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  • Morning Bell: The Protectionist Threat of Another Great Depression

    A financial bubble fueled by easy money and loose credit bursts. Unemployment shoots up, and gross domestic product falls sharply. Some in the U.S. Congress blame foreigners for unfair trade practices and pass a trade bill that prompts widespread retaliation, exacerbates the popping of the bubble, and sends the country into further economic trouble. That is what happened with the Wall Street Crash of 1929, the Smoot–Hawley Tariff Act of 1930 and the Great Depression. Americans might hope our leaders would learn from our past mistakes. But the leftist majority in Congress, aided by some misguided members of the minority, is trying to repeat this terrible history.

    At issue is H.R. 2378 or the Currency Reform for Fair Trade Act. The bill would grant new powers to the Obama administration, allowing them to raise tariffs on imports if the Commerce Department determines that an exporting country is manipulating its currency. Its not known what President Obama would do should this bill hit his desk. A real leader would let it be known loud and clear that it faces certain veto. The protectionist proponents of this bill believe that Chinese currency manipulation is artificially lowering the price of Chinese goods imported into the United States while inflating the price of U.S.-made exports. In 1930, the protectionists thought they could help American manufacturers by punishing foreigners. They were tragically wrong. The same misguided logic is being applied to China now. Heritage Foundation Research Fellow Derek Scissors explains why higher tariffs on Chinese imports would not help the U.S. economy:

    Applying duties to Chinese goods would not suddenly make the American textile, toy, furniture, or even computer-assembly industries globally competitive, and these are the primary imports from the PRC. Globalization means the U.S can punish China, but it cannot simply turn Chinese losses into American gains.

    The Congressional Budget Office certified this analysis yesterday when it released a report showing that the new tariffs would raise only $20 million a year compared to the more than $1 billion a day in trade the United States does with China. The reason: “Many imports do not injure domestic firms because there are no competitors currently operating in the United States.”

    But while raising tariffs on Chinese goods would have no economic benefit for the U.S. economy, it would definitely risk much wider economic harm. Morgan Stanley Asia chairman Stephen Roach warns in today’s New York Times: “China could very well retaliate against American exporters, and buy goods from elsewhere (a worrisome development in what is now America’s third-largest export market).” And former U.S. trade official Timothy Stratford tells Bloomberg: “This step would make it harder for us to export to China, not easier.”

    China is no angel here. Its June announcement of an end to the dollar peg was fraudulent, and the exchange rate is only one part of China’s non-cooperative policy. And the mainstream media is just beginning to notice that the country’s Communist Party has been exercising more and more state control over the economy. But then again, so has our government with massive bank bailouts, government ownership of car companies, and a government takeover of the health care sector. Our answer to China must not be, cannot be, to become more like China.

    Instead of going down a path toward protectionism and yet more government control of our economy, we must return to our nation’s strengths: free trade, the rule of law and a commitment to free enterprise. We must make the United States a better place to do business. Cutting the corporate tax rate, reducing government involvement in commercial decision making, reining-in runaway spending and deficits, freeing our businesses from red tape, and unleashing our natural resources to meet our energy needs: this is what Congress should be doing to return us to economic prosperity.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    36 Responses to Morning Bell: The Protectionist Threat of Another Great Depression

    1. Carol In CA says:

      Your last paragraph is fantastic. All these things have been suggested almost since day one by some of the greatest minds in finance.

      Mr. B HO hears you he just does not care, He has his own agenda. He is the only one that knows best. Until all of America understands that what he is doing is on purpose and that Mr. B HO is deliberately trying to destroy our economy every one may as well be whistling Dixie.

      Do not listen to his words watch what he is doing. He tells you what you want to hear, He does what he wants, not what you want.

    2. William Downey, JD L says:

      Indeed the idea of protectionisim as a cure for our economic ills is indeed misguided. It is a shame that we as a nation fail to study history, especially the legislative, regulatory and financial policies followed during the 1930's.

      The world economy has developed over the years to an environment in which all economies are linked. A protectionist policy will only result in more harm to the competitiveness of the US economy.

