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Ruling Class Trade Bill Barely Survives House Vote [+video]

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By Cristina Marcos. President Obama’s trade agenda survived a bad scare in the House on Thursday when the GOP rule governing debate for the package narrowly survived a 217-212 vote.

Thirty-four Republicans voted against the rule, while eight Democrats backed it.

A handful of pro-trade Democrats withheld their votes, watching the tally closely from the floor. Then, when it was apparent Republicans would not be able to pass the typically partisan measure on its own, they threw their votes in favor all at once.

The tight vote foreshadows the challenge GOP leaders will face Friday, when the House votes on two critical pieces of Obama’s trade agenda: fast-track authority and a separate bill offering help to workers displaced by trade.

GOP opposition to the Trade Adjustment Assistance program, as well as to fast-track, led Republicans to oppose their party’s rule. (Read more from “Trade Bill Survives Scare” HERE)

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Jeff Sessions Issues Final ‘Critical Alert’: Obama Trade Just Like Amnesty, Obamacare

By Matthew Boyle. Sen. Jeff Sessions, the chairman of the Senate Judiciary Committee’s subcommittee on Immigration and the National Interest, is issuing one final clarion call against Obamatrade as the House readies to vote on the matter on Friday.

Sessions’ final “critical alert,” one of several he’s issued throughout the Obamatrade process, shows House Ways and Means Committee chairman Rep. Paul Ryan has been engaged in deception as he attempts to guide Obamatrade’s passage through the House.

“Promoters of fast-track executive authority have relied on semantic obfuscation in an effort to deny the obvious: the President’s top priority is obtaining fast-track authority because he knows it will expand his powers and allow him to cement his legacy through the formation of a new political and economic union,” Sessions said.

If, as promoters amazingly suggest, the President had more powers without fast-track, he would veto it. The authority granted in “Trade Promotion Authority” is authority transferred from Congress to the Executive and, ultimately, to international bureaucrats. The entire purpose of fast-track is for Congress to surrender its power to the Executive for six years. Legislative concessions include: control over the content of legislation, the power to fully consider that legislation on the floor, the power to keep debate open until Senate cloture is invoked, and the constitutional requirement that treaties receive a two-thirds vote. Legislation cannot even be amended.

It’s unclear what will happen when it does come up for a vote on Friday in the House, but one thing is absolutely certain: Pass or fail, Ryan’s credibility on the right is shot. What’s more, there’s likely to be a conservative grassroots rebellion against establishment Republicans in Washington that may dwarf the one Obamacare caused back in 2010. (Read more from “Jeff Sessions Issues Final ‘Critical Alert’: Obama Trade Just Like Amnesty, Obamacare” HERE)

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China-Australia Pact Could Lead to Dollar's Collapse

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Photo Credit: Zero Hedge

[T]he Australian [is] reporting that the land down under is set to say goodbye to the world’s “reserve currency” in its trade dealings with the world’s biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process “slashing costs for thousands of business” and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar’s reserve currency status until one day it no longer is.

That said, this latest development in global currency relations should come as no surprise to those who have followed our series on China’s slow but certain internationalization of its currency over the past two years…

And while previously the focus was on Chinese currency swap arrangements, the uniqueness of this weekend’s news is that it promotes outright convertibility of the Yuan: something China has long said would happen but many were skeptical it ever would. That is no longer the case, and with Australia setting the precedent, expect many more Asian countries (at first) to follow in Australia’s footsteps, because while the developed world is far more engaged in diluting its currency as a means to spur “growth”, Asian and developing world nations are still engage in real, actual trade, where China is rapidly and aggressively becoming the world’s hub…

Why is this so very critical? For the simple reason that the free lunch the US has enjoyed ever since the advent of the US dollar as world reserve currency, may be coming to an end as other, more aggressive alternatives – both fiat, and hard-asset based – to the USD appear. And since there is no such thing as a free lunch, all the deferred pain the US Treasury Department has been able to offset thanks to its global currency monopoly status will come crashing down the second the world starts getting doubts about the true nature of just who the real reserve currency will be in the future.

Read more from this story HERE.

China Eclipses U.S. as Biggest Trading Nation Measured in Goods

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China surpassed the U.S. to become the world’s biggest trading nation last year as measured by the sum of exports and imports of goods, official figures from both countries show.

U.S. exports and imports of goods last year totaled $3.82 trillion, the U.S. Commerce Department said last week. China’s customs administration reported last month that the country’s trade in goods in 2012 amounted to $3.87 trillion.

China’s growing influence in global commerce threatens to disrupt regional trading blocs as it becomes the most important commercial partner for some countries. Germany may export twice as much to China by the end of the decade as it does to France, estimated Goldman Sachs Group Inc.’s Jim O’Neill.

“For so many countries around the world, China is becoming rapidly the most important bilateral trade partner,” O’Neill, chairman of Goldman Sachs’s asset management division and the economist who bound Brazil to Russia, India and China to form the BRIC investing strategy, said in a telephone interview. “At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe.”

Read more from this story HERE.

Boehner refuses to go along with Romney’s plan to confront Chinese currency manipulation

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The top Republican in the U.S. Congress highlighted a policy rift Thursday with his party’s presidential hopeful when he reiterated his opposition to using legislation to press China to revalue its currency.

Staking out a position in contrast to the hawkish views of Mitt Romney, House of Representatives Speaker John Boehner, who has opposed repeated efforts in recent years to pass laws that would put tariffs on Chinese goods unless it allowed the yuan to appreciate, told reporters he still felt the same way.

“There’s a way to deal with this problem and a way not to deal with it. Congress passing a law outlining stringent requirements for dealing with the Chinese and the value of the currency, I think is inappropriate,” Boehner said.

Earlier this week, Lanhee Chen, the Romney campaign policy director, issued a blistering statement in which she said President Barack Obama, a Democrat, had “lost all credibility on China and trade” for among many things, failing to label China a currency manipulator despite his 2008 campaign pledge to do so.

“What message does it send the Chinese when President Obama refuses to even formally acknowledge that they are in fact manipulating their currency?” Chen wrote.

Read more from this story HERE.

Photo credit: jimmiehomeschoolmom