Ultimate Team Sport

Political Parties

Ultimate Team Sport

Chinese Trade War

By Stephen L. Wilmeth

            This morning’s spiritual missive from the eastern plains blunted the disgust of watching the news.

            Pat’s ministry has become a welcome pause, a reflection of more important things, and a lesson in patience. In succession, there was the message to seek likeminded brethren, avoid every kind of evil, speak with one voice, choose our words wisely, and glorify only that which is lasting and good.

Indeed, every one of us could use his daily reminders of … Him.

 Ultimate Team Sport

 The federal government is run not by likeminded leaders, but professional sports teams. In the case of today’s Washington, it isn’t the Crips and the Bloods, but it is the dems and the repubs. Neither are blessed nor sanctioned by the Constitution, but the manifestation of the outcome is the government we have today. It’s horrid and the disgust is deepening in the hinterland.

It’s all a big game. In fact, it is the ultimate team sport.

The scribes, the sponsors, the PR departments, the handlers, the directors, the producers, the coaches, and the players are all part of the ongoing saga and drama. The script is most basic. It is a collage of moving colors elevating dissention and unrest. The deeper the divide the better the ratings and the money.

Television, social media, and electronic communication are the foundations of this modern coliseum. The realization is that the two parties aren’t playing to allow this democratic republic to win. The dems are playing for complete ouster of their counterparts and the repubs are simply too inept to counter the charge.

There are now 5,000 illegals released into the greater community where I live. Driving down Picacho yesterday morning I saw a group of 22 of them walking west. Where they were going was anybody’s guess perhaps least of all themselves. How is it possible that the government that rules my country allows this to take place?

Of course, the answer to that is the pay for play of the ultimate team sport. No, it isn’t the Bloods and the Crips, but it might as well be.

Chinese Trade War

It is interesting watching the ongoing drama of the Chinese trade war.

In general, the greater industry where I ply my trade is crying uncle. The press and the scribes are throwing darts with increasing ferocity. Certainly, the bean farmers are feeling the pinch, but they are feeling the pinch not just because of the growing trade war. Theirs is an arriving tsunami of colliding moons not the least of which is their amazing ability to produce product.

American farmers and ranchers are utterly superb producers and the truth of the matter is the world would be a much less hospitable place if they weren’t, but fair is fair.

The trade deficit with China in 2018 was nearly a half trillion dollars. Our president isn’t trying to reach parity in the discussions. He is demanding that the deficit be cut to $210B in two years. That would equate to something like 2.3% of that country’s GDP equivalent be applied to additional American products. Who should object to that?

Seemingly, in addition to the Chinese, an antagonistic political team does.

The next issue of greatest importance in the talks is the matter of currency manipulation. The simplistic explanation of this is the direction of the valuation (downward) which ultimately does two things. Internally, China exchanges its own currency for the dollars collected and then purposely reinjects dollars back into circulation in America (through the purchase by the Chinese government in stocks and American debt) where the money is made available for repeat purchasing. At the same time, the value of their money is diminished in the internal trade because more Chinese currency is in circulation. Their yuan becomes relatively weaker against our dollar. This makes their products relatively cheaper to buy than American counterparts.

The offset in more purchases can also effectively diminish the impact of any tariffs that are imposed by the U.S., but something needs to be done. The drain of American wealth is simply too lopsided. Who should object to that?

Seemingly, in addition to the Chinese, an antagonistic political team does.

The third issue of the negotiation trifecta is the matter of intellectual property theft. This isn’t just a spying matter. This is the issue of Chinese law that requires full disclosure and “a piece of the action” for certain products entering their country. It is orchestrated and mandatory extortion. A boatload of soybeans normally doesn’t contain any secrets, but a load of tractors does.

Chinese law requires that when that kind of product docks on its shores it must arrive with a Chinese partnership embedded. A full disclosure of certain property rights must accompany the agreement. Our president says the technology transfer in the process costs our nation more than the actual trade deficit and may run as high as $600B per year. Beijing responds by insisting the technological transfer and intellectual property transfer is greatly overstated.

Negotiations this past week have hit a wall, and this is a primary issue. Their representatives are adamant. Discrepancy is huge and there is no common understanding on the IPR issue. China can and will do nothing to address problems that do not exist.

There is little reason, though, to trust their system. Their judicial protectionism, challenges in obtaining evidence, small damage awards, and a real bias toward American firms are real. The process is simplistic. If an American company wants to sell its proprietary product in China, it must seek and sign a Chinese joint venture partner and open its archive of records for partnership purview.

Our president thinks that is nonsense. Thank goodness a like minded brethren has arrived who worries about our interests instead of the outcome of a tedious team sport victory.

            Stephen L. Wilmeth is a rancher from southern New Mexico. “Our beef is every bit as good as our soybeans!”