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The economic foundation of the USA is being eroded by a trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing…. In 2005 , for the first time in over a hundred years, our nation imported more food products than it exported. Oneida Ltd.

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The economic foundation of the USA is being eroded by a trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….


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In trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….2005, for the first time

in over a hundred years,

our nation imported

more food products

than it exported.


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Oneida Ltd trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….

  • For years, Revere shipped copper

    coils about 20 miles to anothermanufacturing company named

    Oneida Ltd.

  • Oneida cut and formed the copper

  • Then plated silver on the form to produce...


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…a silver bowl designed by Paul Revere trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….


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That’s as American as apple pie? Right? trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….


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WRONG… trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….

…ON TWO COUNTS!


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The trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….Paul Revere silver bowl

Now made in China

Today, Oneida buys the silver bowl, silver flatware and other products from China

How can China produce that silver bowl over there and ship it over here and compete?


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The trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing…. American Apple Pie

America now imports apples from China

So you really can’t say “…as American as apple pie…”

How can apples from over there be refrigerated, shipped and still compete with apples grown just down the road?


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It’s the cheap labor, right? trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….


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WRONG trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….

First, let’s first look at the benefits

of producing that silver bowl

in

China vs. USA

…as China manipulates its currency…


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The trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….Paul Revere Silver Bowl

Assume production cost of 元100

if made in China

@ manipulated exchange rate of 元7 to $1, the production cost

in China is $14.28

@ free market exchange rate

of 元4 to $1, the production cost

in China would be $25.00


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Currency manipulation trade deficit of $2 Billion a day, factories are moving offshore and decent jobs are disappearing….

works the same way

for apples grown in China…


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In other words, the government of China manipulates its currency to subsidize the cost of manufacturing and farming

in China


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The manipulation of its currency reduces the competitiveness of every other product, good and service in the world when compared to its production in China.


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It’s not only currency of every other product, good and service in the world when compared to its production in China.

Tax structure

Health care

Environmental Stewardship

Government loans not repaid

Piracy of intellectual property/

reverse engineering

Other Subsidies


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Currency manipulation of every other product, good and service in the world when compared to its production in China.on top ofthese subsidies can reduce costs as much as 80%when producing in ChinaThis happens without even considering the cost of labor


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That’s how China competes… of every other product, good and service in the world when compared to its production in China.


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…AND THAT’S of every other product, good and service in the world when compared to its production in China.AS CHINESE AS APPLE PIE !


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Material Labor of every other product, good and service in the world when compared to its production in China.

CENTRIFUGAL CHILLER

COST COMPARISON


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Material Labor of every other product, good and service in the world when compared to its production in China.

WITHOUT 40%

CURRENCYMANIPULATION


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Material Labor of every other product, good and service in the world when compared to its production in China.

WITH VAT REBATE

OF 17%


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Some Countries Using VAT Tax to Support Factory, Farm & Service Jobs

Australia

Austria

Belgium

Brazil

Belgium

Canada

China

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Iceland

India

Ireland

Italy

Japan

Korea

Luxembourg

Mexico

Netherlands

New Zealand

Norway

Poland

Portugal

Russia

Singapore

Slovak Republic

Spain

Sweden

Switzerland

Thailand

Turkey

United Kingdom

Notes: 139 countries have a Value Added Tax (VAT) or border adjustable tax which discriminates in favor of domestic production of goods & services. One province in India boasts of a VAT tax over 50% in promoting itself as a prime location for jobs.


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Countries Not Service Jobs

USA


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VAT Hikes Keep Aggregate European Trade Barrier Constant Service Jobs

Total EU Trade Barrier

Avg. EU VAT

Avg. EU Tariff AMTAC


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Traded Products & Services Service Jobs

VAT Impact at $100 Value

USA

VAT= 0

$85

$81

$115

$119

$85

$81

Mexico

VAT = 15%

Germany

VAT = 19%


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So you can appreciate that Service Jobs

this is more than

a currency problem.


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This results in a price war that Service Jobs

American factories and farmers

cannot win.


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How can a US producer compete Service Jobs

if it must carry the burden

of the health care costs of its workers

and its foreign competitor does not?


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Revere’s fabricating costs Service Jobs

In 2007, about 10% of Revere’s fabricating costs were for the health care of its people and their families

If you buy a product made from Revere copper or brass, you are paying for the health care costs of our people

If you are buying a foreign product, you are not paying for any US producer’s health care


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What about Revere’s exports? Service Jobs

Of course, the cost includes the health care costs of Revere people

The foreign country’s VAT imposed on Revere’s exports helps pay for the national health care cost of that nation

So, in order to compete, Revere people have to cover their own health care cost and those of the foreign workers they compete against!!!

That’s just as true for farm products whether you are considering taxes or health care…


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Creation of a national health care system funded by a VAT is critical to the health of farming and manufacturing in the USA.


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Worst Practices for critical to the health of farming and manufacturing in the USA.Global Warming

The world is working to make carbon emission worse

The Kyoto Treaty and Regional/National Greenhouse Gas Initiatives exclude China

They drive manufacturing to countries that have lower environmental standards

Causing carbon emissions to increase




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China’s Pollution Flow being loaded for export…

Almost 25% of the particulate matter that falls on California originates from China and Southeast Asia.


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Policy making being loaded for export…

The international trade & tax policies of the USA are destroying the best jobs in the USA

The correct policies are not protectionist but a balanced response which recognizes the degree to which trade is managed by every country in the world but the USA

National & international environmental policy making is contributing to global warming due to its biased impact on international trade and the relocation of production capacity


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But this is more than an economic battle being loaded for export….


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The importance of a strong domestic manufacturing base to national security and national defense cannot be overstated.


