope it is a new world of real money, real education, and real growth for all.

Until the world is united on these governance issues, we must secure our borders and put our own USA economic house in order.  At the same time, we must compete and profit through open markets and sound economic principles so that everyone in the world can compete, profit, and survive based on equal market opportunities…not just for the US of A. We need jobs for Hondurans IN Honduras…not the USA.  At the same time, we need continued opportunity in global markets including China and other places this administration is trying to make economic war with.  When you lash out versus negotiate, you are setting the table for a major collapse of the global economic system.  While in the long run that may be what is needed to rebuild something real, it is going to be devastating for traditional economic systems of the world, especially the “West”. Isolationism is NOT the future.

Get ready…the change is going to come.  For now…secure the borders…but letting business flow outside of them is the fastest way to securing them.

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