“The U.S. Department of Commerce said yesterday that it has set preliminary anti-dumping duties on refined Chinese and Mexican copper pipe worth hundreds of millions of U.S. dollars.”
You cannot create a country’s “middle-class” by “big” socialist government civil servants sustain by low wage earners heavily taxed using their beer wages to create middle-class civil servant’s “champagne dreams.”
The Western middle class has been decimated by political and business elites shipping jobs to China and as a result our government transitions the eroded mid class from a once booming manufacturing sector over to a big government bureaucrat. The little guy can’t keep funding these clowns paying heavy taxes to sustain this bottomless pit.
For years analysts have predicted that the U.S. would begin imposing trade barriers on imports from China now that China stopped buying Treasuries from the United States. There is no surprise about these recent indications because in recent auctions of U.S. Treasury, the Chinese were either absent or have bought very little of U.S. debt. It will still get much worse quickly and then inflation will follow. If you’re one of those critical of imports from China, then you will also whine when inflation begins.
The United States quickly will find they will not be able to intimidate the Chinese how they have Canada in terms of violating international trade agreements. The Chinese will not wait years for international tribunals to resolve this issue, they will simply retaliate. Given the state of the economy of the 2 countries, it is not a battle the United States can win.
May 7, 2010 (China Knowledge) – The U.S. Department of Commerce said yesterday that it has set preliminary anti-dumping duties on refined Chinese and Mexican copper pipe worth hundreds of millions of U.S. dollars.
According to the preliminary ruling, nine Chinese exporters will be charged an anti-dumping duty of between 10.26% and 34.48%, and all other Chinese exporters will be charged a preliminary anti-dumping duty of 60.50%.
The department will impose a preliminary anti-dumping duty of between 29.52% and 32.27% on Mexican exporters. The department said that it is scheduled to make a final ruling in September this year. In 2009, the U.S. imported US$233 million worth of copper pipe from China and US$130 million worth of copper pipe from Mexico.
Unless we wake up in the West to what has happened with China monopolizing the world manufacturing sector and supplying easy credit to keep buying their products, we’ll end up like Greece too. China is acting on emotion to sustain its country because if the people there are jobless, we stop buying their stuff – they will collapse into civil strife.
They try to ensure this doesn’t happen by supplying jobless North Americans with easy credit to keep their economy going. Sooner or later the in debt North American stops buying and communist China’s clock is ticking down.
China’s only try way to survival is to let its yuan rise so classes in its own country can develop and create a domestic economy that works in true tandem with the rest of the world fairly. If not our debt will become their nightmare too. Greece is an example of what will happen if we don’t soon deal with the China problem.
The U.S. dollar is a very flawed currency. The Federal Reserve has printed trillions of dollars in order to bailout the “Too big too fails.” At no time in history has any country been able to deal with its problems by printing money – which is by definition inflation (expansion of the money supply). Just look at Zimbabwe, Robert Mugabe’s policy of money printing has led to an annual inflation rate of over 100 million percent. Zimbabwe’s citizens have to pan for gold just to survive as their currency is worthless.
Years of artificially low interest rates have decimated the U.S. economy. The U.S. used to be the world’s largest creditor, it is now the biggest debtor nation in world history. The U.S. is $13 trillion in debt, with another $120 trillion in unfunded liabilities such as Social Security, Medicare, Medicaid, veterans pensions, etc. Their only way to pay it off is to debase their currency through inflation – which will impoverish their citizens in the process and destroy what is left of their economy.
While all currencies are being debased through inflation (Canada included), the U.S. is expanding their money supply at a frightening pace. The only reason they’ve gotten away with it for so long is because the U.S. dollar is the world’s reserve currency. At the rate the U.S. is going, it will resemble Mexico economically in 10 years rather than a first world nation.