Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

In Davos, protectionism is a dirty word (Putin for a global putsch to topple the dollar)
Telegraph ^ | 01/31/09 | Ambrose Evans-Pritchard

Posted on 02/01/2009 3:12:01 AM PST by TigerLikesRooster

In Davos, protectionism is a dirty word

The beggar-thy-neighbour phase has begun in earnest. "Buy American" legislation has advanced from a barely credible threat to imminent reality on Capitol Hill in just weeks.

By Ambrose Evans-Pritchard Last Updated: 11:31PM GMT 31 Jan 2009

The House has voted for a bill that prohibits the use of foreign steel in most infrastructure projects funded by Barack Obama's $820bn (£563bn) rescue package. The Senate is drawing up plans to widen that to all manufactured goods.

This is what happens when a country loses half a million jobs a month, and when the state becomes spender-of-last-resort. Taxpayers are tribal. They do not want precious stimulus to feed the foreigner.

Even so, this Dutch auction has the disorderly feel of the Smoot-Hawley Tariff debacle in 1930, though this time the collapse of commerce – if allowed to happen – will have very different consequences for the global balance of power.

Mr Obama can veto the law, should he wish to pick a fight with Capitol Hill from day one. The world watches and waits in horror, especially in Davos.

"Everybody here is talking about protectionism. There's not a prime minister present not talking about protectionism," said Peter Sutherland, former (GATT) trade chief and now chair of BP.

Days earlier, US Treasury chief Tim Geithner called China a "currency manipulator" – meaning that Beijing holds down the yuan to boost exports. The term is turbo-charged. It implies mandatory trade sanctions under US law.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bho44; bhotrade; coldwar2; davos; dollar; protectionism; putin; russia; sovietunion; tradwar
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-77 last
To: durasell
I can see a GC making a six-figure income, easily. Problem is, he (or she) has to spend a good portion of it.

And almost everyone's taking a hit. That's why the experts call them "recessions."

61 posted on 02/01/2009 4:00:50 PM PST by 1rudeboy
[ Post Reply | Private Reply | To 60 | View Replies]

To: 1rudeboy; bluejay

For a long time factories supplied steady, well-paying work for a lot of people. Those days are pretty much over.

For a long time mid-level management provided steady, well-paying work for a lot of people. Those days are coming to an end.

What replaces those jobs is anyone’s guess.


62 posted on 02/01/2009 5:31:18 PM PST by durasell
[ Post Reply | Private Reply | To 61 | View Replies]

To: durasell

> All of those have taken a major hit during the current recession.

Every one takes a major hit during a recession.

> And when is a “handy man” a six figure income.

A handy man that charges $55 per hour can make over $100,000. A handy man that becomes a general contractor can make significantly more than $100,000. Can every handy man charge $55 per hour or become a general contractor? No. But in a free society every handy man has that opportunity.

> C’mon, you just threw that in there to fill out the list, didn’t ya?

Actually, I could make the list much larger. Since you appear to be so fond of manufacturing lets talk about car, aircraft and military sectors. All of these will be harmed by an increased price on steel caused by protectionism.


63 posted on 02/01/2009 5:31:31 PM PST by bluejay
[ Post Reply | Private Reply | To 60 | View Replies]

To: durasell

> For a long time factories supplied steady, well-paying work for a lot of people. Those days are pretty much over.

That is definitely a true statement. You could make the same statement about agriculture.

The days of manufacturing are pretty much over no matter what you do. After labor costs in Asia go up to make large scale manufacturing there impractical, automation will take over.


64 posted on 02/01/2009 5:35:44 PM PST by bluejay
[ Post Reply | Private Reply | To 62 | View Replies]

To: bluejay

I’ve never seen a handy man who charged $55 an hour. Frankly, a handy man who drove up in a Mercedes would scare me.

I recognize that a significant portion of America’s manufacturing base is gone and ain’t coming back.

As for “protectionism,” I don’t believe that’s what we’re talking about when we view recent events. I think we’re talking about the first stage of negotiations.


65 posted on 02/01/2009 5:37:51 PM PST by durasell
[ Post Reply | Private Reply | To 63 | View Replies]

To: durasell

> I’ve never seen a handy man who charged $55 an hour. Frankly, a handy man who drove up in a Mercedes would scare me.

They don’t drive up in a Mercedes; they use vans just like every one else. It probably depends where you live. Sadly, in Hawaii $55 per hour is not terribly unusual.

> As for “protectionism,” I don’t believe that’s what we’re talking about when we view recent events. I think we’re talking about the first stage of negotiations.

