by John Galt
March 5, 2012 17:15 ET
JUST when one thinks the United States political elites can not act any stupider than Senator John McCain’s call for another undeclared war, this time on Syria, the news breaks late this afternoon about the start of a trade war with China:
US House Passes China Tariff Measure
(click on the title above to access article in full from NASDAQ.com)
There are those that live on the river De-Nial who think that this act will not have any impact on Sino-U.S. relations. They are dead wrong and as usual speak from the perspective of either the financial plotters looking for ways to exploit a coming crisis or academic elitists who look down their noses at the world as they attempt to design their perverse socialist global utopia. The Chinese will view this action in an election year as a grave insult and the idea that the United States will dare to challenge the real central bank keeping America afloat will insult their new Premier in waiting and the younger hard line Communists about to ascend into power even more so.
Two portions from this story tell the tale of the historic action which will have grave consequences. First this statement from the article:
Passage came despite criticism from some corners, including by the conservative Club for Growth, that the measure would spark a trade war with China or raise the cost of goods imported by the U.S. from China. Supporters countered that the tariffs have been in place since 2007 without repercussions and that they cover only 2% of trade with Beijing.
At this point in time, China has no further need for long term United States Treasury issues so if they are angered by this action, look for a surge in price for the one to six month Treasury Bills as they sell off the long term assets to the Federal Reserve and roll into short term instruments. After those expire, the monies will be used to purchase commodities (after the current correction), real estate in Third World nations, and weapons from Western powers willing to sell to them to offset their horrid trade deficits.
The second statement reads like a 1930 press release from the United States Senate with the name changed to a current day fool instead of a Great Depression Era fool:
“To date, countervailing duties have been the singular form of relief available to the American workers and companies devastated by mercantilist policies,” said Rep. Sander Levin (D., Mich.).
This particular politician, Sander Levin, is one of the most vile political elitists elected to the House of Shame in American history for his support of anti-American and anti-Capitalist policies during his career. The statement above reflects not only an ignorance of the weak geopolitical situation our nation finds itself in, but a complete total denial of history and the costs to the average citizen when the politicians attempt to impact the flow of capital and business around the world.
Welcome back to the 1930′s and thankfully we already have a Roosevelt clone elected this time. The big difference is he is implementing the policies of Mussolini first to insure there is no reversal or change of course as the courts and serfs object to his edicts.
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