When China says pay attention,  now we have to!

I have reported on China’s oil conquests that reads out of some romance novel for as many oil interests they have around the world and in developing countries. Meanwhile in the US we are lucky to buy gas below $3.00 a gallon.  China gas stopped buying our debt and now are slapping tariffs on our chickens and auto products in retaliation of the US doing the same on tires.   Nothing like a little trade war to make our goods less desirable across the world.  As China tries to grow its economy internally, the United Sates is in no position to negotiate anymore.  Our debt to China is pegged at over $700 billion as the last time I could run it down.  With oil producing counties wanting to leave the US dollar as the gold standard for oil, China could become the worlds #1 Superpower when all the dust is settled.    They won’t do Cap and Trade, will have more oil coming in than we ever will, and can hold us hostage because we are in debt to them.  And we want to lecture them on human rights?  With what leverage do we have anymore?

The Obama admin on Friday hit them with tariffs on their tire imports.  Say goodbye to 17% of all the tires sold in the US.  They produce low end tires that we the consumers need to have in this economy.  Good move… stick it to the American Consumer!  We import 46 million tires a year from them.  So now the worry is that we will have a shortage of low end tires and it will take months for US companies to ramp up (if they can afford it) and for Russia and Brazil to pick up the slack.  In 2005 the US production of tires was about 370 million a year.  Today its now 330 million and another 35 million are being cut.  With demand starting to tick up, what have we just done to the US tire buyer?

Now who benefits from the tire shortage?  Here is the link.  Obama needs to lean on organized labor unions the get Health Care passed.  In turn Obama will be speaking at the AFL-CIO convention on Tuesday.  See if we have a tire shortage we can help the unions put tire makers back on the job, they support Health Care, we can’t export chickens, and you and me the consumers get screwed!  All in a days work inside the beltway!   Does anyone care about you and me the voter anymore?

China will have a lot of say in how and what we buy in the coming years.  The end result of being the largest debtor nation in the world.  To play chicken and tire games to get Health Care passed is immoral.

This is the kind of crap I hope to stop when I get to DC.  I hope you will join me!

The Paul Smith for Congress website is www.PaulSmithforCongress.org 
Republican Candidate for the 5th Congressional District (Sacramento).