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Labor Unions Demand Escalation Of Trade War With China, Ask Obama To Restrict Chinese Auto Part Imports

Tyler Durden's picture




 

Because the last time the administration got involved in the car space the results were so positive (for the unions if not so much for creditors), it appears we may be approaching another episode where central planning will make the decisions in the US auto space. Only this time instead of creditors, the impaired party will be China. Reuters reports: "Midwestern U.S. lawmakers and union groups on Tuesday urged President Barack Obama to restrict imports of auto parts from China that they said benefited from massive illegal subsidies and threatened hundreds of thousands of American jobs. "We need to stand up to the bully on the block," U.S. Senator Debbie Stabenow, a Michigan Democrat, said, referring to Beijing. "The bully on the block continues to take our lunch money and we need to stop that," she said." Odd - China was not complaining when the Obama administration was providing massive subsidies (whether or not illegal remains to be seen  - surely Holder is all over it) to the solar and other "green" industries. In other words, just like Solyndra and Ener1, who are merely the first of many artificially subsidized entities, provided such great if highly transitory results for US employment, let's recreate the experiment at the wholesale level, by implicit subsidies and while also angering America's biggest creditor. Something tells us this proposal has a definite probability of passing. In the meantime, central planning for everyone.

More on this brilliant foray into trade wars:

The push for the administration to bring a possible case at the World Trade Organization or begin a U.S. Commerce Department investigation that could lead to duties on Chinese-made auto parts came one week after Obama said he was creating a new Trade Enforcement Unit to crack down on unfair foreign trade practices in China and other countries around the world.

 

It could create further strains in the U.S.-China relationship as Obama is preparing to host Chinese Vice President Xi Jinping, who is expected to be China's next leader, a the White House on Feb. 14.

 

"We must be aggressive on trade enforcement - especially as China ramps up subsidies in strategic industries like auto parts, said Senator Sherrod Brown, an Ohio Democrat.

 

"Today, we're providing the president with his first opportunity to deliver on the promise to guarantee a level playing field," said Scott Paul, president of the American Alliance for Manufacturing, whose members include the United Steelworkers union and steel companies.

 

The groups released studies prepared by the labor-backed Economic Policy Institute and the Stewart and Stewart law firm that cataloged Chinese government subsidies and practices that they said violated WTO rules and threatened jobs at many small- and medium-sized U.S. auto parts manufacturers.

 

"If these policies are not stopped, by the end of the decade China could seize 50 percent or more of our auto parts market, costing hundreds of thousands of American jobs," said Terrence Stewart, Stewart and Stewart's managing partner, which specializes in cases against allegedly unfair imports.

 

Last year, the United States ran a deficit of nearly $10 billion in auto parts trade with China.

Here's a thought: perhaps the US would run a surplus if it provided quality pieces at affordable prices that could compete with China-made products? As for the idiocty of the remainder, we will just watch it crash and burn as it is enacted, and has dire consequences on every other part of the global economy, as these same trade unions finally realize that Chimerica are actually joined at the hip, and that what is worse for China is n-fold worse for the US.

 

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Tue, 01/31/2012 - 16:39 | 2114020 astoriajoe
astoriajoe's picture

I'm still not sure why the unions aren't trying to infiltrate China's labor pool. 

That would seem to be the best thing for American labor competitiveness. Oh well.

Tue, 01/31/2012 - 16:43 | 2114050 Georgesblog
Georgesblog's picture

The rubber doesn't meet the road, anymore. Auto industry labor unions don't have the clout they had, 40 years ago. Labor unions in the U. S. in general provided the financial incentive for outsourcing. Labor unions will either take it, and like it, or lose more of what they have, right now.

http://georgesblogforum.wordpress.com/

Tue, 01/31/2012 - 16:47 | 2114075 mayhem_korner
mayhem_korner's picture

 

 

Tyler - prolly seen this already, but your buds at CNBC have got ZH ranked in the "best financial blogs" list:

http://www.cnbc.com/id/46163886/?slide=4

 

Tue, 01/31/2012 - 16:53 | 2114117 fuu
fuu's picture

To all the CNBC staff I would like to take this moment to say, "Eat a bag of dicks".