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Revere was founded with $10,000 loan from the US Navy to supply copper sheets to sheave the USS Constitution


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When the Revolutionary Army needed cannon, Paul built a factory. When it needed gunpowder, he built a factory.


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Personally I admire the culture of China factory. When it needed gunpowder, he built a factory.


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factory. When it needed gunpowder, he built a factory.and it’s people


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But make no mistake about it, factory. When it needed gunpowder, he built a factory.

China is waging a mercantile war on the world

and the world issleeping.


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M factory. When it needed gunpowder, he built a factory.

U

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A

L

S

W

A

L

L

S

T

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They still talk America first, factory. When it needed gunpowder, he built a factory.

they just don’t walk it.


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Their protests are crocodile tears factory. When it needed gunpowder, he built a factory.


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The workers they support are in China factory. When it needed gunpowder, he built a factory.


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…not in the USA! factory. When it needed gunpowder, he built a factory.


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They have to choose between factory. When it needed gunpowder, he built a factory.

their company

and

their country.


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What goes around comes around factory. When it needed gunpowder, he built a factory.…

  • Wall Street is failing because of the credit crises which was initiated by sub-prime mortgages not being paid

  • Main Street is failing because people are out of work (6%), got discouraged (4%) or accepted part time employment (5%)

  • That’s 15% unemployed and under employed!!!

  • Mortgages are not being paid by Americans because of outsourcing (excuse me, globalization) of work


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Notes: We do know that 3 million manufacturing jobs have been lost since 2000. Previous recoveries averaged about 1 million job losses.


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Who should America listen to for advice been lost since 2000. Previous recoveries averaged about 1 million job losses.

on tax and trade policy?

Obviously, none of the above…


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So, the looming question is, “What should be done to counter this offensive and protective behavior by China and other nations?”


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Sounds like our nation needs advice from the real world… counter this offensive and protective behavior by China and other nations?”


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Joint Coalition Meeting counter this offensive and protective behavior by China and other nations?”

  • Coalition for a Prosperous America (CPA) {farming, ranching and manufacturing}

  • AFL-CIO

  • Alliance for American Manufacturing

  • American Manufacturing Trade Action Coal.

  • Copper & Brass Fabricators Council

  • Steel Manufacturers Association

  • Tooling, Manufacturing and Technologies As.

  • United States Business and Industry Council

  • Economists, foundations, universities


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MAKING counter this offensive and protective behavior by China and other nations?”THE GLOBAL ECONOMYWORK FORALLAMERICANS


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

1.SUPPORT policies that promote American interests by requiring full reciprocity, fairness, and transparency in all U.S. trade agreements.


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

  • SUPPORT actions to combat the illegal,

    mercantilist practice of prolonged currency

    misalignment, including legislation to make

    it actionable under US trade law.


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The only legislation with real teeth designed counter this offensive and protective behavior by China and other nations?”

to address currency manipulation is the

Stabenow Bunning Bayh bill in the Senate

and

the Ryan Hunter bill in the House.


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If the use of CVDs does not lead counter this offensive and protective behavior by China and other nations?”

China and other nations

to stop manipulating their currency,

then the USA must take stronger measures

even if this means stepping outside WTO rules.


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

3. SUPPORT aggressive enforcement of

U.S. laws to halt foreign illegal trade

activities such as dumping, subsidies

and intellectual property theft. In

addition, U.S. policy must ensure that all

goods sold here meet U.S. food and

product safety standards.


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

4. SUPPORT the elimination of tax disadvantages which undermine the competitiveness of U.S. producers both at home and abroad or which discourage investment in America.


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

  • SUPPORTreduced U.S. dependence on

    imported energy.


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MAKING counter this offensive and protective behavior by China and other nations?” THE GLOBALECONOMYWORK FOR ALLAMERICANS

1. SUPPORT policies that promote American interests by requiring full

reciprocity, fairness, and transparency in all U.S. trade agreements.

  • SUPPORT actions to combat the illegal, mercantilist practice of

    prolonged currency misalignment, including legislation to make it actionable

    under US trade law.

  • SUPPORT aggressive enforcement of U.S. laws to halt foreign illegal

    trade activities such as dumping, subsidies and intellectual property theft.

    In addition, U.S. policy must ensure that all goods sold here meet U.S. food

    and product safety standards.

  • SUPPORT the elimination of tax disadvantages which undermine the

    competitiveness of U.S. producers both at home and abroad or which

    discourage investment in America.

    5. SUPPORTreduced U.S. dependence on imported energy.


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Putting Domestic Energy in Context counter this offensive and protective behavior by China and other nations?”

  • Environmentally sound

  • Economically competitive

  • Timely


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Powering toward a cleaner competitive environment counter this offensive and protective behavior by China and other nations?”

  • China is planning 40 new nuclear power plants, Japan is building 10 more, France relies on nuclear for 80% of its electricity.

  • Why? Nuclear power is clean & low cost if siting/environmental concerns are managed.

  • Nuclear waste is dangerous but can be contained in areas much smaller than appreciated. Thirty years of nuclear waste from a 1,000 MW plant would fit in an area the size of a high school gym.

  • The USA needs substantial additional low cost, clean electricity to compete and clean up the environment. The USA should use a BRAC type process to site new nuclear generation throughout the country.


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Conclusion counter this offensive and protective behavior by China and other nations?”


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This will require an alliance of counter this offensive and protective behavior by China and other nations?”

farm, factory, service

and national security

representatives.


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Wake up, America! counter this offensive and protective behavior by China and other nations?”

Visit:

reverecopper.com and learn more


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Please carry the message… counter this offensive and protective behavior by China and other nations?”

Thank You.