    3. Randy, Florida says:

      It should be FAIR trade and not FREE trade. Instead of swapping dollars for purchasing China's goods, we should be bartering with our own exports. We purchase $1,000 of goods from China, we TRADE them $1,000 worth of goods made in the USA.

    4. toledofan says:

      You're right on the money and if Obama and the Democrats were actually serious about making the country stronger, creating jobs, and growing the economy they would incorporate the things you identify day after day. There's always a 'but' and the big but is that this administrations doesn't want make America stronger. The more I listen to Obama, and some of the Democrats, I have to step back and wonder if they are living in the same country as I am? It's almost sureal to listen to the lies and half truths and to see what is actually going on. What's the point of all the back yard BBQ's for Obama, political no doubt, but, most of what he's saying is a lie. I never thought I'd see a President that would actually try to destroy our country, our freedoms, and our way of by supporting and promoting an outdated ideology and an arrogance of thumbing his nose at the people saying, my way or the highway.

    5. james snooks says:

      How do we combat Chilnese placing 100% tariffs on Chicken.


    6. ThomNJ says:

      Regarding the last paragraph – yes that is exactly what we should be doing, but we aren't. There are even Republicans who just don't get it, and with a Marxist sitting in the Oval Office who is more concerned with being "fair" and dwelling only in his communist roots, he seems to have decided to "Damn the torpedos, full speed ahead into Socialism". It won't get any better until we get rid of most of the Senate and House, as well as obama and his marxist thug czars, and stop countenancing fools and "useful idiots" for communism.

    7. Randall Holland, Ari says:

      We are in a pickle, damned it we do and damned if we don't.

      If people what to make a difference, then if there is a choice buy American or something other than "made in China".

      I look for the "made in" sign before I buy and will pay extra for the "not made in China" product if I have to.

    8. Randy Dutton says:

      US ecopoliticians have forced America to be dependent upon China for most of its products including those 'sustainable' energy products made with rare earth elements (REE). China has the global monopoly of REEs and announced that starting in 2012 it would only export 'finished' REE containing products. So if the Chinese prices rise, and progressives continue to force us to buy products containing REEs such as wind turbines, electric cars, and PV cells, America will just send more money to China, not create more jobs in the US. It's a LOSE – WIN situation. America Loses, China Wins.

    9. paul, the villages,f says:

      These are good ideas.But american companies that make products overseas and then ship back to the U.S. should not be included.It should be more expensive for them to do thiis.Give them incentive to produce at home.We should have a trade balance, not a trade deficit.Trading with any country we owe money to should deduct that from what we owe.The money that would have been received would then be paid to the company that sold the product by our government. This would reduce the national debt and at the same time help our economy

    10. Geppetto, NC says:

      The Left can never bring themselves to admit that anything they do is to blame for the negative consequences that result. Failure must always be the result of their oppositions "inferior and misguided" policies and actions that are thwarting the enormous benefits that just need a little more time to ripen, flourish and prove the superiority of their convoluted solutions that forever fail because they've never been given enough time. These imbeciles need to be returned to their "intellectual" sanctuaries where they can look down their regal noses, proclaim their superiority and whine about the injustice to their cold hearts content.

    11. Warof2010 USA says:

      Fixing Entitlement Fraud

      Two-thirds ($1.4T) of all Federal Revenues ($2.1T) go towards Social Security

      Medicare Medicaid now, even before ObamaCare http://bit.ly/cos9zf

      Obstacle to Deficit Cutting: A Nation on Entitlements
      In 1983, 29.6% of households received entitlements of some form.

      In 2010, 44.4% of households received entitlements of some form.

      Entitlement Spending

      SocialSecurity|Medicare|Medicaid (IN TRILLIONS)

      ………….SS….M care..Mcaid..Total.. …Increase/yr.

