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Corn's $.35 higher than last year @ this time
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Baby Robin
Posted 8/30/2025 08:58 (#11348423 - in reply to #11348417)
Subject: RE: But $1.10 lower than four years ago..


Fontanelle, IA
Pofarmer - 8/30/2025 07:53

See this is the problem. 

The concept of "Negative trade" is just - idiocy. 

We buy goods from country X cheaper than we can make them here, or perhaps they have minerals we need. We also sell some goods to country X. We also sell goods to country A,B,C,D etc, etc, etc. 

If we buy more goods from country X than country X buys from us, why is this an issue? We aren't providing anything of value to country X then, other than being a customer. And, in the long run, every dollar you SAVED buy buying something from country X is really a positive on the balance sheet. If it cost you $2 to produce something at home, but you can buy it from country X for a $1. You just saved the economy a $1 that it can spend on something else, or save. Trade balances are not just $ in and $ out. It's a completely unrealistic and infantile way of looking at trade. 



And that is why China is buying Brazil beans right now….

Edit: and the “problem” with all this “pure trade” analogies that economists 101 like to point out is that many/most have some sort of governmental augmentation that distorts or subsidizes certain import or export programs to protect their domestic market. Or, you steal the tech know-how and say f-you and start your own industry to compete against the current exporting a,b,c,d,x, z countries.

Edited by Baby Robin 8/30/2025 09:07
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