Steel, Tariffs, Trade War - Beyond Trump (Obama, layoffs, cost)
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Those who justifiably condemn the repeal of the Glass-Steagall law that resulted in deregulating banks have Clinton to blame. According to the findings of the Financial Crisis Inquiry Committee, “The decision in 2000 to shield the exotic financial instruments known as over-the-counter derivatives from regulation, made during the last year of President Bill Clinton’s term, is called ‘a key turning point’ in the march towards the financial crisis.”
The only thing worse than being a taxpayer forced to bail out reckless banks is losing your job because it’s been outsourced or offshored. As Richard McCormack pointed out in the American Prospect, in the beginning of this century American companies stopped making the products Americans continued to buy, from clothing to computers. Manufacturers never emerged from the 2001 recession, which coincided with China’s entry into the World Trade Organization. Between 2001 and 2009 the U.S. lost 42,400 factories and manufacturing employment dropped to 11.7 million, a loss of 32 percent of all manufacturing jobs. The last time fewer than 12 million people worked in the manufacturing sector was in 1941
Europe has always had "universal banking" in which one bank does commercial banking, investment banking, and insurance. These allows European banks to do these sorts of transactions much more cheaply.
In the 1930's, this didn't matter to American banks because American banks were not in competition with Chinese or European banks over the same customers. However, in the 1970's technology made it easier for European banks to operate in the United States, and Americans to do banking in Europe. This meant that the small size of American banks started to be a disadvantage and Glass-Steagall was repealed to allow for the creation of American megabanks that could compete with Chinese & European ones.
To allow use to be able to trade with China as they entered the WTO. Glass Stegall didn't allow monetary manipulations as China practiced.
The back end, which are the companies that use the steel for their products, will feel the pain - hopefully in the short term only.
From the article...
U.S. Steel announced Wednesday that it will restart one of two blast furnaces and the steelmaking facilities at its Granite City Works in Illinois, recalling about 500 employees.
The mill restart comes on the heels of President Donald J. Trump’s announcement that he would seeking tariffs of 25 percent on imported steel and 10 percent on aluminum. Getting the mill running again could take up to four months, the company said.
“Our Granite City Works facility and employees, as well as the surrounding community, have suffered too long from the unending waves of unfairly traded steel products that have flooded U.S. markets,” U.S. Steel President and CEO David B. Burritt said in a prepared statement.
Well..... That's an opinion. They just earned 500 well paid new customers for their products with this single announcement.
The pain may or may not result in job losses.
Prices for the steel to make products will increase with either tariffs on imported steel or domestic steel at this time - which is pain for the steel consuming companies in my opinion.
Long term - I believe this is the better way to go.
I am absolutely for going after the Chinese on this and a huge number of fronts. we don't have a choice and its been utter malpractice at the international diplomatic position not to have done so for the last 30 years or so.
That being said, I am wobbly on the notion of across the board tariffs on all steel from all sources.
However, I do see at least some reason behind it. We don't have the same problems with Canada or the EU or Brittan. However we do have outstanding negotiation points with each that this might bring pressure to negotiate new positions.
im not giddy about it all, but I am willing to give TheDonald time to prove himself right as he has over and over on a number of fronts.
I am absolutely for going after the Chinese on this and a huge number of fronts. we don't have a choice and its been utter malpractice at the international diplomatic position not to have done so for the last 30 years or so.
That being said, I am wobbly on the notion of across the board tariffs on all steel from all sources.
However, I do see at least some reason behind it. We don't have the same problems with Canada or the EU or Brittan. However we do have outstanding negotiation points with each that this might bring pressure to negotiate new positions.
im not giddy about it all, but I am willing to give TheDonald time to prove himself right as he has over and over on a number of fronts.
I think this was in the Forbes article... even though we only import 2% of our steel from China, they are still exporting to the rest of the globe, which affects the entirety of the steel global market, which includes our U.S. companies.
Maybe this will be negotiated back some.
If nothing else, people are tuning in to the issue and maybe the global community can put pressure on China (mainly) to change their practice.
I think this was in the Forbes article... even though we only import 2% of our steel from China, they are still exporting to the rest of the globe, which affects the entirety of the steel global market, which includes our U.S. companies.
Maybe this will be negotiated back some.
If nothing else, people are tuning in to the issue and maybe the global community can put pressure on China (mainly) to change their practice.
it is an absolute fact that Trump has focused world attention on the issue. No question about that.
I am absolutely for going after the Chinese on this and a huge number of fronts. we don't have a choice and its been utter malpractice at the international diplomatic position not to have done so for the last 30 years or so.
That being said, I am wobbly on the notion of across the board tariffs on all steel from all sources.
However, I do see at least some reason behind it. We don't have the same problems with Canada or the EU or Brittan. However we do have outstanding negotiation points with each that this might bring pressure to negotiate new positions.
im not giddy about it all, but I am willing to give TheDonald time to prove himself right as he has over and over on a number of fronts.
Quote:
Originally Posted by DRob4JC
I think this was in the Forbes article... even though we only import 2% of our steel from China, they are still exporting to the rest of the globe, which affects the entirety of the steel global market, which includes our U.S. companies.
Maybe this will be negotiated back some.
If nothing else, people are tuning in to the issue and maybe the global community can put pressure on China (mainly) to change their practice.
Both of you have made excellent points. And btw I am glad to see that most on this thread are beginning to see the bigger economic picture. This is not just about keeping a steel and aluminum industry here in the United States.
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