      FY1996 .314 + .281 + .xxx = $0.595

      FY1997 .358 + .305 + .xxx = $0.663……..0.068

      FY1998 .372 + .314 + .xxx = $0.686……..0.023

      FY1999 .383 + .211 + .108 = $0.702 …….0.016

      FY2000 .402 + .218 + .118 = $0.738……..0.035

      FY2001 .426 + .241 + .130 = $0.797……..0.059

      FY2002 .448 + .256 + .148 = $0.852……..0.055

      FY2003 .467 + .277 + .161 = $0.905……..0.053

      FY2004 .488 + .300 + .176 = $0.964……..0.059

      FY2005 .514 + .335 + .182 = $1.031……..0.067

      FY2006 .548 + .378 + .181 = $1.107……..0.076

      FY2007 .577 + .374 + .191 = $1.142……..0.035

      FY2008 .607 + .389 + .202 = $1.198……..0.056

      FY2009 .659 + .429 + .251 = $1.339……..0.140

      FY2010 .694 + .439 + .273 = $1.406……..0.067

      CBO http://bit.ly/9lB1xt

      2010 TOTAL FEDERAL REVENUES = $2.089 Trillion Dollars

      To say fixing the fraud in Entitlements is an EMERGENCY

      is understating the present situation. This is JOB #1


      Fixing Fraud CORRECTLY is the KEY to unlocking America's future

      many Americans overlook our costliest problem,

      both financially, and morally, in the Federal government.

      That problem is FRAUD.

      Fraud costs all Americans more than both wars and then some,??and that is just in our entitlement programs.??The amount of fraud in America is astronomical. ??And there isn’t more fraud anywhere than in our federal government.??And here is where the rubber meets the road:??The root of all fraud in America is in our entitlements. ??The very entitlements that congress and everyone else is so concerned about. ??It’s about high-time that someone did something about this problem.??As the cost of entitlements, alone, will very, very, soon, consume all of the Federal revenues. ??Yes, all of the Federal revenues. ??The fraud in entitlements is outrageous. ??Stopping it is easy?

      Get The Fraud Out Of Entitlements!

      Feds gain power over billions in Medicare fraud


      Don’t allow the government to fix the fraud. ??All they’ll do is throw a little duct tape on it, wrap some barbed wire around it, at the cost of a few hundred million. ??To be done right, what needs to be done is:??

      Design a single United States TOP DOWN DATABASE with all entitlement recipients bio-id’d, ??Fingerprints/biopics are an inexpensive technology, easily adapted??A database with a plethora of algorithms??Make entitlement fraud a federal offense, minimum of 5 years ??Immediate Seizure of all property.??Fraud in entitlements will be eliminated??It’s 100’s of billions of dollars per year saved so easily ??And this has been going on forever??Of course this database would include all entitlements recipients anywhere in our United States ??

      In a Senate hearing on Terrorism (09-22-10), I heard Janet Napolitano say that there are more than 40 databases that Law Enforcement can search to obtain information.


      There should be only one (1) United States Properly Designed Database to service all requests for information on a United States citizen.

      But the citizens of our once great country will have to be willing to fight to force congress to do it??Because they aren’t going to do it willingly.??

      And besides, before the overall entitlement cost problem can be fixed PROPERLY,??the problem must first be defined, and you can't define the entitlement problem until you GET THE FRAUD OUT so you can see the problem clearly.

    12. gorio, calif. says:

      We are reaping the reward of the concerted effort by many liberals/marxists to demonize the companies/capitalist enterprenurs who have provided taxes and jobs as a "by product" of their wealth production. There is NO law that requires capitalists to create jobs, there never was,but the liberals continue trying to create the myth that government "creates" jobs. They only create parasites that drain the blood of capitalists, thats ALL they do. The marxists are in the business of destroying free enterprise and thus dictating the structure of "business" enterprise and thus controlling the population. Our FREEDOMS are protected by CAPTITALIST ENTERPRISE without government control. Do you really want to live and work in a country like China, where they don"t vote and are told everything to do by the "ruling class" of communist bureaucrats. REALLY! We better get the neomarxists out and get our capitalists out of tax-hell quick or this economic "war" with marxism will be lost. Our biggest debtor is a dictatorship with a billion slaves, why are our leaders trying to make "slavery" look attractive? Why are they "deciding" to "save" failed business by taxing and borrowing from everyone. WAKE UP!!! This is not benevolence this is marxist takeover of capitalism, or fascism, it doesn't work and it destroys freedom!!!!

