Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Why Trump Should Literally Start Selling American Blood To China

Companies / Healthcare Sector Aug 30, 2017 - 01:30 PM GMT

By: John_Mauldin

Companies

BY PATRICK WATSON : In June, the US ran a $32.6 billion “trade in goods” deficit with China. That’s the difference between our imports from China ($42.3 billion) and our exports to China ($9.7 billion), according to the US Census Bureau.

That sounds terrible, but it’s really not if you look at the big picture.

The Trump administration doesn’t like trade deficits, so they must be reduced or eliminated. To do that, we need Chinese consumers to buy more “Made in the USA” products.


Problem is, China has little need for US-manufactured products beyond the agricultural goods it already buys. They would buy certain things we refuse to sell them, like defense technology.

What else can we send?

Here’s an idea President Trump should consider.

China-Sized Liver Problems

Everything about China is big—including its health problems.

About 100 million Chinese have some form of chronic hepatitis, according to the World Health Organization. That’s 1 in 13 people.

Hepatitis can lead to liver cirrhosis and liver cancer, so this is a serious problem. Treating it requires serum albumin, a substance found in human blood plasma.

As the Financial Times reported last week, Chinese patients consumed 300 metric tons of serum albumin in 2016, approximately half of the global total.

Now, while the necessary supply could be provided by the Chinese population, many of them are afraid to donate blood.

The reason is a well-remembered 1990s health scare in which tens of thousands of farmers who had been paid to donate blood acquired HIV from unsanitary needles. The ensuing scandal was covered up by the government.

As a result, China has to import about 60% of its serum albumin—and the ever-rising demand has driven up prices.

American Edge

According to the Financial Times article (FT subscribers can read it here), three foreign companies currently account for 88% of China’s serum albumin imports. They are:

  • CSL Limited (CSLLY)
  • Grifols S.A. (GRFS)
  • Baxalta, now owned by Shire Pharmaceuticals (SHPG)

(Disclaimer: This is not a stock recommendation. Please do your own research before you buy any of these.)

Interestingly, even though CSL is an Australian company and Grifols is from Spain, all three collect most of their plasma in the US. That suggests we have some natural advantage.

Total US blood plasma collection was 31,000 metric tons last year, compared to only 7,000 metric tons collected in China—even though China has four times as many people.

Clearly, Americans have an edge in this business. We could amplify it by ramping up blood plasma collection to keep pace with rising Chinese demand. This would help reduce the trade deficit and might have other benefits too.

To give blood, you must be in generally good health. That may incentivize donors (who are often paid for giving blood) to avoid unhealthy lifestyle choices, which in turn could result in lower healthcare expenditures as a side benefit.

Another advantage: Blood plasma offers high value for its volume and weight. One refrigerated container might be worth more than an entire shipload of grain, for instance. We’d be able to boost exports with minimal extra carbon emissions.

Risk Factors

Every business plan has to ask, “What could go wrong?”

In this case, one obvious risk is competition. Americans aren’t the only ones with blood to sell, so other countries could underbid the US.

In addition, researchers in China and elsewhere are working on an artificially produced serum albumin. One Chinese project using rice seeds has proven safe and effective in initial trials.

These are indeed risks, but I think they’re minimal for now. The US can maintain its edge as long as we maintain high quality.

President Trump loves to make deals. I think this is a natural one he could negotiate with President Xi.

  • The Chinese can get all the made-in-America blood plasma they need, saving many lives.
  • US healthcare spending will fall.
  • The US-China trade deficit will shrink.

See, everybody wins. What’s not to like?

Regular readers know I’m very concerned about the Trump administration setting off an economically destructive trade war. I hope it doesn’t happen, but I think investors should prepare for it.

International trade doesn’t have to create winners and losers. Voluntary exchange is good for everyone.

Subscribe to Connecting the Dots—and Get a Glimpse of the Future

We live in an era of rapid change… and only those who see and understand the shifting market, economic, and political trends can make wise investment decisions. Macroeconomic forecaster Patrick Watson spots the trends and spells what they mean every week in the free e-letter, Connecting the Dots. Subscribe now for his seasoned insight into the surprising forces driving global markets.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules