Dear President Donald Trump.
If you recognize you have stuffed your International Relationships with China, Russia and the
BRICS Nations now 55% of the World Population you may want to think about how you can
recover these Relationships which are KEY if you are to be a World Leader.
The SOLUTION is NOT the Military. Atomic Weapons are NOT a deterrent because they will END
HUMANITY on Earth.
The way to earn the respect of China and the BRICS Nations is for the USA to become an
Economic Superpower.
The fact that you have applied 145% Tariffs to imports from China is an admission on your part
to the World that all Americans are NOT COMPETITIVE.
1. Workers.
2. Businesses.
3. goods and services.
4. Government.
5. $US.
Something you obviously do NOT understand is that China has changed its Economic Policy
from being EXPORT driven to being DOMESTIC CONSUMPTON driven, to raise the standard of
living of 1Billion Chinese who have been left behind the 400million Chinese who are living the
good life.
China does NOT have the resources to raise the standard of living of these 1Billion Chinese so it
MUST IMPORT. Its imports are replacing its exports making your Tariffs NUL and VOID. This is
already beginning to happen.
There are two critical Economic factors that you and your advisors need to understand and
manage the USA
1. Volume/Cost/Price MIX.
2. Export Cost Index.
A high price can create perception of Value i.e. a Rolls Royce car. A low price can create
perception of Value i.e. a Hyundai car. Factors creating a perception of value include, Country of
origin, performance, design, style, quality, reliability including guarantee, functionality, cost of
ownership and operation, pride of ownership, etc. Most German made products have a high
perception of Value because Germany is the BEST BRAND MARKETER in the World.
3. First focus on all the elements of cost and mitigate the cost to be the lowest possible
figure for (1) and (2).
4. Then evaluate the domestic volume demand with no imports.
5. Strategically evaluate the Overseas Markets and select those most compatible with the
Values and Ethics of the American People and Nation.
6. Determine the Export Volumes for these Overseas Markets. Do NOT put reliance on one
or more markets.
7. Using the Volume figures in (4) and (6) determine a realistic Volume for (1)
8. Market research the product PRICES in the Overseas Markets in (6) and establish an
average PRICE.
9. Using the Volume in (7) the Cost in (3) and the Price in (8) calculate the MIX and the
PROFIT/NET CASH FLOW components and % Margins on Cost in (3).
10. Set the Domestic Market at the PRICE in (9) and monitor the PROFIT/NET CASH FLOW on
ACTUAL SALES to determine Market Acceptance and Perception of Value.
11. Under NO circumstance discount the PROFIT/NET CASH FLOW.
12. Set the EXPORT PRICES based on the PRICES the market will bear which may be higher or
lower than the domestic PRICES and determine Market Acceptance and Perception of Value.
13. Monitor and manage your Volume/Cost/Price MIX and Export Cost INDEX to protect your
MARKET SHARE, profitability and Net Cash Flow.
When you focus on (3) you will discover that EXISTING TAXES are the killer that make America in
(1) to (5) at the top UNCOMPETITIVE against ‘Made in China and BRICS’
DEDUCT EXISTING TAXES from COST and PRICES of goods and services
Research the Open Market Value (NO transfer pricing to evade tax) of All Changes Of Ownership
(ACOO) into, within and out of the USA.
DEDUCT EXISTING TAXES from the COST of Government to determine a REDUCED COST to be
funded by a % of ACOO.
Calculate a % of ACOO i.e. LIBERTY TAX, that can provide BUDGET SURPLUSES to PAY OFF
EXISTING DEBT.
ADD the % of LIBERTY TAX to the REDUCED COST and PRICES to give LIBERTY TAX inclusive
PRICES that have ‘Made in America’ replace ‘Made in China and BRICS’ to MAGA as you
PROMISED
Please see 2percent-liberty-tax.com
Derek Smith CA