In my January 19th post on the Weaponizing of Space, I wrote briefly about what democrats would do with regard to
The democrats are pissed! I worked for Sherrod Brown in the 2004 election campaign in northeast
to support John Kerry. Even though I know him personally and can say with all certainty that he is a great, honorable and capable American, the freshman Senator from Ohio is going to have a field day with this with support of the protectionist, pro-labor side of the Democratic Party. The democrats need to look strong to their constituents on national defense and this is the perfect forum for that. I wonder what bills or resolutions will be passed on this issue. Ohio
Only 3 days ago, I read an interesting Opinion piece from USNews.com discussing possible legislation that will be introduced into the Senate by Sherrod Brown and fellow democrats that will change the status quo. The protectionists are definitely out in force.
Here is an excerpt of the article:
Also this week, Democratic Sens. Byron Dorgan of
North Dakotaand Sherrod Brown of Ohio, along with Republican Lindsey Graham of South Carolina, said they were introducing legislation that would strip Chinaof its permanent normal trade status with the , subjecting the trade relationship to an annual review by Congress. Brown said in a statement: United States trade policy has failed workers and small businesses across our country. As far as I am concerned, there is nothing normal about allowing our trading partners to use slave labor to compete with our workers. There is nothing normal about manipulating currency to make exports cheaper. There is nothing normal about mouthing concern for intellectual property in the midst of rampant piracy. And if this is indeed normal, then I certainly don't want it to be permanent. U.S.
Who knows what will come of this. The last time something like this happened was in 2005 when NY Senator Chuck Schumer tried to introduce a 27.5% tariff on all Chinese imports. That was pushed aside due to talks between Sen. Schumer, and the current Treasury Secretary, Henry Paulson. Hopefully someone will have the same influence this time.
In a Chinese perspective, it seems that these senators are kind of ignorant. They are looking past the other obvious problems with the
In the 1980s, just as with
Chinatoday, many in the United Stateswere pushing to strengthen its currency. How did that work out for Japan ? As Will Japan expert and author of the book The Writing on the Wall: Why We Must Embrace China as a Partner or Face It as an Enemy, told me in an interview late last year: Hutton, China
The more than 50 percent rise in the yen in the late 1980s was the single most important cause of Japan's near 15 years of economic stagnation that followed; if the yuan went up by 40 percent suddenly against the dollar, it would have a similarly devastating impact on China. . . . Such a rapid appreciation of the yuan over a short period could be a tipping point for a wave of unrest, which could threaten the regime's stability. The party leadership sees the demand for fast yuan appreciation as an act of economic warfare. In these terms, you can see why.
And would troubles in
Chinaaffect ? Here is the scenario that Hutton sees: America
China's stagnation would trigger a global slowdown, maybe even recession. ... The World Bank estimates that if China's growth rate fell by just 2 percent, up to 60 percent of China's bank loans would become nonperforming–so threatening both China's and, via Hong Kong, Asia's financial system. The flow of saving to finance the
U.S.'s deficit would dry up, probably forcing interest rates up–so worsening the economic slowdown. U.S.
A scary scenario, no doubt–and one both Democrats and Republicans should do their best to avoid.
I would agree.