Stock Trading and Other Things

The British, Canadians & European Union think Sen Obama is fomenting a global trade war. Are they right?

http://afp.google.com/article/ALeqM5ggHxjYOjEMGJcNQGflXNdwx4Sckw

AFP Miliband to urge US to stand firm on free trade: report -
3 days ago

LONDON (AFP) — {British Labour} Foreign Secretary David Miliband

"American internationalism has been a feature of all periods of global progress," he told the business daily before heading to the United States where he will meet advisers to Hillary Clinton and Barack Obama, among others.

"It's absolutely clear that the world needs an America that's engaged with the global trading system in a very fundamental, very committed way. The problem is not too much trade, the problem is too little trade.

"That is our position as a British government, and it will be articulated clearly and consistently."

NAFTA, created under Bill Clinton in 1994, created the largest trading bloc in the world by eliminating import tariffs on goods circulating among partners Canada, the United States and Mexico.

The foreign secretary's stance comes after criticisms from Canada and the EU's trade commissioner Peter Mandelson, who attacked US presidential hopefuls -- but not by name -- for appearing to want to disengage from globalisation.

"It's a mirage and they know it and it's very irresponsible, in my view, to pretend to people that we can disengage from international trade, we can create barriers around our economy and be surprised when people retaliate by doing the same," he told BBC television earlier this month.

"Where's that going to lead us? It's going to lead us into a vicious spiral of 'beggar thy neighbour' policies which will take us decades back in terms of trade growth and rising living standards that we've seen in the world."
Democrats used to be against this:-
'In 1932, with international trade in collapse, Franklin Roosevelt denounced Smoot-Hawley as ruinous. Hoover responded that Roosevelt would have Americans compete with "peasant and sweated labor" abroad. Then, as now, protectionism had a strong if superficial political appeal: by election eve, F.D.R. had backed down, assuring voters that he understood the need for tariffs. Protectionist politicking, however, could not save the Republicans in 1932. Smoot and Hawley joined Hoover in defeat. The Democrats dismantled the G.O.P.'s legislative handiwork with caution, using reciprocal trade agreements rather than across-the-board tariff reductions. The Smoot-Hawley approach was discredited. Sam Rayburn, House Democratic Speaker from 1940 until 1961, insisted that any party member who wanted to serve on the Ways and Means Committee had to support reciprocity, not protectionism.'

from Time Magazine, "Shades of Smoot-Hawley
Monday, Oct. 07, 1985"

Public Comments

1. I think if Obama continues to push protectionism over free trade, then yes, he'll make enemies abroad.

I am absolutely pro-free trade because it's the freest and fairest way of doing business for all concerned, but I find this whole argument insulting since Europeans lay very heavy tariffs on foreign agriculture and industry. Developing countries are struggling to industrialize, but they have an overabundance of labor, suitable for agriculture. If European countries lowered their tariffs, developing nations could export agricultural goods and compete on the global market. Maybe we wouldn't have to send so much aid to developing nations. Imagine that.

So, Obama should adopt a pro-free trade position and stop fear-mongering with talks of re-negotiating NAFTA for people in Ohio.

2. They are afraid of Obama because he is talking about start taking care of America first and that is scary to all of them.

3. I think the time came...USA to stop all the Foreign Aide abroad., Stop all the imports, Stop all the intelligent exports, For 5 years stop all the USA citizens to travel Abroad and spend their hard earning dollars to societies and countries that hate us, deport all the illegal aliens, Fast and swift with no questions ask like their own countries do. And nuke any oil producing Oil country or Company that refuse to increase OIL production...And most important do not send USA food Abroad...keep it home where USA citizens will appreciate it more than these ungrateful foreigners.