“Collusion?” Where was the FBI when we needed them?

January 13, 2019

The news that broke yesterday about the FBI launching a counter-intelligence investigation of President Trump after he fired former FBI director James Comey got me thinking.  Where was the FBI when real collusion took place that has nearly destroyed the United States? Past presidents have colluded with other world leaders for decades to transfer all of the wealth of the United States to the rest of the world through a grand scheme of globalization that transformed America’s economy into a comatose host to be fed upon by hordes of parasitic nations.

Where was the FBI after World War II when Truman colluded with European leaders to establish the World Bank and the International Monetary fund, along with signing the Global Agreement on Tariffs and Trade, unilaterally dismantling America’s protections against predatory trade partners?  Where was the FBI when George H. W. Bush colluded with world leaders to establish the World Trade Organization, surrendering America’s trade policy?    Where was the FBI when Clinton colluded with Mexico to pass NAFTA, or when he colluded with Chinese leaders to grant China “Most Favored Nation” status?  Where was the FBI when Obama colluded with South Korea to worsen our balance of trade with them?  Or when he tried to ramrod the Trans Pacific Partnership deal down our throats?

The result of all of the above is that the United States is a shell of its former self.  We are now nearly $22 trillion in debt to the rest of the world.  Stand on a rooftop and take a look around.  Everything you see – as far as you can see – is owned by foreign governments or corporations.  You think you own your house or, if you have a mortgage and are honest with yourself, that at least your bank owns your house?  Think again.  All such debt has been bundled up and sold to foreign interests.  The same is true of virtually all U.S. property, whether “owned” by private individuals, small companies, corporations, or even your local government, state government or the federal government.  They own us lock, stock and barrel.  And with ownership comes control.  Don’t think that it doesn’t.   Incredibly, past presidents have colluded to make a communist country led by a dictator-for-life the biggest benefactor of all.  How in the hell did all of this happen?  Where was the FBI?

Where was the FBI when these past presidents colluded with the rest of the world to unleash a relentless campaign of fake news and false propaganda to brainwash and assure Americans that all of this was done in their best interest?  “Trade deficits don’t matter.”  “Everyone wins in free trade.”  “We’ll retrain you to get an even better job.”

Where was the FBI while past presidents rendered America subservient to “The New World Order?”  They never uttered a peep of protest.  They never launched an investigation.  Some have likened Trump to the “Manchurian Candidate,” an old movie about a communist attempt to get a brainwashed traitor elected president.  Given all of the above, one has to wonder who was the real “Manchurian Candidate?”  Was it Trump, or was it the string of presidents who preceded him?  Is Trump now faced with fighting an entire system that they’ve created, including the media and all of the government’s bureaucracies?  Is the FBI now part of a “Manchurian” conspiracy?  Should Trump have gone beyond Comey and fired all of the FBI’s senior leadership?

OK, I know, I’ve veered way off the road into the weeds of conspiracy theory.  But seriously, don’t you find it just a wee bit ironic that we finally have a president who is trying to extricate America from domination by world organizations and he finds himself under attack by the same FBI that was perfectly happy with America’s subjugation to foreign interests through the process of “globalization?”

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What Trump Needs to Do to Survive

December 17, 2018

Donald Trump was never a very likable person -arrogant, obnoxious, inconsiderate, demeaning, a womanizer and narcissistic.  The list could go on.  He’s not eloquent, not inspiring and not a role model unless, that is, you fancy yourself an entrepreneur like him.  There’s no arguing his success as such.  What he lacked in the aforementioned qualities he made up for with ruthless ambition and a keen sense for business.  So it’s not surprising that his reality TV show, The Aprentice, was a hit at a time when millions of workers were falling victim to globalization and were left with few options but to try their hands as entrepreneurs.  Even if you didn’t like Trump, it was entertaining to watch contestants get a heavy dose of reality about what it took to make it as a businessperson.

But Trump as president?  I scoffed at the idea.  No way could such an unlikable person get enough people to vote for him.  I never would have.  When he announced his candidacy, I just assumed that a businessman like him would, of course, be another globalist.  People often said that we needed a businessman to run the government more like a business.  I always replied that what would really happen is that the government would be run for the benefit of business, to the detriment of everyone else.  But he got my attention when he started talking about “making America great again” and what that meant – tearing up bad trade deals, bringing jobs back home and reining in out-of-control immigration – especially illegal immigration.  These were all the things I’d been writing about for years.

So I turned a blind eye to all of his onerous qualities and took a chance.  Why not?  It wasn’t as though I hadn’t voted for populist losers before.  To my amazement, the “silent majority,” who’d been getting their asses kicked by globalization for decades, had had enough of it and voted for him too.  Like me, they were willing to overlook his many flaws and take a chance.  It’s not as though we didn’t know what we were getting.  The Access Hollywood tape had long since been made public.  News about his affairs with “Stormy” McDaniels and Karen McDougall had already come out.

I’ve been pleased with the results – with his policy decisions – but not ecstatic.  He’s been tough on illegal immigration, but where’s the badly-needed border wall?  Making Mexico pay for it would have been easy.  Just tear up NAFTA and slap tariffs on Mexican imports.  Instead, he became mired in a year-long renegotiation of a trade deal with Mexico, which still isn’t signed and is questionable as to whether or not it represents any improvement at all for the U.S.  The tariffs on steel and aluminum were a great first step, followed by the small tariffs on half of Chinese imports.

But now his agenda is stalled, thanks to caving into to the Chinese when they promised reforms at the G20 meeting in Argentina.  We all know how that’ll go.  There’ll be promises from the Chinese that’ll never be kept, but they’ll be enough to win them more concessions from Trump.  The long-talked-about tariffs on auto imports have never happened.  The problem with all of this is that, while what Trump has done so far has been a good start toward an overhaul of trade policy, it hasn’t been enough yet to achieve the desired effect – a migration of manufacturing back to the U.S.  Our trade imbalance is now worse than ever.  Trump has ceded the podium to the hand-wringing globalists who scare the hell out of markets with their daily dire warnings of a trade war or worse.  Now they’re conjuring up images on a new Great Depression, worse they say than 1929.  It’s ridiculous, of course, but it’s having an effect as people turn negative on the economy.  And companies clearly aren’t yet taking this new trade policy seriously, as GM recently announced plans to close plants in the U.S. and move more production to Mexico, and as Boeing just announced that they’re moving some assembly to China.

Given this past week’s news about the conviction of former Trump attorney Michael Cohen on felony charges of campaign finance law violations, it seems inevitable that Trump will face impeachment.  Never mind the fact that the hush money payments were already old news when Trump won the election, indicating that those events weren’t enough to dissuade voters from desperately seeking a change in direction for the country.  Trump won’t stand a chance of re-election with impeachment hanging over his head.  And you can be sure that the House Democrats are smart enough to bring it to a head just as the election draws near.

There’s only one chance for Trump to survive.  The economy has to be going gangbusters when the next election rolls around.  The only way that happens is if he aggressively resumes his implementation of tariffs.  That means that as soon as the 90-day “truce” agreed to at the G20 ends on March 1st, he must immediately raise the tariffs on Chinese imports to 25% as originally promised, and must extend them across the board to all Chinese imports.  Secondly, he needs to immediately implement the long-promised 25% tariffs on all imported autos.  Finally, he must make it clear that the tariffs will remain in place regardless of any promised concessions from China or any auto exporters.  Tariffs cannot be negotiated away.  Lowering the tariffs can only be considered when a balance of trade has been restored, and then only incrementally.  Trump needs to immediately change the conversation, refocusing news coverage on changing trade policy and away from his legal predicaments.  If he does all of this – and the economy is doing great – voters will be willing to overlook an impeachment just as they overlooked his many flaws two years ago.

