US ports

[Chewbacca]

Originally posted by Memnoch: The problem though, Chewy, is that these days so much business is done globally - to keep certain things in-house when it's economically inefficient for them to do so will ultimately be to America's disadvantge. I read an article in the Boston Globe the other day about how the vast majority of ships used to supply the US military with material and equipment (fuel, etc) is foreign owned, because American companies have withdrawn from that market because they can't compete. Apparently if these ships were all withdrawn at time of war it would leave the US Navy at a critical point. If you go the full protectionism route you end up raising tariffs and breeding inefficiency into your domestic industry. The solution, if you want to keep things in house, is to develop these strategically important industries in such a way that to go in house is a logical business outcome, rather than a stopgap measure.

Yeah, I agree. Which is why earlier in the thread I proposed congress helping U.S. shipping industry with grants or loans.

In general I would only support the stronger protectionism when it comes to resources of vital national interest which are in danger of being lost. I believe our ports and certain shipping assets qualify in this scenario.

Blocking foriegn government ownership of these assets is a stop-gap measure and a correct one to make. Now that measure needs to be augmented with a long-term plan for economic success.

[Memnoch]

I totally agree that the purchase/retention of assets that are strategically important to national security should be financed by the US government (somehow).

The problem though, mate, is where to get the money. I understand that the US currently has a $805bn deficit, which I gather is largely because of: 1) a high US dollar; 2) many more import purchases to satisfy US consumer demand for (cheaper or better) imported goods, including oil; and 3) the growing need for the US to finance this deficit with money from abroad (which is why a lot of companies are starting to buy into the US.

We can't really devalue the currency because of inflationary pressures, but we need to get people to buy more locally made goods - which means we probably need a 25% increase in overall manufacturing capacity over the next few years. Plus if the currency drops it'll help our export industry but it'll make our interest payments to foreign lenders that much more expensive - and someone's going to have to fork out that money (probably us, the taxpayers).

Basically, we're in a really shyte situation because we buy heaps more than we sell, and this is growing and growing and growing.

Amazing how easy it sounds when we say we'll fix it...somehow, eh.

You can tell I've gotten to my Macroeconomic Policy stream at Babson, eh. What I've learned so far is the US is basically up kak creek without a paddle, pardon the French. Just another thing Geedubya and Congress have stuffed up, eh. That's why their politically motivated rhetoric these last couple of weeks sounded particularly hollow to me, even if the intent was good.

[ 03-20-2006, 12:06 AM: Message edited by: Memnoch ]

[Chewbacca]

You nailed the root of my concerns Memnoch, which reflects in this peripheral port issue.

The decline in American manufacturing industry, ever-growing debt, trade deficit, shrinking middle class and growing poverty, American assets sold off to pay for it all, and more.

Hard to blame the multinationals, led by America's own, when they are doing exactly what they are designed to do: reduce expense, generate profit.

So the politicians get the mess and even they are aggressively lobbied to do whats best for the highest bidder and quarterly profits.

Simply an ugly mess.

[Morgeruat]

link

The UAE Qatar is helping to finance HAMAS' new government now that the US and the EU have pulled out, it is of course in such good company as Iran (also pledged $50million) and Russia.


{edit} didn't realise until double-checking myself that Qatar is not part of the UAE.

[ 04-17-2006, 12:19 PM: Message edited by: Morgeruat ]