March 30, 2007

Today is Iran Hostage Crisis Day #8

Day #8 of Iran gaining strength and confidence through propaganda and world weakness.

Day #8 of oil prices going up (benefiting Iran greatly).

Day #8 of UK troops being humiliated, embarrassed, demasculated and belittled.

Day #8 of the British leadership looking like Chamberlain in 1938.

So, how do you easily raise the price of your primary product and source of your economic engine? You got it - cause trouble. Is there any incentive for Iran to NOT cause trouble? Can you think of one?

The other housing crash shoe will soon drop. What will it be?


George W. Groovy said...

I say we invade them. Look how well things have gone in Iraq.

Anonymous said...

Oh My!!!

from bloomberg:

March 30 (Bloomberg) -- U.S. Treasuries rose, erasing earlier declines, on an unconfirmed report on that U.S. military officers advised American investors to leave Bahrain amid a standoff between the U.K. and Iran.

The benchmark 10-year note rose as much as 15/32, dropping its yield to as low as 4.58 percent. At 12:25 p.m. in New York, the yield was lower by 1 basis point, or 0.01 percentage point, at 4.63 percent as the price of the 4 5/8 percent note maturing in February 2017 rose 3/32, or 94 cents per $1,000 face amount, to 99 31/32.


Ed said...
This comment has been removed by the author.

If we had'nt invaded Iraq to do the Israelies dirty work, their would be no british troops in iraq.

I personnelly think this will backfire on the Iranians, since it will enable Blair to portray them as uncivilised and therefore Bush will be fully justified in attacking them later on this year.

Of course if the Iranians make them stand trial, will the western media call this a show trial, and if they do, what was the difference between this trial and one saddam Hussein got?

Also, I would guess that the Iranians will get a lot of support from the Arab populous, since they are actually standing up to the US, Britain and ISRAEL, unlike their leaders.

Lost Cause said...

I think we Americans still have Iranian diplomats that we Americans kidnapped (arrested as terrorists), don't forget. Meanwhile, the first thing that we do is steal their money (freeze assets). Makes you feel proud, doesn't it? Do you think that Iran is planning on attacking the US? Do you think that the US is planning on attacking Iran? Why do you buy the provocation propaganda?

Bake McBride said...

Tony Blair has not exactly been Margaret Thatcher in his approach....More like Carter.

Anonymous said...

I guess The Geneva Convention had some rules we ALL could have lived with? Those GitMo (sp?) confessions seem sort of shameful now, waterboarding an other Medieval forms of justice - are we all not human and don't we all feel the same pain.

Anonymous said...

The west is doomed. Bunch of PC indoctrinated pussies running things in London and DC.

You think Thatcher would have waited 7 days? You think Reagan would have waited 7 days? You think Churchill would have waited 7 days?

Forget the housing crash, what good is buying a home for 1/2 price when you'll be subjected to praying 5 times a day?

veritas_faust said...


In all fairness, the Chamberlain comparison is JUST A LITTLE premature. The British haven't ceded to Iranian invasion of the North Sea or any other expansion practices.

Mind you, the Persians may be feeling a little wounded after watching "The 300." A bunch of pasty pale Greeks beat their ancestor's collective ass in glorious computer generated animation.

I thought the movie was silly if not latently being used as a propaganda tool. Particularly the scene where the black horned goat playing a musical instrument for Xerxes' harem of disfigured, lesbian whores who are seducing the Gothic inspired hunchback...kind of weird. Which isn't to say the scene wasn't hot...because it was...but I felt dirty after watching it. And for me, that says a lot.


Speaking of military action: does the EU have a NATO type agreement for military action? An attack against one is an attack against all? I believe its article 4 of the NATO charter. I probably should have researched this before asking.

Reality said...

Iran has got something the rest of the world eagerly wants.

How to get it (the_dead_arab_separated_from_his_oil-doctrine)?

Create the problem and solve it. It's a (politic) classic.

Let your MSM spin the 'Iran bad' story, amplified by people like Keith (whether he actually believes it or not) and do what you have to do to achieve your goal.

Result: lotsa dead Arabs and free flow of oil for our fancy lives.

Or would you rather take the red pill and stop the luxury lives? People 'need' to believe in this horse crap to defend their moral position. The slogan 'just bomb the suckers and loot their oil' doesn't sound very sophisticated.

O my, let the warmongering start below while I start the BMW V8...

Mark in San Diego said...

Trade war with China was just announced. . .that should be good for the other shoe!. . .wait till China sells a few US stocks and bonds. . .those fools in Washington will run for cover. BTW- read Stephen Roach at Morgan Stanley - the ink on his article about China trade had barely dried (metaphoricaly that is) before the trade war was announced.

Anonymous said...


Anonymous said...


It's posts like thse that separate you from your followers. They are 100% insane and see a conspiracy in a Coke can. You obviously haven't gone completely over the edge.

Anonymous said...

trade war with china...good...those slanty eyed bastards need us more than we need them

veritas_faust said...

Anon 5:49

Reagan was a senile old man who regularly confused real life with being on a movie set. I had a professor in college who was an aid to Reagan. It was scary I am told. He even said to Gorbachev in a summit meeting that if we (the planet Earth) were ever invaded by a hostile alien race then the U.S. and U.S.S.R. would have to join forces.

Colin Powell referred to this as the "Little Green Men Treaty." I am not making this shit up.

So please stop with the hero worship of Reagan, it is truly misplaced.

Now Maggie...well that old girl would have gotten medevil on 'em!

tim73 said...

Real nice. Just put 150+ ship on Persian Gulf, basically all on 100*50 miles area.

Meanwhile, Iranians are waiting with their hundreds, if not thousands of missiles UP there on the mountains within 50-100 miles from possible targets, plus some of the ships well within artillery range.

Iranians have two more advantages more: No need to stay afloat and all the rocks in the world to build strong defenses. One big shooting gallery for them.

Anonymous said...


The Geneva Convention only applies to uniformed troops. Accordingly, they have no rights thereunder, nor should they.

With regard to your statement, "are we all not human and don't we all feel the same pain," I provide the simple answer- No.

For example, if you were to go to Saudi Arabia and got caught stealing or dealing drugs, your hands may be cut off or you may simply be executed.

Or, let's say you were in some remote regions of Pakistan or Afghanistan and your brother was accused of rape and/or adultery- according to custom, a group of men would be wholly entitled to gang rape your sister as retribution.

Or, let's say you are a reporter and agree to meet with some "freedom fighters" to tell their side of the story, but instead of getting their side of the story, you get taken hostage, get your head cut off in the name of Jihad on camera, and then they release the video to the world.

You forgot those few things, huh.

So, no, we are not all human.

Anonymous said...

People 'need' to believe in this horse crap to defend their moral position.

I was talking to a "Christian" the other day and he interspersed words of hate of muslims and gays with words of love towards others.

It sounded so psychologically incoherent but that's the koolaid they drink.

Democrat said...

Let me finish with two comparisons. One from history, one from present each time.

from an address to a joint session of the US Congress: President
George W. Bush.

"Americans are asking ``Why do they hate us?'' They hate what they
see right here in this chamber: a democratically elected government.
Their leaders are self-appointed. They hate our freedoms: our freedom
of religion, our freedom of speech, our freedom to vote and assemble
and disagree with each other.

George W. Bush, 20 September, 2001


From Goebbels' New Year address to Germany

"They hate our people because it is decent, brave, industrious,
hardworking and intelligent. They hate our views, our social
policies, and our accomplishments. They hate us as a Reich and as a
community. They have forced us into a struggle for life and death. We
will defend ourselves accordingly. All is clear between us and our

Goebbels 31 December 1939


Richard Perle, policy advisor to G.W. Bush, 2001

"No stages. This is total war. We are fighting a variety of enemies.
There are lots of them out there. All this talk about first we are
going to do Afghanistan, then we will do Iraq, then we take a look
around and see how things stand. That is entirely the wrong way to go
about it ... If we just let our vision of the world go forth, and we
embrace it entirely, and we don't try to ... piece together clever
diplomatic solutions ... but just wage a total war against these
tyrants, I think we will do very well. Our children will sing great
songs about us years from now.

Richard Perle, policy advisor to G.W. Bush, 2001


Joseph Goebbels, 1943

"So total war is the demand of the hour. We must put an end to the
bourgeois attitude which we have also seen in this war: Wash my
back, but don't get me wet! The danger facing us is enormous. The
efforts we take to meet it must be just as enormous. The time has
come to remove the gloves! We must use our fists now! There is no
excuse for only superficially and carelessly making use of the war
potential at home and throughout Europe. We must use the full
resources, as quickly and thoroughly as it is organizationally and
practically possible. Unnecessary concern is wholly out of place. The
future of Europe hangs on our success in the East! We are ready to
defend it! The German people are shedding their most valuable blood
in this battle. The rest of Europe should at least work to support
us. Those who do not understand this fight today will thank us on
bended knee tomorrow that we took it!

