Everything is relative, no?
If the WTO is to succeed, then the lopsided imbalances must find the mean.
I believe we will have to (and are) ratcheting down... they will ratchet up. For every "full" ratchet down we have, they might ratchet up a tenth. Eventually, the imbalance will disappear.
So.... like Stanley Tool wages of $14.75/hr PLUS benefits (another $6-$7/hr) versus Mexico's $3.25/hr (no benefits) for the same position within the company.... how much 'ratcheting' must occur when the only substantial difference is 'frt to the consumer' to level that playing field? And, would that not (in the ending spiral of lower wages, lower consumption, etc) bring about a deflationary cycle?
No tools will be made here until Stanley Tool sees an advantage. Frankly, EVERY business must see that advantage.
I believe we are at, or very near, the topping process of the inflationary cycle. Can't help it. It's very clear to me... not tea leaf soothsaying... it's a reality. Whether we are topping inflation now... or 'will' top in the next few months... the pressure to correct JUST the trading ability of Americans will hit home.
Minus ONE tariff on textiles & what happened? Foreign boats were full... in OUR harbors.... ready to unload... and, the minute the tariff expired, the deluge started. They unloaded the boats. And, they're sending MORE boats. We are now screaming 'unfair'. Businesses are throwing in the towel (no pun intended)... they can't compete in textiles. Hmmmmmmmm... only two months ago.... and, our markets have forgotten??
And, just 'when' do we start up our textile factories again? When an imbalance occurs -- an advantage to us--- that we can sell lower than they can sell.
Deflation. It must, and will be, a reality. JMHO.
AI