Anything short of that and Trump will be gone in two years, replaced by globalists who will undo everything he did.  And history will judge his presidency a failure.


October Trade Data Debunks Fake News About Harmful Effects of Tariffs

December 6, 2018

Don’t take my word for it.  Read the report yourself and delve into the details.  Here’s a link to the October trade data, released this morning by the Department of Commerce:  http://www.bea.gov/system/files/2018-12/trad1018.pdf.

We’ve all heard the stories.  The trade war between the U.S. and China is dragging down the global economy.  The manufacturing sector in China is slowing.  Retaliatory tariffs by China have virtually halted soybean exports from the U.S. and soybean prices are down.  Auto exports are in decline.  Tariffs on steel and aluminum are making the U.S. uncompetitive.  The October trade data makes clear that these stories are all a bunch of B.S. – lies spread by free trade globalists in the hope of heading off more and higher tariffs.

Let’s begin with the big picture.  The total trade deficit was only $0.07 billion off from the record set one month earlier.  Here’s the chart:  Balance of Trade.  In terms of the all-important category of manufactured goods, where the jobs are, the trade deficit broke the previous month’s record for the fourth consecutive month, blowing past last month’s record by $1.6 billion to a new record of $73.3 billion.  That’s an annual rate of $880 billion.  Take a look at this chart:  Manf’d Goods Balance of Trade.  If that was a chart of your household spending, you would be in an absolute panic over the deterioration in your finances.

Now, as for those bogus stories about tariffs, let’s dig into the details of the report.  First, there’s the claim about China’s economy being dragged down.  See page 3 of the report.  The goods deficit with China rose to $38.2 billion (expressed in 2012 dollars).  That’s a new record.  If anything, the report understates just how bad the trade picture with China has gotten.  Check out the balance of trade with China in current dollars:  https://www.census.gov/foreign-trade/balance/c5700.html.  The goods deficit with China has absolutely exploded, setting records for the past four consecutive months.  For all the whining you hear from Chinese officials, the truth is that they’re making more of a killing than ever before at the expense of American workers.

What about soybeans?  We’ve all seen the news reports about how much the tariffs have hurt American farmers.  It’s baloney.  Go to page 20 of the October trade report.  Soybean exports, while down a little in October,  year-to-date are running far ahead of the same time last year:  $24.1 billion vs. $19.4 billion in 2017.  The stories talk about how much exports to China have declined.  They don’t mention that the decline has been more than offset by an increase in soybean exports to Europe.  (Europe turned to the U.S. for its soybeans when China shifted its soybean sourcing to Brazil, displacing Europe from their Brazilian source and forcing them to the U.S.)  Given the year-to-date volume of exports, if prices are down now, it’s likely because of a glut in soybeans.

Auto exports?  See page 21.  They were down very slightly in October from September but, year-to-date, are up to $134.1 billion vs. $130.6 billion in 2017.  By the way, as reported on Monday, domestic vehicle sales in November held steady at the very high level of 17.5 million vehicles, debunking the whining by auto manufacturers that sales are in decline.

Steel and aluminum?  Both exports and imports are up.  Over the Thanksgiving holiday, I asked my nephew who works for a steel manufacturer in Indiana how their business is doing.  He reported that they had already blown past the sales record they set in 2017 by a substantial margin.

While the tariffs implemented so far have been too few and too small to have a dramatic impact on manufacturing repatriating to the U.S., there’s some very good news that you don’t hear about.  In October, thanks to the 10% tariff on steel and aluminum and the 10% tariff on $200 billion of Chinese imports, federal revenue from these tariffs was approximately $30 billion, a significant contribution toward reducing the federal budget deficit.  If kept in place, those small tariffs alone would cut the annual budget deficit by $360 billion, or by about a third.  That’s huge, folks!  Just imagine what would happen if Trump applied the tariffs to all Chinese imports, and raises them to 25%, and also applies a 25% tariff to all auto imports.  We’d have our first balanced budget in decades, not to mention companies scrambling to build domestic manufacturing capacity!

