Our government is pushing new trade agreements that will further weaken the United States
The Obama administrations is aggressively pushing the Trans-Pacific Partnership (TPP) to create a free trade block among twelve Pacific Basin nations. The TPP would increase our trade deficit and the hemorrhaging of our national wealth. Most unfortunately, one of the participants is Viet Nam that is modeling their economy after China due to their remarkable success.
Vietnam's currency is not traded on any exchanges, and Vietnam has vastly undervalued it. Their population is then paid in an undervalued currency that is possible in a ruthless, totalitarian government that completely controls who exchanges their currency, where it is exchanged, and the exchange rate itself.
The results are more than predictable. Vietnam will take advantage of America's free markets to ship massive amounts of manufactured goods that will take American jobs, lower our standard of living, and increase our national debt while we try to provide the social services our poor population needs. In addition to the currency problem, the majority of Vietnam's industry is owned by their government which do not try to show a profit.
The low value of the Vietnamese currency will act as a tariff on American goods, and we will have a huge trade deficit with Vietnam. American goods will be too expensive because of the currency exchange rate. Our politicians march to the phrase of "free markets", but do not understand that trade requires free markets to set the value of the currency transaction also. There is a currency transaction every time goods cross a country's border.
Does all of this sound exactly like our relationship with China?
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