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World's Largest Steelmaker Urges Europe To Declare Trade War On China

Tyler Durden's picture




 

Currency wars are so pre-"QE eternity." At least that is the opinion of Indian multi-billionaire Lakshmi Mittal, and owner of the world's biggest steelmaker, who urged Europe to embrace protectionism and erect trade barriers to "protect" its manufacturers (benefiting one ArcelorMittal among others), while at the same time bashing austerity, saying "the futures of EU manufacturing depended on politicians in Brussels helping industry face what he said was unfair competition from China." In other words, it's time for Europe to escalate into full blown trade warfare with China. It is unclear if Mr. Mittal had any thoughts on how China would, in turn, escalate to this progression in trade warfare: whether with tariffs, subsidies, or outright dumping. What does appear quite clear is that the owner of ArcelorMittal, who on Friday posted a net loss of $345 million (down from a $92 million profit a year earlier) on Q1 sales plunging by 13%, whose stock is just off its 52 week lows, and who said he may close plants in Eastern Europe if the "economy continues to slump", may have some ulterior motives in asking that Europe fight his war for him.

From the FT:

Mr Mittal suggested that Europe should embrace protectionist measures to stop Chinese products flooding the market with cheap goods.

 

The London-based entrepreneur said Brussels should consider applying higher tariffs on imports of Chinese-produced steel, similar to the ones to be imposed on solar panels made in China. He argued that Chinese producers of steel were over producing, lowering the price of the metal globally.

 

“There should be increased tariffs for imports, or there should be a surcharge on the steel coming to Europe from countries where environmental standards are very low,” he said.

 

His call came as EU policy makers adopt an increasingly muscular approach to what they see as unfair competition from Chinese producers across a range of sectors.

Also not surprising was his lashing out at the latest bogeyman for Europe's economic doldrums: austerity, which has become the old world's equivalent of Bush, whereby everything that is wrong, is blamed on Germany's unwillingness to pursue "debt-reduction" policies through the layering of more debt, or in other words, to give the ECB carte blanche to follow in the Fed's footsteps and engage in outright monetization (a topic extensively discussed previously, and one where Europe will be at an impasse at least until Merkel's September reelection campaign is successful, or not).

“If Europe continues only with the austerity programme without spending money on growth for infrastructure, things will never improve,” Mr Mittal told the Financial Times. “We can clearly see that austerity is not helping economies to come out of recession.”

 

He added: “They [policy makers] have to save European manufacturing, whatever you may call it, what I want is actions to save the domestic manufacturing, including steel.”

At least now thanks to Lakshmi, Europe has a new bogeyman: evil, efficient Chinese steel plants which should be stigmatized due to "very low environmental standards."

Just as not surprising, was the lack of macro economic "advice" geared at the US - after all there Mittal's operations are still quite profitable:

ArcelorMittal executives say  the operating environment in the Americas is much healthier than in Europe. Louis Schorsch, who heads a large part of the American business, said that steel consumption in the United States was approaching levels last seen before the financial crisis. Demand from the auto industry, probably the company’s most important customer in the United States,  is ‘‘a good story’’ and housing is ‘‘a little better,’’ he said, while demand for drill pipe and other energy-related products is ‘‘a little bit off.’’

But in Europe it is a different story entirely:

 Mr. Mittal said Friday that while the results were ‘‘still not satisfactory, at least I am starting to see the benefits of the actions we have taken’’ to reduce capacity.

 

Given the slump in demand in Europe, ‘‘we felt that this is not a cyclical but a structural change,’’ he said. ‘‘We needed to take action.’’

 

The closing  of operations in Europe, especially at Liège,  Belgium, and Florange,  France, has led to tension with governments and unions.

 

The French government last year threatened to nationalize the Florange site, but Mr. Mittal largely held firm on his plans to permanently close blast furnaces there. The company did say Friday that  it had begun a new production line at Florange for modern, lightweight automotive steel with the trademark Usibor.

Bottom line: Mittal's advice to France - don't target me, but instead make things much worse by re-escalating trade tensions and taking up the global currency wars at least one level. As for the long-term consequences of China getting actively involved in trade warfare, well - the stock market really only cares 1-2 quarters out. What happens in 2014, 2015 and so on, that's someone else's concern.

ArcelorMittal, which is based in Luxembourg, still looks as if it has a long way to go before it returns to the high profitability it enjoyed before the onset of the global financial crisis. The company reported net income of $10.4 billion in 2007.

 

‘‘There is a glut of steel supply globally,’’ said Jeff Largey, an analyst at Macquarie in London. ‘‘That is going to prevent a company like ArcelorMittal from making the type of profits it did in its heyday.’’

One wonders if Mittal will also demand protectionism to be enacted against Chinese miners next:

Even in mining, where Mr. Mittal is focusing most of his investment these days, the results were not stellar. Operating income of $286 million was down 19 percent compared with the previous year, although it was up 54 percent compared with the last quarter of 2012.

But ignore all that, and just blame China, which was a great friend and ally when it was helping the Indian's materials empire achieve record profits, but which may be sacrificed at the altar of hollow punditry and macroeconomic myopia once things start turning sour for the bottom line.

 

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Sun, 05/12/2013 - 20:18 | 3554589 kliguy38
kliguy38's picture

Bring it on BITCHEZ

Sun, 05/12/2013 - 20:22 | 3554596 Almost Solvent
Almost Solvent's picture

I propose a worldwide ban on Eurotrash with severe sanctions for dumping.

 

 

Sun, 05/12/2013 - 21:39 | 3554839 Buckaroo Banzai
Buckaroo Banzai's picture

But Europe is awash in Eurofags! What do you propose to do with all of them???

Sun, 05/12/2013 - 22:05 | 3554888 markmotive
markmotive's picture

It's a trade war for some. A battle for survival for China. The higher the Yuan goes, the closer China gets to the economic ledge.

According to Jim Chanos, China has gotten worse:

http://www.planbeconomics.com/2013/05/chinas-actually-gotten-worse-jim-c...

 

Mon, 05/13/2013 - 00:07 | 3555192 W T F II
W T F II's picture

MUCH worse, if Australia is any indication...and Australia is a BIG indication of Chin's REAL condition...

Sun, 05/12/2013 - 23:30 | 3555115 Kirk2NCC1701
Kirk2NCC1701's picture

They didn't accommodate them until Hollywood said it was Ok, and US politicians insisted on it.

Sun, 05/12/2013 - 20:22 | 3554598 economics9698
economics9698's picture

Smoot-Hawley II.

Yea why not 25% unemployment?

Sun, 05/12/2013 - 20:27 | 3554614 Kayman
Kayman's picture

The 25% unemployment is in those countries that had their jobs outsourced to China. It is here now in front of your eyes !

Sun, 05/12/2013 - 20:29 | 3554621 fourchan
fourchan's picture

and i thought we would start a trade war first. oh well wrong again.

Sun, 05/12/2013 - 20:38 | 3554652 knukles
knukles's picture

Here we go!
Right down the olde path of glory for state and people!
Trade wars, the next step in the global depression I shit you not.

Sun, 05/12/2013 - 20:46 | 3554684 Ignatius
Ignatius's picture

You're likely right.  But a comparative advantage (technology/climate/resources) is not equivalent to an absolute advantage (slave wages).  Shipping our mfg to low wage country is NOT 'free trade'... it's suicide.

Sun, 05/12/2013 - 21:17 | 3554764 Pure Evil
Pure Evil's picture

But, then how would the Wal-Martians be able to afford cheap Chinese manufactured products.

Sun, 05/12/2013 - 22:09 | 3554914 booboo
booboo's picture

Yard sales, there is 100 years of built up inventory sitting in peoples homes, they just need to drag it to the curb and throw up a sign.

Mon, 05/13/2013 - 06:28 | 3555496 Doña K
Doña K's picture

The proverbial, "your stuff is shit but my shit is stuff" in play here as broadcasted by non other than George Carlin.

Sun, 05/12/2013 - 21:46 | 3554851 Buckaroo Banzai
Buckaroo Banzai's picture

He's definitely right. It is absolutely inevitable that international trade will completely seize up. International trade was crippled in 1914 when Real Bills clearinghouses were effectively shut down, forcing all trade financing and settlement into the banking system. It hasn't been the same since, and the endgame is upon us.

Sun, 05/12/2013 - 21:09 | 3554735 Charles Wilson
Charles Wilson's picture

Knukles, you have swerved into the Truth.

Don't forget, however, that we still have all that Icky Foreign Debt to repudiate before we open the FEMA Camps.

A good Trade War would be perfect for a Retaliatory Default.

Let them Chinee types brutalize a few million Induns and the Namish People.  'N who needs Europe anyway.

China needs water more than it needs gold.

It would be such an easy, limited far away war.

Sure. WE could do it...

 

CW

Sun, 05/12/2013 - 23:47 | 3555158 Son of Loki
Son of Loki's picture
Airbus to China: We support you, please buy our jets


 

BRUSSELS (Reuters) - China's decision to ease a boycott of some $11 billion (7.16 billion pounds) in Airbus (Paris: NL0000235190 - news) jet orders followed a high-level appeal from the planemaker urging Beijing to recognise its support over a trade row with Europe, a letter seen by Reuters shows.


 

http://news.yahoo.com/exclusive-airbus-china-support-please-000950751.html

 

The EU will bow to the PRC, not India.

Mon, 05/13/2013 - 00:09 | 3555195 W T F II
W T F II's picture

EXACTLY what happened LAST TIME...30's....!! Funny how s#!t always repeats...fk'n DNA...!!

Mon, 05/13/2013 - 02:33 | 3555345 Ratscam
Ratscam's picture

currency, trade, real wars.
its not the DNA, its the few psyco-/sociopaths TPTB that want war in exchange for money and control. Every war is planned, so is WWIII. I hope we can avoid it.

Mon, 05/13/2013 - 02:47 | 3555346 Ratscam
Ratscam's picture

double post

Sun, 05/12/2013 - 20:34 | 3554632 Son of Loki
Son of Loki's picture

I'd rather live in China then India....really.

Sun, 05/12/2013 - 21:20 | 3554766 HulkHogan
HulkHogan's picture

I'd rather kill myself instead of living in either country.

Sun, 05/12/2013 - 21:22 | 3554777 akak
akak's picture

The only real difference lies in whether your sidewalk-deposited turds would be curry or puppy flavored.

Sun, 05/12/2013 - 21:38 | 3554830 DaddyO
DaddyO's picture

Where's AnAnonymous when we need him to sort this out for us?

DaddyO

Sun, 05/12/2013 - 21:58 | 3554877 jon dough
jon dough's picture

Stuck in the Mittal with Hu?

Mon, 05/13/2013 - 00:10 | 3555197 W T F II
W T F II's picture

you should have 100+ UPs for that one...

ps. i thought Jon Dough offed himself..??

Sun, 05/12/2013 - 21:59 | 3554878 jon dough
jon dough's picture

dup

Sun, 05/12/2013 - 21:59 | 3554881 akak
akak's picture

We need him?

Sun, 05/12/2013 - 22:03 | 3554890 DaddyO
DaddyO's picture

All the comics here on ZH need a foil, right?

DaddyO

Sun, 05/12/2013 - 22:06 | 3554901 akak
akak's picture

Make us laugh!

Sun, 05/12/2013 - 20:49 | 3554692 RafterManFMJ
RafterManFMJ's picture

CITIZEN!

The infantry is hiring! (Or soon will be)

Sun, 05/12/2013 - 21:42 | 3554844 surf0766
surf0766's picture

25% unemployment in those countries which choose a socialist path.

Sun, 05/12/2013 - 20:37 | 3554648 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, Lakshmi doesn't care about 25% unemployment.  He's just talking his book.  Timken will just say the same thing when the USA goes back into recession.

Sun, 05/12/2013 - 21:20 | 3554769 duo
duo's picture

Europe just needs a fracking boom.  It will create demand for steel pipe, and a place to stash carcinogenic chemical by-products underground, um, below the water table.

Mon, 05/13/2013 - 02:31 | 3555344 Urban Redneck
Urban Redneck's picture

In the spring of 2009, the market cap of US Steel fell below the cost of constructing a SINGLE new steel plant, much less any cash and inventory it carried (in addition to all the steel plants) on its balance sheet.  

Lakshmi might not do so well if there's blood in the streets he has to fight to retain control of his company from someone hunting for strategic assets on the cheap. 

Sun, 05/12/2013 - 20:50 | 3554697 RafterManFMJ
RafterManFMJ's picture

They can have my 409 coil when they pry it from my cold, gloved hand...

Mon, 05/13/2013 - 07:42 | 3555602 samcontrol
samcontrol's picture

what does that have anything to do with steel.
you are like a little boy.

Sun, 05/12/2013 - 20:20 | 3554595 Dr. Engali
Dr. Engali's picture

Currency wars , trade wars, followed by world wars. Won't be long before the shooting starts.

Sun, 05/12/2013 - 20:23 | 3554604 economics9698
economics9698's picture

Increasing the unemployment to 25% softens them up for war.

Sun, 05/12/2013 - 20:30 | 3554623 holdbuysell
holdbuysell's picture

Sorry, Doc. Didn't see...posted the same thing below.

Sun, 05/12/2013 - 21:12 | 3554748 Offthebeach
Offthebeach's picture

During WWII, the stretched, diluted British Army took Iraq and Iran in months, now the US couldn't.
Conventual wars are too expensive, but China could field 20 million. Easy. But we' d have to go nuclear, which would take everyone's attention off the economy, give central bank boys something new to do, solve unemployment and clear out our urban slums for a,hundred years.

Sun, 05/12/2013 - 22:14 | 3554931 booboo
booboo's picture

Damn Doc, we burn a million tons of copper and steel laced depleted uranium a year shooting up streets in foreign lands, that ain't chopped liver.

Sun, 05/12/2013 - 20:24 | 3554603 Parisnights
Parisnights's picture

Trade war, currency war, cold war, proxy war-- What a bunch of sissy warriors.  Makes you pine for Attila  or genghis.

Sun, 05/12/2013 - 20:26 | 3554609 Larry Dallas
Larry Dallas's picture

Talk about biting the hand that feeds you.

Time for Mittal to hire GS for strategic alternatives...

Sun, 05/12/2013 - 20:28 | 3554615 Go Tribe
Go Tribe's picture

Let's see if I understand this: QEInfinity plus tariffs = much higher prices for us 99 percenters, right?

Sun, 05/12/2013 - 20:29 | 3554619 holdbuysell
holdbuysell's picture

Right on schedule.

To paraphrase Gerald Celente:

Currency wars...trade wars...world war.

Sun, 05/12/2013 - 21:48 | 3554861 Buckaroo Banzai
Buckaroo Banzai's picture

"if goods don't cross borders, armies will" --Frederic Bastiat

Sun, 05/12/2013 - 20:29 | 3554620 IMA5U
IMA5U's picture

This is it!!!  fear !  panic!   

 

http://www.youtube.com/watch?v=Tmzbosye2-Y

Sun, 05/12/2013 - 20:29 | 3554622 slotmouth
slotmouth's picture

Currency debasement + protectionism + xenophobia + high unemployment = golden age

Sun, 05/12/2013 - 20:32 | 3554628 Stuck on Zero
Stuck on Zero's picture

The world should have figured out earlier that the Chinese were mercantilists.  To quote:

“If you will not fight for right when you can easily win without bloodshed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves.”

 

       -Winston Churchill

 

Sun, 05/12/2013 - 20:32 | 3554630 Herdee
Herdee's picture

The story fits perfectly into the Macro Analytics chart from early March called "The Cycle of Deflation".Global End Game.

Sun, 05/12/2013 - 20:34 | 3554634 nathan1234
nathan1234's picture

Mittal is an asshole who thinks only of his own pockets.

I predict he will soon be at their feet selling some of his plants to them at throw away prices.

All the Chinese have to do is to give back some of the Euro Trash Bonds back and accquire real assets anyway. Mario Demograghi is buying

 

 

 

Sun, 05/12/2013 - 20:43 | 3554667 knukles
knukles's picture

... come to think of it, I'd best not say anything, even just a joke...

Sun, 05/12/2013 - 20:53 | 3554704 TheFourthStooge-ing
TheFourthStooge-ing's picture

C'mon, not even a wok the boat joke?

Sun, 05/12/2013 - 21:01 | 3554724 akak
akak's picture

Confucious say: Man who woks boat is frying off the deep end.

Sun, 05/12/2013 - 21:08 | 3554738 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ah, much so. Indeed, Confusius say: man who wok boat amidst river pigs end up with bacon-smelling junk.

Sun, 05/12/2013 - 21:20 | 3554767 groundedkiwi
groundedkiwi's picture

Chines waiter when asked if they have elections in China, replies " yes evily night "

Sun, 05/12/2013 - 21:23 | 3554784 akak
akak's picture

A magnifying glass being of much utility in that situation.

Sun, 05/12/2013 - 22:05 | 3554900 DaddyO
DaddyO's picture

Or Tweezers and a pepper shaker...

DaddyO

Mon, 05/13/2013 - 00:12 | 3555202 W T F II
W T F II's picture

NOT TRUE...Urban Myth...Dr. Drag bot a grand total of ZERO bonds since his famous proclamation

Sun, 05/12/2013 - 20:36 | 3554641 ekm
ekm's picture

Let me repeat my self again:

 

There is no market, no bubble, no currency war. It's CENTRAL PLANNING WARS.


Much much much bigger game, way way way above central bank's pay grade.

Sun, 05/12/2013 - 20:51 | 3554698 ParkAveFlasher
ParkAveFlasher's picture

Is that you Jim Willie?  Is this me?

Sun, 05/12/2013 - 21:55 | 3554872 TNTARG
TNTARG's picture

Central planning is leaded by banksters.

Mon, 05/13/2013 - 07:46 | 3555609 samcontrol
samcontrol's picture

ypu have opinions on arcelor mittal also, same shit different color.

Sun, 05/12/2013 - 20:36 | 3554645 Groundhog Day
Groundhog Day's picture

They never teach the money angle in any history text books...funny

Sun, 05/12/2013 - 20:38 | 3554650 RaceToTheBottom
RaceToTheBottom's picture

Figures.  His company was based on growth fed by lax protectionist rules, now he wants to lock his in.

http://www.deallawyers.com/blog/archives/000646.html

Sun, 05/12/2013 - 20:41 | 3554663 knukles
knukles's picture

We Must defeat Our Enemies At Every Oportunity At Each Chance, Not For Ourselves But For the Childern.  As Such, American Troops Are in the Process of Landing in (fill in the rest however bad you wnat it to be)

Sun, 05/12/2013 - 20:48 | 3554687 fonzannoon
fonzannoon's picture

Quincy....

Sun, 05/12/2013 - 21:08 | 3554737 kaiserhoff
kaiserhoff's picture

Indianapolis...

Sun, 05/12/2013 - 21:16 | 3554761 groundedkiwi
groundedkiwi's picture

Iceland

Sun, 05/12/2013 - 21:52 | 3554871 jon dough
jon dough's picture

Pottsylvania...

Then, we kill moose and squirrel...

Sun, 05/12/2013 - 22:10 | 3554920 quasimodo
quasimodo's picture

These great United States of Merika......damn that teleprompter

Sun, 05/12/2013 - 22:12 | 3554925 WAMO556
WAMO556's picture

Why can't we invade some country that has HOT CHICKS in bikinis, free flowing alcohol and lotsa surf?

I mean why do we always invade some shithole country that ain't worth invading in the first place?

Who picks these countries?

Sun, 05/12/2013 - 22:28 | 3554963 Offthebeach
Offthebeach's picture

Were else do you want to have a free fire training zone but in some god forsaken dump...like Ft. Polk, Hood, or Iraq? People are happy on the beaches of Brazil. Besides, we couldn't afford South of France. We are broke, so it's Turd World or back to the barracks. We might only be able to afford domestic wars in a few years. Really, if we trashed 50 old Midwest/Eastern cities, Oakland, half of LA,..what could it cost?

Sun, 05/12/2013 - 22:53 | 3555025 Prometheus418
Prometheus418's picture

More than they think... Molon Labe.

Sun, 05/12/2013 - 20:49 | 3554685 williambanzai7
williambanzai7's picture

Which just goes to show, you can be a billionaire and a moron, all you need to do is "talk your book."

Sun, 05/12/2013 - 20:48 | 3554690 Goldilocks
Goldilocks's picture

Milton Friedman on the Dangers of Protectionism (Obama's recent tariff on Chinese imports)
http://www.youtube.com/watch?v=BlkQRGZEycI (4:52)

Sun, 05/12/2013 - 20:49 | 3554696 Cabreado
Cabreado's picture

As it unwinds, many more self-interested douchebags will be Exposing Themselves.

As we watch them Expose Themselves, the only real question is, is the douchebag who squeals first the smartest-greediest douchebag, or simply the most entitled-and-squeamish(?)

 

Sun, 05/12/2013 - 20:51 | 3554700 WhiteNight123129
WhiteNight123129's picture

Mittal wants to sell steel for war?

Go to hell Mittal.... alone.

 

Sun, 05/12/2013 - 20:54 | 3554707 carlnpa
carlnpa's picture

Mittal is correct. 

This bs lopsided trade with China needed addressed, and stopped, years ago. Now, we (Europe and US) may barely survive the China great dump with intact economies.

Look at those who profit the most from the China slavery trade.

We give China real assets, they give us crappy trinkets.

Sun, 05/12/2013 - 21:13 | 3554754 groundedkiwi
groundedkiwi's picture

no you are wrong. china gives you what your crappy retailers order from them.

Sun, 05/12/2013 - 21:46 | 3554853 Harbanger
Harbanger's picture

"We give China real assets, they give us crappy trinkets."

You have it exactly backwards.  They sell us real stuff and we give them fake money.  That's why now they're buying real assets, like Gold and resources.  They know all the "debt money" the west bought their trinkets with is going to shit. 

Sun, 05/12/2013 - 22:39 | 3554863 TNTARG
TNTARG's picture

And no, you're not correct. To simplify, You gave banksters all they wanted, no rule of law. Now they're collecting. From everybody. I'm amaze about the misunderstandig over the whole issue. You're in Finances, you're supposed to know better.

Banksters took over governments. Banksters put their men on gvts.  Banksters produced a non well known amount of derivatives (a sort of QEnn in derivatives) out of thing air (currency wasn't enough), no collateral (derivatives on the market seem to be several times World's GDP). To face "loses" (so to speak, because they never loose), their men in gvts are taken away all they can from people, but there isn't enough. See bankster's CEOs incomes, what industries are fallen, those who are raising.

Everybody here weeping about gvt taxations but it isn't government taxation (better: not "gvt" as is commonly intended to be), nor socialism, it isn't a matter of ideology, race, religion or whatever. It's plundering, slaughtering, pillage, robbery, fraud, you name it. No Capitalism nor Socialism nor free trade... If you see shit today wait for what's coming meanwhile everybody is arguing about something else and picking the wrong target.

(Forgive my poor English).

P.S. They own almost everything in the West, including the MSM they own and/or control.

1) Do not believe ANYTHING coming from the MSM.

2) Information is a public good: take it back.

3) Currency is the main medium of exchange: it's not supposed to be owned by private subjects. It has to be PUBLIC. Take back your currencies.

4) Central Banks must belong to the States, otherwise the States practically belong to Central Banks. Take your Central Banks back.

THEN we can start talking about Economics wich, by the way, it's a SOCIAL SCIENCE.

Mon, 05/13/2013 - 07:50 | 3555616 samcontrol
samcontrol's picture

"take back your currency"

Very funny coming from an Argentinian, your brain is so lopsided . Didn't expect anything else from you.

Mon, 05/13/2013 - 09:01 | 3555766 TNTARG
TNTARG's picture

As I've been following your comments, it feels good you "minusing" me. Thanks.

Mon, 05/13/2013 - 13:22 | 3556731 no2foreclosures
no2foreclosures's picture

Hi TNTARG, I just read the new "racism" policy on ZH which came into effect last Friday.  If I get banned and my comments get deleted because of me mentioning that certain ethnic group whose name rhythms somewhat with Thursday in Spanish, or referring to the "Americans"* as "yankees," here is my address no2foreclosures at gmail.  I would like to keep in contact with you.

*It is rather insufferable and bigoted and racist for the yankees to refer to themselves exclusively as "Americans" when ALL of North, Central and South America are Americans.

Mon, 05/13/2013 - 18:21 | 3558276 TNTARG
TNTARG's picture

Tana porgudari todo junto en gmail. Te mandé un correo. Yo también quisiera estar en contacto contigo.

Much to share!

Sun, 05/12/2013 - 22:03 | 3554893 Cabreado
Cabreado's picture

"This bs lopsided trade with China needed addressed, and stopped, years ago."

You need to do your research on the man.
It will take just a few minutes.

 

Sun, 05/12/2013 - 23:07 | 3555060 Non Passaran
Non Passaran's picture

Who is "we"?
I don't remember giving China anything. Some things I bought and I paid a reasonably low price. Don't involve me in your Mittal BS.

Mon, 05/13/2013 - 06:42 | 3555511 carlnpa
carlnpa's picture

"We" gave the Chinese "our" modern factories and technologies, for free.  We packed up the factories in the US and Europe, modernized them, and gave them to the Chinese to run with slave labor.

Sun, 05/12/2013 - 21:00 | 3554720 docinthehouse
docinthehouse's picture

Doesn't the word "ULTERIOR" look so crappy???????

Anterior.....OK

Ulnar....OK

Posterior......my wife's is yummmy....

ULTERIOR???????

wtf

Sun, 05/12/2013 - 21:03 | 3554727 Smegley Wanxalot
Smegley Wanxalot's picture

Kinda reads like "Home Depot Urges USA To Clamp Down On Ace Hardware"

and given their political connections, they'd get it too.

Sun, 05/12/2013 - 22:13 | 3554930 quasimodo
quasimodo's picture

Fuck HD, I won't buy a damn thing from those morons

Sun, 05/12/2013 - 21:06 | 3554731 kito
kito's picture

Hahaha....trade protection....what are they protecting when nobody in Europe can afford to buy anything.....

Mon, 05/13/2013 - 07:54 | 3555622 samcontrol
samcontrol's picture

Actually , an a. mittal bond was a super deal six month ago.

The chick from public relations still bragging to her dumb ass account managers for getting " one right "

The box of alfarores was a great idea.. :)

Sun, 05/12/2013 - 21:06 | 3554732 docinthehouse
docinthehouse's picture

OK 

If ESM13 hits 1619. 75 then sell

Risk $250.00  (five points)

Collect profits at 1601.25

Just under 4 to 1 RRR

 

Sun, 05/12/2013 - 21:11 | 3554746 hannah
hannah's picture

this isnt a trade war against the chinese...it is a trade war against the people of europe. raise their prices and stick it to them...

Sun, 05/12/2013 - 21:34 | 3554812 PiltdownMan
PiltdownMan's picture

What about Smoot-Hawley don't the aristos understand???

Sun, 05/12/2013 - 22:08 | 3554906 Real Estate Geek
Real Estate Geek's picture

That we no longer export a wide-variety of value-added products that spread income throughout a growing middle class?

Sun, 05/12/2013 - 21:35 | 3554816 BigInJapan
BigInJapan's picture

... and we all continue hurtling towards full-blown war...

Sun, 05/12/2013 - 21:36 | 3554819 wisefool
wisefool's picture

Anytime an indian, a pakistani, or chinese magnate start talking about war, the underlying resource in contest is water. The world is awash in money, iron, oil, and equations. But potable water is a huge deal for our dear emerging nations central planners.

Sun, 05/12/2013 - 22:33 | 3554975 Offthebeach
Offthebeach's picture

I'd say the Paks, Chinese and Indians are more short soap and deodorant then water.

Sun, 05/12/2013 - 21:36 | 3554823 Oldwood
Oldwood's picture

It seems to me that if a nation of people chooses to buy cheap imported goods from foreign competitors, whom they know to not be their friends and acting in a preditory manner, then one shouldn't be suprised when they find themselves without jobs or money. I'm not quite sure why so many here are so hateful of protectionism when the very term would be what most here would prescribe for themselves as well as everyone else. Admittedly acts of protectionism at thislate date will most assuredly cause negative reactions but when we have a negative trade balance and have had for decades, how wuld we be harmed if we neither imported or exported anything at all? Are we going to pursue our current path where we subsidize our unemployed with fewer and fewer employees of those who can successfully export, even if it takes taxpayer subsidies to happen? Durring McKinnley's presidency we had a positive trade balance, Protectionist policies, and a government that was largely funded with the tarrif revenues on those imported goods and virtually no taxes on domestic businesses or personal income. So whats the beef with protectionism other than its too little too late?

Sun, 05/12/2013 - 21:40 | 3554840 steph_us
steph_us's picture

Mittal has such a great sense of humor

 

Sun, 05/12/2013 - 21:44 | 3554848 surf0766
surf0766's picture

A Socialist who knows Europe has run out of other people money to spend.

Sun, 05/12/2013 - 21:46 | 3554854 jon dough
jon dough's picture

Every time an article uses the word "infrastructure", it acts like an MIB Neuralyzer...I forget to even finish reading and I find myself transported immediately to the comments.

So, what wuz this 3> jabbering about?

Sun, 05/12/2013 - 22:09 | 3554916 vote_libertaria...
vote_libertarian_party's picture

oh no you di - int!

Sun, 05/12/2013 - 22:13 | 3554923 Jack Burton
Jack Burton's picture

Amercia knew full well what the modernization of China was going to bring. It embraced the new cheap labor market that American business could send it's jobs to and boost the profit margine. And in fact corporations enjoy record profits in the midst of mainstreet depression. Meantime more jobs flee to a nation that executes union organizers and imprisons any complainers who fail to do a hard days work for a shitty day's pay. All of the Corporate and political establishment in the US knew this result was coming. Corporations are super national, they are not tied to America or Europe or anyplace. Profits and stock prices are king. Nobody cares who makes the world's goods and services as long as they do it cheaply and never cause a problem. Stocks soar, profits rise. Why would anyone complain? This is what globalization looks like, China is simply doing the work better, faster, cheaper and with no useless union thugs to slow down the work place.

Why would anyone change this? Wall-Street is flush. Corporations are flush. And the US military enforces globalization at gun point.

If this steel magnate is unhappy, I suggest he look to strike a deal to produce steel in China. Many others are doing it with good returns. He is too lazy to change, so he wants government to ensure his profits without him making the needed shift to China. Lazy Bastard!

The long term end result of globalization and the rise of China is boosting corporate profits. That is what business is in business to do. China gives the producers what they need, labor and labor peace at cut rate prices. US consumers lap up the cheap goods with a spoon.

Sun, 05/12/2013 - 22:13 | 3554929 q99x2
q99x2's picture

Kick out the globalists and shut down the borders.

Sun, 05/12/2013 - 22:21 | 3554946 Jack Burton
Jack Burton's picture

Before ANY trade war breaks out, a real widespread war of conquest will break out. NATO is trying every trick in the book to pin an incident on Syria to justify an invasion. Today their Al-Qaeda puppets, or Mossad, blew up two car bombs in Turkey and now Turkey claims Assad's secret service did the bombings. CNN and FOX may announce that Turkey has the proof Syria is car bombing Turkey, Americans are stupid enough to believe such a fairytale. This comes after NATO failed to pin the lie of chemical warfare on Assad, instead they found the NATO Al-Qaeda army did it. So this pretext was dropped infavor of Assad the car bomber.

Sooner or later NATO will invade. They hired Israel to launch air strikes to provoke Syria to defend itself. That failed too. Britain sent foreign minister to beg Russia to stand aside and endorse a NATO invasion of Syria. Russia said "no".

The west is desperate for war, they want it so bad they can taste it. Another little state they can clobber and conquer. I have never seen NATO so war crazed as over this Syria thing. To divert the people from collapsing EU economies and US economic stagnation WAR is the medicine for the problem.

This will not end until NATO gets to start bombing.

Mon, 05/13/2013 - 02:04 | 3555325 Element
Element's picture

Turkey is up to its eyes-balls in this, the deal with the Kurds guarantees a decade of further vicious conflict, even if Syria settled some. The usual suspects have been saying for over 18 months they're going to remove Assad, one way or another. If Russia does not take a solid stand against Allied belligerence now, their credibility as a diplomatic counterweight, and as strategic Ally, for either Syria or China is seriously harmed.

My estimation is Russia can not let that occur, so they will commit forces, they don't want to, but they will. So I expect to hear all sorts of vehemence from China, Iran and Pakistan, maybe a dob of DPRK on top, because these all know the significance of another US attack --one not via the UN SC.

Plus China knows access to Iranian oil is at stake here, it can see that.

But you're right, the Allies will fabricate huge and stupid lies and the majority will swallow them. But there's a strong anti-war sentiment in the West and that could alter the dynamics some. They all got suckered with Libya, as did Russia, which is why the US tries so hard and so obviously, to stampede us into war. It'll be up to everyone to make sure they don't, but the US is so brazen these days in pursuit of the next war, that it intends to not only ignore the UN SC process to attack, it will also ignore global sentiment (i.e. like Israel always does).

Full-blown aggressive Fascism is what that is.

Mon, 05/13/2013 - 06:29 | 3555498 Sandmann
Sandmann's picture

Best to let Turkey get involved. Their "Special Forces" got whipped when they invaded Northern Iraq and the breakup of Turkey would allow Kurdistan to emerge as a bulwark for the Russians

Mon, 05/13/2013 - 13:25 | 3556730 Element
Element's picture

Turkey is not in danger of breaking up, it will get bloody is all. The Kurds are best-buds with the west, they are the favored darlings of left-wing MSM outlets. The Beige House is stringing them along with the whiff of eventual statehood on offer, in northern Syria and Iraq. Turkey is enlisting the Kurds to do their fighting for them. But when Turkey gets 'attacked', it will claim it has been brutally attacked for no reason. On top of that, the FSA will use this tension to bomb Turkey further, and blame it on Damascus, to try and elicit direct NATO involvement, and further material support to the FSA. Just wait, we'll probably see something like a chemical attack in Turkey. There's no limit to what the FSA will do, to try and force an escalation, especially if they are being systematically defeated.

Mon, 05/13/2013 - 06:41 | 3555510 Ghordius
Ghordius's picture

I thought that the biggest card Russia holds is our NATO's supply lines over their territory for our boyz in Afghanistan - particularly since Pakistan has closed it's borders for military convoys

further I thought that the correct word is imperialism - you don't have to be a fascist to be an imperialist, imho

'nuff said & +1

Mon, 05/13/2013 - 13:28 | 3556628 Element
Element's picture

Good point RE supply lines but that's a shrinking pool of influence with a use-by date. Same for economic measures. Whatever John Kerry offered Russia to allow the US to take down Syria via the UN SC mechanism, he didn't get it.

I'm expecting to see much more material support for Assad (which the Russians already indicated) and probable deployment and cold-war type sabre-rattling. This is steadily turning into a regional proxy war and the US and NATO are determined to take it there, and Israel is as usual, drooling for war.

I don't use the word Fascism lightly here. Fascism is the desire for and use of violence as a first-resort to achieve State aims. This is what we are steadily seeing develop, except they are still offering some thin excuses first. The only reason they do that is to avoid being called what they are. This is not defense, this is naked aggression. We don't need to wait for fascism to come from soccer skinheads within euro-zone slum precincts, its here already, and the lack of challenge to it has emboldened it, to the point that they're ready to bypass the UN SC with plans for territorial conquest and regime change to install compliant puppets.

It's a variation on a theme of what Germany and Japan did to trigger WWII.

Sun, 05/12/2013 - 22:39 | 3554991 Judge Crater
Judge Crater's picture

Kick Lakshmi Mittal's sorry ass back to India, where he can pray to the Indian god Ganesha to take care of the Chinese steel exporters.  Or maybe Mittal can ask Wilbur Ross for help, the same Wilbur Ross who bought off the US Department of Labor, the Pension Benefit Guaranty Corporation and Judge Burton Lifland of the U.S. Bankruptcy Court (who fast tracked the demise of retired steelworkers' pension and health insurance benefits. Mittel should know that America has been a thieves bazaar since Reagan.  Mittal can expect no assistance, the Chinese are the big boys on the block and Mittal is a has been.

http://www.makingsteel.com/pocket.html

Sun, 05/12/2013 - 22:42 | 3554999 ArsoN
ArsoN's picture

So one of the pricks that sunk American steel industry is now having his ass handed to him by a lower cost producer.  how tragic...  

Sun, 05/12/2013 - 22:50 | 3555017 Peter Pan
Peter Pan's picture

The full potential of free trade can only be realised with the world achieving balanced trade to the highest possible degree.

Free trade so far has created massive imbalances which in turn have killed off employment, industries and inspired debt fuelled solutions to maintain. consumption.

Sun, 05/12/2013 - 22:59 | 3555043 tony bonn
tony bonn's picture

"....evil, efficient Chinese steel plants which should be stigmatized due to "very low environmental standards."

and he is right...the chinese record on working conditions, the environment, and a host of other violations of decency - such as slave labor - are very good reasons to declare a trade war....currency pegging is not exactly a sign of efficient operations, zh!

Mon, 05/13/2013 - 02:44 | 3555356 Urban Redneck
Urban Redneck's picture

It's too bad no one would believe Europe is serious about fighting a trade war -- as in cutting its own environmental and labor regulations, since that is the only real leverage which would might result in Chinese concessions to increase their own environmental and labor standards.    

Sun, 05/12/2013 - 23:35 | 3555128 Kirk2NCC1701
Kirk2NCC1701's picture

Is this man a fool or an agent provocateur? Currency wars lead to trade wars, and trade wars lead to hot wars. Shill!

Sun, 05/12/2013 - 23:49 | 3555160 Peter Pan
Peter Pan's picture

.

Sun, 05/12/2013 - 23:48 | 3555161 Peter Pan
Peter Pan's picture

I can agree with that but how do you deal with China?

