“US House Moves Against China’s Undervalued Currency” reads the headline, and I wonder if we won’t soon see the Senate and President doing the same thing. It’s a really bad idea to try and start a trade war right now, but the government seems to be united in a bipartisan effort to do so. Once the export sector gets whacked, we’ll all get to see firsthand how awful protectionist legislation truly can be.
Didn’t this happens like, in the 1930s with the Smoot-Hawley Tariff act? (Although it shouldn’t be that high…) And it helped cause the Great Depression because nobody would buy anybody else’s stuff? This could potentially push us further into recession.