The solution is in this quote from this article…“The reason that countries participate in international trade is to get imports – consumer goods, intermediate goods used in production, and capital equipment – in exchange for exports. Framed this way, exports are simply the goods that Americans are willing to part with to acquire something they want or need.”

Well we are dangerously way past this model… We have imports we don’t need and exports we can avoid if we reset the game and that is exactly what Trump and correctly is doing..

The Real Enemy … Wasteful Global Trade in all forms!

Many economists are concerned about the recent reduction in global trade via tariff management by the US government …..but it’s actually very good news…..

Global trade due to its over liberalization, has increased 8 times since 1980 but global prosperity only 3 times.

Due to this our western economies lost many value adding jobs in many sectors through labor arbitrage and we have experienced negative transfer of wealth and capital. Also, this globalization journey has created resource waste in all forms, and is a main contributor to our global ecological problems…

Using the recent leverage of the trade tariffs and technologies we can competitively re-shore and localize manufacturing and the associated service businesses closer to our consumers, enabling faster and more flexible response to demand and employ less process steps and wasteful inventory, and this will result in a 5 to 10 fold reduction in various supply chain operating costs.



These far shorter supply chains will be inherently LEANER and GREENER with a much more effective cost and carbon footprint and will make all our future local economies and habitats far more sustainable.



When we investigate the feasibility of such localized trade blocs we find that for example a North American trade bloc that followed this sustainability agenda would need to import very little outside of the north American continent and would empower the North American population to make much more of what they consume and utilize more of their local resources as much as practical, further increase demand for the value-added effort and generate increased GDP and wealth within an economy, such that interest rates can be normalized upwards to better drive recapitalization, investment and prosperity.



The application (as much as practical) of such trade bloc models on a global basis would force all nations on the planet to better balance economic and ecological initiatives and focus on national sustainability and the well-being of their own citizens who will better regulate any pollution they create “in their own backyard” as they extract grow and make and service their own economies.



So… Global trade must become limited to resources or products that cannot be localized and become an option of last resort to ensure we develop far more balanced and accountable national economies, rather than the duplicitous, redundant, wasteful and destructive free for all of the current over-extended global trade system.



More at www.sme-tbm.org