Thursday, January 22, 2009

Green shoots of protectionism?

It is interesting that Tim Geithner, Obama's Boy Wonder, whom we are hoping will resolve the US economic crisis, says today, "President Obama...believes that China is manipulating its currency." China's currency, the remnimbi, is not free floating but has a "managed float" so to say that it is manipulated is stating the obvious. It sounds like a broadside from the US to China and a warning of protectionism to come. It is all the more interesting as Geithner still hasn't been officially sworn in as Republicans are complaining about his falty tax record. The other group moaning about protectionism are the Roquefort cheesemakers as the Bush administration tripled their import duty into the US to 300% versus 100% on other EU food products in retaliation for Europe's ban on US hormone-treated beef. The cheesemakers have sent Obama a case of Roquefort as an inaugural gift to persuade him to lower the duty. On va voir.


Blogger kinglear said...

A case of Roquefort? That will have a much bigger effect than an H bomb on Washington...

5:00 pm  
Blogger Welshcakes Limoncello said...

That was a good idea on the part of the cheesemakers!

9:56 pm  
Blogger Winchester whisperer said...

Hi KL & WL - yes it may have the opposite effect!

10:44 am  

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