I'm from the government, and I'm here to help PDF Print E-mail
Written by Stumo   
Monday, 10 March 2008

Two CPA members have been corresponding with David Bohigian of the Department of Commerce.  Their email string is below, and subject to the Freedom of Information Act, so is public. Indeed your tax money pays the government salaries.

I've never posted an email string before, but this one is stunning because of the disconnect between the CPA members' facts, and the government rhetoric-posing-as-fact.  We are losing the beef industry, the apple industry, domestic manufacturing and all the jobs that go with it.  The administration is in full denial.  I repeat, full denial.

So here you are, below the fold (hit "read more").

 


Subject: FW: The economy and trade
Al:
 
RE: “Pamperd CEOs ruin others…"  http://www.denverpost.com/allewis
 
There is a great economic divide  between the interests of Wall Street and the interests of Main Street.  Your column in today’s Denver Post portrays one dimension.  Recent news that it is no one’s business where tainted Hallmark beef went, but domestic cattlemen are supposed to tag and ID each animal delivered to large processors is another.  What follows here is another.
 
People who have actually read NAFTA (I’m in the process today so that I can validate my own claim) will tell you that these agreements are riddled with loopholes and special interests, “free” only in the sense that they benefit trans-national corporations and explicitly not the domestic producers on either side of the borders.  NAFTA, with additional just expired agricultural restrictions is, I believe, responsible for half of our illegal immigration problem.  The beneficiaries are, in agriculture, companies like Cargill, Monsanto and Tyson.
 
Surviving domestic manufacturers have achieved global performance standards.  It is incredible that the Treasury Department is explicitly unwilling to certify to Congress that China is not manipulating the Yuan, when the data could not be clearer.  It is undeniable that, when tariffs are dropped as the result of trade agreements, partner countries have put value added tax structures in place that disadvantage domestic producers in exactly the same way that they had been before the agreement.  It would be my pleasure to share more about the travesty of present policies.
 
Dave Anderson
The Colorado Springs Manufacturing Task Force
The Coalition for a Prosperous America
www.prosperousamerica.org
www.tradereform.org
719.322.5945
 
Subject: Where the administration stands on the economy and trade...please don't bore us with the facts!


The following exchange is revealing. Obviously, the current administration holds interests above and contrary to the people's interests.


Whether your a farmer, rancher, manufacturer or fast food worker, you have to know that this administration and many in congress don't care about the facts about what is causing the current financial and social disaster.


U.S. citizens and the citizens of many other countries are suffering severely from our elected officials betrayal. The current trade agreements  (a.k.a. special interest agreements), approved by those in congress are gutting this country and have to be scraped now.


Mike Callicrate

David,
 
You guys are amazing -- predictable but amazing.  How is more of what we have been doing for 10 years going to bring about a different outcome?  The administration extending Americans even more credit will not solve our long term problems.  The nation has maxed out our credit and even “hocked our houses” and you think a few hundreds dollars to buy more foreign products on credit is going to fix this problem.  Amazing – truly amazing!!!
 
We agree that we need to increase exports relative to imports.  I would have preferred another method than devaluing our money.  We still suggest addressing the mercantilist and protectionist practices of China and Japan and other Asian nations so our formerly American Corporations need to off shore our means of production.    How will the stimulus package stimulate the American economy by increasing more consumption on credit?  I can see how this package will stimulate the Chinese economy but cannot see it stimulating the American economy.  It looks to me like the administration’s stimulus package is an attempt to run out the clock until they can get out of town.
 
Apparently, I will need to wait for the next administration for an evaluation of the damage done to American producers by the Bush/Clinton/Bush policies of the past 19 years.  I only hope we can restrain further damage until corrections to the problems in trade enforcement and tax inequities can be fixed.  Hopefully, the next administration will have enough backbone to stand up for American interests not the Global money interests.
 
Frank
 
As a life-long Republican please pass on my thanks to the President for running the economy and my party into the ditch just like his Dad did.  After this Bush debacle, we probably don’t need to worry about anymore Bushes in the White House (always looking for a positive).
Subject: RE: The economy and trade
 
David:
 
The American economy has not created a single net tradable goods producing job in the past five years; comparisons to where we were in the local community, the State and the nation going back to 2001 are far worse.  The crucial questions about policy changes to address the unsustainable imbalance in trade ARE being addressed in the financial markets.  The Chinese told us very clearly last year that they had, as Warren Buffett said in his parable, purchased their limit of our securities; the same is true of others.  Our national credit card has reached its limit.  Now, in a fell swoop that Mr. Buffett had predicted, the Sovereign Wealth Funds are ready, willing and able to purchase our banks and our factors of production.  All of this is likely to leave our progeny indentured.
 
To quote Theodore Roosevelt (July 4, 1886)  from the foreward to Steeling America’s Future by Dan DiMicco, “The Declaration of Independence derived its peculiar importance not on account of what America was, but because of what she was to become; she shared with other nations the present, and she yielded to them the past, but it was felt in return that to her, and to her especially, belonged the future … So it is peculiarly incumbent on us to act throughout our lives as to leave our children a heritage, for which we will receive their blessing and not their curse.”
 
We can parse data many ways, but we must not be in denial about the aggregates and the gross imbalance that continues in the absence of management that other country governments employ.  In working with domestically-based businesses, I believe that the most productive and competitive have survived, but despite doing all of the right things on the micro-economic level, they cannot succeed on the global stage without balanced macro-level policy support.  Addressing the clear problems with currency manipulation and border adjustable taxes are two steps that must be taken.  As Duncan Hunter wrote just yesterday (http://www.nytimes.com/2008/03/02/opinion/02hunter.html), “We CAN Make It” - a restoration mission is very motivating now to many.
 
