More Tariff Musings

A tariff says “if you want to sell something to me you must pay me.” If we set a fixed tariff on a specific trade item then it will pull tight the love energy flow in the direction of the buyer. For love-not-threats to be mutual the seller would have to set another tariff of equal degree. If the trade of that item was reciprocal (over the border.) Then the tariff would create a “UBI”.

Now, there are multiple economic-physical items that cross the borders. And, often times the items that go one way don’t nessisarially go the other. So, if you want to have the ability to trade any item, then the tariff should apply to *all* items that cross any border. And be implemented by all countries.

If we take that to be, then the receipts from the tariff-on-all-imports for *either* country will be dependent on the inport/outport balance. So when one country has imported more than they have exported that imbalance registers them a debit. This while the other country (that exported the stuff that the first country is importing,) registers a credit on the ledger. (Now, both countries are, in a decentralized manner keeping track of this ledger and only if there is a discrepancy do they launch the nukes. But, somehow blockchian nodes work this out [IBM].)

The point is that.

The level of a counties debtedness or creditedness thus determines the instantaneous tariff that they set on all items sold to them from a particular country. It follows that the tarrifs that both countries impose on each other differ and change day-to-day dependent on how that days trade changed either countries overall (all-country) level of debtedness/creditedness.

Can’t we illustrate?

It can be visualized as a tariff feild in which force vectors become stronger (longer arrows) the more imbalanced a country’s level of debitedness or creditedness is. Or, it can be visualized as a ranking of countries from most credited to most debited. The two may be combined.

Do all countries pay a tariff?

Credited countries (those who have exported more than imported this [standardized] term) must pay a tariff proportional to the amount of credit held in imbalance (over average/ballot.) This is because the “tariff” enforces the relayment of the excess credit according to the standardized term.

Debited countries pay no tariff. This is because they have lent their soverigenty and by selling to you they are simply repaying their debit. (As publicly accounted for.)

How much is the tariff?

This, of course, depends on whos measurement of value we utilize.  Is it Dollar, Euro, Yen, RMB? And do we clearly understand the credit standard we wish to utilize?

Well, no, so let’s see.

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