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alstry (36.32)

TRADE WAR GETTING REALLY HOT!!!!

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September 09, 2009 – Comments (12)

FIRST TIRES, AND NOW STEEL????? 

Sept. 9 (Bloomberg) -- The U.S. Commerce Department decided to impose duties of as much as 31 percent on steel pipe from China, agreeing with American producers led by U.S. Steel Corp. that the imports were supported by unfair subsidies.

The average duties on $2.8 billion in annual imports of the pipe, used in oil and gas wells, will be 21.3 percent, the Commerce Department said in an e-mailed statement today announcing the preliminary decision.

The tariffs may help U.S. Steel and other domestic producers weather a drop in demand for the pipe following the collapse in oil prices last year. It also may be a precursor for a number of trade complaints against China. President Barack Obama must decide a separate case on imported Chinese tires by Sept. 17.

“These are the dynamic duo of trade complaints,” said Joanne Thornton, a senior vice president at Concept Capital, an investors research group focused on Washington policy. “They take on a symbolic significance at a time when countries are concerned about trade restraints” amid the global recession, she said in an interview today.

The pipe case, the largest so-called countervailing duty complaint filed against Chinese-made products, was brought by the United Steelworkers union; U.S. Steel, the largest U.S.- based steelmaker; U.S. operations of Evraz Group SA, Russia’s second-largest steelmaker; and Pennsylvania-based Wheatland Tube Co.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeCs8tF5F5g8

What if China started demanding Chinese currency for bilateral trade?........ooops, that would be a mess as most of the stuff we export to China is basically trash in the form of scrap paper, metal and plastic.

As the money dries up expect the stress to get higher....especially when governments run out of money and government cuts off support for small business.

Lending to small businesses could freeze this December, when the Small Business Administration expects to run out of economic stimulus funds that enabled it to raise its guarantee on its main loan program to 90 percent from 75 percent.

http://www.bizjournals.com/sanfrancisco/stories/2009/09/07/smallb2.html

In 9.09...one default leads to another as the Zombulation policies shut down America....and the shut down really starts to kick in 9.09.

Imagine that...we bail out insolvent bankers and give them billions in bonuses and they raise interest rates and cut off credit to small business.....and yet so few see the injustice.

12 Comments – Post Your Own

#1) On September 09, 2009 at 9:23 PM, Imperial1964 (98.24) wrote:

Mish has a very good post on this.

http://globaleconomicanalysis.blogspot.com/2009/09/us-fires-opening-salvo-in-trade-wars.html

"If the US is dumb enough (and we might be) to impose a 55% tariff on Chinese tires, the first thing US manufacturers might do is jack up prices. Unlike what the union clowns think, the result would be fewer cars and tires sold. Moreover, China's reaction might be to buy fewer US planes. Finally, there would be fewer jobs at the docks loading and unloading stuff."

 

Alan Greenspan was quoted today as having said " One of the biggest risks now to the global economy is a huge round of protectionism. Unfortunately, it's probably only a matter of time before Congress overreacts. That's human nature, Congressional style."

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#2) On September 09, 2009 at 9:30 PM, alstry (36.32) wrote:

TRADE WARS AND MASSIVE JOB CUTS.....PREPARE!!!!

GM to cut 1,000 salaried jobs by end of September

 

General Motors Co. plans to cut 1,000 salaried jobs by the end of September as part of its previously announced plans to save money by reducing its white-collar workforce, the automaker said today.

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#3) On September 09, 2009 at 10:23 PM, alstry (36.32) wrote:

At $100K per job, that would be $100,000,000.00 of salaries not being paid.  That would be much less in income taxes paid, much less in social security and medicare taxes.

In addition, that would take out a lot of consumption in the economy causing additional collateral distess including insurance and consumer purchases.

And we are seeing cuts like this everyday as the collateral distress causes others to cut causing even more cuts.

Soon you will learn that there is no such  thing as a jobless recovery when everyone is cutting....

Some thought I was aggressive when  I forecasted 30-50% unemployment....but when the government cuts really start kicking in, you will see that the forecast will likely turn out to be conservative....very conservative.

We are simply a consumption based society living off credit for the past ten years....now that bailed out bankers are cutting off credit...you will see that we really don't have much of an economy outside of consumption and servicing consumption.