Count on me and a growing movement who are concerned to assure a viable economic and national security future.  Your consideration is also appreciated,
Dave Anderson
The Colorado Springs Manufacturing Task Force
The Coalition for a Prosperous America
 
 
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Subject: RE: The economy and trade
 
While I appreciate your input, I think we simply disagree on the facts.  It's better documented that net trade has accounted for more than 30 % of US GDP growth in 2006 & 2007, and we've added more than 8 million jobs since 2003.  The free trade agreements under consideration open foreign markets, many of which now enjoy a one way preference into the U.S. market.  More analysis is available from www.tradeagreements.gov
 
Best,

David Bohigian
Assistant Secretary of Commerce
for Market Access and Compliance
202-482-5022
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
-----"Dave Anderson" < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it > wrote: -----

To: < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it >, "'Frank Shannon'" < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it >
From: "Dave Anderson" < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it >
Date: 03/09/2008 10:14AM
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Subject: RE: The economy and trade

Good morning David:
In the time since we met, Colorado Springs and El Paso County has lost 6,000 jobs in tradable goods production, one thousand at Intel and five hundred at Sanmina-SCI.  These jobs didn’t disappear; they went to another country.  With the documented multiplier of 4X, the community has truly lost 6,000 high paying middle class jobs here.  These figures do not include what will show up as loss of jobs in commercial and residential construction.
 
We agree without question that increasing trade is a crucial answer to our economic problems, for without higher income, it is inconceivable that we will be able to pay for the deficits accumulating from this administration’s  fiscal and international policies, as well as even a portion of the inherited social policies.  As the U.S. exports roughly $120 billion per month and imports $180 billion per month, how will approval of the Columbia, Panama and Korea Free Trade Agreements reduce the $60 billion monthly deficit?  From what I saw in public statements from representatives of the government of Peru following approval of the Peru Free Trade Agreement, the quantitative opportunity for export is miniscule AND their expectations are to attract trans-national corporate manufacturing facilities – to multiply their own exports.  Can you provide a quantitative analysis of projected export and import changes from these four current agreement structures?  The American people deserve this analysis as a part of considering additional agreements.
 
It is now well documented that the U.S. trade deficit is reducing growth and reducing domestic employment.  As political debates  turn to the terms on which the U.S. trades, more attention will be focused on how - unlike what happened in the Reagan Administration with negotiation of the Plaza Accord – trading partners are being permitted to compete without the same rules that we have here for domestically-based businesses.  That protectionist and mercantilist behavior, call it infant-industries or focused economic development to cast in a positive light, is clearly unfair to domestically-based U.S. producers.  What policies do you propose to address the $60 billion per month deficit of the present, other than recession?  What policies do you propose to address the $250 billion deficit with China alone?
 
Please revisit the documents that I left you with when we spoke.  I referred to a July 18, 2005 article by William Greider titled ‘America’s Truth Deficit’ (http://www.commondreams.org/views05/0718-26.htm) and an October 2003 article by Warren Buffett titled ‘Squanderville vs. Thriftville’ (http://www.freerepublic.com/focus/f-news/1053684/posts).  As Buffett wrote to Berkshire Hathaway shareholders, we are creating a “sharecropper society.”  David, in all sincerity, as Greider wrote and some of the Presidential candidates and many of the Congressional candidates have begun to understand, we simply cannot “recycle the usual bromides about the benefits of free trade and assurances that everything will work out for the best.”
 
The American people deserve substance, including mechanisms to address other country currency manipulation and border-adjustable taxes as two elements that are the subject of bi-partisan legislation.  Please respond substantively, with projections for what trade agreements under consideration will obtain and with what policies are under proposed to address the preponderant imbalance.
Your consideration and attention are appreciated,
David Anderson
The Colorado Springs Manufacturing Task Force
The Coalition for a Prosperous America
 
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Subject: Re: The economy and trade
 
Frank,
Despite the lower unemployment rate, last week's job report was disappointing.  The nation is facing economic challenges and growing at a slower rate than in previous years, and we are seeing this reflected in the employment market.  We have acted quickly to address the issues with the President’s stimulus plan, which will provide a boost to our economy with incentives for both consumers and businesses.  We can’t stop there.
Trade, which supports higher paying jobs, is a key bright spot in boosting our current growth.  We need to expand exports by opening new markets.  That’s why Congress must pass the pending free trade agreements with Colombia, Panama and Korea.

David Bohigian
Assistant Secretary of Commerce
for Market Access and Compliance
202-482-5022
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
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Date: 03/06/2008 01:01PM
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Subject: The economy and trade

Mr. Assistant Secretary (David),
 
I haven’t heard from you for awhile and was wondering how the Bush/Clinton/Bush economic/trade plans are going from your perspective.  Out here in Fly Over country, things haven’t changed much.  Manufacturing is still dying on the vine.  Another of my best customers just announced an auction at his bankrupt business which brought to mind your talk at the CS Chamber about how great free trade is for America.  On another note, China has convinced Intel to close its state of the art plant in CS and move it to China.  Once that is consummated, manufacturing will be 6% of the local economy.  We were 17% at our zenith just prior to 2001 when the crap hit the fan.
 
Here’s a link to a newspaper article in St Louis that expresses what I see from here in Colorado Springs. 
 
http://www.stltoday.com/stltoday/business/stories.nsf/yourmoney/story/2B2C5354F49CF5F686257403000B1D16?OpenDocument
 
 
 
F.D. Shannon
Finishes Ltd
3057 Delta Drive
Colorado Springs, CO. 80910
719-390-4300 Ext 4#
719-205-4450 Cell
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
www.finishesltd.com
 

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