Tue, 01/31/2012 - 16:52 | 2114076 Dr. Engali
Dr. Engali's picture

  Labor Unions Accelerate WWWIII  By Asking Obama to Protect Their Fat Lazy Asses and  Put  Trade Sanctions on China

 

  There I fixed that head line for you Tyler.

 

 

 

Tue, 01/31/2012 - 16:47 | 2114077 SillySalesmanQu...
SillySalesmanQuestion's picture

The sweet taste of low price meets the sour taste of poor quality...an interesting conundrum. This has been going on since the mid to late 1970's when Japanese imports (cars, machine tools, electonics, etc.) started showing up here en masse. I started selling to the automotive industry in 1978...and like many other markets, has gone the way of the dinosaur and the dodo bird, never to return.

The flip side of this is the unions...in their never ending quest for less work and more wages, more benefits, more vacation, more work rules (effectively ending the employers ability to FIRE their un-productive asses), they have been a contributing factor in the debasement of American manufacturing.

Cincinnati used to be the Machine Tool Capitol of the world. Detroit used to be the Automotive Capitol of the World. No one could ever imagine that the once great companies and corporations of these cities would ever perish (Cincinnati Milacron, LeBlond, Lodge & Shipley) or be mere shadows of themselves ( G.M., Ford and Chrysler).

Haas Machine and interestingly enough Ford Motor Co. have proven that machine tools and automobiles can be manufactured here in the U.S., and be competitive. When corporations get tired of cheap labor AND poor quality; and the unions decide that having to actually WORK for a DECENT wage is not such a bad idea, then maybe manufacturing will slowly return to this country

Tue, 01/31/2012 - 17:22 | 2114247 Stuck on Zero
Stuck on Zero's picture

It's Gresham's Law in action.  The cheap shoddy merchandise will always drive out the high-quality goods.

Tue, 01/31/2012 - 17:41 | 2114321 Dr. Engali
Dr. Engali's picture

I think you got that backwards. Cheap shoddy merchandise will cause the hoarding of high quality goods. Assuming of course that the goods were of high quality to begin with.

Tue, 01/31/2012 - 16:52 | 2114107 Park city skier
Park city skier's picture

China wasn't complaining on our green energy subsidies, they just out spent us or trumped our subsidies with more money to their green energy industry. With foxconn work environment and big dollars from mother china the american worker is facing a shit load of pain and unemployment. The standard living for most american workers is going to go way down and for a few super wealthy folks it's a new gilded age. The free trade agreement with south Korea produce a big contract for Hyundai from GM, ouch for american workers and good for profits for the multi nationals corp. I'm not a socialist I'm a born capitalist who loves to accumulate money, but I fear this once great country is slowing dying.

 

Tue, 01/31/2012 - 16:53 | 2114116 juggalo1
juggalo1's picture

Chinese subsidies to their solar makers are on another plane compared to US subsidies.  Chinese companies have been selling at a loss for years, but keeping alive due to government subsidies.

Tue, 01/31/2012 - 17:00 | 2114157 q99x2
q99x2's picture

Oh boy I'll me able to make something other than art.

Tue, 01/31/2012 - 17:21 | 2114241 Stuck on Zero
Stuck on Zero's picture

Never, ever put tarriffs on imports.  If you do you will be attacked from every direction.  Do what all the mercantilists do.  Add a thousand niggling little rules and regulations on the imports to effectively prevent them from entering.

Tue, 01/31/2012 - 17:33 | 2114303 The Heart
The Heart's picture

It’s Going by the Book!

Woke up with an important message to share and ZH'ers, this message must go viral and must be posted repeatedly until the end, or the high water rises. Please help let everyone see this important information. They all have a choice to make.

The waking all morning dream kept saying, Ron Paul. He is the ONLY chance America has. RON PAUL! He is the ONLY one that wants to halt the war machine that is the instrument of our destruction. It is being played against the American people so well by the media, the corrupted govt, zionist banksters, and evil profiteers from war and military industrial hardware.

After polling in our area, we discovered that about 80% of those polled are on the drug TV staring nightly at fox and cnn zio-media propaganda news. The useless idiots that watch the TV drug and get the zio-media news propaganda every day will never let their imperial conditioning be broken, remaining good obedient slaves to the propaganda forever. They will never get it. If the Christ himself were to tell the World that the beast that is killing you is the main stream media propaganda machine and that it is the biggest evil tool satan has to deceive you all, and that you will NEVER be “saved” as long as you suckle it’s poisons and support it so whole heartedly, they would balk at him and call him a conspiracy nut. SOS. Choose between the Christ, which is awareness, or satan and his media deception machine. They both will have their consequences, and you can only serve one Master.

http://www.youtube.com/watch?v=nwkOdv443_o

WORLD: YOUR BIGGEST PROBLEM IS THE CORRUPTED EVIL MEDIA MACHINE. CALL IT ANYTHING YOU WANT, IT IS THE WEAPON OF MASS DISTRACTION THAT IS KILLING YOU ALL. IGNORANCE IS DEATH!!!

The world's ONLY ANSWER is to TAKE OUT THE LAME STREAM MEDIA to the truth-tree and you ALL might stand a chance of long term survival. If there was attention brought now by those occupy folks, it might be a step in the right direction. Shine the light on the lies and propaganda.

Google “israel false flag” and see how many stories come up. All this and still, the people are to dang stupid to understand this?

https://secure.wikimedia.org/wikipedia/en/wiki/Lavon_Affair

http://www.veteranstoday.com/2012/01/14/iran-usisraeli-false-flag-attack...

http://www.godlikeproductions.com/forum1/message1763818/pg1
http://emsnews.wordpress.com/2012/01/13/mossad-stole-cia-identities-to-a...
http://www.whale.to/b/mossad_black_ops.html
(Long list of False flags by isreal)

http://www.theamericanconservative.com/larison/2012/01/13/jundallah-and-...

http://news.yahoo.com/blogs/envoy/israel-used-false-flag-operation-recru...

http://www.huffingtonpost.com/2012/01/13/false-flag_n_1204693.html

http://news.firedoglake.com/2012/01/15/report-israel-engaged-in-false-fl...

http://original.antiwar.com/justin/2012/01/15/under-a-false-flag/

http://www.dailypaul.com/204075/yahoo-news-israel-used-false-flag-operat...

(The stories are endless)

Those of you who have read these warnings over the last years know that there has come forth much truth and many seeds given that were planted have sprung forth with amazing fruits. We give thanks for the light of truth that guides your soul.

You were all told that the plans for war and the final destruction would happen starting with Iraq and so on to Iran back in 2002. Many listened, but it did not stop the beast. Now, we are ALL in the forecasted ‘end of it all’ time period of the game. How it goes in these next months depends on all the hard work you ALL are now being asked to shift into HIGH gear and DO! We will not have our freedom to communicate much longer, or it may be hard to keep our freedom of speech. This Heart asks, no, begs that you NOW utilize these tools NOW as much as possible while you can. Bring truth to power by communicating it. Make people aware of these plans and give them the choice to ignore it, or not.

http://www.youtube.com/watch?v=98XqT4kBWT4&feature=related

And look, they are worried about Iran while the US ally israel sells us missile technology to china who is now planning on attacking the USA. The whole plan of the glove puppet maurice strong was to build up china to take out the USA. Who was the first to get the oil contracts for the UN/rothschild banksters of china in Iraq after the us invasion for it's oil?  He is still there in china doing it and as this video below shows, has been hard at it for the last ten years. This is what 2012 is really all about! Stupid people are all hung up on elections and Iran while the whole economic picture is about to be ripped out from under everyone. Meanwhile, china prepares for war 24/7 and the americans sleep and believe the lies on the drug TV. All as well planned and presently being executed. Look over there, and not behind you.

http://www.youtube.com/watch?v=ZD1KYN1W0Lw
(Nukes and US missile technology sold to chinese under orders of isreals owner rothschild, maurice strong’s puppeteer.)

Google "israel sells us missile technology to china" and see how many articles pop up. Any third-grader can do this research and learn from it. Why can't the USA?

http://www.dailypaul.com/196406/israel-caught-selling-69-us-patriot-miss...

http://www.rense.com/general28/iisj.htm

http://atimes.com/atimes/Middle_East/FL21Ak01.html

http://www.veteranstoday.com/2011/12/23/breaking-patriot-missiles-seized...

http://www.disclose.tv/forum/israel-sells-america-s-most-sensitive-milit...

http://www.nytimes.com/1992/03/20/opinion/if-israel-sold-patriot-secrets...

http://www.rense.com/general60/AIPACagentssendstolen.htm

http://www.councilforthenationalinterest.org/news/the-cost-of-israel-to-...

http://www.the-bastard.com/index.php?section=21&page=5912

(Again, the stories are endless)

The long term plan begun with the balflour declaration that was specifically created to form this zionist apartheid racist warmongering israel to be used as the final satanic luciferic instrument to start the world war III between Russia and China that would finish off the usa, or the great satan as they will say in the future history.

And indeed, we have become that abomination in a nation that cares not to see God’s truth here as plain as day. The USA is the modern day evil NAZI’s (nationalist-zionists) that have gone around the world for the last 12 years killing and murdering for profit and plunder while families at home fell apart, people died, children were lost, brothers and sisters are mentally falling apart, depleted uranium killing everyone that was foolish enough to go to Iraq, and they still crumble like the country is. We love our children, but what have they become? What have we become? Who will guard America when the chinese attack us?

All this rhetoric in the debates and politics about national defense, and what kind of defense do we have against a surprise attack from china when all our forces are in the middle east dying even before they are all killed in a coming world war? The world hates the usa and when they get wiped off the map, no one will care and this history above will be written as they cheer to the new world order of china and rothschilds final dream of population reduction and world dominance comes true. Too bad about 6-7 billion people of the world. Who profits in war? You? Us? Do you know anyone that is a normal rational human being that profits from war? All this planned to take down the once was a great nation called the U S of A.

Do you think anyone can realize this and unite as One People to stop it all? The good news is, at the time in history that this is being told to the world NOW, it is NOT too late to change it all.

http://www.youtube.com/watch?v=wu-RFt-3zg8&feature=related

In the Land of God?

Are the poor isrealli people so stupid as to maintain this evil posture and do the bidding of the rothschild empire that cares not for you and is actually going to pull off the final WAR BY DECEPTION on you all there in israel when they have you “useless eaters and breathers” all blown in to the land of Sodom and Gomorrah again? Poof! There went israel to cover up any loose ends after the world that is left looks up out of their Wyoming underground bunkers after a few months to discover not a living thing left on the planet and the borsht they created seeps into those rat holes to finally have the last laugh, and war by deception. When or if that happens, only the still quite Spirit of the universe will know the last of this epoch, and there will be no more words.

Here is some fourth grade homework. Can they all handle this?

https://secure.wikimedia.org/wikipedia/en/wiki/Balfour_Declaration_of_1917

“The Balfour Declaration of 1917 (dated 2 November 1917) was a letter from the United Kingdom's Foreign Secretary Arthur James Balfour to Baron Rothschild (Walter Rothschild, 2nd Baron Rothschild), a leader of the British Jewish community, for transmission to the Zionist Federation of Great Britain and Ireland.”

https://secure.wikimedia.org/wikipedia/en/wiki/Zionist_Federation_of_Gre...

The rothschilds/zionist banksters will order israel to do a false flag Event to start the last war of Wars(enterprize?) as planned and while everyone is watching Iran, the chinese will sneak attack the west coast from three directions(mexico, canada, and the pacific) where there are no armed forces significant enough to stop it because as also planned, most of the american military has been worn down to the point of no return and killed off with depleted uranium so they are already dying as they continue to take the orders of those who are blatantly killing them. It’s all going by the book.

http://www.youtube.com/watch?v=ReevKbb2878&feature=related

You could tell them this was the plan all along and they would call you nutz like the rest of the good stupid people that discount this truth. Want to know what? We told them this ten years ago before the Iraq invasion, and look at where they are now? Any Iraqi veterans here feeling just wonderful and in total good health? How about those mycoplasmas? Have you checked your inner radiation levels lately? Prayers for you all. Please come home so you can relearn that life is not war. We the citizens need you ALL to defend the home front.

