Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (64067)	6/4/2010 1:06:29 PM
From: elmatador	Respond to of 217752

You the Baobahs under the sunset for that analysis

To: benwood who wrote (64067)	6/4/2010 2:49:07 PM
From: elmatador	1 Recommendation Read Replies (2) \| Respond to of 217752

WHY WE ARE BRIBING BRAZILIAN FARMERS The United States subsidizes the country's farmers, to the tune of $250 billion since 1995. More specifically, the United States subsidizes its cotton farmers, to the tune of $3.5 billion a year since 2000. Cotton subsidies have been a fact of life since the 1930s. As of now, however, the United States also subsidizes Brazilian cotton farmers. This is something new, says National Journal columnist Jonathan Rauch. In 2002, Brazil filed a complaint against U.S. cotton subsidies with the World Trade Organization (WTO), of which the United States is a member. Brazil argued that Washington's generous cotton program violated trade rules. Despite some legislative and administrative efforts by the United States to tweak the subsidies, last year the WTO ruled generally in Brazil's favor. Brazil won the right to levy retaliatory duties on more than $800 million worth of U.S. exports annually, a prospect that manufacturers here reacted to with alarm. The Obama administration found itself in a hard spot. Substantially changing farm subsidies requires an act of Congress, but the next farm bill is not due until 2012, and trying to get lawmakers to approve a stand-alone subsidy cut seems out of the question. A trade war with Brazil, however, is the last thing that Washington needs, particularly when the United States has been found to be in the wrong, says Rauch. Therefore, last month the administration announced a deal with the Brazilians. In due course, Congress will change the cotton program. Until that happens, the U.S. government will send Brazil an annual check for $147.3 million (a sum based on estimates of the cotton subsidies' economic cost to Brazil), which Brazil is to spend on "technical assistance and capacity building" for agribusiness. Translation: Washington is bribing Brazilian farmers to keep illegal subsidies flowing to U.S. farmers, says Rauch. Source: Jonathan Rauch, "Why You're Bribing Brazilian Farmers," Jewish World Review, June 1, 2010. For text: jewishworldreview.com For more on Federal Spending & Budget Issues: ncpa.org