So ignore all the doom and gloom and hand-wringing by the free trade globalists.  It’s all a bunch of baloney, meant to scare you and meant to apply political pressure to stop any further tariffs.  If everyone knew the truth, they’d be applauding the Trump administration for its trade policy and would be demanding more and higher tariffs.

 


Red China’s Finance Minister All but Admits U.S. Will Win Trade War

August 24, 2018

https://www.reuters.com/article/us-usa-trade-china-finmin/exclusive-china-to-keep-hitting-back-at-u-s-over-trade-to-boost-government-spending-finance-minister-idUSKCN1L90HF

In the above-linked interview with Reuters yesterday,  Red China’s finance minister, Liu Kun, all but admitted that China is losing the trade war with the U.S., and the losses are expected to worsen.

For now the impact of the China-U.S. “trade frictions” on the Chinese economy has been small, but he is concerned about potential job losses and lost livelihoods …

… the Chinese government will increase its spending to support workers and the unemployed who are hurt by the trade conflict, and also predicted bond issuance by local governments to support infrastructure investment this year will pickup and blow past 1 trillion yuan ($145.48 billion) by the end of the current quarter.

So far, China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing most of its imports of American products. Crude oil and large aircraft are key U.S. goods that are still not targeted for penalties.

“We’re responding in a precise way. Of course, the value of U.S. imports of Chinese goods isn’t the same as the value of Chinese imports of U.S. goods. We’ll take tariff measures in accordance to this situation,” … “When we take measures, we try our hardest not to harm the interests of foreign businesses in China. That’s why our tariff measures are targeted to avoid affecting them as much as we can,”

That’s a rare admission that China is already out of ammo in this war.  Although the U.S. is poised to slap tariffs on at least $200 billion of Chinese imports – still just a fraction of Chinese imports – China has targeted only half that amount because that’s all it imports from the U.S.  In a tit-for-tat trade war, Red China is already out of “tits.”

Some American businesses and industry lobbies, including the U.S. Chamber of Commerce, have criticized U.S. President Donald Trump’s imposition of punitive tariffs on Chinese goods

This statement can’t be allowed to stand without comment.  The “U.S. Chamber of Commerce” is not an “American” lobbyist.  The Chamber of Commerce is a foreign-based organization, established in France, to promote global trade regardless of its negative impact on the United States.  It opposes Trump’s trade policy because global trade will suffer as the U.S. returns to more domestic manufacturing.  The “U.S.” Chamber of Commerce is its U.S.-based branch and every local Chamber of Commerce in the U.S. is dedicated to the mission of the parent organization – promoting global trade regardless of its impact on Americans.

The U.S. tariffs have affected China’s economic growth – albeit modestly – and their impact will become even more pronounced if the trade frictions persist, Liu said.

“From my perspective, I’d pay more attention to the impact that the China-U.S. trade frictions has on jobs in China. After all, some firms will be affected, exports will be reduced and production will be cut,” …

China’s urban survey-based jobless rate rose to 5.1 percent from 4.8 percent in June. The government aims to keep the rate below 5.5 percent this year.  China plans to increase its fiscal spending to support workers or jobless hurt as higher tariffs kick in.  “We will make adequate preparations in terms of fiscal policy, and help unemployed workers find new jobs and ensure their basic social security,” Liu said.

China’s already feeling the pain.  They’re losing this trade war, and it’ll get worse for them.  In the meantime, the U.S. economy has been going gangbusters, led primarily by big gains in manufacturing, and this is only a taste of things to come if Trump continues to use tariffs to re-establish a balance of trade for the U.S.

 


EU Scared to Death by Trump’s Tariff Threat

July 5, 2018

Precisely as I recommended he do in response to EU (European Union) tariffs on Harley-Davidson motorcycles, President Trump has threatened to impose stiff tariffs on European auto imports.  In return, the EU responded much like the cartoon cockroaches in the RAID insect killer commercials – full blown panic.  The end of the world is at hand!  Their world, for sure, but they want you to believe it’ll be the end of yours too.  Prices will rise, they say.  Sales will decline.  So too will GDP (gross domestic product), a measure of the overall U.S. economy.

Perhaps their most interesting warning was in regards to BMW production at their Spartanburg, SC plant that produces their SUV models.  (They call them “SAVs”, or “Sports Activity Vehicles.”)  They claim that most of the cars made there are exported, and it’s true.  As other nations respond with their own tariffs on American cars, they say, exports of those American-made BMW SUVs will decline and production will be cut, costing jobs.

Let’s look at the facts.  That Spartanburg BMW plant does export about 75% of the vehicles it builds, with those exports having a value of about $10 billion.  Is it really the loss of those BMW exports the EU is worried about, or is it something else?

Here are some more facts.  In 2017, Germany exported approximately $30 billion worth of cars and parts to the U.S., while importing only about $10 billion from the U.S., resulting in a $20 billion surplus for Germany.  The EU as a whole enjoyed a surplus of $44.1 billion in cars and parts with the U.S.

So what is the EU worried about most?  The American economy and BMW’s $10 billion in exports, or their $44.1 billion surplus?  The answer is obvious.  They’re making a killing in the U.S. market, and Trump’s tariffs threaten to put an end to it,

And it’s not just the EU.  Other globalist organizations have used similar scare tactics.  General Motors made similar warnings, but are they more worried about domestic auto sales or their China operations?

Every day, the news is filled with stories about how trade war fears are weighing on global markets.

Will car prices go up?  Probably.  But they didn’t mention to you that your wages will rise faster.  Will car sales decline?  No, the opposite will happen.  Sales of American-made models will rise faster than the decline in sales of EU cars as Americans grow more prosperous and opt for the less expensive American cars over the tariff-laden EU imports.

So don’t fall for the Chicken Little scare tactics.  It’s impossible for the U.S. to do anything but win a trade war, since a trade deficit is what defines a loser in global trade and the U.S. has the biggest deficit by far.  Anything that reduces that deficit makes America the winner.

If raising tariffs on imports were going to hurt the U.S. economy, then how do you explain that the economy is on a tear, putting up the best numbers in a long time – especially in the manufacturing sector of the economy?  Investors seem to understand.  While foreign markets – especially in Asia – have been taking a beating in the past few months, American markets are holding just below their record highs.  Like the saying goes – money talks and BS walks.  The big money knows that Trump’s tariff plan is good news for the American economy.

 

https://www.cnbc.com/2018/07/04/eu-considering-international-talks-to-cut-car-tariffs-report-says.html


More Trade War Hysteria

April 7, 2018

https://www.cnbc.com/2018/04/04/one-of-the-biggest-us-trade-wars-of-the-past-had-a-tragic-consequence–heres-what-happened.html?recirc=taboolainternal

I was hoping to spend some time tallying the U.S.’s global trade results for 2017, but then this popped up and I just can’t let it pass.  Actually, I was wondering when the free trade globalists would dredge up the subject of the Smoot-Hawley Tariff Act of 1930, blaming it for the Great Depression, as they usually do.  But the writer of the above linked article, in an apparent attempt to ratchet up fears of a trade war, goes a step further and blames Smoot-Hawley for World War II!

