Wednesday, June 13, 2018

New Merkel Trade Chatter

I sat and looked over page two news in Germany, and the German Chancellor...Angela Merkel....spoke up on a complaint of President Trump.  She says that the US actually runs a significant account surplus (if you use all of the EU) if you factor in 'services' or the whole services industry.  So then she rattled off that the whole method of adding up global trade needs to be updated.

Talking over services?  It includes: advertising, accounting, cleaning, funerals, education, entertainment, fashion, healthcare, nursing, insurance, IT services, financial and loan services, media, investigative services, law, online services, sex industry, sports business services, travel, tourism, visual arts, wedding industry, language training industry, etc.

 The problem she has in bringing this that there are no tariffs in this type of industry...there are visa-control numbers. Virtually every nation that I know of (especially Europe)...requires you to have a work-visa and there are various rules to this. If you were to open up a MAJOR bucket of worms, just go and include this industry into the chatter, and ask how ‘fairness’ would be measured and monitored.

Taxation collected?  That's the thing....every one of these service groups that might be US registered and they pay German taxes, with very little of the profits shifted back into the US because of the laws in place by the US Congress.

Trump’s likely Tweet?  So the German chancellor wants to include German hookers, American actors, and Mexican cleaning ladies into the trade talks?

No comments: