If corporations are engaging in a "capital strike"

[Sen. Walter Sobchak]

46. China is more than compliant with their WTO tariff reduction obligations

And many US exports to China are completely tariff free. The outstanding issues are substantially superficial and don't really affect any high volume trade. We have similar dick waving contests with lots of countries, we had one with Canada over frozen pizza.

Further, Chinese monetary policy is already moving towards a free floating exchange rate, but like everything that has occurred in China over the last forty years it has been gradual. Although when the Chinese loosened it last in May the Yuan actually fell slightly. In the long run China does need a stronger currency for their own ends and this is recognized - but it is a double sided risk. As just mentioned - when China let the Yuan float slightly - it fell. There is a recognition in most places that turning currency traders loose with the Yuan when there is prevailing skepticism about China's true economic performance might not bring about a better result. Therefore nobody argues too strongly against status quo.

The only thing holding down the US dollar is our colossal federal debt and a lack of global confidence that the republicans will properly service the debt. The balance of trade does not significantly devalue hard currencies in large economies. In small or weak economies the balance of trade is more important as it is a means to attain hard currency. There is no shortage of US dollars in the US economy, there are few things the US imports in any quantity that are not themselves priced in dollars globally.

If you think the savior of the US workforce is repatriating crap jobs operating injection molding machines you are insane. Tariffs did nothing to protect US industries from near collapse long before free trade. The rest of the west figured this out fifty years ago - ironically enough in response to a fear of American industrial hegemony. We on the other hand jammed out to John Cafferty records and smashed beer cans with our foreheads and shook our fists at the sky and an ethereal foreign menace occasionally.

But by all means, please explain how in your proposed regime you will address price elasticity of demand for goods suddenly much more expensive and therefore undesirable (aka not generating much new employment), address the inflation of essential goods and or address the shortages of those goods resulting from price controls that seem likely to be your preferred course of action.

The British figured this out more than a 150 years ago, the British had imposed severe tariffs on imported grains after the end of the Napoleonic wars when European grown grain was once again available to the British market thanks to the collapse of Napoleon's Continental System. For their efforts there were riots in the cities and several markets in London were burned to the ground. As the cities grew and the population was cut-off from subsistence agriculture the tariffs came to be seen as nothing more than a spectacular act of cruelty inflicted on the urban population. Ultimately even the most conservative elements came around because they feared the continuation of the policy in light of the great famine could incite a revolution.