Have the world leaders killed the goose that laid the golden egg?
Asked by: forexsheet 115 views
http://news.yahoo.com/s/ap/20101111/ap_on_bi_ge/as_economic_summits
Specter of trade war looms as G-20 nations gather
Richard Portes, president of the Center for Economic Policy Research in London, … said he fears "the possibility that currency wars and global imbalances might lead to severe trade protectionism over the next year or so."
…the G-20 countries are …finding no common ground on the most vexing problem: how to address 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.
President Barack Obama told fellow leaders that the U.S. cannot just keep borrowing lavishly and sending its money overseas. It needs other countries to buy more exports from the United States and elsewhere so Americans can afford to buy other countries’ goods, he said.
"The most important thing that the United States can do for the world economy is to grow, because we continue to be the world’s largest market and a huge engine for all other countries to grow," Obama said at a news conference in Seoul.
But Brazil’s president, Luiz Inacio Lula da Silva, warned that the world would go "bankrupt" if rich countries reduced their consumption and tried to export their way to prosperity.
"There would be no one to buy," he told reporters.
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For the past 30 years, the USA has sustained a growing trade deficit that has fueled the economic growth of other nations. Those nations have grown fat by scavenging the prosperity from the USA.
But job outsourcing and H1b visas have displaced a large portion of high-tech professionals from their employment, which was the highest income segment of the middle class. Because of that, the USA is losing its ability to be the market for the world.
Even President Obama acknowledges that we can not sustain our massive trade deficit indefinitely.with borrowed money. But when he speaks of weaning off the foreign exporters and expecting them to stand on their own feet economically, they howl in protest.
There is no one to buy because there is no money. Is that because the free traders have killed the goose that laid the golden egg – the middle class?
Edward, BINGO!!! How can Obama possibly be this dense????
Is he really dense? Or is he intentionally wrecking the economy?
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