50% Tariffs on Chinese Imports? Didn't This Fuel the Great Depression?

Alan Tonelson, a fellow at the United States Business and Industry, was on Tech Ticker the other day saying the U.S. needs to put a 50% tariff on all Chinese Imports. Smoot Hawley Tariff Part II? Any thoughts on the trade deficit? Why not focus on the currency peg?



Source: http://finance.yahoo.com/tech-ticker/to-save-america-we-need-to-put-50-tariffs-on-all-chinese-imports-says-tonelson-535583.html. Here is the first video: The High Cost of 'Free' Trade: Obama "Doesn't Understand Fundamental Reality,” Expert Says.

Also read:
Dow 2010 vs. 1930 Rally, Tariffs Put Fuel On Fire, What Could Do It Now?
Dow 1929 Bear Market Rally Compared To 2009 Rally (Charts + Smoot Hawley)

Comments

  1. http://www.youtube.com/watch?v=IGYAhiMwd5E

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  2. Yeah, something probably needs to be done here.

    "(The IMF implies the RMB could be as much as 30% undervalued taking 2000 as a base, but absolute purchasing power parity would argue that undervaluation is even greater—
    possibly as much as 60%.) Clearly, there is a direct correlation between the six million manufacturing jobs lost in the US and the close to twelve million manufacturing jobs gained in China over the last two decades."


    And the debt issue. This was interesting:

    "One entity owning this much debt of one debtor, let alone a foreign government, creates too much risk concentration, and has possibly repressed volatility for debtor and creditor alike. The risk may seem manageable now, but who knows what the nature and temperament of the Chinese and American leaders will be in ten years? Isn’t it possible that either side could weaponize financial imbalances to the detriment of domestic and global stability?"

    Full Tudor Investments Letter PDF linked at DealBreaker http://dealbreaker.com/2010/10/paul-tudor-jones-latest-letter-to-investors/

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  3. Seems like the market is getting ready to probe the limit of the YuanDollar relationship, now that everyone has recognized how structurally unsustainable it is.

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