Mon, 05/13/2013 - 09:18 | 3555811 falak pema
falak pema's picture

ask yourself who made china into the china of today ?

Reply : US NWO/ deregulated outsourcing and Clinton/GWB policies.

On this issue in 1991, that old asset stripper and deregulatively leveraged acquisition king of WS called Jimmy GOldsmith came on french TV and said  :

"Bush Snr's outsourcing policy is the greatest disaster for the West. If this guy thinks we can win big by outsourcing all our factories to China he is dead wrong. How can we EVER bring those factories back once this is strongly entrenched. 'Cos after China the international labour arbitrage will move to cheaper Vietnam and Bengladesh! We will never manage those productivity/ cost tradeoffs to win back those jobs. We will kill our own consumer base one day thru this outsourcing rage!"

 ....Spot on Mr Goldsmith, now 20 years down the road from Reaganomics and Thatcherist hatchery concoction of that outsourced greedy rampage.

Its the US oligarchy who created outsourced China and India for their own 1% owned profits.

Those Chinese should build a statue to Clinton and to GWB like the one they have for Ghengis Khan in Oulan BAtour.

Now that Middle Kingdom has gone Kong on USA/Eurozone, its every man for himself and may the devil take the hindmost! 

Thats what sings King Mittal anyways! And he should know.

What the Oligarchy sowed we now reap. 

 

Sun, 05/12/2013 - 23:51 | 3555170 XRAYD
XRAYD's picture

Perhaps he has another daughter to marry. The cost for marrying the first one? The "estimates range from $60 million to $78 million.


Read more: http://newsfeed.time.com/2012/04/27/the-10-most-lavish-weddings-ever/slide/vanisha-mittal-amit-bhatia/#ixzz2T8oA2aa7

Mon, 05/13/2013 - 00:18 | 3555215 W T F II
W T F II's picture

she musta been a real dog's breakfast...but my old neighbors really did marry their American son outta a catalogue for a hefty price...really wacky s#!t...!!

Mon, 05/13/2013 - 06:30 | 3555499 Sandmann
Sandmann's picture

All heiresses are beautiful   - old proverb

Mon, 05/13/2013 - 00:16 | 3555208 W T F II
W T F II's picture

He's just pissed off about Chinese incursion into Indian territory...BUT, he is right about Europe getting toasted by holding that dopey currency at these levels. Euro needs to go to like 78.29...and it MIGHT

Mon, 05/13/2013 - 00:16 | 3555211 WTFUD
WTFUD's picture

The GDP of my country is so small and dependent on the amount of metal NATO (ussa) drops on it!

Mon, 05/13/2013 - 00:17 | 3555213 M2Market
M2Market's picture

In other news:  JGB yield is climbing FAST during Tokyo lunch hour.  Shit is about to get seriously real in Japan

Japanese folks its time to get all your shit out of Japan, do it while the getting out is still good and cheap!

Mon, 05/13/2013 - 00:19 | 3555217 W T F II
W T F II's picture

Ladies and Gents,

I think we are gonna start seeing some serious s#!t go down this week....and for many weeks to come.....!!

Mon, 05/13/2013 - 01:00 | 3555279 dunce
dunce's picture

Do not bet that his idea will not get very serious consideration from the nimrods in Brussels. The union steel workers power is only exceeded by their stupidity. France is imploding and doubling down.

Mon, 05/13/2013 - 02:15 | 3555332 Joe A
Joe A's picture

Not that China is playing fair by not floating its currency and by keeping wages really low.

Mon, 05/13/2013 - 02:56 | 3555366 Hobbleknee
Hobbleknee's picture

So his advice is for Europe to kick its creditors in the nuts, and then hope its overtaxed and unemployed population can somehow afford its own goods.  What a retard.

Mon, 05/13/2013 - 04:29 | 3555421 e-recep
e-recep's picture

it was nice for more than a decade when china was killing local manufacturing and you were happily selling your shit to china supporting the demise of the western middle class, wasn't it, mr. mittal?

now that your ass is burning, you suddenly remembered the trade barriers, eh?

what a pathetic hypocrite are you, mr. mittal.

Mon, 05/13/2013 - 04:31 | 3555423 geotrader
geotrader's picture

Liers and cheats vs liers and cheats.  

 

Hmmm....let them destroy each other is my vote.

Mon, 05/13/2013 - 05:50 | 3555466 joak
joak's picture

Of course Mittal talks for his own interest, but still, what he says make sense for the people of Europe. Why always wanting to stand against someone, just because he is not on your side ?

It's time for Europe to change its policies if we don't want to become the third world. Globalization only benefits to the few controlling trade, it is not bringing prosperity but impoverishment. See the import duties CHina, Brazil and other emerging markets impose on cars, etc. Why should we continue that way ? What do you want, that European and American workers work in the same conditions as in India or China ? This is what is awaiting us if we continue the "free trade" meme, which is another "misleading term" to describe an economy working under unfair competition conditions.

Mon, 05/13/2013 - 06:27 | 3555494 Sandmann
Sandmann's picture

Surely Mittal's wealth is based on China's huge demand for steel for the Olympics and his use of cheap finance to buy cheap assets in Europe in a time when steel prices were rising ? Isn't that the secret of his empire ? So when it goes into reverse because China cuts back steel demand and fails to cut steel production and Europe is dead with the car sector and construction inj the doldrums.

Mon, 05/13/2013 - 08:14 | 3555658 rsnoble
rsnoble's picture

Oh boy, higher steel prices for my mfg business. 

Mon, 05/13/2013 - 10:02 | 3555925 bichat
bichat's picture

Europe should declare war on HIS ass!

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