Update: Anyone? Bueller? Market Mover Monday: Smoot-Hawley rises from the grave and TOTUS to ‘admonish’ and ‘push’ for his regulatory scheme today…

Update 2: BWAAAHAA!!! Bob Pisani of CNBC says the traders have been passing around the Ben Stein Smoot Hawley Tariff scene from Ferris Bueller on the floor this morning!! lol..

Update: OMG in his opening remarks TOTUS recognizes Barney Frank D-MA as the man who will be instrumental in leading our financial policies and regulatory reforms. OH NOES! The guy who gave FAN FRED a pass?

He mentions Paul Volcker (who seems to serve primarily as TOTUS’ figurative crucifix against the vampires of reality who note TOTUS is fumbling the economy and implementing disastrous policies) Why does Volcker let himself be used this way? Sad. TOTUS is touting him as the CHIEF of his council of something or other, and we all KNOW Volcker is being ignored..Our previous posts on Volcker here. And here is one of interest concerning his speech in February wherein he said ‘MOST aspects of capitalism will survive’.

Apparently no one ever told TOTUS you don’t start a land war with Asia and you don’t start a trade war with your banker..

TOTUS’ decision to put a tariff on Chinese Tire imports is well..untimely…to say the least. Timmeh Geithner just got back from another round of promising China we would restrain our deficit (AS IF!) and now here is TOTUS starting a trade war. At whose behest?? LABOR OF COURSE!!! Good grief! Our previous post on Smoot Hawley here

…China indicated Sunday it would restrict U.S. imports of chicken and auto products after Washington’s move to slap punitive sanctions on Chinese tire imports, raising tensions in a trade dispute ahead of two planned meetings between the countries’ leaders.

Citing a jump in Chinese imports, the Obama administration said Friday it would impose stiff tariffs on Chinese-made tires for the next three years, invoking a section of trade law that China agreed to as a condition for its joining the World Trade Organization in 2001. The move essentially would cut off the source of nearly 17% of all tires sold in the U.S. last year and hit cost-conscious consumers particularly hard, as retailers will have to find alternative sources for the lower-end tires that make up much of what China sends to the U.S….

wall_st_bear_smallAnd just to follow up, TOTUS will come on down to Wall St to give another lecture and remind everyone that they are bad bad people. Despite Sheila Bair’s resistance, TOTUS is leaning HARD on FDIC and SEC to give Treasury and the Fed expanded powers..

WSJ:

President Barack Obama, speaking on Wall Street Monday on the first anniversary of the crescendo of the financial crisis, will discuss the administration’s plans “to wind down government involvement in the financial sector,” will push for “immediate action” on regulatory changes need to prevent future crises and admonish Wall Street to avoid the practices that led to the crisis, an administration official said. The president’s remarks, follow similar comments from the Treasury and Federal Reserve aimed at blunting criticism that they lack an “exit strategy” for withdrawing their support for the financial system with speeches and documents timed for the first anniversary of the worst moments of the crisis.

More after the break:

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September 14, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, Wall St. Comments off.

Circa 2003 Tanker Contract War Back On: Boeing, Northrup Grumman and EADS

Video courtesy of MobilityAirman

Politico:

The third time is the charm, the saying goes, and the Pentagon is desperate for it to be so. This summer, the Defense Department will make its third attempt to award a $35 billion contract to buy aerial refueling tankers. Air Force leaders promise the process will be “fair and open.”

If it is, that will be a first.The aerial tanker bid has been bedeviled by investigations, protests and charges of bias and rule-breaking…

Everybody wants some…..*

…”No matter which way we go, it’s the No. 1 acquisition priority in the department,” said Paul Meyer, who manages Northrop Grumman’s tanker program. He added that the contest will be even more politicized than in the past. “It’s one of the last big ones coming, and it has an international component.”

Jobs, jobs, jobs, American jobs? Protectionism? Trade Wars? All part of the package as this tanker contract is open for bidding for the Third Time….

…With the economy still staggering, Boeing is emphasizing the potential job creation of the bid, particularly in states such as Kansas and Washington, where the firm has a major presence. In the last round of the tanker competition, Boeing hammered the Northrop and EADS plane for being French and not American. The recent spike in protectionism prompted by the economic meltdown is now being stoked to drum up even more opposition to Northrop-EADS partnership.Rep. Todd Tiahrt (R-Kan.), a defense appropriator who’s aiming for a Senate seat, is convinced that EADS gains an unfair advantage in the U.S. marketplace because it receives subsidies through socialized medical care available in Europe and was launched with government subsidies….

VH video footage courtesy of 5150EVH5150

June 8, 2009. Tags: , , , , , , , , , , , . Economy, Entertainment, Hair Bands, Heavy Metal, Music, Obama Administration, Politics, Popular Culture, Uncategorized. 1 comment.

Stimulus Update: Democrats Bend on Buy American Amendment…

The Declawed Buy American Amendment passes, it leaves things status quo, will Labor notice? We shall see…we need the language of the bill analyzed to see WTH it does exactly since Dorgan seems so chipper, is he trying to sell Labor into believing something has changed?!  Or is there an alligator under the water lurking in this bill….

ABC Reports:

Senators agreed by voice vote tonight to clarify that the “Buy American” provision in the Senate’s version of the stimulus package should comply with existing treaties.

Then they rejected by a 31-65 vote a proposal by Sen. John McCain to strip the “Buy American” language from the bill. There is no such language in the House-passed stimulus.

McCain warned that the “Buy American” requirement for stimulus funds has “echoes of the disastrous Smoot-Hawley Tariff Act,” which many believe exacerbated the Great Depression.