    13. Warof2010 USA says:

      Fixing the Economy – Step #1

      We have two immediate requests/demands of Congress

      #1. Effective January 1, 2011, make it a federal offense for an "undocumented

      immigrant" to solicit work, on the streets of "Our United States of America"

      #2. Effective April 1, 2011, mandate E-Verify http://bit.ly/ceXZiO

      for all employees hired within the past three years.

      Make it a federal offense for each "undocumented immigrant"

      likewise for the employer.

      We have laws against anyone, being in our country, illegally.


      there are 30 million "undocumented immigrants" of all races,

      in our United States .http://bit.ly/bslVmr

      Something that few of us, need, asked for, or want http://bit.ly/cos9zf

      There are over 25 million Americans unemployed, or under-unemployed

      They will soon be joined by 100's of thousands of returning American soldiers

      Every possible job is needed by Americans

      Especially jobs for our young people; much of the available work is physical

    14. Ben C. Ann Arbor, MI says:

      We certainly are not is a position to play hard ball with the Chinese given how much money we owe them. Tit-for-tat responses are never good and create negative consequences for all. A free market economy trumps every other form and once this is reestablished the balance of trade will be resolved. Even Castro has admitted his economic policies have harmed Cuba.

      Bob Woodward has stated that Obama thinks he is the smartest man in the room – and this my fellow patriots – is the problem.

    15. Bruce says:

      I understand what happen in the 30's with the smoot hawley act, but China produces a lot of technology, therefore high paying engineering jobs go to the epi-center of where that technology is produced. China is manipulating its currency and playing unfair. I heard John Lighthizer on Laura Ingrham ( he is a trade lawyer) basically say the U S has to make China bring their currency in line or add a tariff of 35-40 percent to allow U S companies to be competitive. Comment?

    16. Web Sypherd, Paradis says:

      I saw on TV where the anointed on e admitted he was a communist and he has recently admitted to the Egyptian ambassador that he is still a muslim. Now the object of the muslims is to have a one world religion. The first stated step is to destroy christianity. A great step in accomplishing this will be to destroy the american economy. Almost everything I can think of in the long run will contribute to the destruction of this country (things that he has done). Now do you understand why he does what he does? Please spread the word!!!

    17. Notley Maddox, Chattanooga, TN says:

      It seems to me that if our government did as Meg Whitman said of CA last night in the debate, that is make our country the best place in the world for business to operate, we wouldn’t have any of these economic problems. Get government out of business, our schools, our healthcare, our communication, and most of all our checkbooks. Get government out of our FREE markets and stop the manipulation. Return government to what it does best—govern, but stop all the social enginerring.

    18. Becky, Roswell, GA says:

      Does unilateral free trade work???

    19. thomas j. zaleski EA says:

      I have been an economist (Milton Friedman) for 25 years and my clients depend on my advice. Our advice must be sound and timely. No doubt Obama's advisors are Keynesian schooled which was avant garde decades ago — even though it failed 99% of the time.

      We must ELIMINATE tax on all corporatoins or at least slash by 1/2. Those tax rates would attrack massive foreign investment of hard dollars into our nation and our treasury receipts would swell.

      Increasing the cost of goods sold never increases profits or earnings! The Left simply does not "get it!"

      Thomas J. Zaleski RIA EA


      Thomas Capital Management, LLC


    20. Warof2010 USA says:




    21. Warof2010 USA says:

      Federal Spending http://bit.ly/ctfoRL

      Federal Budget Spending http://www.federalbudget.com/

      CBO http://bit.ly/9lB1xt

      Spending in Trillions

      …………Dfenc..D Int…..SS….Mcare. .Mcaid..Unem..FdSt.. Welf..