She begins by creating the impression that Smoot-Hawley was an opening salvo in a trade war in the 1930s.  She either doesn’t have a clue, or is intentionally trying to mislead her readers.  Let’s get some facts straight.  First of all, the use of tariffs was standard trade policy for the United States since its founding.  In fact, until 1913, there was no need for an income tax in the U.S. because all federal revenue was derived from tariffs.  The Smoot Hawley Act was nothing more than a minor tweak of tariff rates that had been in effect since the Fordney-McCumber Act of 1922.  It increased tariffs on average by 2.7%.  It changed the tariff basis from an ad valorem (percentage) basis to a fixed dollar basis which, under normal circumstances, would actually have slowly reduced tariffs as inflation eroded the value of the tariff.  But, of course, the Great Depression resulted in a protracted term of deflation instead of inflation.

Blaming Smoot-Hawley for the Great Depression is bad enough.  Not only was the change in tariff rates minuscule, but it wasn’t enacted until June of 1930, a year-and-a-half after the stock market crash of 1929 which actually precipitated the Great Depression.  And at the height of the Great Depression in 1933 when GDP (gross domestic product) had fallen by 33%, or $33.1 billion from its 1929 level, the total value of imports and exports had declined by only $6.5 billion.  It was actually the Great Depression that caused the drop in trade, and not the other way around, just as the “Great Recession” that began in 2008 resulted in a sharp decline in trade.

To blame Smoot-Hawley or a “trade war” that didn’t even exist for World War II is truly outrageous.  It was actually the aftermath of World War I and the severe war reparations that were imposed on Germany, resulting in soaring inflation and unemployment, that fostered Hitler’s rise to power.  And that just happened to coincide with the growing aggressiveness of imperialist Japan.  Trade had absolutely nothing to do with it.

Sure, the world made a turn toward free trade following the war with the signing of the Global Agreement on Tariffs and Trade in 1947, but it wasn’t because anyone blamed a “trade war” for causing World War II.  It was because economists, eager to try out the concept of free trade, successfully (but disingenuously) blamed tariffs for the Great Depression and made an argument that the interdependence that would come with free trade could preclude any future world wars.

Actually, if one were to be honest, free trade and the enormous global trade imbalances it has fostered is directly responsible for our current trade tensions.  We need to restore balance to global trade through the use of tariffs or quotas before things get any worse.


Tariff Hysteria

March 3, 2018

https://www.reuters.com/article/us-usa-trade/trade-wars-are-good-trump-says-defying-global-concern-over-tariffs-idUSKCN1GE1PM

Unless you’ve been living under a rock somewhere, you already know about the tariffs on steel and aluminum imports that Trump announced on Wednesday.  The reaction has bordered on mass hysteria, especially among “economists.”  I put that word in quotation marks because those who present themselves as experts in the field, but either lack the curiosity required to examine the effects of population growth, the biggest factor driving the global economy today or purposely avoid it because the findings would destroy their credibility, aren’t worthy of being dignified with the label.  One such “economist,” representing a “think tank” whose purpose it is to advance the cause of globalization (that is, the fleecing of Americans to prop up the economies of grossly overpopulated nations), described Trump’s tariff plan as a “return to 18th century trade policy.”  Apparently he doesn’t understand that the use of tariffs dominated U.S. trade policy through the first half of the 20th century, transforming the U.S. into the world’s preeminent industrial power and the world’s only “super-power.”

The reaction on Wall Street was swift, with market indexes falling several percent.  But not the stocks of U.S. steel producers.  Those actually rose several percent.  So what does that tell you?  Unlike “economists,” investors are people who put their money where their mouth is.  Investors fear what this move could mean for inflation and the broader economy, but they know very well it’ll be a big boost to steel and aluminum producers.  If tariffs are good for that industry, doesn’t it stand to reason that they’d be good for others if applied to those products as well?  How about autos?  Electronics?  Appliances?  The fact is that every U.S. producer of every category of product where the U.S. has a trade deficit would benefit from tariffs.

Virtually every media outlet since Trump “tweeted” about the tariffs soon after announcing them has quoted him as saying “… trade wars are good and easy to win …” in an effort to make him sound like a buffoon.  At least the above-linked Reuters article does provide the full quote further down in the article:

“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump said on Twitter on Friday.

