It quickly became a symbol of the "beggar-thy-neighbor" policies of the 1930s. Such policies, which were adopted by many countries during this time, contributed to a drastic contraction of international trade.
http://www.time.com/time/business/article/0,8599,1872565,00.html
No one apparently has told Vladimir Putin. Last month the Russian government announced an increase in tariffs on imported cars, sparking angry protests from motorists. The move is meant to support a local car industry that temporarily shuttered factories because of withering demand.
Russia is not the only one following done the path to protectionism.
"Directing unsubstantiated criticism at China on the exchange-rate issue will only help U.S. protectionism and will not help toward a real solution to the issue," the ministry said in its statement.
It is clear Obama is feeling pressure to be tough with China. This is not good for anyone. China hold most of the economic nukes. They can drop the bombs on treasury or devalue the yuan to make exports cheap. Both would be serious problems for the USA which is in a weak position to respond. I don't think it will stop the Obama administration from doing something.
http://online.wsj.com/article/SB123292276271213615.html?mod=googlenews_wsj
No comments:
Post a Comment