G-20 Won’t Endorse Obama Currency Plan
- Posted on November 12, 2010 at 11:02pm by
Meredith Jessup
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SEOUL, South Korea (AP) — Leaders of 20 major economies on Friday refused to endorse a U.S. push to get China to let its currency rise, keeping alive a dispute that has raised the specter of a global trade war.
At the end of their two-day summit, the leaders of the Group of 20 rich and developing economies — including President Barack Obama and China’s Hu Jintao — issued a watered-down statement that only said they agreed to refrain from “competitive devaluation” of currencies.
Such a statement is of little consequence since countries usually only devalue their currencies in extreme situations like a severe financial crisis.
The real dispute is over Washington’s allegations that Beijing resorts to “competitive undervaluation” — artificially keeping its currency, the yuan, weak to gain a trade advantage. But the U.S. position itself has been undermined by its own recent policy of printing money to boost a sluggish economy, which is weakening the dollar.
The joint statement avoided the words “competitive undervaluation,” which was a reference to China’s currency policy that had been inserted into a draft of the statement by officials during pre-summit negotiations.
The dispute over whether China and the United States are manipulating their currencies is threatening to resurrect destructive protectionist policies like those that worsened the Great Depression in the 1930s.
The biggest fear is that trade barriers will send the global economy back into recession. A law the United States passed in 1930 that raised tariffs on imports is widely thought to have deepened the Great Depression by stifling trade.
The G-20 leaders pledged to move toward more market-determined exchange rate systems and enhance exchange rate flexibility. Although directed against China, the statement leaves significant room for interpretation since the language is vague and does not impose any timeframe for enforcing a market-determined exchange rate.
The U.S. says a higher-valued yuan would make Chinese exports costlier abroad and make U.S. imports cheaper for the Chinese to buy. It would shrink the U.S. trade deficit with China, which is on track this year to match its 2008 record of $268 billion, and encourage Chinese companies to sell more to their own consumers rather than rely so much on the U.S. and others to buy low-priced Chinese goods.
Other countries are irate over the Federal Reserve’s plans to pump $600 billion into the sluggish American economy. They see that move as a reckless and selfish scheme to flood markets with dollars, driving down the value of the U.S. currency and giving American exporters an advantage.
Some critics warn that U.S. interest rates kept too low for too long could inflate new bubbles in the prices of commodities, stocks and other assets. Developing countries like Thailand and Indonesia fear that falling yields on U.S. government bonds will send money flooding their way in search of higher returns. Such emerging markets could be left vulnerable to a crash if investors later decide to pull out and move their money elsewhere.
Friday’s statement is unlikely to immediately resolve the most vexing problem facing the G-20 members: how to fix a global economy that’s long been nourished by huge U.S. trade deficits with China, Germany and Japan.
Exports to the United States powered those countries’ economies for years. But they’ve also produced enormous trade gaps for the U.S. because Americans consume far more in foreign goods and services than they sell abroad.
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Comments (57)
EqualJustice
Posted on November 13, 2010 at 10:15amHe’s back, so now can we find out?
Report Post »http://www.ndtv.com/article/india/us-to-spend-200-mn-a-day-on-obama-s-mumbai-visit-64106
Presidential trips overseas aren’t cheap. They involve hundreds, if not thousands, of people – White House personnel, Secret Service, military, as well as officials from various government agencies. This time they took friends and family and businessmen. So how much did this trip actually cost taxpayers? Is there a way to find out? Does the White House have a website that shows expenditures? CURIOUS MINDS WANT TO KNOW!!!
mtc75
Posted on November 13, 2010 at 9:07am“Under free trade the trader is the master and the producer the slave. Protection is but the law of nature, the law of self-preservation, of self-development, of securing the highest and best destiny of the race of man. [It is said] that protection is immoral…. Why, if protection builds up and elevates 63,000,000 [the U.S. population] of people, the influence of those 63,000,000 of people elevates the rest of the world. We cannot take a step in the pathway of progress without benefiting mankind everywhere. Well, they say, ‘Buy where you can buy the cheapest’…. Of course, that applies to labor as to everything else. Let me give you a maxim that is a thousand times better than that, and it is the protection maxim: ‘Buy where you can pay the easiest.’ And that spot of earth is where labor wins its highest rewards.”~ William McKinley speech, Oct. 4, 1892 in Boston, MA
Report Post »starman70
Posted on November 13, 2010 at 9:06amHELLO MR. O! Even the failed socialist European countries are dissing your ideas. They realize that you are a COMMUNIST BOOB, intent on turning America into a dictatorship and even trying to become the world dictator.
All the countries of the world are beginning to realize that you are a meglo-manuical narcissist and are so far out of the mainstream that they won’t even lsten to you.
It is an utter shame to have this clown as our president. He is an embarassment!
Report Post »hempstead1944
Posted on November 13, 2010 at 8:38amNeither do I !!!!!!!
Report Post »Lorist
Posted on November 13, 2010 at 8:18amyes is looks like the gold is rubbing off the pot metal on mr. obama. oh my the thrill is gone, the sparkle has faded.
Report Post »Gonzo
Posted on November 13, 2010 at 8:02amObama is starting to look like the faded, one hit wonder, pop star. Still singing the same old song but nobody wants to hear it anymore. He’ll be doing a Vegas lounge act soon.
Report Post »tess q
Posted on November 13, 2010 at 7:31amgee who would of thought that the other leaders would not follow a inexperienced, never was a boss, never was the head of these organizations he is so fond of and pretty much never had a leadership role anywhere.did they not see the sun come over the horizan? maybe if they stare at his logo long enough it will shine some light on them!!
Report Post »Ronko
Posted on November 13, 2010 at 7:03amI think the President forgot the definition to common sense. You don’t spend money to get your self out of debt sorry Joe your wrong.
Report Post »benrush
Posted on November 13, 2010 at 6:30amWhy do we permit the Fed to monopolize our currency and then thumb their nose at us and tell us we can’t audit them? Who’s currency is this anyway? Ours, or theirs? Apparently, its theirs, because they’ve never been audited.
Report Post »HimmlersMasterPlan
Posted on November 13, 2010 at 5:56amI think this is the first time in American history I can say I agree more with foreign leaders than our president. That’s a bad thing too. Maybe more Americans will wake up when they see this. MAYBE, most people will probably just say oh stupid foreigners don’t know whats good for them.
Report Post »wash1776
Posted on November 13, 2010 at 5:44amThe people overseas see Obalmy for what he really is and is rejecting him like most of this country is now. He has really reduced himself to a pathetic figure.
Report Post »BurntHills
Posted on November 13, 2010 at 12:07pmas soon as Glenn Beck woke us Americans up, did you see how the World sat up? they are going to side with the American Right, because if WE are prosperous, so are THEY, THEY benefit from OUR aid and commerce. and the World will wait for 2012 and see if America can Right itself and kick obama back to soros’ basement. obama is not just a lame duck pres, he is a worldwide sitting duck.
Report Post »NHABE64
Posted on November 13, 2010 at 5:40amBarack is seen around the world as an incomptetent boob. Period. Barack Obama needs to be impeached or at least voted out in 2012 for the good of the entire country. Period.
Report Post »kryptonite
Posted on November 13, 2010 at 5:15amBah! The globetrotter had two objectives in mind when he went on this trip: one was damage control and the other a luxury vacation on our dime.
The only tangible thing this traitor accomplished was to further antagonize Pakistan, the one country whose stability is vital to the region and the success of the Afghanistan war.
Moreover, he appears to be losing any pretense of being an articulate orator. The hissing and poor diction made listening to his speeches pure torture. Notice, too, his lame attempt to “own” Gandhi. Every person Beck extols, every activity he engages in, has to be appropriated or mimicked by the commies. What a bunch of parasitic leeches.