Put in the context of our massive trade deficit which, in terms of manufactured goods, isn’t just billions but is now approaching a trillion dollars a year, he is exactly right – a trade war would be a good thing and not only would it be “easy to win,” it’d be impossible to do anything but win and win big.  “Economists” and other countries don’t want you to know that.  They want to scare you with warnings of retailiation by other countries:

Europe has drawn up a list of U.S. products on which to apply tariffs if Trump follows through on his plan.

“We will put tariffs on Harley-Davidson, on bourbon and on blue jeans – Levi’s,” European Commission President Jean-Claude Juncker told German television.

Wow, that shows you how far down the list of products they had to go to find some that they actually import from the U.S.  And “blue jeans?”  Seriously?  Don’t they know that even Levis aren’t made in the U.S. any more?  Regardless, do you really want to go there, Europe?  Go ahead.  Slap tariffs on Harleys and bourbon.  We’ll retaliate with tariffs on cars.  See how you like that!  How long would Mercedes, BMW, Volkswagen, Porsche and all the others survive without access to the U.S. market?

Another popular warning among the globalist fear mongers is that higher prices will be passed along to U.S. consumers.  The cost of every product that uses steel and aluminum will soar.  That’s utter nonsense.  When foreign steel producers have to raise their prices by 25% to cover the tariffs, will their customers continue buying their steel or will they simply turn to American suppliers that weren’t that much more expensive in the first place?  That’s the whole purpose of a tariff – not to collect revenue and make American consumers pay more, but to force the buyers of those products to switch to American suppliers.

There is a legitimate fear among manufacturers that forcing them to pay more for steel and aluminum, even if it’s only slighly more when they switch to American suppliers, will make them less competitive with foreign imports.  Here’s one example quoted in the article:

But home appliance maker Electrolux (ELUXb.ST) said it was delaying a $250 million expansion of its plant in Tennessee as it was worried U.S. steel prices would rise and make manufacturing there less competitive.

OK, Electrolux, would you change your mind if Trump also levied a tariff on imported appliances?  Not only would you go forward with your planned expansion, you’d probably rush to develop plans for more and bigger expansions.  My point is that these tariffs on steel and aluminum are a good start, but to have a real impact on the economy, they need to be levied on virtually every imported product so that, in every case, American consumers will choose the less expensive U.S.-made products.  Will that stoke inflation?  Sure, but not as fast as the demand for labor would send wages up.

Other fear mongers have raised the spectre of another scary scenario, where heavy buyers of U.S. debt, like China, would retaliate by dumping their bond holdings, driving up interest rates and inflation along with it.  Could they do that?  Sure, if they wanted to shoot themselves in the foot.  They’d be driving down the value of their biggest investments.  And let’s not forget that, as the U.S. trade deficit shrinks in response to the tariffs, the U.S. will be issuing less debt.  So the U.S. will be pulling bond issues off the table as fast as China and others try to sell theirs.  The end result is a wash and their “retaliation” will end up only hurting themselves.

The tariffs on steel and aluminum, on top of a few other small, targeted tariffs (like the recent tariffs on washers) are good, small steps.  But they’re nothing compared to what really needs to be done – the application of tariffs across the entire spectrum of manufactured goods.  To do that, the U.S. needs to withdraw from the World Trade Organization.  Or perhaps it doesn’t matter.  The only power the WTO has is to authorize other nations to retaliate – nothing more than they would do anyway, even if the WTO never existed.

A trade war?  We’ve been in a trade war ever since our country was founded.  The problem is that, with the signing of the Global Agreement on Tariffs and Trade in 1947 – the forerunner of the World Trade Organization – the U.S. gave up the fight.  The U.S. laid down and let others begin feeding on it like a swarm of parasites.  It’s high time we put up a fight again.