Joseph Goebbels, 1943


Source: here

Scary shit. Come on, America. Make your grand children proud (just like the Krauts the other day ;) )!
It may truly be 1938 again.

moderate infidel said...

It's much better to hate all religions equally. The biggest ponzi scheme in all of history is and continues to be the ass-backward mind sucker called religion. There should be a no tolerance policy on delusional magic thinking especially for elected officials.

Ed said...


You could edit racist comments.
They help to perpetuate the
American Syndrome.

The main enemy: 'they are us'.
Ignorance ruins everything, and
we don't know when we have it.

Doktaire said...

I should just say I am British, I really don't think this situation can be compared to the "piece of paper" Chamberlain debacle. However, it is a situation that needs dealing with seriously. It is a very hard situation, part of me says lets bomb some important sites within Iran to send the message that we mean business. The problem with that is, Iran could easily just full on invade Iraq, their conventional military is not insubstantial. If we could find exactly where the 15 are, we could mount a covert mission and get them back, but that runs the risk of them being killed in the process. If we do nothing, Iran strengthens it's hand and shows that it can act with impunity. Like I said, it is a very hard situation, getting all medieval on Iran could only make things much worse, and this is precisely why the Iraq war was such a mistake, we are so tied up there, we don't have the ability to mount a serious deterrent against other rogue nations, why do think it is that both Iran and N. Korea have both accelerated their nuclear programs in recent years? It is because we, that is the US and UK, are so hopelessly distracted right now.

Anonymous said...

If they charge the brits in a trial it will be show trial...but how is that different from what we gave Saddam?

Let's see. A bunch of brits in rubber dingees...they killed no one.

Saddam by everyone's and his own admission killed hundreds of thousands. Sometimes with great brutality (feeding them into giant shredders feet first, etc.).

So yeah, the Brits are just like Saddam.

Another liberal for you.

Anonymous said...

I say the British should apologize profusely, admit they were wrong and get the soldiers back.

Once they are back, they can then cluster bomb a square block of Tehran and kill a few thousand Iranians.

Anonymous said...

I'm just sayin' is all.

Anonymous said...

Saddam killed people by putting them into giant shredders? You've been watching too much James Bond.

Anonymous said...

Get the Israelis to rescue the Brits.

Anonymous said...

Oh my god. Goebbels and Hitler both ate DINNER! George Bush eats DINNER. It's pretty conclusive they have the same mentality.

Anonymous said...

At least the Iranians haven't forced the Brits to disrobe and form a human pyramid. Anyone who thinks bombing Iran won't lead to more casualties and hostages is crazy. The US has been sniffing around for a snootful of trouble for decades. What goes around, comes around. The US PTB has made sure that peak oil will be as painful as possible in the US. If you want to hate, make sure you hate the right people. The US PTB are pure evil.

Anonymous said...

Some wanna be HPers here, have been insinuating that what’s wrong with a strong and justified response to the Iranian aggression, is the possibility that some Jews are secretly promoting some of this.
I guess I just don’t get this argument.
Why would Jews not do everything they possibly can to protect themselves?
Why would Jews not assemble as many allies as possible to help them in defending themselves?
Isn’t there a natural obligation for Jews to build a coalition to stop these maniacs from killing their little babies?

Poor little Israel has been totally handicapped by the extreme left / libs and have been weakened internally.

Anonymous said...

>> Saddam killed people by putting them into giant shredders? You've been watching too much James Bond.

Go away and enjoy your ignorant bliss elsewhere.

moderate infidel said...

Time to face the 800lb Gorilla in the room - Islam needs to go the way of the dinosaur like all the other major cults (some call them religions) are doing. Islam is the current cancer of humanity. When we've eradicated it then we can concentrate on the evangelical christian retards. Fortunately Judaism isn't really looking for new recruits so no worries there.

tim73 said...

"However, it is a situation that needs dealing with seriously. It is a very hard situation, part of me says lets bomb some important sites within Iran to send the message that we mean business."

To that I'd say most politely, "FUCK OFF BRITS, YOU ARE AN ISLAND NOW".

