Subscribe free to our newsletters via your
. Military Space News .




SUPERPOWERS
Outside View: Obama appeasement of China, Japan wrecking recovery
by Peter Morici
College Park, Md. (UPI) Jun 3, 2013


disclaimer: image is for illustration purposes only

The U.S. Commerce Department is expected to report Tuesday the April deficit on U.S. international trade in goods and services was $41.2 billion, up from $24.9 billion when the economic recovery began. The Obama administration's ill-conceived energy policies and appeasement of China and Japan are responsible for this jump in the trade gap and the slow pace of economic recovery.

Household spending has recovered but too many consumer dollars pay for imported oil and consumer goods and cars from China and Japan. Whereas consumer spending is up 16 percent, the trade gap has jumped 36 percent.

Businesses, consequently, remain pessimistic about demand in the U.S. market and reluctant to invest. With the majority of U.S. businesses subject to higher personal, as opposed to corporate rates, more onerous and costly regulations and paying more for employee healthcare, they remain reluctant to hire and continue to offshore jobs.

Sequestration only subtracts about $42 billion from actual government spending this fiscal year and its impact pales by comparison to the $225 billion increase in the trade deficit and the $150 billion January tax jolt.

Hydraulic fracturing -- fracking -- in the Lower 48 hasn't delivered enough new oil, and a full push on U.S. potential in the Gulf of Mexico, off the Atlantic and Pacific coasts and in Alaska could cut import dependence in half. Shifting federal subsidies from electric cars, wind and solar to more fuel efficient internal combustion engines, plug-in hybrid vehicles and liquefied natural gas in rail and trucking could slice imports another 25 percent.

Lower natural gas prices substantially improve the international competitiveness of industries like petrochemicals, fertilizers, plastics and primary metals. However, the U.S. Department of Energy's push to boost liquefied gas exports will handicap growth and create millions fewer jobs than keeping the gas at home for manufacturing and alternatives to diesel in transportation.

China systematically undervalues its currency against the dollar to keep its goods cheap in the United States. China steals technology, subsidizes exports and imposes high tariffs on imports, while effectively distracting the Obama administration from these commercial issues with measured intransience on cybersecurity and nuclear issues in North Korea.

Other Asia governments, most recently Japan, have adopted similar currency strategies to boost exports. For example, the jump in the value of the dollar against the yen gives Toyota at least a $2,000 advantage pricing of the Camry against the Ford Fusion. That may not show up in the list price but it gives Toyota's importing arm in the United States the latitude to pack cars with better features and more aggressively discount.

No surprise the trade gap with Japan is up about 350 percent since the economic recovery began and the full brunt of the cheap yen policy is yet to be seen.

Economists across the ideological and political spectrum have offered strategies to combat predatory currency policy and force China and others to abandon mercantilism. However, China, Japan and others, offering only token gestures and deflecting rhetoric, exploit U.S. President Barack Obama's weakness on economic issues -- the Obama policy of appeasement is wrecking the U.S. recovery.

Cutting the trade deficit by $300 billion, through domestic energy development and conservation, and forcing China and others' hands on protectionism would increase gross domestic product by about $500 billion a year and create well more than 4 million jobs.

Cutting the trade deficit in half would raise long-term U.S. economic growth by 1-2 percentage points a year. But for the trade deficits of the Bush and Obama years, U.S. GDP would be 10-20 percent greater than today and unemployment and budget deficits not much of a problem.

(Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. Follow him on Twitter: @pmorici1)

(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

.


Related Links
Learn about the Superpowers of the 21st Century at SpaceWar.com
Learn about nuclear weapons doctrine and defense at SpaceWar.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





SUPERPOWERS
Colombia heads toward NATO membership
Bogota (AFP) June 1, 2013
Colombia's defense ministry later this month will sign a cooperation agreement with NATO, in hopes of joining the international military alliance, President Juan Manuel Santos said Saturday. "In June, NATO will sign an agreement with the Colombian government, with the Defense Ministry, to start a process of rapprochement and cooperation, with an eye toward also joining that organization," Sa ... read more


SUPERPOWERS
US to send Patriot missiles, F-16s to Jordan for drill

Russia developing counter-measures for European anti-missile shield

Jordan seeks to deploy Patriot missiles: minister

Lockheed Martin Completes Milestone for Training Element of United States Ballistic Missile Defense System

SUPERPOWERS
US slams Russia over Syria arms deal

No Russian S-300s to Syria before 2014: Israel's Yaalon

Russia to send Syria missiles as spillover fears grow

Defense Acquisition Board approves Standard Missile-6 full-rate production

SUPERPOWERS
Incoming Pakistan PM Sharif condemns drone attack

SES Enables Remotely Piloted Aircraft System In Non-Segregated Airspace

MiG Signs Attack Drone Research and Development Contract

Drone death a blow to Pakistani Taliban -- and to peace efforts

SUPERPOWERS
Mutualink Platform to be Deployed by US DoD during JUICE 2013

General Dynamics to Deliver U.S. Army's Newest Tactical Ground Station Intelligence System

Boeing-built WGS-5 Satellite Enhances Tactical Communications for Warfighters

US Navy And Lockheed Martin Deliver Secure Communications Satellite For Mobile Users

SUPERPOWERS
Raytheon books Paveway II contract

New Nerve and Muscle Interfaces Aid Wounded Warrior Amputees

More than 60 countries sign new arms trade treaty

Warner Robins Air Logistics To Get Radio Frequency Threat Simulator

SUPERPOWERS
India promises to clean up military corruption

Thales delivers final Hawkei test vehicles

Netherlands, Germany move to enhance military cooperation

Helicopter, encryptian device deals for EADS companis

SUPERPOWERS
China's first lady shines on LatAm trip with Xi

Outside View: Obama appeasement of China, Japan wrecking recovery

US might support Colombia NATO bid: US official

Bradley Manning: Heroic whistleblower or US traitor?

SUPERPOWERS
Shape-shifting nanoparticles flip from sphere to net in response to tumor signal

Gold nanocrystal vibration captured on billion-frames-per-second film

Understanding freezing behavior of water at the nanoscale

Kinks and curves at the nanoscale




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement