Obama Plan “Stimulating” Another Great Depression

McClatchy begins its article entitled, “‘Buy American’ isn’t new, but is it really a good idea?” with this statement:

WASHINGTON — “Buy American” provisions in the economic stimulus legislation moving through Congress have foreign leaders threatening retaliation and academics warning that the globe could soon go through the kind of tit-for-tat protectionism that helped deepen the Great Depression.

The article goes on:

A number of economic stimulus programs are being forged in capitals around the world — from Beijing and London to Brasilia and Canberra — that could launch a new wave of what some will call protectionism, others self preservation. If they emulate the U.S. “Buy American” national favoritism, not only will U.S. firms miss opportunities to sell to them, but the pattern of closing off commerce to non-nationals could expand.

The Buy America provision “is starting small, but of course our whole financial crisis started small, with subprime (mortgages). You’ve got the same thing in the trade area — you can start small, but it is a license to every country to protect” its domestic industries, said Gary Hufbauer , a senior fellow for the Peterson Institute for International Economics , a pro-trade research organization.

Indeed, that’s the pattern of history in the missteps that helped bring about the Great Depression. Congress passed the Smoot-Hawley Act in 1930, raising to record levels the tariffs on more than 20,000 imported goods.

European nations responded in kind. The tit-for-tat nationalistic trade war brought a plunge in commerce between nations, and rising hardship fed nationalistic tensions that eventually erupted into War World II.

Many U.S. trading partners will be judging the final shape of America’s stimulus legislation as a measure of President Barack Obama’s worldview.

“If Buy America becomes part of the stimulus legislation, the United States will lose the moral authority to pressure others not to introduce protectionist policies,” warned Michael Wilson , Canada‘s ambassador to the U.S., in a letter this week to Senate leaders.

Hence my title.

It’s pretty amazing.  We’ve always known that Obama was THE most liberal member of the US Senate.  We’ve always known that he was a socialist (especially since Joe the Plumber discombobulated Obama’s “I want to spread the wealth around” statement with his own, “That sounds a lot like socialism” remark).   And of course it was socialism.  Pure, naked socialism.

Now we are finding out that Barack Obama is in fact SO socialist that even Europeans are saying, “You’re going WAY too far with that socialist agenda of yours!”

Let me tell you, it isn’t easy to be more socialist than Europe.  It takes a LOT of “change” to go so terribly wrong, so quickly.

The UK’s Daily Mail had this to say in it’s story entitled, “Britain and EU warn Obama: “Buy American’ protectionism in $1trillion rescue package will only make recession worse“:

Britain and the EU were tonight embroiled in a war of words with Barack Obama over his controversial plans to ‘Buy American’.

Senior figures warned the move would risk creating a new economic Iron Curtain between the EU and America, and accused the new President of making a ‘major mistake under pressure’.

Mr Obama has introduced controversial measures in his £835billion economic stimulus bill, currently under debate by the Senate, which state that only American-made iron, steel and goods can be used in projects paid for by the package.

But the ‘Buy American’ rule threatens to trigger a disastrous transatlantic trade war as the EU has warned it will not stand ‘idly by’ if the ban on imports is introduced.

The row overshadowed Foreign Secretary David Miliband’s historic meeting with new US Secretary of State Hillary Clinton in Washington today.

John Bruton, the EU ambassador in Washington, warned: ‘If we have a series of protectionist measures introduced, then the possibility of real global leadership is put at risk.

‘We regard this legislation as setting a very dangerous precedent at a time when the world is facing a global economic crisis.’

Prime Minister Gordon Brown has recently delivered a series of hard-hitting speeches warning that a failure to uphold free trade risks turning the world recession into a deeper slump.

He has repeatedly claimed that Mr Obama’s action to combat the economic crisis in America is modelled on his own plans to drag Britain out of the recession.

Mr Brown’s official spokesman today refused to criticise the President’s plans directly. But he said: ‘The PM has made his view on the general issue of protectionism very clear. Obviously, we would not support protectionist measures.’

Mr Obama supported a ‘Buy American’ campaign while running for the White House and has even distributed campaign buttons and flyers with a special emblem declaring his support.

It is quite likely the “Buy American” provision will ultimately die in the Senate.  It is simply too stupid of an idea to pass muster.  But the thing to realize is that this is Barack Obama’s incredibly stupid idea.  And he’s got a lot more idiocy in that socialist redistributionist brain of his.

A President should be chosen for his judgment.  But Barack Obama demonstrated that he had terrible judgment from the moment it was revealed what a racist, anti-American church he spent 23 years attending.  And what a hateful pastor he chose for his most profound mentor.  Don’t say that a lot of people like me didn’t try to warn you.

And like the quintessential weasel that he is, by the time this “Buy American” fiasco is over, Obama will have disavowed his own position, just as he disavowed his own pastor whom he had earlier said he would never disavow.

Bob Beckel – the same political genius who ran Walter Mondale’s historically disastrous campaign after being part of Jimmy Carter’s historically disastrous administration – claims that the Republican Party is “Slouching Toward Irrelevance” for opposing this terrible ANTI-stimulus package.  The reality is that it is Democrats who are in terrible danger.  And many of them are beginning to realize it.  If Republicans continue to oppose this awful agenda, and Democrats pass it, they will have no political cover when it fails.  And rodents love having cover.  Republicans will be able to hang it like a rotting albatross around Democrats’ necks in the months to come.  That’s why Senate Democrats are starting to run from their messiah-in-chief’s ‘s package.  And that’s why the Democratic Congressional Campaign Committee (DCCC) is running an even more vicious hate ad than usual to undermine Republican opposition by claiming that Republicans are “anti family” for exercising their constitutional right and duty to vote their conscience and oppose the “Stimulus to Hell.”

We’re going to decline into another Great Depression. (see also, for example, Luke Johnson’s article in the Financial Times).  In voting for Barack Obama, we voted for it, and no one wanted the man that will deliver it more than Europe.

A Great Depression.  Now THAT’S  “a change you can believe in.”

2 Responses to “Obama Plan “Stimulating” Another Great Depression”

  1. Ike Jakson Says:

    I hope I can say I have beaten you to this one but I have had the help of my subscription to the Human Events guys.

    Go to WelcomeToObamaland.com and follow the instructions. Supply your email address and submit. They email you a free chapter in Adobe .pdf Format of the book by the same name as the Website by British journalist James Delingpole that the Human Events people describe as “laugh-out-loud funny” and that I agree with having read it. But there is a serious twist in Delingpole’s approach where he compares Tony Blair and Barack Obama. I won’t tell you more. Go for it; you will still be laughing next week.

    They will provide with the procedures to purchase the whole book and I have added it to my list of compulsory reading.

    And you will find it utterly relevant to this article. I like the wit in the name of this article.

  2. Michael Eden Says:

    I may just do that, Ike. I like Human Events (I get their their emailings) and read their stuff often.

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