Anonymous said...

Reagan was a senile old man who regularly confused real life with being on a movie set.

BWA HA HA HA!! You liberals never stop. Amusing though.

Democrat said...

Oh my god. Goebbels and Hitler both ate DINNER! George Bush eats DINNER. It's pretty conclusive they have the same mentality.

For the ones not getting the idea, 14 principles of fascism.

I do not have to convince you of anything, I can only show you the door.

Anonymous said...

Yeah, yeah pick on the Christians again, that's always the easy way out. I mean real Christians don't hate Muslims, gays, or anyone else, but I guess it's just easy to lump us all into one catagory for the sake of arguement. Modern day Circus Maximus, I tell you.

Anyway, speaking of false recoveries, I swear the realtors in my neighborhood are putting up fake sold signs when a house has been on the market too long. No one ever winds up moving into any of these houses, and some of them have been sitting there for months with a "sold" sign while the house sits empty. there are three of these types of houses on my block alone. It could be that the people who purchased them backed of the deal for whatever reason, or maybe a developer purchased them and is just sitting on them, but I really do think the realtors are doing this to keep this market afloat because houses in this neighborhood were going for $600,000 on average during peak. A lot of forclosures and bankruptcies around here too.

Anonymous said...

Take care of Iran, you take care of Iraq.

Anonymous said...

To the idiot liberal questioning the giant shredder: Does it matter? So he only killed people by shooting and gassing them.

Whatever, it's all Bush's fault anyway.

Anonymous said...

What would Margaret Thatcher do?

Girlfriend wasn't just TOUGH, she was damn SMART. Instead of doing what Blair did,running boo hoo to the UN security council first and making himself look like a wuss, she would have said, "All right, Security Council, either you impose trade sanctions on Iran, or I'll use the Royal Navy to block every drop of oil from coming out of the Straits of Hormuz."
And everyone would know she was not bluffing. The Chinese, who drink a lot of Iranian crude, would have a bit more incentive to vote FOR sanctions instead of vetoing them. That would take away the Iranian's "we'll shut down the straits" threat: they'd already be shut down.
Put oil to $100? Sure. But then it would go right back down and STAY down because nobody would try this again for a while.

Anonymous said...

Anonymous said...
Get the Israelis to rescue the Brits.

Israel would be stupid to help the Brits in any way!
Have you seen the British UN voting record lately.
Have you listened to the BBC lately?
Have you seen the latest British opinion poll lately?

as much as Iran deserves to get whacked, if I was Israel I’d let the Brits and any other European country rot in their own poop!

Short of directly attacking Israel the Europeans have systematically been hurting her in every which way it can.
How bout asking your buddies Arabs you’ve been supporting so much, for some assistance.
All that funding the Europeans have provided to Arafat’s wife should buy them some brownie points don’t you think?
Were is Honica Jewinsky when you need him? Guess he’s in a bit of a jam, if you help the Brits it may benefit the Jews, if you help the Iranians you may empower them to convert your Church into a Mosque.

Ben Dover said...

trade war with china...good...those slanty eyed bastards need us more than we need them
OH REALLY??? You are going to look real funny when you have no shoes, no clothes, and no coat. That is unless you learn to sew, oh wait... you will need some cloth and thread, and a machine. How long do you think it would take to ramp up US production of basic clothing? We would have to start from square one, from drawings of the machines... if we still have them.

What if they just stop sending shit here? What then Einstein?

FlyingMonkeyWarrior said...

The other housing crash shoe will soon drop. What will it be?

China, the Drop of the US Dollar, the yen carry trade going bye bye, Hurricane season,

I'm depressed,

not really.

Take your pick.

FlyingMonkeyWarrior said...

Saddam killed people by putting them into giant shredders? You've been watching too much James Bond.

March 30, 2007 8:20 PM

This is true. I watched a PBS Bio on Saddam. Also, I read the bibliography of his son in law who escaped to Canada with Saddam's daughter. She talked him into going home and her husband was carved up into little bits, by her father, Saddam. As was any one on his staff who disagreed with him. He met many of highest aids while he was in prison. Saddam was a thug. I think he kept the peace with fear and intimidation. said...

That well said, is worth saying again: Your perspective vs. my perspective.

I have 6 decades of life and 6 generations of USA forefathers in the USA; you and yours may have just gotten off the boat.

You may be concerned about the Grand USSA next month, next year, next generation; I do not care about waking up tomorrow. My country is lost, gone; yours belongs to the world. (ha).

When I see these young Brit punks, captured without firing a shot, with the ball-less one among them, telling (not me, but ) you sheeple how well it is being treated, I, well, feel for those who died 911, because they died at your hands.

Anonymous said...

The biggest ponzi scheme in the world is socialism

Wish I were a suffering Palestinian said...

The captive Brits have no right to use the term ‘suffering’
Let me be very clear here.
We have a Trademark on ‘suffering’; no one before us and no one in the future has or will be a greater sufferer then us.
We have a legitimate right to resist any ‘suffering’ infringement.

tim73 said...

"The biggest ponzi scheme in the world is socialism"

And tell me, how is the mostly socialist countries like Scandinavia and Netherlands doing?

Richard said...

Day 1446 in Iraq.

1 Million dead - check

steal oil - check

3300 US soliders dead - check

11,000 wounded - check

1 TRILLION dollars spent - check

Americans still fat...uneducated...useless eaters.

Mission accomplished.

gwk said...

This is what Mr. Blair should say now!
We the Government of Great Britain consider this an act of war by the Government of Iran, and therefore demand the safe release of our service members within 72 hours, and if not we will commence bombing of your ports, and harbors. There will be no further discussion signed Tony Blair Prime Minister of Great Britain.

gwk said...

please use spell check, It is really easy!

area 51 said...

"democrat" quack conspiracy theory, unemployed UFO watcher, D&D playin', gettin' no poont*ng, got no friends, (who don't smell funny) left-winger's brain says:
"It's obvious Bush is the reincarnation of Hitler. The US is the 4th Reich, Ahmadinijad is Jesus (or hidden imam whatever.... ) Kidnapping is OK since the US does it. Nukes for N Korea and Iran are kool, BUT HELL NO I WOULD NEVER MOVE TO IRAN!!!!!"
"democrat" still loves livin' in the good ol' Hitler-lovin' evil USA, right? And if'n he don't, loves sucking money from it....cuz honorable Iran and N Korea give him free internet access and freedom to spread conspiracy theories. DUDE TAKE YOUR MEDICATIONS and put down the crack pipe.....

Anonymous said...

"Saddam was a thug. I think he kept the peace with fear and intimidation."

Because fear and intimidation is the only thing that these "people", and I use the term loosely, understand! The various nutjob factions in Iraq were too afriad of Saddam to even think of getting out of line while he was in power!

Anonymous said...

"For the ones not getting the idea, 14 principles of fascism.

I do not have to convince you of anything, I can only show you the door."

democrat - How can you show us the door unless you come down from your ivory tower...I suppose your infinite wisdom comes from your many years of living in Iran, North Korea, former USSR....get a clue. You should study more about the political climate in the USA around 1940...yours and your fellow "Democrats" babel sound a lot like the appeasers that hung on Charles Lindbergh’s every word like it was the gospel....sounded really intelligent but turned out bad for the Jewish population in Poland! Wake up, you think your on the righteous side but your simply ignorant to history and devoid of any common sense.

JAFO said...

"At least the Iranians haven't forced the Brits to disrobe and form a human pyramid."-MORT

Freaking hilarious, laughed so hard it brought tears to my eyes.

On a lighter note, hey Doktaire,
what's this WE crap. Last time I checked you Brits were drawing down to about 3500 men in country at the same time that we are sending an extra 30,000 or so. Why don't you guys take the lead here on Iran and we'll sit this one out.


move on said...

Now those Japanese warmongers are putting up a missile defense system. I think it is an attempt to provoke the great Kim Jong Il. North Korea is the last bastion of freedom in Asia that the fascist Westerners are trying to colonize. Long live Iran, North Korea and Syria. Their governments are role models for the world.

Anonymous said...

richard still an arrogant retarded fool - check

whattamaroon said...

Scandinavia is a country? LMAO

The Netherlands have plenty of businesses large and small. They are hardly socialist at all. They have a few more social programs than the USA, but try looking up the definition of socialism before putting the label on countries. In fact, make sure those countries exist first.

Steve the Dog said...


Halliburton really outdid themselved this time.

Karl Rove really paid attention to detail.

Good one guys.

Steve the Dog.


Anonymous said...

Mark in San Diego:

Trade war with China? My Google must be broken. I can't find any articles written this year about it. The ones I've found are from 2002-2006. Do you have a link to this new declaration of a trade war?

Anonymous said...

"Or, let's say you were in some remote regions of Pakistan or Afghanistan and your brother was accused of rape and/or adultery- according to custom, a group of men would be wholly entitled to gang rape your sister as retribution."

-I am married to an Afghan this is not Afghan culture think of how disgustingly racist you sound. Keith stick to the housing stuff as the American people are idiots when it comes to other cultures and foreign policy.

John S said...

Want to call Iran's bluff? A 10 day air strike should destroy all their seaports, oil facilities, pipelines, and any other thing needed to sell crude oil or import gasoline. The West can absorb $6 gallon gasoline a lot longer than those idiot Mullas can stay in power.

FlyingMonkeyWarrior said...

Trade war with China?

Why the Pelosi Democrats Scare China

"She scares the hell out of them." That's the way an American businessman, one with strong ties to the Chinese elite and a frequent traveler to Beijing, described to me how that nation's leadership views Speaker of the House Nancy Pelosi. But Madam Speaker shouldn't take it too personally. She probably serves as symbolic shorthand for the Democratic-controlled Congress that took power partly based on a promise to get tough on China. And it sure looks as if it intends to. Earlier this week, Pelosi and other Democratic House leaders called upon President Bush "to present to Congress within 90 days a comprehensive plan to eliminate the surging trade deficits with these 'Big Three' economies [China, Japan, and the European Union] by tearing down market access barriers and eliminating unfair trading practices that have existed for years–in some cases, decades." Also this week, Democratic Sens. Byron Dorgan of North Dakota and Sherrod Brown of Ohio, along with Republican Lindsey Graham of South Carolina, said they were introducing legislation that would strip China of its permanent normal trade status with the United States, subjecting the trade relationship to an annual review by Congress. Brown said in a statement:

U.S. trade policy has failed workers and small businesses across our country. As far as I am concerned, there is nothing normal about allowing our trading partners to use slave labor to compete with our workers. There is nothing normal about manipulating currency to make exports cheaper. There is nothing normal about mouthing concern for intellectual property in the midst of rampant piracy. And if this is indeed normal, then I certainly don't want it to be permanent.

Now there's some evidence that all these threats by Democrats are having an effect. China has been criticized for keeping its currency artificially low to boost exports. So far in 2007,though, the Chinese yuan is one of the fastest-appreciating Asian currencies, up about 0.6 percent. That may not sound like much, but it is pretty notable given that the yuan has risen by less than 5 percent since China ended a direct peg with the U.S. dollar in July 2005. Also back in 2005, Graham and Sen. Charles Schumer of New York cosponsored a bill that would have imposed a 27.5 percent tariff on Chinese imports.

Will there be a United States-China trade war? Protectionism is a major concern on Wall Street right now. In a recent analysis, Morgan Stanley chief economist Stephen Roach compared U.S. trade friction with China today vs. that with Japan in the 1980s–and found today's circumstances far more worrying. Two major take-aways here:

1) Roach notes that as of last year's third quarter, the U.S. current account deficit stood at 6.8 percent of gross domestic product–double the 3.5 percent shortfall hit in the fourth quarter of 1986 when the imbalance was at its worst back then. Japan accounted for 37 percent of the peak U.S. merchandise trade deficit in 1987, whereas the Chinese share is about 29 percent today. But because the trade deficit is much larger today, China's bilateral imbalance is currently about 1.9 percent of GDP–more than 50 percent larger than Japan's 1.2 percent share in 1986. "Consequently, on the basis of this simple calculation, the China factor appears to be considerably bigger than the Japan factor–stoking concerns of the protectionists who claim there is much more to fear from one trading partner today than was the case nearly 20 years ago."

2) In 1986, the pressures of globalization were hitting both business and labor. The profits share of national income of about 7 percent was well below the 10 percent level of a decade earlier, and the labor compensation share of about 58 percent was below the 60 percent level of earlier in the decade. Today, you have a far different situation, with profits at record highs and the share of income going to labor at 40-year lows. Roach concludes:

In essence, capital and labor are working very much at cross-purposes in the current climate, whereas back in the late 1980s they were both in the same boat. ... In the late 1980s, many of the once proud icons of corporate America were fighting for competitive survival at the same time that U.S. workers were feeling the heat of global competition. The pain was, in effect, balanced. Today, U.S. companies, as seen through the lens of corporate profitability, are thriving as never before while the American workforce is increasingly isolated in its competitive squeeze.

