CHINA HAS MANEUVERED THE U.S. OUT OF SERIOUS CUSTOMS REVENUES BY MANIPULATING THE U.S. CUSTOMS "YARN FORWARD RULE" updated 12/8/2015 &1/21/2020
Cotton Cargo and transport on the Mississippi (PD-old-100)
Research by a team led by the Great Namazu, article edited by Namazu
Editors note 12/8/2015: This may be worth a revisit as China prepares to launch one of the worlds reserve currencies and all of the negative effects that will have on the U.S. dollar.
Editor's note 1/21/2020: The Chinese all out assault on the US dollar as the world's premier reserve currency lost it's steam due to several developments. One was the rise of the US to self sufficiency in, and later exporter of oil and gas and the other was pretty much the election of Donald Trump as President of the US. China was buying gold at an incredible rate hoping to ween the oil producing world off of its' preference for payment is US dollars. The dragon was touting their currency as soon to be as "good as gold". Trump opened the spinet on the LNG plants that Obama kept from going into the export game despite our over abundance of LNG. Increased drilling brought the US first to self sufficiency in oil and then made us an exporter. Suddenly not only the oil producers pull away from the reserve currency game and returned to their dollar preference. but the US became one of the largest exporters of oil . Now buyers could actually buy oil and gas direct;y from the US . The global view of the US dollar as a fiat currency changed to something of a commodity based currency particularly oil. The Dragon is back in his den at the drawing board planning his next assault on our economy. Meanwhile after fixing the world and particularly the US textile industry to work to the Dragon's advantage, the Chinese are starting to move textile plants back to the US to take advantage of transportation cost reductions so as to improve their lead over other foreign suppliers of textile products to the US.
Message from the Great Namazu: Ahoy Bipeds! I know you are all in the quaint habit of covering your nearly hairless hides with textile products like shirts and skirts. Personally I've never understood the practice but if you wear cloths this article should be of as much interest to you as it should be to Customs officials, auditors of customs regulatory enforcement efforts, legislators, members of the textile industry world wide, not to mention people like cotton farmers and the crews of barges, ships, and rail lines, and trucking industries that move the product. However if you don't work in any of the aforementioned industries and are a nudist you may want to skip down to the next post, unless you are just curious about how the clothed beings live.
TEXTILES AND AMERICAN HISTORY
You would think that as long as the United States has been growing, transporting, and selling cotton, and as old as the Garment District is in New York, or considering how long the textile mills of the Carolina's have been around that we would be pretty astute at regulating our textile trades. The problem is as old as America. Prior to the American Civil War northern textile manufacturers were adamant that southern cotton producers should be forced by federal law to sell to them or be forced to pay an export tariff. The cotton producing South of course preferred to sell to Great Britain at world prices which then were higher than what New England wanted to pay. It was largely this disagreement that led to the first mechanized war with its massive destruction of the South including the complete leveling of two cities Richmond and Atlanta and a scorched earth policy that frankly should have been considered a crime against humanity , except that it was committed by the victors.* Of course there was the matter of slavery which the Union started citing as a war cause about two years into it when they needed to assume the moral high ground before reducing their neighbors to ashes.* Low labor costs are still a driving factor in the global textile industry battle for supremacy.* In that battle the U.S. was long ago knocked out of the ring by the Dragon, China. Roughly a century and half after leaving more than 50,000 war dead related to the issue of textile regulation the U.S. still doesn't know how to regulate textiles, or audit the effects of their regulations..
NAMAZU EDITORIAL NOTE: These passages may seem a bit a biased toward the Southern cause in the American civil war. The post was prepared in winter so that means the research staff are the regular crew down in New Orleans where they are still a bit peeved about what they call "the War of Northern Aggression" or in the company of Yankees, "the late unpleasantness". I would have edited these passages out but found that while presented in a partisan argumentative style the assertions are basically factual and left like originally written give the reader some idea of the still lingering ill feelings generated over America's last great failure at effectively regulating textiles in the national interest.
Photo USDA: Cotton ranks with salt, clay, spices, and oil as a raw commodity that has had a profound effect on shipping and history. It is a product that wars have been fought over.
Like salt, clay, spices, and oil almost everybody has a use for it in their daily lives, unless you run around naked or clothed in furs and animal hides, or those uncomfortable synthetics largely a product of petroleum. (The most comfortable "synthetics" are usually a blend of cotton fibers and petroleum spun fibers). Really, unless you are reading this naked the odds are that you are wearing something containing cotton fibers right now.
The modern problem is that present day Congressional leaders and White House denizens seems to think that they have some obligation to share prosperity with the less fortunate world, and the world is full of dragons ready to snatch from the arms of the deserving, or at least the targeted arms of U.S. selected trading partners. One case in point is the importation of finished textiles such as sheets, shirts, pillow cases, sweaters, curtains, bolts of cloth, and similar woven , sewn, or knitted items. Past administrations and congresses of both parties in their rush to ship manufacturing jobs overseas, decided to throw a bone to the Carolinas, and New York City, the big losers in the exportation of textile manufacturing jobs. The bone is known to those astute in customs regulations as the "YARN FORWARD RULE"; part of the Customs Regulations Rules of Origin