ON THE WALLABY- 3rd April 2006

THE GRAHAM-SCHUMER BILL.NEVER HEARD OF IT? I THINK YOU ARE ABOUT TO!

Just when things are seemingly going pear shaped for the Bush Administration, another doozie is fast looming on the horizon in the shape of the proposed Graham-Schumer Bill, named after its proponents Senators Graham and Schumer.

In essence, what the Bill proposes is a 27.5% tariff on all imported Chinese made goods into the USA unless China agrees to revalue its exchange rate and judging by reports carried in reputable media outlets, it has a very good chance of getting up.

So why the concern?

It would seem to me that America, as indeed it has done in Iraq, has again misjudged the game for one thing I have learned through auctioneering and therefore dealing with peoples of many backgrounds is that you never, when dealing with Asians, place them in a position of losing face and this particular Bill has that written all over it.

Given that China (and other Asian and middle eastern nations) have massive amounts of money invested in the US economy, should this create umbrage within the Chinese Government and it even looks like they may “pull the pin”, then the effect on stock markets and the financial sector would be fast and massive.

The 20th October 1987, when the bum fell out of the Australian stock market, would seem like chicken feed compared to what would occur if China called the US bluff and started withdrawing funds and investments.

Australia would of course be swept up in this torrent and whilst Prime Minister Howard and his government are currently walking the political tightrope in the Sino-American-Japanese manoeuvring, the US seems oblivious to the repercussions.

Having already behind the scenes got the Emirates offside with the brough ha about them purchasing P&O and with that security for six major US ports, I am amazed how the US is misreading the rise of the future economic giants of India and China.

History has shown us that empires rise and fall and whilst maybe I am being over dramatic in saying that the next decade will allow us to watch the decline of the American empire and the rise to power of these two, nonetheless that movement is being assisted mightily by the maladministration financially and politically by the current American regime headed by President Bush.

Here is hoping that saner heads in the US Congress recognise the massive dangers inherent in this Bill and flatten it before it does likewise to us.

Carpe diem

Tony

Tony Fountain

Professional Speaker, auctioneer and author

Sydney NSW Australia

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