President Obama backs down over EU trade war threat

[ThinkTank]

Apparently, stimulating the USA's economy would have bad affects on the world.


http://www.timesonline.co.uk/tol/new...cle5655115.ece


The European Union warned the US yesterday against plunging the world into depression by adopting a planned “Buy American” policy, intensifying fears of a trade war.
The EU threatened to retaliate if the US Congress went ahead with sweeping measures in its $800 billion (£554 billion) stimulus plan to restrict spending to American goods and services.
Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that “history has shown us” where the closing of markets leads — a clear reference to the Depression of the 1930s, triggered by US protectionist laws.

Last night Mr Obama gave a strong signal that he would remove the most provocative passages from the Bill.
“I agree that we can’t send a protectionist message,” he said in an interview with Fox TV. “I want to see what kind of language we can work on this issue. I think it would be a mistake, though, at a time when worldwide trade is declining, for us to start sending a message that somehow we’re just looking after ourselves and not concerned with world trade.”
Mr Brown does not want to join criticism of President Obama’s stimulus proposals, which he sees as vindicating his own, but the Prime Minister remains strongly anti-protectionist, resisting calls yesterday for more safeguards for British workers.
Trade unions demanded a tightening of the law on the use of foreign workers as hundreds again walked out at the Lindsey oil refinery in protest at the hiring of Italian and Portuguese workers, and energy workers around the country followed suit.
A spokesman for the Prime Minister refused to condemn the “Buy American” clause. When pressed, the spokesman said that Mr Brown had repeatedly made clear that he was opposed to protectionist measures. He would not say, however, whether Britain was lobbying the new Administration to drop the clause.
Mr Brown remained in favour of President Obama’s decision to inject cash into the economy. “We are supportive of the approach in the US in terms of their fiscal policy.”
The EU warnings came in letters to US political leaders in Congress, Timothy Geithner, the Treasury Secretary, and Hillary Clinton, the Secretary of State. Mr Bruton urged them to respect the decision taken by the G20, the world’s leading economic nations, in Washington last November to resist protectionism as a defence against the crisis. They are expected to meet again in London in April.
“Failing this risks entering into a spiral of protectionist measures around the globe that can only hurt our economies further,” he wrote.
“Open markets remain the essential precondition for a rapid recovery from the crisis, and history has shown us where measures taken contrary to this principle can lead us.”
Under the “Buy American” clause passed by the US House of Representatives, American iron and steel must be used in construction projects that form part of the recovery plan. The US Senate wants to extend the scope of the clause before the Bill goes to the White House for approval.
The European Commission’s powerful trade department, a bastion of open markets formerly headed by Lord Mandelson, said yesterday that the “Buy American” clause was “the worst possible signal” that could be sent to world trade.
A spokesman said: “We are particularly concerned about the signal that these measures could send to the world at a time when all countries are facing difficulties. Where America leads, many others tend to follow.”
The Commission believes that the US move would violate international trade rules policed by the Geneva-based World Trade Organisation (WTO). The Commission also made clear that it was keeping an equally vigilant eye on protectionist moves within Europe as France prepared to insist that its motor manufacturers buy their parts only from French companies.
The White House later moved to clarify Mr Obama's remarks. Press secretary Robert Gibbs said that the president wanted the stimulus Bill to co-ordinate help for American workers with concerns for the world economy.
"The balance he wants to strike is to continue to get the economy going without unnecessarily starting something with our trade partners all over the world that will hinder [that process]."
Asked if that meant there would be a 'Buy American' component in the legalisation, Mr Gibbs replied: 'I'm not a trade lawyer.

What do you think about this?

[TattooKenny]

It's the start of the "New World Order"......

[Karadjas]

Trade wars have been happening for years. Anyone remember the banana war?

[JohnRobHolmes]

Protect ourself and we are shooting the rest of the world. Protect the rest of the world and we are shooting ourselves.


If we have increased protection of imports, we will see our prices increase however. It really is a zero sum game.

[Reflection]

Originally Posted by JohnRobHolmes

Protect ourself and we are shooting the rest of the world. Protect the rest of the world and we are shooting ourselves.


If we have increased protection of imports, we will see our prices increase however. It really is a zero sum game.

True. There's got to be a happy medium. I feel we do need more trade inside the US to help our economy.

That,and no more handouts to those sitting on their thumbs at home.

[JohnRobHolmes]

Our economy could be helped in a lot of other areas too. $40 billion will be spent on the drug war this year, and no telling how much illicit drug running makes for gangs and bosses. I bet legalizing and taxing just MJ could just about turn our economy around.

[4u2nv]

Originally Posted by JohnRobHolmes

I bet legalizing and taxing just MJ could just about turn our economy around.

That's true right there... tax the hell out of it like cigarettes and liquor. Should bring in some coin!

[TattooKenny]

They are doing it on our cigarettes now.....in my state they just went from $3.20 a pack to $5.00 a pack Boozs, cigarettes, ammo, gas, ect..... Watch JIA's video he just posted, they have a bill out to tax cow farts! Yea, cow fart

[ThinkTank]

Originally Posted by JohnRobHolmes

Protect ourself and we are shooting the rest of the world. Protect the rest of the world and we are shooting ourselves.


If we have increased protection of imports, we will see our prices increase however. It really is a zero sum game.

I would like to know what the Europeans are doing to help America's economy.

Originally Posted by JohnRobHolmes

Our economy could be helped in a lot of other areas too. $40 billion will be spent on the drug war this year, and no telling how much illicit drug running makes for gangs and bosses. I bet legalizing and taxing just MJ could just about turn our economy around.

Not to mention put some drug lords out of business.

[MCSCOTT]

Originally Posted by JohnRobHolmes

Our economy could be helped in a lot of other areas too. $40 billion will be spent on the drug war this year, and no telling how much illicit drug running makes for gangs and bosses. I bet legalizing and taxing just MJ could just about turn our economy around.

Exactly, because before long it's going to be cheaper for me to smoke MJ than cigarettes. Legalizing it could bring the prices down, which would be a huge cut in $ to the criminals, while at the same time even with lower prices there would still be enough to make a ton in taxes.

They can't do this on all drugs, but alot of your small time pushers out there only sell MJ and don't want to mess with anything harder. However there's really no good way to predict it because it could go either way. It could push those small time pushers into having to sell something harder to make $, or it could cut that kinda crime by putting them out of business.

As for the buy import subject, I said when this first came up it would be nearly impossible. I've seen companies for the last several years choosing to send certain aspects of their processes out of state due to EPA laws, and several other reasons that the cost of production is cheaper. By sending all of these processes out of the country, that means they are no longer made here. How can they expect the stimulous money to be spent in this country when alot of the items needed are no longer made in this country?

[JohnRobHolmes]

While some dealers may be turned to harder drugs to make money, the numbers of hard drug users won't go up to support extra dealing. Either illicit drug prices will drop, or "dealing" as a whole will see a net decrease because of the removal of MJ from the black market. The only way a black market will survive is if the taxation is high enough that it becomes profitable to sell under the table and avoid taxation. Bootleg Weed.


Either way there will still be a huge decrease in revenues to gangs, and an increase of revenue that stays in OUR hands, on top of freed law enforcment resources. Now if the old MJ pusher was crafty, he would open up a legitimate shop or buisness to continue selling as a legal enterprise.


Don't get me wrong. I am not supporting the use of MJ here, but I do see it as as victemless "crime" right now that is being regulated improperly. If my neighbor wants to ingest the substance, I really don't care as long as it doesn't affect me negatively. Really, I can't remember the last time I was harrased by a pothead. Now drunkard, I can recall many encounters that were negative.

[Reflection]

Originally Posted by TattooKenny

Watch JIA's video he just posted, they have a bill out to tax cow farts! Yea, cow fart

Ridiculous. I heard about this a long time ago. My Dad has a small heard of beef cows. He just put 2 in the freezer at the house and hauled off several. After figuring it,he would be taxed more than the beef would bring in. You can thank all the freakin tree huggers for that.