Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The GET IN MAH BELLY! Lounge > D.C.

Reply
 
Thread Tools Display Modes
Old 06-23-2010, 12:18 PM  
mlyonsd mlyonsd is offline
Supporter
 
Join Date: Aug 2000
Location: Spink, SD
Casino cash: $53112
Finally some sanity. Europe to spurn Obama's plea for more spending

Europe spurns Obama's plea for more spending

FORTUNE -- President Obama wants to slow Europe's headlong rush to austerity. But right now he looks like little more than a speed bump for the cutback crowd.

Obama has sought to use the upcoming meeting of the Group of 20 global finance ministers in Canada this weekend as a rallying cry for more fiscal stimulus. He argues that cutting government spending now risks undermining a fragile recovery in debt-soaked Western economies.

"We worked exceptionally hard to restore growth; we cannot let it falter or lose strength now," Obama said in a letter to G-20 leaders last Friday.

"This means that we should reaffirm our unity of purpose to provide the policy support necessary to keep economic growth strong."

But the G-20's unity of purpose isn't what it was last year, when the global financial crisis galvanized the group to prop up the world's financial system.

Since Obama issued his call to focus on growth, German Chancellor Angela Merkel called budget cuts "urgently necessary," and European Central Bank President Jean-Claude Trichet said stronger public finances are part of a "policy which we would call confidence-building."

In the most striking contrast, the United Kingdom on Tuesday unveiled a budget that will slash real spending in many government departments by 25% over four years. Katherine Smith of economic research firm IHS Global Insight said the cuts were "truly eye-watering."

The case for cutting now is hardly ironclad. But after two years of costly government bailouts of the financial sector, the case for still more taxpayer largesse is not one many voters are eager to hear.

"Obama has been having difficulties selling that story domestically," said Stewart M. Patrick, a senior fellow at the Council on Foreign Relations in Washington. "Europe is very inward looking right now, and there are some large differences in how they see this issue."

Patrick said he expects the G-20, which comprises the leaders of 19 countries and the European Union, to issue a communique after the meeting that goes some way to "papering over the differences."

But he doesn't expect Obama to sway European leaders, despite widespread skepticism about where Europe's chosen path will lead it.

"Ultimately, any crisis of confidence in the ability of the European economy to sustain its debt reflects a lack of confidence in its ability to grow again," wrote Domenico Lombardi of the Brookings Institution, a think tank in Washington, last week.

The G-20 festivities will open Saturday. Check back at Street Sweep, my blog on Fortune, for updates. Other items on the agenda will include:
Bank taxes. At the G-20's last meeting, earlier this month in Korea, nations including Brazil, Canada and Japan scotched plans to impose a global bank tax, noting that their banks didn't require government aid in 2008.

But the G-20 said the financial sector "should make a fair and substantial contribution towards paying for any burdens associated with government interventions."

Accordingly, the bank tax is very much alive in the U.S. and other countries hit by the meltdown. The U.K. said this week that it, Germany and France are moving ahead with their own bank-tax plans.

The Obama administration proposed a tax on bank liabilities in January, in a bid to raise $90 billion to pay for past bailouts.

Bank regulation. As the U.S. financial reform push enters its late stages, policymakers around the globe are trying to coordinate their approaches to bank oversight and planning to strengthen rules governing how much money financial institutions must hold against future losses.

"We need to reach agreement internationally on reducing leverage and raising capital requirements, improving both the quantity and quality of capital," Treasury Secretary Tim Geithner and White House economic czar Larry Summers wrote in an op-ed in The Wall Street Journal Wednesday.

China. The value of the yuan was set to be the headline topic of debate until the People's Bank of China spoiled the bash. The PBoC said Saturday it would allow the currency to float more freely within a preset band. Commentators applauded the savvy politics of the move, which is expected to have little immediate economic impact.

That said, China's management of its trade relationships remains a touchy issue in the United States and Europe, which are struggling with high unemployment.

Many commentators believe trade tensions will only increase in the second half of 2010 as U.S. growth slows and excitement about China's revaluation move fades.

Global economic imbalances. Perhaps the most intractable problem facing the G-20 is the need to change economic policies not only in deficit nations but also in those running big surpluses.

It is easy to counsel belt-tightening after a long run of profligacy, as seen in the United States. But what to do about Germany, which has been running a large trade surplus yet intends to cut its spending anyway?
"There is a need to move toward rebalancing," said Patrick. "But every country has different domestic political demands, and that is what drives decision making."

