Schumer, Graham and the ACU

Andy Mukherjee:

“In the unlikely event of U.S. Senators Charles Schumer and Lindsey Graham succeeding in imposing a punitive 27.5 percent tariff on America's imports from China, the consequences for the global economy may be as disastrous as those that emanated from the Smoot-Hawley Tariff Act. That law, passed in 1930, pushed up U.S. tariffs to 59 percent, their highest level in 100 years, and set off a protectionist chain reaction around the world.

Global trade, measured in gold, fell 63 percent from 1929 to 1932, according to Anne Krueger, the first deputy managing director at the International Monetary Fund.

…the unstated objective behind China's support of initiatives such as the East Asian Community and the Asian Currency Unit is to end the economic hegemony of the U.S.”