      FY1996 .255 + .344 + .314 + .281/+.xxx + .xxx + .xxx + .xxx

      FY1997 .258 + .356 + .358 + .305/+.xxx + .xxx + .xxx + .xxx

      FY1998 .256 + .364 + .372 + .314/+.xxx + .xxx + .xxx + .xxx

      FY1999 .261 + .354 + .383 + .211 + .108 + .xxx + .xxx + .xxx

      FY2000 .281 + .362 + .402 + .218 + .118 + .xxx + .018 + .xxx

      FY2001 .291 + .360 + .426 + .241 + .130 + .xxx + .019 + .xxx

      FY2002 .332 + .333 + .448 + .256 + .148 + .055 + .023 + .xxx

      FY2003 .389 + .318 + .467 + .277 + .161 + .058 + .026 + .xxx

      FY2004 .437 + .322 + .488 + .300 + .176 + .xxx + .029 + .xxx

      FY2005 .474 + .352 + .514 + .335 + .182 + .xxx + .033 + .xxx

      FY2006 .499 + .406 + .548 + .378 + .181 + .xxx + .035 + .xxx

      FY2007 .529 + .430 + .577 + .374 + .191 + .037 + .035 + .xxx

      FY2008 .595 + .451 + .607 + .389 + .202 + .047 + .040 + .122

      FY2009 .637 + .383 + .659 + .428 + .251 + .120 + .057 + .xxx

      FY2010 .671 + .416 + .694 + .439 + .273 + .160 + .070 + .022

      2010 TOTAL FEDERAL REVENUES = $2.089 Trillion Dollars

    22. KLIMAX Baltimore, Ma says:

      The only protectionism we need is the lowering of the number of legal aliens OUR Government allows into OUR country every year (1.5 Million) !!! I challenge you to go to numbersusa.com and watch the 6 minute video that uses gum balls to explain quite clearly why allowing 1,2,3, Million people to immigrate into the USA will never put a dent in world poverty !!!

      I do agree with your position on tariffs and how they can quickly back fire and cost OUR country Billions in lost trade !!! The sad part is NObama can't see past his ideas and with all the "YES MEN" he is surrounded by he will make the wronge move because it will make it look like he is taking a hard line to the American Citizens !!!

    23. Randy Rossi, Graysla says:

      I normally find the Heritage Report right on. But you are wrong on Chinese currency cheating. As a former group president of an international manufacturing company, I know how China cheats. It is no more complex then baseball. Competition is good, cheating is bad! China cheats by artifically manipulating its currency by 35%, stealing intellectual property, breaking international product and employee saftey standards, etc. All this gives them a 40-50% price advantage over US companies that follow the rules. By allowing China to cheat, we are destroying US manufacturers, our economy, and our independence. We must force China to follow the rules or pay the price in punitive tariffs until they comply. Just like we penalize baseball players that take steroids or use cork bats!

    24. Timpclimber Provo, U says:

      We over regulated, over taxed and over red taped our primary industries to extinction. For example in our area was a thriving steel plant that ended up being dismantled and shipped to China who then sold us steel for our interstate construction. Where have our local book binding businesses gone? Mexico. Where are all the new light bulbs being made? China. The list goes on and now they want a cap and trade energy debacle to drive more industries from our country.

      We need to have reasonable regulations, reduce taxes and let the Americans use their genus that give the world so much have the freedom to create and prosper.

    25. Bruce J. Kolinski says:

      It's difficult to return to something that has been lost. The Obama Administration has abolished The Rule of Law and we accepted it. Nary a peep objecting to what was done to the GM, secured bond holders. This was a disgrace.

      W are a long way off the path and it will take more than a compass to find it. BHO is intentionally organizing the destruction of America and we are watching him do it. China is as China does and BHO and his Administration have spent us into weakness. China could care less what the U.S. does or intends to do. The same with North Korea, Russia and Iran.

      We are now a third rate power sliding into global bankruptcy, while our failed leaders fly off on vacation, ignorantly fueled by borrowed money that "we the people" must pay for. We have a lot of fixing to do.

    26. Blair Franconia, NH says:

      I'm not an economist and I don't play one on TV. :) Seriously, the economy, in a word,

      stinks. The government says that the recession ended in June 2009. I don't buy it.

