Why protectionism is the biggest threat facing the US

If there's one thing that could send the US economy into another depression, it's a rise in protectionist sentiments, says John Mauldin. Unfortunately, recent events suggest that this is exactly what's happening in Washington. But the US is the country that stands to lose the most by alienating its trade partners...

Long-time readers know that I do not think the world is going to devolve into a soft depression. America's trade deficit and our large and growing debts will have to be dealt with, of course. But I think it will happen in the normal context of the business cycle.

A recession here, a falling dollar there, and slower than trend average growth over the next five years or so...and we get to where the re-set button has been hit.

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