Star One Smart Blog's

...and the New York Times can barely believe it.

The Chinese government’s strong countermove followed a weekend of nationalistic vitriol against the United States on Chinese Web sites in response to the tire tariff. “The U.S. is shameless!” said one posting, while another called on the Chinese government to sell all of its huge holdings of Treasury bonds.

and

Mr. Obama’s decision to impose a tariff of up to 35 percent on Chinese tires is a signal that he plans to deliver on his promise to labor unions that he would more strictly enforce trade laws, especially against China, which has become the world’s factory while the United States has lost millions of manufacturing jobs. [emboldenings mine -ed.]

We've seen Barack Obama's timing fail before. In his rush to pass ObamaCare, he's ignoring the near-failure and precarious position of the U.S. economy. Instead of waiting for a recovery, he grabs more and more for his leftist supporters. Kids in a candy store, too far away from the coffers, they are making ill-timed grabs for cash for their own supporters. Payback for campaign gifts (money and votes, and bitten fingers) at the expense of thinking about any consequences.

This move to throw a bone to the Unions couldn't come at a worse time.

“Why did our government purchase so much U.S. government debt?” said one posting signed by a “Group of Angry Youths.” The item continued, “We should get rid of all such U.S. investments.”

China has accumulated $2 trillion in foreign reserves, mostly in Treasury bonds and other dollar-denominated assets, and held down the value of its currency, which has kept Chinese goods quite inexpensive in foreign markets. China’s exports have soared — China surpassed Germany in the first half of this year as the world’s largest exporter — while China’s imports have lagged, except for commodities like iron ore and oil that China lacks.

Worries that China might sell Treasury bonds — or even slow down its purchases of them — have been a concern for the Bush and Obama administrations as they have tried to figure out how to address China’s trade and currency policies.

But...the Unions! We have to give 'em what they want! How else are we to keep their support?

A trade war with China? Remember what happened in the late '20's? a trade war sparked the Great Depression.

Has someone not read his history? Or is this just right out of the playbook?

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