kujebak wrote:
> What does prof. Kyn think of the distinct possibility
> of Democrat victory in November, and its compound
> effect on the wave of protectionism that is currently
> sweeping both ends of the spectrum of political opinion
> in the US? Is it more likely for a Democrat in the White
> House to pull up the brake on trade with China, or a
> Republican? To me that's a rhetorical question. Look
> at the current volatility in the glogal financial markets.
> I think the Democrats are quite capable of slamming
> tariffs on Chinese goods in an effort to reestablish
> some sort of trade balance, and killing the world eco-
> nomy in the process. Are we staring in the maw of
> another Great Depression?
> Where is E-strejda when you need him?
The US can't function without Chinese goods. It imports more
industrial goods than it produces. Since it would take much longer
than a year if not decades for the US to revert to the economic
regime of the 1960s it would be a massive shock to cut China off.
The US is trapped in the hole it dug itself. Financial instruments
are not s substitute for manufacturing. As the dollar loses its value,
the US economy will shrivel up. The opposite of what would happen
if there was a robust manufacturing base that would be stimulated by
a lower dollar.
