China Worried About Rise in U.S. Protectionism

http://news.xinhuanet.com/english/2008-06/10/content_8336003.htm

http://news.xinhuanet.com/english/2008-06/10/content_8335793.htm

http://news.xinhuanet.com/english/2008-06/10/content_8335735.htm

The world’s biggest trade parasite is worried that the U.S. is about to take a flea bath.  Three separate articles from the Xinhua News Agency in one day are attacking the U.S., chastising us for protecting our farmers, for a rise in protectionist sentiment and – most incredible of all – for allowing the value of the dollar to slide.  That last one is so unbelievable because it is our trade deficit, especially the deficit with China, that has eroded the value of the dollar in the first place.  Do they really want us to take action to restore the value of the dollar, or are they just having fun tweaking our noses after enduring years of complaints about the value of the yuan? 

Indeed, they have every reason to be worried.  Americans are wising up fast to the true nature of free trade and the devastation it’s wreaked on our economy.  The days of our leadership rubber-stamping “free” trade deals is over.  It’s entirely possible that the next administration may begin a turn away from the WTO and begin dipping its toe back into the waters of the trade policies that built this nation into the industrial juggernaut it once was.  China’s economy is flourishing only because it sucks $300 billion from the U.S. economy every year.  Take that away and we’d soon see what a myth it is that they’ve somehow decoupled from their dependence on America. 

If they really want to “decouple” from America, I say let’s help them out.  Bring on the flea powder of tariffs and watch our trade “partner” fleas decouple from us in a hurry!  Maybe they can find some other naive free trade disciples upon whom they can feed a while longer. 

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2 Responses to China Worried About Rise in U.S. Protectionism

  1. Pete,

    My concern with China is that they remain engaged in purchasing our debt and enjoying the trade imbalance long enough to establish the necessary infrastructure to begin the American practice of domestic expansion, at which point they could very well decouple from the U.S.

    The U.S. on the other hand (in my opinion) reached zenith in the area of balanced domestic expansion around 1971. We now have a resource issue that will prevent growth in per capita living standards and thus require sweeping reform should we wish to hold on to even a glimmer of our previous highs.

  2. Pete Murphy says:

    Mike, your time frame of about 1971 agrees pretty closely with my estimation of when the U.S. breached its optimum populaton density, beginning the process of growing the labor supply out-of-whack with the demand for labor.

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