Don't Trade Recession for Depression: The Ghost of Smoot-Hawley - Published by The Washington Post,Outlook,Dec.7, 2008:
The revulsion against unfettered capitalism has been aimed thus far at the system governing flows of money; it is unlikely to spare the system governing the international flow of goods and services. Think the pledge by the leaders of the biggest economies at Group of 20 summit to refrain from protectionist measures will work? Chinese president Hu Jintao warned that the global financial crisis might tempt other nations to give in to protectionism. My comment: Law of Comparative Advantage must be honored and most economists are for open and free trade. Protectionism caused depression in American history in 1930s.
The Washington Post magazine,Dec.7, 2008 published VOODOO ECONOMICS by Laura Blumenfeld. Larry Ford, a financial planner and shaman, is attempting a massive bailout of Wall Street's soul, one troubled heart at a time. Ponder such subheadlines to understand the happenings lately with religious fervor of faith,hope and charity.
Francis Shieh a.k.a. Xie Shihao,a believer of international trade for the benefits of peoples of WTO nations in the world.
December 8, 2008
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