Here is the next shoe to drop on creating the next Depression. It is now the American labor unions that are asking BHO when he takes office to reduce free trade and raise international tariffs and fees. This is exactly what Herbert Hoover did with the Smoot-Hawley Act in 1930 even though President Hoover did not want to sign the bill and over 1028 economists wrote to Hoover and pleaded with him not to sign the bill.
Hoover did however, and the global trade market almost dropped by 25% over the next 3-5 years. Canada, the UK, and many European countries retaliated by raising their tariffs on American goods taking the world into a trade blockage war.
If things all come together we could have a similar situation with BHO having to payback the unions for their support in his successful campaign. While this will not do exactly the same thing as it did in 1930, it could severely impact trade around the world in an already unstable global economic picture.
Tread carefully, BHO and Congress, your next acts could make this financial situation worse.
What am I saying??? I expect them to do the wrong thing and to make it worse. It's almost inevitable.
No comments:
Post a Comment