In the 1980s, just as with China today, many in the United States were pushing Japan to strengthen its currency. How did that work out for Japan? As Will Hutton, China expert and author of the book The Writing on the Wall: Why We Must Embrace China as a Partner or Face It as an Enemy, told me in an interview late last year:

The more than 50 percent rise in the yen in the late 1980s was the single most important cause of Japan's near 15 years of economic stagnation that followed; if the yuan went up by 40 percent suddenly against the dollar, it would have a similarly devastating impact on China. . . . Such a rapid appreciation of the yuan over a short period could be a tipping point for a wave of unrest, which could threaten the regime's stability. The party leadership sees the demand for fast yuan appreciation as an act of economic warfare. In these terms, you can see why.

And would troubles in China affect America? Here is the scenario that Hutton sees:

China's stagnation would trigger a global slowdown, maybe even recession. ... The World Bank estimates that if China's growth rate fell by just 2 percent, up to 60 percent of China's bank loans would become nonperforming–so threatening both China's and, via Hong Kong, Asia's financial system. The flow of saving to finance the U.S.'s deficit would dry up, probably forcing U.S. interest rates up–so worsening the economic slowdown.

A scary scenario, no doubt–and one both Democrats and Republicans should do their best to avoid.

Around the blogosphere. Here is what I am reading:

1) A worrisome take on housing and the economy from Barry Ritholtz at the Big Picture

2) An insightful analysis of the latest trade numbers from Prof. James Hamilton at Econbrowser.

Comments and/or questions can be sent to me at
Posted at 08:30 PM by James Pethokoukis

FlyingMonkeyWarrior said...

Sorry to threadjack Keith.
The International Tax Treaty protecting American Importing Companies from these tax sanctions on China's goods expired Dec. 31, 2006, (posted in HP's archives) and the Dems. dominating the House are key here with regard to the US Govs. "soft on China" attitude.

U.S. sanctions China over paper dispute

By MARTIN CRUTSINGER, AP Economics Writer Fri Mar 30, 5:00 PM ET

WASHINGTON - The Bush administration, facing increasing anger over soaring trade deficits, announced Friday it would impose sanctions against Chinese paper imports, opening up a new avenue for beleaguered American manufacturers to seek government protection.

The action, announced by Commerce Secretary
Carlos Gutierrez, reverses 23 years of U.S. trade policy by treating China, which is classified as a nonmarket economy, in the same way other U.S. trading partners are treated in disputes involving government subsidies.

The decision involved a case brought by NewPage Corp., a Dayton, Ohio-based paper company. It contended that its coated paper, used in printing glossy catalogues and annual reports, was facing unfair competition from imports from Chinese companies receiving improper subsidies from the Chinese government.

Commerce imposed penalty tariffs ranging from 10.9 percent to 20.4 percent on imports of glossy paper from China. The tariffs will take effect next week on a preliminary basis and will become final after a further Commerce review is completed in June.

The action was being closely watched by many other American companies, from steel to furniture, that were battered in recent years as Chinese imports flooded into the country.

U.S. companies have always been allowed to file antidumping cases, seeking penalty tariffs on the grounds that the Chinese products were being sold in the United States below cost.

But with Friday's action, they will also be able to seek penalty tariffs, known as countervailing duties, on the basis of improper government subsidies — everything from favorable loans from state-owned Chinese banks to direct government support.

"The United States today is demonstrating its continued commitment to leveling the playing field for American manufacturers, workers and farmers," Gutierrez said in announcing the decision.

The Chinese government criticized the administration decision.

"This action of the U.S. side goes against the consensus reached by the leaders of both countries to resolve disputes through dialogue," said Wang Zinpei, a spokesman for China's Ministry of Commerce, quoted by the Xinhua News Agency. "China strongly requires the U.S. side to reconsider the decision and make prompt changes."

Daniel Porter, a Washington attorney representing the Chinese government, said no decision had been made yet on whether to appeal a federal court ruling on Thursday that gave the
Commerce Department the go-ahead to proceed with the sanctions.

The decision by Commerce represented the latest effort by the administration to adopt a tougher approach to Chinese trade practices as the administration faces growing pressure from Democrats, who now control both the House and Senate.

Earlier this year, the administration filed a case against China with the
World Trade Organization alleging that China was violating WTO rules by giving its companies improper subsidies for production of steel, paper and other products.