Report Post »dcwu
Posted on November 13, 2010 at 3:23amThey won’t give him their money?
Report Post »Doc_Slammin
Posted on November 13, 2010 at 4:25amThey don’t trust him, and why should they? The Fed has started a currency war.
Report Post »OneRepublic4us
Posted on November 13, 2010 at 9:39amI know how they feel, I don’t want to give him my money either. OBAMA YOU’RE FIRED!.
Report Post »teahugger
Posted on November 13, 2010 at 3:07amI guess the G20 just doesn’t understand that they are supposed to faint in the presence of the chosen one. It’s probably a lack of communication (or they just don’t understand the language of “teleprompter”)
Report Post »SummerB
Posted on November 13, 2010 at 3:47amObama has stated ad nauseum in interviews with American reporters that it’s his failure in not clearly explaining his policies to the simple-minded American people so that they can understand them because if they could/do understand them, then, clearly, the American people would have rallied behind him seeing that his policies are truly enlightened. Well, once again, he’s failed as these world leaders have rejected his message & policies. Of course, his take on it will be that these leaders are just as dang stupid as the American public. It must be so frustrating for our esoteric Prez to have to intellectually lower himself to us ordinary people throughout the world in order to be understood.
Report Post »Doc_Slammin
Posted on November 13, 2010 at 4:20amYes, once again, our illustrious leader has epically failed to prove his intellectual superiority to anyone in deed. It must either be Bush’s fault or the whole damn world are full of racists. It could not possibly be that his policies are not sound and that the rest of the world is laughing at us. Nah.
Report Post »shorthanded12
Posted on November 13, 2010 at 11:10amKatey “SAID” Couric will claim the G-20 was “UN-WASHED”.
Report Post »DaytonConserve
Posted on November 13, 2010 at 2:44amSend in Joe Biden, that’s the trick.
Report Post »Doc_Slammin
Posted on November 13, 2010 at 4:16amWHAT?!?! You want the next world war to start tomorrow?
Report Post »bullcrapbuster
Posted on November 13, 2010 at 2:40amObama is incompetent. Every thing he touches turns to poop. The poor dude is in way over his head. Unfortunately he has dragged America in with him. Hope and change…….HUMBUG!
Report Post »BurntHills
Posted on November 13, 2010 at 11:57amobama was PLACED in the WH by soros paying his way in thru the dems and their enslaved colored minorities.. soros is wellknown worldwide NOT as a philanthropist but as a DESTROYER and a SNEAK. you better believe other Govts are monitoring America’s Right, and our chatter– and we have Glenn Beck shining THE LIGHT OF TRUTH on soros and the WORLD is watching too. they will never back obama on anything, esp since they know WE KNOW NOW about obama and soros, AMERICA IS ENLIGHTENED… obama is a SITTING duck.
Report Post »New-American-Saviors
Posted on November 13, 2010 at 1:58amIf all goes well.It‘s due to China’s diplomacy. The US loses respect every day that YOUR leader is in
Report Post »( Power?) We have NO Leadership. YES WE CAN’T
glenng2
Posted on November 13, 2010 at 1:54amSo I think this is great news from now on when some part of the world is in crises and the call for help goes out we Americans can let the pone go un-answerd they can just call China for rescue.
Report Post »DaytonConserve
Posted on November 13, 2010 at 1:35amShould have sent Governor Chris Christy.
Report Post »Rob_M
Posted on November 13, 2010 at 1:30amIt’s a bad plan, good call guys.
Report Post »UlyssesP
Posted on November 13, 2010 at 1:16amThey have no white liberal closet-racist guilt to manipulate. Obama has no power with them.