Byron Dorgan D-NE challenges fate to strike trade, what an idiot IMO:

Sen. Byron Dorgan, D-N.D., the chief “Buy American” cheerleader said, “Both Mr. Smoot and Mr. Hawley are dead. … But this amendment is part of a debate that is alive on the floor of the Senate and across the country. Twenty thousand people a day are losing their jobs. Twenty thousand people a day.

Well that’s a relief, and a trade war against the global economy averted…

Global Coordinated Action and the dangers of protectionism was the reptitive the Theme from leaders of government and finance..

MiM: World Economic Forum in Davos: Global Coordinated Action and the dangers of protectionism was the reptitive the Theme from leaders of government and finance..(Getty Images)

The vote expected tonight, via Forbes:

The U.S. Senate planned to vote late Wednesday on a softened “Buy American” plan as part of its nearly $900 billion economic stimulus bill, after President Barack Obama expressed concern the original language could trigger a trade war.

The proposed amendment adds language requiring that Buy American measures that have upset Canada, the European Union and other trading partners be “applied in a manner consistent with U.S. obligations under international agreements.”

The Senate was also expected to vote on an amendment offered by Senator John McCain, an Arizona Republican, that would prohibit any of the stimulus package funds from being subject to a Buy American requirement.

Via Bloomberg:

Congressional leaders, trying to quell a dispute over “Buy American” provisions in the stimulus package, are crafting a version that would apply only when they don’t violate trade rules, according to industry officials and a congressional aide. The lawmakers are reacting to a demand by the White House that the provisions satisfy U.S. obligations under the World Trade Organization.

Well it is always nice when we comply with out WTO and Trade Agreements ain’t it? Sheesh. MiM previous post on Smoot Hawley and Protectionism here….

The House Ways and Means Committee’s Democratic staff and aides to Senate Majority Leader Harry Reid, a Nevada Democrat, are working out the language, said a lobbyist who was briefed on the measure. The people familiar with the talks declined to be identified because the talks are confidential.

-snip-

You know who is gonna be pixxed?, that’s right Labor. The very Labor that elected Teh One and demonstrated outside the Capitol today for EFCA/Card Check.

Obama told ABC News yesterday that he didn’t want any Buy American provisions that would violate trade rules.

“We need to make sure that any provisions that are in there are not going to trigger a trade war,” he said.

Now that Team Obama is in charge we at MiM bet Larry Summers and Judd Gregg will prevail over Hilda Solis and Pelosi, the same way Bob Rubin prevailed over Robert Reich in the Clinton Administration..IOW no EFCA, unless they plan to self destruct the economy…..

Steel companies, such as U.S. Steel Corp. and Nucor Corp., and labor unions are pushing language in the stimulus plan to mandate that projects use American-made iron, steel and other manufactured goods in building projects such as roads, bridges and tunnels.

-sni-

“We’ve always said this doesn’t violate our trade laws,” said Robert Baugh, executive director of the Industrial Union Council at the AFL-CIO. “If they need to restate it, fine.”

February 4, 2009. Tags: , , , , , , , , , , , , , , , , , , , . Politics. 1 comment.

VP Biden on China and Trade Policy….

Oh Noes!!! Biden was alone with a reporter and they talked about currency, trade and China, oh dear Gawd!!

Smoot-Hawley is already raising its protectionist head in the stimulus and now Joe is talking to our banker..good grief…

Read an EXCELLENT post on the Great Depression and Smoot-Hawley by Anthony Edwards at The Filter, their chart on the drop in global trade below:

plummeting-world-trade1

Highlights from Reuters by way of interview with NBC reporter John Harwood:

The United States will insist China play by international trade rules, but will not move unilaterally to keep out China’s exports, Vice President Joe Biden said on Thursday.

“The policy of this administration is to say to China — which occasionally the last administration was reluctant to do — ‘you’re a major player on the world scene economically and you’ve got to play by the rules that everybody else plays by,'” Biden said in an interview on CNBC.

-snip-

So we’re going to be, in that sense, blunter with the Chinese about ‘you’re in the deal, you play by the rules,'” Biden said.

Oh good! BIDEN is going to be MORE BLUNT with our largest trading partner and the buyer and holder of all our debtr, which incidentally we are printing like it’s going out of style to send out all these stimulus funds…I feel nauseous…

U.S. Treasury Secretary Timothy Geithner angered China last week when he told senators at his confirmation hearing that China was manipulating its currency.

So what’s happening back at the ranch while Biden is talking about China..

President Barack Obama is expected to contact his Chinese counterpart soon and assure Beijing that Washington is not seeking a “currency war” a lawmaker closely involved in U.S.-China issues said on Thursday.

Representative Mark Kirk, co-chair of the U.S.-China Working Group, said he and others in the bipartisan congressional group were told by administration officials that “the president will undercut the anti-currency message pretty directly.”

“My understanding is today or tomorrow there will be an Obama call to Hu Jintao in which the talking points are basically that the president will commit that we are likely not to have a currency war,” the Illinois Republican said.

-snip-

BUT- ” The White House declined to comment.” Apparently they forgot to tell Joe…

Have they read the State Dept. Diplomatic History on this??

In the decade after the end of the First World War, the United States continued to embrace the high tariffs that had characterized its trade policy since the Civil War. These were enacted, in part, to appease domestic constituencies, but ultimately they served to hinder international economic cooperation and trade in the late 1920s and early 1930s.

Message to Joe, to quote T’Pau, (and really have been waiting to do so since the 80s, HA! ): ‘don’t push too far, your dreams are china in your hand’ and he is a bull in the shop dudes…

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January 29, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Entertainment, Finance, Music, Obama Administration, Politics, Wall St. 4 comments.

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