Fed Chairman Ben Bernanke: “Resurgent demand in the emerging markets has contributed significantly to the sharp recent run-up in global commodity prices. More generally, the maintenance of undervalued currencies by some countries has contributed to a pattern of global spending that is unbalanced and unsustainable.”
Gorilla translates: “Here we go again!”
Mais oui, there’s almost nothing as amusing as listening to a French President lecturing the United States about protectionism!
Angry at what he saw as the Pentagon rigging a tanker aircraft deal in favor of the US supplier Boeing, and yes, they certainly did so at the behest of the US Congress, M. Sarkozy puts it: “In life there is what you say and then there is what you do.”
Of course, if it’s a European company trying to compete in France against the French electric company, you can bet your last freedom fry that M. Sarkozy will say: “Non!”
Protectionism, whether of the professional classes by the United States or of the farming classes by the US and the EU, is a fact of life.
Despite what the Know Nothing Party may believe, there’s no such thing as free trade.
Gorilla says: “Comme M. Sarkozy, je suis un pot qui veut être libre!”
Brazil is slapping some tariffs on US cotton and many other goods, having won every round in the WTO, and it’s yet another example of why those who preach fair trade rarely practice fair trade.
US agricultural subsidies have the effect of keeping prices artificially high for US consumers and promoting poverty in countries like Brazil, where domestic producers can’t compete.
And is there any chance we’ll get rid of the subsidies, a huge waste of money at a time of ever growing deficits?
Gorilla answers: “No chance of borrowing for Paul from Peter Cottontail!”
Well, the almighty dollar’s been sliding, which is of course very good news for the US economy.
Trade deficit comes down, exports go up, more jobs for America!!!
But the Know Nothing Party is worried, as usual about nothing at all, so how is the world reacting?
The foreigners are intervening to prop up the dollar. Seems their overvalued exchange rates don’t look too good!
Gorilla thinks: “Greenback fever, catch it if you can!!!”