Report Post »T.JeffersonWasTheBest
Posted on November 13, 2010 at 1:06amDidn’t Soros want to devalue our dollar? There can’t be a connection………
Report Post »CatB
Posted on November 13, 2010 at 3:16amSurely it is just a coincidence…. right? OR Obama really is the BIGGEST fool ever to inhabit the White House.
Report Post »Doc_Slammin
Posted on November 13, 2010 at 4:14amCatB: Uh… I guess both! (GRIN)
Report Post »docvet
Posted on November 13, 2010 at 2:05pmStart buying food and toilet paper, NOW!
Report Post »Rogue
Posted on November 13, 2010 at 12:57amFail. Is this really the best we have to negotiate economics with the world’s leaders? Well, Mr. Prez, at least you got to see the Festival of Lights, so I guess our hundreds of millions of dollars weren’t completely wasted on your trip.
Report Post »EP46
Posted on November 13, 2010 at 5:47amYes he enjoyed the Light show, but he will get a spanking from Soros when he gets home ! As we have asked before…Barry, who is on the other end of the blackberry and the teleprompter?
Report Post »BurntHills
Posted on November 13, 2010 at 12:03pmthanks to Mr Beck’s team of expert researchers, WE AMERICANS know who is on the other end of obama’s glued-to-his-hand blackberry and the ever present ominous teleprompter: soros!
Report Post »TruthTalker
Posted on November 13, 2010 at 12:56amHe cant fool everyone??
Report Post »snowleopard3200 {mix art}
Posted on November 13, 2010 at 3:02amSuprised? He only fools himself and the Progressives.
http://www.artinphoenix.com/gallery/grimm
Report Post »CatB
Posted on November 13, 2010 at 3:15amYes .. imagine me agreeing with Europe etc . LOL. BTW .. I am irate that they are PRINTING 600 Billion $$ also! Especially when Bernake said UNDER OATH he NEVER WOULD.
Report Post »whamhost.info WORKS FROM HOME
Posted on November 13, 2010 at 5:07amIt is a sad day when a commy nation has to teach you basic econ.
Get paid to do this.
Polwatcher
Posted on November 13, 2010 at 5:28amI thought Obama wanted to be like Europe. Looks like he missed his chance.
Report Post »A Doctors Labor Is Not My Right
Posted on November 13, 2010 at 5:28amThere is no global economy. We are responsible for our own economy, and every other country is responsible for its economy. No other country has an obligation to care about the American economy, and America has no obligation to care about any other country’s economy.
We have an obligation to make good on our debts to individual countries, but not to their economies as such.
Just understand that a large, and growing, number of us understand that America has been hijacked by Marxists, and we don’t want them to spend so much, but they’re doing it against our will.
Report Post »benrush
Posted on November 13, 2010 at 6:27amYou are correct: there is no collective global economy. There are only millions of individual economies and each individual has a responsibility to manage their own. This is the arena where the power of the individual is fully played out. The role of the federal government should be to observe and record, but not to interfere. Central planning doesn’t work for reasons Hayek makes very clear in The Road to Serfdom.
Report Post »Mister President
Posted on November 13, 2010 at 7:43amObama has no control whatsoever over what the Fed does. No one really does, other than Ben Bernanke – he’s like an emperor of money; the other bankers can dissent and speak out, but they always vote with the chairman. That’s the problem. The Fed is not subject to the Congress or any branch of the Federal government controlled by the people. The Fed isn’t even really constitutional. Ron Paul should be put in place to scrutinize the Fed, if not oversee the disbanding of the Fed.
Report Post »Promotefreedom
Posted on November 13, 2010 at 2:00pmNarcissists are NEVER wrong. Someone else is ALWAYS to blame.
ozz
Posted on November 14, 2010 at 2:46amTariffs bad?!?! WRONG!! Free trade is bad. It rewards American businesses that send their factories over seas for slave labor. Protective tariffs are a good thing. We need tariffs. Bring back American manufacturing and watch our econ grow. God these people are morons.
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