Ooooo...well this is all becoming very interesting...least to me it is

Bush is..if you have yet to notice...quite the warrior. Because this appears to be escalating ..and by no short comings on the Bush admin involvement... a full out world trade war.

Ok so even tho the Bush admin thinks it is some big secret and they still act all hush hush about the whole thing...it is quite obvious that Bush supports the weak dollar...and in return that obviously harms the EU's own recovery since much of it is dependent on exports. It also harms China's own trade profits because of her insistence to keep her currency fixed on the dollar. I think this is a pretty risky approach..but then again what do I know...it is quite brave and I have to admire that.
Bush went over to China and asked ever so nicely couldyouplease stop that currency thing you guys keep doing because we really hate it..and China said...no.
EU has two massive WTO wins hanging over our heads.

So what happens this week? The dollar drops again...bam! It is now at it's all time low to the EU and that must really make the German and the French mad...*snicker* I doubt one person here can justify why the Euro is at 1.20 to the USD...because it is waaaaaaaaaaaaaay overvalued and that is really hurting them over there.
Must also really suck to be one of those countries who does in fact artificially keep their currency fixed at a lower rate than the USD.
Guess Bush's visit to China didn't accomplish all he was hoping to.



Exactly!
Yet Bush will be more than happy to allow the misperception that he is doing this with that nascar dad guy everyone is so eager to covet this election....how cunning! What really is going on here is the US wants to limit our trade deficit to China because we need to attract more foreign investments and no one wants to bother with us right now because most feel that our ever increasing trade deficit is just to umm...large. We are just slimming down and trying to make ourselves look good for our suitors

Who would have thought the day would come when going braless could be considered a republican/conservative thing to do ?

So the question is...what will China do in return?

Steel is a dying industry. It has been protected for far to long. There are new technologies to take its place and should take its place. This will bring about new industries and new jobs. We don't support typewriter manufacturers for a good reason, it was time to let them go.
The longer we drag it out the more pain and damage it will cause. Enough businesses are being hurt by protecting this industry.
let it go

[QUOTE]


Yes. Free trade means just that. If steel producers let their plants go to hell and then expect to be protected they should think again.

I think Bush is giving the industry one last chance to modernize since it is a vital one for the country. I am not sure they will be ready when the protection goes away. We will see.

I think the tariffs were the last chance. Sadly, it failed. I think all we need to do is let it try to survive on it's own and if it fails, it fails. We are a technological society. There are plenty of jobs.

Do you have a link indicating some measurement of this failure? Was looking to me like the crippled horses were taken out and shot and newer ones were taking over and building capacity at lower costs.

It isn't quite that simple, though, is it, since many of the jobs being "exported" are for goods sold in America by American coprorations. For instance, Nike are notorious for their exploitation of third world workers, and many of Wal-Mart's cheap consumer goods are only that cheap because they are now sourced from countries like China.

It isn't a straightforward exchange of jobs, therefore, since stockholders in the American companies in question can do rather well out of the issue, as do American consumers who can buy goods at lower prices than they otherwise could, which in turn keeps inflation down and helps keep the wider economy under control.

From this perspective, maybe the Chinese shouldn't be the ones whose trade is constrained, but the companies that are so willing to sack American workers for the sake of a few cents on their share price.

On steel, I have a hunch that there will be some movement on this side of the poond (in which direction, I'm not sure) at the forthcoming EU summit, especially in the light of the recent presidential meetings Tony Blair has held with both France and the USA.

Now we are seeing that the EU has become adept at making its influence known. The EU threatens retaliation in the amount of 2.2 billion dollars unless the tariff is completly abolished. There are also threat of retaliation from Japan and Norway but the big threat here is the 15 nation bloc of the EU. Now while repealling the tariff will hurt steel producers in Indiana, steel users like GM and Cummins will enjoy lower prices, which is a good thing. Consumers will of course get a small break in the price of cars and appliances but the cost of steel in an automobile only amounts to about 3%, or roughly $700 for a new car. I doubt seriously that the consumers will benefit signifigantly and I certainly don't see them getting products any cheaper. However, if the tariffs continue untill Dec. 10 the US is facing retaliation from the EU, Norway and Japan. Also Bush is feeling presure from within his party since many small buisness manufacturers in the GOP have been angered by these tariffs and want them gone.

Problems with the economy, unilateral action in Iraq, pressure from the WTO tells me Bush has no chance of a compromise here. The tariffs will go because they must go, I, however, am far from convinced that they should go. I may still change my mind but I see this as trend that will get more and more common. 'You got to know when to hold them, know when to fold them. Know when to walk away, and know when to run.' as the song goes. Bush is going to run like a scalded dog from this one. Make no mistake this is not a win, win situation, the EU won this one hands down.

I think Blair had influence on Bush in regards to this...I also think Mr Greenspan's comment, or perhaps we should say warning, also enlightened Bush on just how unpopular his policy really was becoming. One thing I am quite sure Bush learned from his daddy is that you always pay heed to what Mr Greenspan has to say.


I disagree about the EU's influence in this decision in the manner the last poster claims. As I think this may have been also done to show that the US will consider other countries gripes, compliants and is fully commited to resolving any issues in preparation for the big battle (said to be worth possible sanctions of double this threat) The Export Tax Break. Bush will take a political hit regardless on this issue whether with EU's politically targeted sanctions or with the steel ind. unhappiness...yet I think the steel unions backing of Gephardt made this decision and easier one to make and I do feel domestic politics played into this immensely.

Ah, politics:



Of course, the steel producers didn't (publicly) think so. And Bush was savvy enough to pick their pockets two days before the decision:



Suckers!

Tariffs on top of tariffs

The steel tarrifs that Bush imposed were too excessive and he went way out on a limb, obviously for political reasons. I think in the process of trying to haul in the Steel industries special interest groups he put himself in a tedious bargining position. When he finally rolls up his sleaves and tries to hammer out a multi-national free trade agreement these tariffs will come back and bite him. Free trade in the world markets are like peace in the Middle East, its becoming an oxymoron.



Suckers? I doubt seriously that the steel industry lost anything on this one, they made a lot of money as a result of this tariff. The long term consequences may outweigh the temporary benefits, I guess we will see after the election if Bush is playing politics here.

I think the idea was to give the industry a chance to modernize so that can compete in the world market. This is a vital industry for the US and needs to be keep healthy if possible.

The tariffs are over now and lets just see if the companies can survive.