Remember the firing of the missile off the west coast showed everyone that we can not stop a sneak attack and that was only one missile. When the chinese attack, they will not stop until they get to DC. It will be like a like a hoard of red ants on small black ones. After the slaughter, there will be nothing left alive that can‘t be eaten. All will be done in about a few weeks. Neighbors and families divided are going to be easy prey for the kill.

http://www.conservativeusa.org/redchina-missile.htm

Stupid americans glued to fox and cnn TV is the plan to keep them dumb, fat, and thinking they are happy. Keep them focused on the newt and mittney show while ignoring the only man that could stop it all and save the USA…the World!

IF WE GET TO A ELECTION, THE VOTE WILL BE AS SIMPLE AS VOTING FOR MORE WAR, OR NOT. Nothing else matters because nothing will matter after the chinese attack. IF, we actually make it to an election without the babylonians starting the war using a false flag EVENT to blame on someone, most likely Iran or Syria, maybe even Pakistan, then there is a slim chance to stop the world's destruction AS PLANNED.

ARREST THE TRATORIOUS CRIMINALS NOW!!!

ANYONE WHO IS READING THIS BETTER KNOW NOW, YOU DO ALL YOU CAN TO STOP THE COMING WORLD WAR STARTING THIS SECOND, OR DO NOTHING. YOUR CHOICE WILL ABSOLUTELY BE YOURS AND IF THE MASS MIND DOES NOT STOP THIS COMING HORRIBLE ATTACK, THEN YOU ALL DESERVE WHAT WILL COME.

Will they listen to these words of warning? Heck no.

The prevailing attitude of the elite awakened crowd here and in other places on the net just wants to give up trying to save a nation that is to dog gone dumbed down to save itself. In a flash like on this video above showing the hidden 3,000 chinese missiles, they will never know what hit them all across the USA if these warnings are not at least considered.

Can you say...Neutron Dance?

http://www.youtube.com/watch?v=Rm0Of5d7M4g&feature=related

Tue, 01/31/2012 - 17:48 | 2114349 LFMayor
LFMayor's picture

Is this ORI's cousin, or some shit?

Dude, you need to leave the jimpson weed and morning glorie plants the fuck alone for a awhile.

Tue, 01/31/2012 - 17:50 | 2114354 ozziindaus
ozziindaus's picture

I hope people are starting to understand the whole China-America relationship. What's good for China is good for America. Not you and I, but the American Corporations and Wall St. investors. All the tariff and currency manipulation bullshit is just theater to convince the novice that there is an actual rivalry. The struggle is actually between you and your government that encouraged the outsourcing, increased the local taxes and inflated the USD whilst allowing China to peg.

Tue, 01/31/2012 - 18:05 | 2114402 NuYawkFrankie
NuYawkFrankie's picture

/

Tue, 01/31/2012 - 19:48 | 2114764 MFL8240
MFL8240's picture

Blame the Chinesse when all else fails.  I hate them too but goddamn, we did this too ourselves.

Tue, 01/31/2012 - 19:59 | 2114797 loveyajimbo
loveyajimbo's picture

Ah the wonderful unions... a legalized form of extortion supported by the corrupt "Justice" Dept... 

Goldman and JP Morgan, legalized fraud and theft supported by the same rotten douchebag Holder and crew... and the numbnuts at the SEC and CFTC...

Ah, Congress, legalized insider trading and payoffs from the lobbists for the most cancerous corporations in history, a real world "Get Rich Quick" scam...

Ah, the Supreme Court, facilitator of the ruin of a country through legalization of corporate purchase of politicians...

 

Dudes... we're fucked.

Tue, 01/31/2012 - 20:25 | 2114861 zerotohero
zerotohero's picture

Yup - I couldn't agree more.

