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  • I Advice - R Is For Responsibility - US Blames China As It Leads The World Into The Next Depression

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    930s.

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    “The notorious Smoot-Hawley Tariff Act of 1930 – a policy blunder of monumental proportions that played a key role in sparking a global trade war and the Great Depression.” Stephen Roach, Managing Director Morgan Stanley Investment Bank March 30, 2007

    When the US economy contracted after the collapse of the 1929 stock market bubble, the US Congress acted. And as it often happens in history, the action backfired. Instead of protecting the US economy and US markets, the Smoot-Hawley Tariff Act of 1930 plunged the US and the world into the Great Depression of the 1930s.

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    ar and the Great Depression.” Stephen Roach, Managing Director Morgan Stanley Investment Bank March 30, 2007

    When the US economy contracted after the collapse of the 1929 stock market bubble, the US Congress acted. And as it often happens in history, the action backfired. Instead of protecting the US economy and US markets, the Smoot-Hawley Tariff Act of 1930 plunged the US and the world into the Great Depression of the 1930s.

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    ed after the collapse of the 1929 stock market bubble, the US Congress acted. And as it often happens in history, the action backfired. Instead of protecting the US economy and US markets, the Smoot-Hawley Tariff Act of 1930 plunged the US and the world into the Great Depression of the 1930s.

    The road to hell is paved with good intentions. That was true in 1930 and is true today in 2007. The US Congress, looking for someo

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    of protecting the US economy and US markets, the Smoot-Hawley Tariff Act of 1930 plunged the US and the world into the Great Depression of the 1930s.

    The road to hell is paved with good intentions. That was true in 1930 and is true today in 2007. The US Congress, looking for someo

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    930s.

    The road to hell is paved with good intentions. That was true in 1930 and is true today in 2007. The US Congress, looking for someone to blame for America’s mounting economic problems—increasing trade deficits, loss of jobs, declining competitiveness, etc.—is now blaming China. And, once again, instead of protecting America’s economy, the US Congress is about to pull the lynchpin on the global economy.

    Accusing China of currency manipulation is more self-serving than blaming nature for global warming—and that’s pretty damn self-serving. Currency manipulation is, in fact, the domain of the US. Without the US, currency manipulation would not even be possible.

    After WWII, the US dollar was

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