I had a discussion the other day over dinner regarding the US placing tariffs on Chinese tires last week. Well guys, this is protectionism. Danger! This is history repeating itself and probably the second largest factor tied with other bad economic policies that made the Great Depression, well ummm..., "Great". We are treading on thin ice right now. The Obama administration needs to remove this tariff before it starts a chain reaction throughout the world. Protectionism is the straw that broke the camels back and allowed Hitler in power. Let's hope that it is removed this week before the Chinese start placing tariffs on our goods and then other countries start taking sides by placing tariffs on all goods, screaching global trade to a halt, like 66% back in the old days. It would start like kids in the school yard talking about what his dad and that kids dad can do and everyone would come out bruised. I hope you get the picture why the Tire Tariff is not a small issue, and an especially bad idea.
Furthermore, back then we placed tariffs on european goods as a major creditor, unlike now we are going into this as a the major debtor. Who would be going into this as the major creditor this time? You guessed it, China. Back then, the banks in the United States started to fail and started to ask for their money back. Yikes! Let's hope no one does that this time!
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