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#4) On September 09, 2009 at 11:23 PM, cashkid79 (94.65) wrote:

Just left an 'executive speaker series' featuring Thomas J. Cunningham, the Vice President and Associate Director of Research, Federal Reserve Bank of Atlanta.  Couple things relevant mentioned; not yet time to begin handling inflationary concerns or pulling MS, but soon...recovery could also entail the use of tools not previously utilized by the US, but available and proven to work through past application in other economies.  I think 'Interest on reserves' was one such possible example... also, the mention of capacity utilization in US business...6% increase in any given unit of labor's productivity, all else held CONSTANT.  But, I especially liked his last comment after mention of the importance of 'C' (consumption) - to 'go out and buy something while we are still officially in a recession'.  -cashkid79  

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#5) On September 09, 2009 at 11:40 PM, booyahh (< 20) wrote:

Yeah, free trade and globalization has really worked out well. Manufacturing, technology, and accounting all going overseas. Let's see, did you know Abraham Lincoln was a protectioinist? And Washington? And Jefferson? In  fact, for the first 125 years of our nation we had massive trade barriers against most of the world. Oh, and between 1940 and 1985 we were also quite protectionist.

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#6) On September 10, 2009 at 12:02 AM, oshiri (< 20) wrote:

     Al is on the money again . . . "What if China started demanding Chinese currency for bilateral trade?"

      This is happening and the Chinese are position themselves for just such a shift . . . 

"China's finance ministry will issue 6 billion yuan ($878 million) in yuan-denominated bonds in Hong Kong on September 28th, its first such issue and a key step in the gradual internationalisation of the Chinese currency."

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSPEK9879920090908

      If'n yah didn't notice, the Renminbi (aka the Yuan) is already being used to settle many transactions between the mainland and several Asian countries, including its financial centers, Hong Kong and Singapore.

     Y'all better get used to Chairman Mao's face on the monopoly game colored "Middle Country People's Money."

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#7) On September 10, 2009 at 12:06 AM, cashkid79 (94.65) wrote:

yeah, ok so ?? just relaying current statements from fed...never said it was anything different/more or less useful...just take from it what, if anything, ya want...shoulda condensed the whole post into 'fed says go and consume while we're still in a recession to sum up current economic reports brief, hahaha' ...thanks for the history though, I think he mighta covered that too actually... ;;

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#8) On September 10, 2009 at 12:11 AM, AvianFlu (20.97) wrote:

Manufacturing, technology, and accounting would not be going overseas if the government had not made it such a pain to do business here. I have run a small successful corporation for 14 years and I have seen the regulations and taxes become more burdensome over time. No wonder companies are bailing out and moving overseas. Ingersoll Rand is now an Irish company. If this health care proposal is enacted into law as written you will be seeing some very large numbers for small business failures. Those still in business will be greatly reducing the number of employees...including my company. I'm sure we will be subjected to many additional months of Alstry's histrionics.

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#9) On September 10, 2009 at 12:13 AM, cashkid79 (94.65) wrote:

the one damn question I wanted to ask was concerning China, BUT, he cut it off w/ 'no comment on stock mkts', 'real estate not that big an issue', 'inflationary/deflationary blah blah', and finish with 'no more questions, blah', oh and yeah 'go consume'....amazing no mention at ALL of China in US economics / financial mkts / dollar values talk?? 

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#10) On September 10, 2009 at 12:20 AM, cashkid79 (94.65) wrote:

healthcare/medicare/caid, actually was mentioned, as being something that 'won't work'...i need to check the links top of here...sorry 4 tha hijack -- yes tho nobody disagrees on the fact that you are pretty much screwed at this point if you are looking for new jobs...

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#11) On September 10, 2009 at 9:10 AM, dickseacup (66.74) wrote:

We're gearing up for Smoot-Hawley all over again. Sweet.

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#12) On September 10, 2009 at 3:51 PM, jesusfreakinco (29.03) wrote:

amazing no mention at ALL of China in US economics / financial mkts / dollar values talk?? 

Shhhh...  don't mention the financial war going on between the US (and GS and JPM) and China... The black helicopter dudes may come knocking on your door ;)

JFC

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