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Following its imposition of steel pipe tariffs on China - and with the G-20 meeting in...

Following its imposition of steel pipe tariffs on China - and with the G-20 meeting in Pittsburgh nearing - the U.S. levies 35% tariffs on Chinese tires after a flood of imports. China looks like it may retaliate, but it's not always easy to tell. (previously)
Comments (12)
  • carbonblack
    , contributor
    Comments (34) | Send Message
     
    I see trouble ahead. Mr. Hawley, nice to see you again. Oh and there is your companion Mr. Smoot . So when to the four horsemen show up?
    12 Sep 2009, 01:18 AM Reply Like
  • carbonblack
    , contributor
    Comments (34) | Send Message
     
    "DO" not to. Too late, night night.
    12 Sep 2009, 01:19 AM Reply Like
  • SecretaryNotSure
    , contributor
    Comments (24) | Send Message
     
    Smoot-Hawley Tariff Act
    en.wikipedia.org/wiki/...

     

    The Smoot-Hawley Tariff Act was a protectionist act signed by Herbert Hoover, which raised tariffs on 20,000 imported goods into the United States. Hoover signed the law into law on June 17, 1930. The act is thought to have been a major factor of causing the 1930's Great Depression, and thus Herbert Hoover was largely blamed for the crisis.
    12 Sep 2009, 01:45 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8161) | Send Message
     
    Protectionism is a feature of the Night-Cycle. Internatoinalism is a bubble that implodes, leaving a naked form of nationalism in its place, which is the body of populism.

     

    Internationalism, as a form of business ethic, IS THE BUBBLE that breaks. Can't keep the bubble-ethic when there is no longer a bubble.

     

    It's going to get much nastier. Every nation in the world gets to return to the forge. Vulcan's fire is getting hotter and hotter.
    12 Sep 2009, 01:54 AM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3006) | Send Message
     
    It's almost as if the depression did not take place as there is scant evidence we learned from the experience. The US tire companies involved in this dispute do not want the tariffs, only the unions do.

     

    And while not overlooking the largesse steered towards the banking cartel, you would think the UAW would be placated with the purchase of a couple of auto companies. Ironically, this measure works against the interests the core of the UAW as it will increase the price of new cars through increasing tire costs.

     

    MichaeI I don't think most understand to extent to which we need to retool; the smith's of the world will be working long and hard during the winter's night and will need the help of Vulcan and Hephaestus as we reorganize our economy.
    12 Sep 2009, 08:07 AM Reply Like
  • enigmaman
    , contributor
    Comments (2686) | Send Message
     
    to pacify the unions Obama has implemented tariffs that will prove to be penny wise and dollar foolish, costs of good bought will go up (hidden tax), retaliation tariffs will result in higher costs for US exports so US company profits will go down, protectionism will negatively impact US jobs recovery, antagonizing China couldl accelerate its retreat from holding and or purchasing US treasuries, all in all a bone headed move by the Obama administration that flies in the face of common sense, good business, all for political gain at the expense of the US economy
    12 Sep 2009, 08:52 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8161) | Send Message
     
    Yes, Cautious, we are heading toward Ground Zero, where Vulcan and Hephaestus will be working long hard hours to re-imagine and re-shape the original idea of America. Re-tooling is what we need. And re-tooling our thinking as well.

     

    On Sep 12 08:07 AM CautiousInvestor wrote:

     

    > It's almost as if the depression did not take place as there is scant
    > evidence we learned from the experience. The US tire companies involved
    > in this dispute do not want the tariffs, only the unions do.
    >
    > And while not overlooking the largesse steered towards the banking
    > cartel, you would think the UAW would be placated with the purchase
    > of a couple of auto companies. Ironically, this measure works against
    > the interests the core of the UAW as it will increase the price of
    > new cars through increasing tire costs.
    >
    > MichaeI I don't think most understand to extent to which we need
    > to retool; the smith's of the world will be working long and hard
    > during the winter's night and will need the help of Vulcan and Hephaestus
    > as we reorganize our economy.
    12 Sep 2009, 09:44 AM Reply Like
  • tripleblack
    , contributor
    Comments (13385) | Send Message
     
    I believe there is a deeper game afoot here.

     

    The argument that this is more payoff for unions doesn't make sense, its hard to see where the unions will benefit much, if any.

     

    I think this might be a shot across China's bow - a signal that their plans to dump their excess production on us to maintain their economic plan is not viable.

     

    As in all such confrontations, the party willing to back up their demonstrations will win.

     

    Given that China is now producing a lot more than their domestic market - or even last year's export market - can absorb, would indicate we are nearing a trainwreck. Its possible that China can ease back on the throttle and avoid the wreck, but its also possible that they will not be able to do this, in which case the ball is in Obama's court.

     

    My estimate is that the power lies in Washington in this case, not Beijing. If China CAN scale back the runaway production growth they have planned, they will.

     

    If they cannot, this could be a really nasty event.
    12 Sep 2009, 10:14 AM Reply Like
  • nova
    , contributor
    Comments (569) | Send Message
     
    CautiousInvestor wrote:
    " It's almost as if the depression did not take place as there is scant evidence we learned from the experience."

     

    I would like to rephrase the above: unfortunately, we (both intentionally and/or otherwise) misinterpreted the Great Depression lessons due to massive falsification of the Depression history.

     

    This is specifically true regarding to left-wing charlatans and demagogues. To this list, I also like to add, the most of past and present FED's chairmans including the helicopter-Ben.
    12 Sep 2009, 10:21 AM Reply Like
  • tripleblack
    , contributor
    Comments (13385) | Send Message
     
    Is there a link between these two current events?

     

    Is Washington sending a message that covers unsaid subjects, like rare earth mineral bans and labor dumping?

     

    seekingalpha.com/artic...

     

    On Sep 12 10:14 AM tripleblack wrote:

     

    > I believe there is a deeper game afoot here.
    >
    > The argument that this is more payoff for unions doesn't make sense,
    > its hard to see where the unions will benefit much, if any.
    >
    > I think this might be a shot across China's bow - a signal that their
    > plans to dump their excess production on us to maintain their economic
    > plan is not viable.
    >
    > As in all such confrontations, the party willing to back up their
    > demonstrations will win.
    >
    > Given that China is now producing a lot more than their domestic
    > market - or even last year's export market - can absorb, would indicate
    > we are nearing a trainwreck. Its possible that China can ease back
    > on the throttle and avoid the wreck, but its also possible that they
    > will not be able to do this, in which case the ball is in Obama's
    > court.
    >
    > My estimate is that the power lies in Washington in this case, not
    > Beijing. If China CAN scale back the runaway production growth they
    > have planned, they will.
    >
    > If they cannot, this could be a really nasty event.
    12 Sep 2009, 03:41 PM Reply Like
  • Niner
    , contributor
    Comments (791) | Send Message
     
    I think China has more to lose than we do. Who is China's largest consumer? I don't know but I' thinking we are. Do they dare bite the hand that feed them?
    12 Sep 2009, 04:43 PM Reply Like
  • darkpool
    , contributor
    Comments (27) | Send Message
     
    wake up everyone and recognize Obama for the dangerous creature he is. Steadily he is causing a reconfiguration of the US economy that will have a very bad outcome for the productive half of society.
    12 Sep 2009, 05:41 PM Reply Like
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