Tue, 01/31/2012 - 20:23 | 2114859 zerotohero
zerotohero's picture

There are those in China right now saying "Fuck the U.S." - we're all the same. Lets see who can get to the bottom first - WINNER....or Loser.

Tue, 01/31/2012 - 21:14 | 2115023 Heyoka Bianco
Heyoka Bianco's picture

When the bully on the block was the broke-dick unions of the major broke-dick industry of a broke-dick state, government subsidies were brilliant. Or am I overanalyzing a politician's bullshit, senator Dumbass?

Tue, 01/31/2012 - 21:30 | 2115071 frosty zoom
frosty zoom's picture

yep, it's all the unions fault.

fiat money  --  unions, check!

bogus derivatives    --  unions, check!

police state  --  unions, check!

wars for greed  --  unions, check!

third world enslavement  --  unions, check!

"soveriegn" debt insanity  --  unions, check!

zombie banks  --  unions, check!

yep...

 

Wed, 02/01/2012 - 00:00 | 2115472 beatus12
beatus12's picture

Finally someone is getting some backbone and good

sense. If trade is not constructed fairly between partners

it's destructive. China has enjoyed an easy ride

for too long. And by the way stop fretting about

offending someone, America owns alot of it's own

debt along with many other countries. Tough actions

are well overdue.

 

 

 

Wed, 02/01/2012 - 03:46 | 2115691 AnAnonymous
AnAnonymous's picture

Made me laugh.

Because the US of A has not been enjoying an easy ride, with the possibility of getting stuff like commodities against newly emitted bitcoins?

Deep self perception issues.

In the US world order, accordingly, the easiest ride is given to the US of A.

US of A simply enters the shop and fills its bag (actually, US of A has errand boys)

In the US world order, only one nation has the monopoly of emission of USD. And that is the US of A.

Only the US of A can trade nothing and get something in return.

Chinese are scavengers, working on the side.

Like all the others, they have to trade something to get something.

Wed, 02/01/2012 - 03:41 | 2115687 AnAnonymous
AnAnonymous's picture

The US of A has to stand up to the bully on the block.

Only that.

Self perception problem.

That big good old blob named US of A that has developed an elaborated web of debt so that raw commodities rich countries could not evade and keep giving value to the USD, giving the US of A the ability to live off on free stuff and increasing their living standard.

That is of course not bullying but helping those rich commodities countries to develop (humanity advancement) Those countries being so unable to govern that when they want to leave the scheme or worse not enter it, it is good times for bombing them.

Maybe if the US of A stopped that looting scheme, the Chinese and others would not require USD to buy commodities.

But wait, if the scheme stops, how will the USD retain value? What about the demand on USD?

The US is not the solution, the US is the problem.

Wed, 02/01/2012 - 07:17 | 2115795 michigan independant
michigan independant's picture

Presidents and General Secretarys come and go and subsidy's do not on both sides of the ocean since bureaucrats ruin the day in regard to position to divert capital. If they wanted to fix this with certificates of lettered trade they would. Hot and cold money are just sock monkeys depriving all citizens of net working capital from labor arbiters. In the long run it may appear GGS theory may permiate mores brains in time. All parties understand water, soil, and hydrocarbons exist. In the mean time follow the raw materials to conclusion. True is the wage arbiters over 3 or 4 decades in avarice and complicity of baggage. Many issues consumers wish to ignore but they are the final arbiter in this race of stupidity. A friend tested 12 applicants and nine failed step one. A piss test for drugs. Meanwhile we consumers buy products without audits teams which should  be allowed to confirm realities. Both sides are a problem and a solution. Is it better than 1982 ? Yes since some forgotten actors in many levels of society pushed. Some of these people risked there lives to expose micronesian death shops from toxic conditions. Some were from the Union. Some from the Churches. I have a few issues with Unions as we all do. But the eye of history will say when the Union die your next. Balance is tough to enable as it always is. Retired O.C.A.W. and we lost 26 men one year alone. Wake up

Tue, 03/13/2012 - 09:19 | 2249999 Gelir
Gelir's picture

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