Remember, folks, the US Department of Commerce has your backs.
The department is recommending that the United States impose a tariff on steel imports from China of 256%, because they feel China has been dumping steel on the market and causing a severe disruption in the price, negatively affecting US steel producers.
Gee, really? What's next, tariffs on electronics, cars, just about anything you buy at Wal-Mart or nearly anywhere in America?
Where's the great Ben Bernanke when you need him? You know, the former Chairman of the Federal Reserve who is an EXPERT on the Great Depression.
Why do we need the Big Bernank now? Because, his expertise would prevail on our glorious government goofballs that protectionism is exactly what made the Great Depression so (not) great.
You take depressed markets overfull of inventory, tack on tariffs and you get exactly what the Fed wants in order to hide its horrible policies: velocity of money at zero, falling wages, layoffs and now, the kicker, goods too expensive for anybody to buy. Pure genius, these guys looking out for all of us little people.
This is just the beginning. Expect to see more trade protectionism going forward and more countries falling into recession. Add it all up and you have Great Depression 2.0.
It's not going to happen all of a sudden, because the Fed is still fighting deflation. But, when the going gets rough, really rough, like when Wall Street (hell) freezes over and commits suicide in a crash of stocks of companies that have been repurchasing their own shares for the past six years and they lay off millions of workers, that's when the government will move in full force with trade restrictions and tariffs so that Americans can't purchase anything from the evil Chinamen.
Maybe somebody should have thought about this before we sent all of our manufacturing base over to the Red Dragons. Then again, maybe they did.
Meanwhile, the Santa Claus rally continues on Wall Street. The S&P gained enough today to show a small profit for the year and the Dow Jones Industrials are closing in on being black for 2015.