      So far, we've had TAP, Stimulus, and we've yet to have Son of Stimulus. Hopefully,

      we won't. There were two depressions in the 1920s: The Depression of 1920 and the

      Great Depression. So what caused the Depression of 1920 last a year and the Great

      Depression to last twelve years? When Harding was elected, he cut taxes. When Wall Street laid an egg, Herbert Hoover, who was POTUS, (Secret Service code for

      President of the United States), at the time, raised taxes, and raised tariffs. He signed

      the Smoot-Hawley Tariff into law. That made a recession at the time into a depression. Three years later, Hoover lost to FDR, who tried Grandfather, now Great Grandfather of Stimulus, called the New Deal. The New Deal didn't work. You had an alphabet soup of agencies—-some of which are still around today. You had the NRA, (National Recovery Administration, not the National Rifle Association), the FDIC, which is going broke, the Civilian Conservation Corps, (CCC), the Tennessee Valley Authority, (TVA), and the Works Projects AdminIstration, (WPA). With the exceptions of the National Recovery Administration, and the Works Projects Administration, which aren't around anymore, the FDIC, is still around. Unfortunately, as I said before, it's going broke.

      What's another New Deal agency that's still around today? The Securities and Exchange Commission, (SEC). That. ladies and gentlemen, boys and girls, in a nutshell, is what caused the Great Depression.

    27. Pingback: ADF Alliance Alert » The protectionist threat of another Great Depression

    28. Zhuubaajie, Hong Kon says:

      Rare Earths are an opportunity, not a threat!! America has 15% of the world's known reserves in the rare earths, and just the Mountain Pass mine of Molycorp. in California used to supply over half of the world's requirements in the 1980s. China has only 36% of reserves, and there is no reason China should be shipping 90% of the production. Washington and Beijing should formalize a rare earths cartel immediately, and jack up prices by at least 20 times, so that it is profitable for American companies to fill that supply chain with high value added exports.

      Today, which country makes the most profits from rare earth? By far Japan (which buys up 70% of the world's requirements of rare earth ores for further processing), and then Germany. There is absolutely no reason that America should be paying for niobdymium at magnet prices (which is about 1,000 TIMES the price of the ores by weight) to Japan, when America has the ores AND the technology for processing.

      The talk of it taking 15 years to bring the production back up is just extortion to get Washington to give the mine owners "free money." You tell them that foreigners will be allowed in to bid if they do not start up in 1 year, watch how fast they go back into production and generate jobs immediately!

      China is not competitive with America in most areas of American manufacture – rather the countries are complementary. Japan, Germany and Korea are the nations with tech manufacturing that compete with America. Having higher prices in rare earth metal products would make American manufacturing MORE COMPETITIVE as these real competitors have to pay more for their input factors.

    29. Zhuubaajie, Hong Kon says:

      America has LOTS to offer for exports. Today America is still the largest manufacturer in the world, with more than $3 Trillion a year in industrial output; and the U.S. is No. 3 in exports, just behind Germany and China. With the right push, with the right salesmanship, America can be No. 1 again in worldwide exports. But you don't start the sale process by pissing off your prospective customer.

      Washington should instead push for increasing exports, by (a) revamp export controls; and (b) encourage FDI into America's export sectors. Who better to sell and export Made in America, than folks who know the language and custom and needs and wants of the target markets, than businesses FROM the target markets?

      Of interest is the recent news item of a $10 Million acquisition of a California vineyard by a Chinese wine distributor. The grapes would still be grown in California, pressed in California, turned into wine and packaged in California, and in 2 years it is expected that annual sales of this premium California wine to China would reach $6 million a year. California jobs would be created and kept. That is just one example out of many possible.

      Each and every American state that has anything worth exporting should send trade delegations to China to seek inbound investments on these export oriented deals. Make those Chinese investments create American jobs in America.

    30. Ron Hert-California says:

      Hopefully, after the November election we can see some knowledgable people in this country-hopefully-in the Senate and the House that will know how to create jobs and make our economy stronger or we'll have to get rid of Obama sooner than was planned-Impeach. All of these ideas aren't going to work unless we can remove the main problem-Obama, staff, and the Democrats in the legislature bodies of civil service. Then, we need to Impeach all federal judges and re-elect new ones-even the Supreme Court. In less than one year we'll be energy independent, and will tap on our medical industry to begin their progress to the top of the world market. The reason that its necessary to reelect new ones is because there will be no question as to what their true job should be-Constitutional originalism.