Rightly so -- which is why some critics are wondering just what the point of the G-20 is, anyway. Like all the other questions, don't expect that to be resolved this weekend.

http://money.cnn.com/2010/06/23/news...dex.htm?hpt=T2
Posts: 24,791
mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.mlyonsd is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 12:21 PM   #2
ClevelandBronco ClevelandBronco is offline
Banned
 
ClevelandBronco's Avatar
 

Join Date: Sep 2006
Casino cash: $159211
When Europe is offering lessons in fiscal restraint you know we've gone over the falls.
Posts: 20,125
ClevelandBronco has disabled reputation
  Reply With Quote
Old 06-23-2010, 12:58 PM   #3
BucEyedPea BucEyedPea is offline
BucPatriot
 
BucEyedPea's Avatar
 

Join Date: Apr 2006
Location: None of your business
Casino cash: $105082
I posted about this elsewhere. Who woulda thought Europe would go American?!
__________________
“Experience should teach us to be most on our guard to protect liberty when the Government’s purposes are beneficent. Men born to freedom are naturally alert to repel invasion of their liberty by evil-minded rulers. The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.” — James Madison
Posts: 55,753
BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 01:00 PM   #4
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $258120
Quote:
Originally Posted by BucEyedPea View Post
I posted about this elsewhere. Who woulda thought Europe would go American?!
Amazing what one witnesses in their lifetime.
__________________
"Finally, anyone who uses the terms, irregardless, a whole nother, or all of a sudden shall be sentenced to a work camp."

Stewie Griffin
Posts: 64,402
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 01:03 PM   #5
Chief Faithful Chief Faithful is offline
Predicting Chiefs Victory
 
Chief Faithful's Avatar
 

Join Date: Sep 2001
Casino cash: $41796
The current Congress and Administration is over spending at a rate that 25% real cuts would not be enough.
Posts: 4,265
Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.Chief Faithful has just been standing around suckin' on a big ol' chili dog.
  Reply With Quote
Old 06-23-2010, 01:03 PM   #6
BucEyedPea BucEyedPea is offline
BucPatriot
 
BucEyedPea's Avatar
 

Join Date: Apr 2006
Location: None of your business
Casino cash: $105082
Quote:
Originally Posted by petegz28 View Post
Amazing what one witnesses in their lifetime.
Even the Russian news organ Pravda has been scolding us over falling more into socialism. Meanwhile, banyon foams at the mouth about us becoming more socialist.
__________________
“Experience should teach us to be most on our guard to protect liberty when the Government’s purposes are beneficent. Men born to freedom are naturally alert to repel invasion of their liberty by evil-minded rulers. The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.” — James Madison
Posts: 55,753
BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.BucEyedPea is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 01:05 PM   #7
vailpass vailpass is online now
Yah Mules!
 
vailpass's Avatar
 

Join Date: Sep 2001
Casino cash: $99234039
All while the Dems can't come up with a frigging budget.
How do we get President Clownshoes, Piglosi and Reid out of office? Can we call a special election?
Posts: 36,461
vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.vailpass is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 01:09 PM   #8
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $258120
Quote:
Originally Posted by vailpass View Post
All while the Dems can't come up with a frigging budget.
How do we get President Clownshoes, Piglosi and Reid out of office? Can we call a special election?
This is a good point. At a time when Europe is straining to get their budgets under control, Obama is championing more spending and the Dems don't want to even produce a budget.
__________________
"Finally, anyone who uses the terms, irregardless, a whole nother, or all of a sudden shall be sentenced to a work camp."

Stewie Griffin
Posts: 64,402
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 06-23-2010, 01:33 PM   #9
HonestChieffan HonestChieffan is online now
Country Santa Year Around
 
HonestChieffan's Avatar
 

Join Date: Jan 2006
Location: In the Country in MO
Casino cash: $1262212
Quote:
Originally Posted by petegz28 View Post
This is a good point. At a time when Europe is straining to get their budgets under control, Obama is championing more spending and the Dems don't want to even produce a budget.
And he has the gall to suggest economic policy to them. Ego out of control.
__________________
Frazod to KC Nitwit..."Hey, I saw a picture of some dumpy bitch with a horrible ****tarded giant back tattoo and couldn't help but think of you." Simple, Pure, Perfect. 7/31/2013

Dave Lane: "I have donated more money to people in my life as an atheist that most churches ever will."

Come home to Jesus Dave. Come home.
Posts: 27,630
HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.HonestChieffan is obviously part of the inner Circle.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -6. The time now is 02:10 PM.


Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.