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To: Knighty Tin who wrote (264883)	10/28/2003 3:56:48 PM
From: Terry Maloney	Respond to of 436258

KT, seems Warren puts a little more thought into things than Rush. Or at least, a little more quality thought. <g> Did you see the links to the full article? Message 19440267 He thinks other countries wouldn't retaliate, and that the dollar wouldn't decline significantly. Here's the essence: "My remedy may sound gimmicky, and in truth it is a tariff called by another name. But this is a tariff that retains most free-market virtues, neither protecting specific industries nor punishing specific countries nor encouraging trade wars. This plan would increase our exports and might well lead to increased overall world trade. And it would balance our books without there being a significant decline in the value of the dollar, which I believe is otherwise almost certain to occur." "Foreigners selling to us, of course, would face tougher economics. But that's a problem they're up against no matter what trade "solution" is adopted—and make no mistake, a solution must come. (As Herb Stein said, "If something cannot go on forever, it will stop.")" "This plan would not be copied by nations that are net exporters, because their ICs would be valueless. Would major exporting countries retaliate in other ways? Would this start another Smoot-Hawley tariff war? Hardly. At the time of Smoot-Hawley we ran an unreasonable trade surplus that we wished to maintain. We now run a damaging deficit that the whole world knows we must correct."