Sell Yer Euros

[Dinner]

http://www.economist.com/agenda/displayStory.cfm?story_id=4100673

A very interesting article on farm subsidies from the current issue of The Economist. The world's biggest farm subsidizers as a percentage of GDP are:

1) Turkey
2) Japan
3) EU 15
4) Mexico
5) Poland
6) US
7) Canada
8) Australia

The good news is that over the last 20 years everyone but Turkey has decreased the levels of farm subsidies compared to the rest of their economies. Turkey seems to have increased their subsidies to 4.3% of GDP. Over all farm subsidies have fallen from 37% of the value of the crops to 30% of the total value of the crops. That's way to much but down by about 20%.

[Dinner]

CAFTA would be a good deal for everyone involved so it is a shame so many Republicans & Democrats are getting cold feet about it. NAFTA passed with bipartisan support and it has been a great success for everyone involved. One of the main reasons why Mexico has become economically more successful and more politically open has been NAFTA plus everyone has benifeted from lower prices and more choices at the market.

CAFTA wouldn't harm any US industries other then the much subsidized and highly protected sugar industry though that industry only operates in Louisiana & Hawaii so you'd figure the other 48 states could out vote them. Textiles are already mostly dead in the US and the few that aren't will move to China if we don't pass CAFTA where as with CAFTA we can actually keep them in this hemisphere where more of the cotton and fabric work can be kept here rather then in China. CAFTA would also greatly improve the economies of Central America thus meaning fewer of them will sneak across the border to become illegal aliens.

In the long run we should be working hard to develop the western hemisphere and economically intigrate it.

[Lawrence of Arabia]

i agree, not only that CAFTA's effects on the US will be minimal in terms of 'damaging' the primary or secondary sector.

[Lawrence of Arabia]

the euro lost 1.1% of its value agasinst the dollar yesterday. this is one of the first times when the euros value is a reflection of europes situtaion, and not a reflection of the situation in america