Thinking on the United States backup plan of foreign currency exchange rates and value – which puts these responsibilities in the hands of the Treasury Department and the Congress in times of choice — the “outside-looking-in” perspectives FOREX markets normally – my inside voice came up with an idea benefitting the outside interests looking to invest in Americas economy. As methods of control and limitation give way to inspired means of promoting commerce it makes sense to do away with tariffs. But what to replace them?
EXAMPLE: Imagine a first world nation intending to support their industries with profit from American satellite companies. Our Commerce Secretary has experience in the nation and feels they are likely to abuse our prosperity somewhat by making and taking their profits back to their own country.
EXCHANGING TARIFFS FOR RATES
In such a situation, a manipulation of a Commercial Exchange Rate going OUT to that nation’s currency from our own makes sense. It provides a lever with which we can reward those companies that keep their dollar earnings circulating in America. If they choose to sell their widgets and walk without improving our economy with money multipliers they face a degradation of the normal exchange rate. If they stay in America, reinvest their earnings and improve our economy they maintain the value of their earnings and prosper as an American company.
The benefits of this way of inspiring foreign business growth in America are:
- No tariffs are passed on the back of products by default. If a company decides to pad their prices in anticipation of leaving the country with their money they place that indication on their products themselves.
- Simplification of the documentation required to enter the American market from abroad. Less hassle, more efficient movement of goods.
- U.S. Customs can focus less on taxation limitations and do more to streamline foreign involvement in our product markets as well as innovated controls upon unregistered floods of foreign competitor goods that would harm our foreign corporate investors. In this way they set the stage for an integrated system of national Customs standards that benefit corporate Faith Management.
- Comparison of the relative treatment of each nation’s commercial interest in America can be easily calculated as a means for foreign nations to understand their actual standing in our eyes. Such an openness in our judgments and awareness of our economic inputs and outputs is a strong role model for other nations to follow.
- No tariffs up front means greater selection of more products entering our nation and more investment capital to hire larger American staff to sell them.
- Our government can regulate commercial issues in currency separate from civilian currency conversion. From a State Department perspective this sends a better message of civilian friendliness than singular, non-directional currency exchange rate manipulation.
- Fosters the awareness that the single standard for monetary value in the world is the one your country places upon all others with its own.
- Penalizes poor corporate actors while leaving our true foreign investors unharmed by regulation just as a domestic entity should be.
- Sets a responsible example for world governments to follow that contributes to successful Faith Management.
- When role modeled to other nations this method allows American companies to expand more economically into foreign nations. As a leader of industry on Earth, this allows us to “hand-me-down” the structures of our industries for foreign national master plans seeking compliments to their national personality and stair steps that assist our economic allies while building our strength as a corporate investment nation abroad in ways that support their future rather than direct it – with our wisdom as proven business.U.S. energy companies have learned to do this with energy production facilities as environmental standards have risen. Other industries will learn to do it their way too. Perhaps even seeding international efforts with older generations of technology and infrastructure that are more easily learned and utilized for the times and places of their expansions or which support shifts of production center for former generation products deemed innovations in other nations. Everything in every way in its own time as economies choose.
Using this standard for inspiring onshore profits to stay onshore in conjunction with a reasonable standard of using the International Value Markets reports to automatically calculate a default exchange rate make rate control by our government or a third party integrity akin to the Federal Reserve a faithful potential that Americans can trust.
What about FOREX? Good question. With so much sensibility understanding currency values I suggest FOREX dedicate itself to a more noble pursuit – understanding regional shifts in domestic monetary. Opening a virtual monetary arbitrage domestically can act as a lever when needed and a means of charting meaningful data we may one day wish to data mine as we seek to understand not only the makeup of our wealth pool but the ebb and flow of its components, their values and their significance to perpetual stabilization.