U.S. lawmakers, businesses and unions praised the action in the NewPage case.

In a joint statement, Ways and Means Committee Chairman Charles Rangel (news, bio, voting record), D-N.Y., and Rep. Sander Levin (news, bio, voting record), D-Mich., called the sanctions a "long overdue change in policy." They said they intended to push forward with legislation that would explicitly change U.S. law to make sure the Commerce actions will withstand any court challenges.

Leo Gerard, president of the United Steel Workers union, said the Commerce action was welcome news for workers at 22 paper mills in 13 states who produce the glossy paper covered by the sanctions. Gerard's union represents 90 percent of the workforce in the U.S. coated paper industry.

Gilbert Kaplan, a Washington attorney representing NewPage, said the Commerce action reflected the reality that China as a major power in the global economy "should not be exempt from the laws that ensure fair trade."

When the Bush administration made it known last year that it was willing to consider cases against China involving government subsidies, it was seen as an effort to bring more pressure to bear on the Chinese to adhere to the rules of the WTO, which China joined in 2001.

Treasury Secretary Henry Paulson is leading an effort to pressure China to let its currency rise in value against the dollar. American manufacturers contend that China is devaluing its currency by as much as 40 percent to give the country unfair trade advantages.


Anonymous said...

the Goebbels comparison is a good one. history repeats itself time and time again. the sheep get shorn time and time again. we fight wars and die time and time again. no wonder the average school child getting out of high school is not functionally literate. these chumps are needed for the coming wars and the dumber they are the easier they are to control. they will need fresh bodies to feed the grist mills of the armies that must be called up to battle unseen foes. the industrial military complex will continue to spread its tenacles and absorb anything and everyone in its path in search of more and more profits. money is power to these people and power is money. it is their god and they worship it in spirit and in truth , make no mistake about it. if the truth was known, the amount of satanism involved in all of this would surprise many of us, i think. these people do worship a higher power, it is just not the one that you may think it is. they have power, that they utilize to the fullest. this world is their heaven and they seek the rewards of this world and all that it has to offer them. they care not about human life nor nationalism. they have no nation they call home.......the world is their home.......they care not what country they live in. it matters not to them. large international corporations fund these wars that we fight and they align themselves on each side in every conflict and they profit from these positions. the longer a war last, the more money they make the more powerful they become. it has been this way perhaps since the dawn of time and the beginning of the human race. this nation is unique in many ways. for its people grew up with freedom and liberty in their blood. it is in your blood and mine. we have lost much of it,but possession is 90 percent of the law......we still live here...we can change what they want to do here but we must resist them in all our ways. but tell that to bubba who sits on his fat ass , watching tv, and eating hot dogs and drinking beer. his nation is dying and he doesn't even day they shall say to me.......why didn't you tell me this was happening.......and i shall say to them......i did....but you didn't hear more and more people are hearing. By the Lord most Holy, i sincerely hope that the internet is allowed to continue as the word gets out about our predicament and that we as a people come together for the times that are coming. it is all i can hope for.....

Anonymous said...

Hmmmm. how would we feel about foreign navy crusing around our waters? Why are we there? Well agree or disagree with why we are there its pretty clear we would be upset at any liberators freeing us from the tyranny of George Bushc and the fact we have nearly 3 million people in jail or any other bull the media can concoct. Would we be mad if there were "liberators" in Mexico or Canada. Oh wait, if we do it and AIPCA tells us to do it its o.k. cuase we are a democracy and we are very good people. the others are always bad.

downinoz said...

I love it how people will say the arabs are so bad. they cut off arms for stealing! In America if you are black, do not have money you get thrown in prison for 10 years for having a pound of a dried green plant! You can do 20 for having a magical powder produced by the incas. Common, stop with the propaganda! Think clearly and question all of the nonsense that are being asked to believe. Killing people on some flimsy premise no matter what the media and your lack or sophisticaion incline you to do is a bad thing. Again, killing people bad. Oh and don;t be surprised by people being mad at you if you have been trying to mess with then, undermine them, supporting a country that bans and kills em (israel) and now we invade em and are threatening to nuke people. Yeee, are they supposed to love us. We will reap what we sow.

Anonymous said...

Have the evil Iranians made the Brits do the naked pyramid yet/ Oh. only the GOOD americans do whacky stuff like that.....