Tariffs on Chinese imports...

Finally, the Bush administration might be waking up the the economic reality of the world we face. No longer can we afford to run the kinds of trade deficits that we've seen lately, nor can we afford to continue funneling dollars to the Chinese communists so they may build up their military.

Unfortunately, we have painted ourselves into a corner since China is the single largest holder of US debt outside the Federal Reserve Bank.

Nevertheless, I am puzzled as to why the Democrat party isn't in full support of tariffs against China. After all, tariffs would help both American unions as well as the Chinese laborers who can't afford to purchase the products they slave 15 hours a day to produce.

Once upon a time, the Democrat party really was a political movement dedicated to improving the lives of the average worker and for the extension of democratic reform around the world. Pushing for tariffs against Chinese imports would be an opportunity for them to make great strides at doing both.

However, they face a large dilemna when it comes to international trade and the "free" market (which doesn't really exist except in the minds of some).

They cannot simultaneously support tariffs against China and the passage of CAFTA or FTAA.

However, if their goal is to curb American dominance and advance the globalist agenda, they could do just the opposite, that being oppose tariffs and support CAFTA.

At that point, American unions would be on the short end of the stick, but as history has shown, most Democrat constituency groups are extremely loyal and demonstrate little, if any, will to reconsider their political affiliations.

Unfortunately, in this Washington Times article, it appears that the administration's position may not be as strong as many Senators would like to see.

• "I'm concerned there will be mounting protectionist pressure in the U.S." unless China moves quickly to change its policy, said Treasury Secretary John W. Snow in issuing the administration's warning yesterday.
  
  "I'm confident that if Congress sees China move," it will help "ward off protectionist pressures," he said.
  
  Mr. Snow gave China the option of taking half measures that would raise the value of its currency without allowing it to float freely in the world markets, as does the dollar and other major currencies.
  
  Mr. Snow said China's financial system is strong enough to support a change, as a result of financial reforms enacted in the past two years, but it does not have to move immediately to a free exchange rate to satisfy U.S. demands.
  
  "Let me make it clear we're not calling for a float. We calling for flexibility," he said. "China will be the judge" of how far it should go to deregulate its currency, he said.
  
  Mr. Snow also left himself room to fudge on the fall deadline if China's response is ambiguous. "It should be a real step. It should be something the world could see and know that China means business."
  
  Mr. Snow noted that Chinese policies "are highly distortionary and pose a risk to China's economy, its trading partners and global economic growth."