Saturday, September 19, 2009

Is Labor Trade in Making?

By risking to anger China in slapping duties on tires, is Obama Administration up to some tricks? This is an idle speculation but one possibility is that President Obama is establishing credentials with Labor in finally making Unions to accept taxing of employer based health benefits. As reports of how Senate proposal of Health Reform (Sen. Baucus proposal) will actually clobber Middle class (Wall Street Journal, Washington Post and most other blogs) are circulating, new and serious impediment has arisen for health reforms - invisible tax on lower middle class and labor. And there is no way out from that if funding gap is to be contained. What better way than make a posture of standing for Labor by slapping China Trade and then make them accept this higher price? As other reports are indicating, China will not mind for a while as long as it helps to pass Health Care Reform because China has vested interest in passing of Health Reforms since that way America's financial viability is enhanced; increasing security of their Trillion Dollar holding of American bonds.

Is this the game in air? We never know. But the fact is passing Health Reform bill and balancing money book are becoming increasingly tough which might force the White House any such esoteric tricks.

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