    31. Vinny, Dallas says:

      Chinese Govt is manipulating its currency to ensure a higher employment for its populace. Imagine a govt that does not depends on popular mandate doing it for its people; and Heritage Foundation feels that we should encourage Federal Govt to follow a policy that encourages a state of permanent underemployment in USA.

      The tarriffs are not meant to generate revenue but to deliver a message to Chinese; who know no other language. They do not have any altermate market waiting for their products but USA will have a score of ASEAN nations lining to fill up the gap.

      Meanwhile if CPC wake up; smells the coffee; opens up her markets and let Yuan appreoiate; its advantage USA all the way. Or is it your corporate sponsers pain; that you fell ;)

    32. gene minnesota says:

      We have so many organization who are against any kind of bussness in this country its unbelieveable. you got the E.P.A., you got all these nut jobs who believe big companys are causing globle warming. You got some companys who are into global warming themselfs, who are also for cap and trade. I wish you the best but I think this country has seen its better days.

    33. Paul Revere says:

      REMEMBER JANUARY 3, 2007

      The day the democrats took over was not January 22nd 2009 it was actually January 3rd 2007 the day the Democrats took over the House of Representatives and the Senate, the start of the 110th Congress. The Democrat Party controlled a majority in both chambers for the first time since the end of the 103rd Congress in 1995. For those who are listening to the liberals propagate the fallacy that everything is "Bush's Fault", think about this:

      January 3rd, 2007 was the day the Democrats took over the Senate and the Congress:

      At the time:

      1. The DOW Jones closed at 12, 621.77

      2. The GDP for the previous quarter was 3.5%

      3. The Unemployment rate was 4.6%

      4. George Bush's Economic policies SET A RECORD of 52 STRAIGHT MONTHS of JOB CREATION!

      Remember the day…

      1. January 3rd, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee.

      2. The economic meltdown that happened 15 months later was in what part of the economy? BANKING AND FINANCIAL SERVICES!

      3. Thank Congress for taking us from 13,000 DOW, 3.5 GDP and 4.6% Unemployment to this CRISIS by dumping 5-6 TRILLION Dollars of toxic loans on the economy from YOUR Fannie Mae and Freddie Mac fiasco's! (BTW: Bush asked Congress 17 TIMES to stop Fannie & Freddie – starting in 2001, because it was financially risky for the U.S. economy, but no one was listening).

      And who took the THIRD highest pay-off from Fannie Mae AND Freddie Mac? OBAMA.

      And who fought against reform of Fannie and Freddie??? OBAMA and the Democrat Congress.

      So when someone tries to blame Bush…

      REMEMBER JANUARY 3rd, 2007…. THE DAY THE DEMOCRATS TOOK OVER!" Bush may have been in the car, but the Democrats were in charge of the gas pedal and steering wheel they were driving. Set the record straight on Bush!

      So, as you listen to all the commercials and media from the Democrats who are now distancing themselves from their voting record and their party, remember how they didn't listen to you when you said you didn't want all the bailouts, you didn't want the health care bill, you didn't want cap and trade, you didn't want them to continue spending money we don't have. I'm not forgetting their complicity in getting us into this mess, and I'll be marking my vote accordingly!

      "It's not that liberals aren't smart, it's just that so much of what they know isn't so" -Ronald Reagan

    34. Stephen Cafaro says:

      The USA has been losing money, factories,industries and jobs for over a half century due to our "free trading" philosophy. In the business of "free trade", the USA has los over 7.2 trillion dollars since 1973. How can these type of results be good for our country? If protectionism is so bad for the USA, how is it that so many countries are able to prosper when they have a nationalist agenda?

      The USA and her citizens must begin to produce for their own needs if we are to survive as a sovereign nation and a leading economy!!

    35. Tom, Pennsylvania says:

      does anyone in the Obama administration realize that China could literally destroy our economy in one afternoon if they demanded we pay back the 800billion dollars in treasury bills they own to back up the debt our Congress has racked up the past 20 years.

    36. American hillbilly says:

      Yeeehhhaaaa! Smoot-Hawley, here we come!

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