Sorry, I am just reacting to the “stimulus” bill that, in addition to funding every pet Democratic cause, introduces “buy American” requirement on steel. Some how, I don’t think Obama will make friends with our allies as he starts a trade war.


66 posted on 02/01/2009 5:45:28 PM PST by bluejay
[ Post Reply | Private Reply | To 65 | View Replies]

To: bluejay

There’s already a trade war going on, and we’re losing.

Cheap technical assistance is beamed in via satellite and high speed lines from Indian call centers.

The Chinese ignore our copyrights and flood the market with overly cheap stuff.

And clothing is made everywhere, but here.


67 posted on 02/01/2009 7:22:55 PM PST by durasell
[ Post Reply | Private Reply | To 66 | View Replies]

To: durasell

> There’s already a trade war going on, and we’re losing.

I think your meaning of “trade war” is not the one commonly utilized. Further, I think your meaning of “losing” can be fairly described as Orwellian - we have benefited disproportionately from globalization.

> Cheap technical assistance is beamed in via satellite and high speed lines from Indian call centers.
> The Chinese ignore our copyrights and flood the market with overly cheap stuff.
> And clothing is made everywhere, but here.

We already established that US unemployment rate was less than 5% with all these imports (that by the way also raise the living standard of the American people). Why are you repeating a failed argument?


68 posted on 02/01/2009 8:34:48 PM PST by bluejay
[ Post Reply | Private Reply | To 67 | View Replies]

To: AdmSmith; Berosus; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; justiceseeker93; ..

Putin has to be offed.


69 posted on 02/01/2009 9:05:19 PM PST by SunkenCiv (https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bluejay

You’re right on that — I did not use the standard definition of “trade war.” What’s been happening has been more subtle.

I don’t know that we’ve benefited. If we trade good paying jobs for cheap goods, that’s not a benefit. Neither is it a benefit to trade very high end exports for manufacturing infrastructure.

I never believed the less than 5% unemployment. During the Clinton administration they started playing around with how unemployment is measured. Things like the birth/death model did not do anything to help the accuracy. The U-6 number seems to be more accurate.


70 posted on 02/02/2009 3:10:25 AM PST by durasell
[ Post Reply | Private Reply | To 68 | View Replies]

To: durasell

> I don’t know that we’ve benefited. If we trade good paying jobs for cheap goods, that’s not a benefit.

How do you know what kind of jobs were created? Checking GDP, GNP, per capita stats all contradict your statement.

> I never believed the less than 5% unemployment.

Do you have any evidence to support these statements? Without data to back-up these assertions they are meaningless.


71 posted on 02/02/2009 3:18:43 AM PST by bluejay
[ Post Reply | Private Reply | To 70 | View Replies]

To: bluejay

check out the U-6 numbers for the past couple of years. BLS keeps them on line. easily googled. The current number is something like 13%! However, read the definition of what the U-6 includes.


72 posted on 02/02/2009 3:28:08 AM PST by durasell
[ Post Reply | Private Reply | To 71 | View Replies]

To: bluejay

p.s.

Today looks like it’s going to be an extremely interesting day on Wall Street —


73 posted on 02/02/2009 3:31:28 AM PST by durasell
[ Post Reply | Private Reply | To 71 | View Replies]

To: durasell

> check out the U-6 numbers for the past couple of years. BLS keeps them on line. easily googled.

No, I am not going to do your research for you. If you have the numbers, please post them with explanations.


74 posted on 02/02/2009 4:16:37 AM PST by bluejay
[ Post Reply | Private Reply | To 72 | View Replies]

To: bluejay

http://www.bls.gov/news.release/empsit.t12.htm

ABSOLUTELY SELF-EXPLANATORY


75 posted on 02/02/2009 4:33:00 AM PST by durasell
[ Post Reply | Private Reply | To 74 | View Replies]

To: durasell

I am sorry, but what does it explain? We have unemployment statistics for the past 3 months. We know what they are - they are up because of the recession. It also shows that there are long-term unemployed (a small percentage) and there are people working part time.

I am at the loss what point you are trying to make.


76 posted on 02/02/2009 5:01:28 AM PST by bluejay
[ Post Reply | Private Reply | To 75 | View Replies]

To: bluejay

I’m not trying to convince you of anything. I think you should make your bets according to your own best judgment.


77 posted on 02/02/2009 5:05:24 AM PST by durasell
[ Post Reply | Private Reply | To 76 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-77 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson