Nov. 13, 2010 The World Leaders arriving at the G-20 Meeting in the Japanese city of Yokohama after meeting in South Korea where the currency dispute broke out with China.
Free trade is a hot topic in this round of talks and how to grow the world’s economy with the group known as APEC – the Asia Pacific Economic Co-Operation.
Today Saturday November 13, 2010 the talks are expected to concentrate on a treaty called the TPP -the Trans Pacific Partnership. More trade treaties are written which join the global community but as far as fairness in the dealings the US is not gaining economic ground. China’s manipulation of its currency and refusal to open its markets to American goods is causing a trade imbalance which is harming the United States.
With billions of dollars at stake the US buys more exports from China, than China buys from the United States and President Obama failed to open the doors as have other US Presidents to their 1.5 billion consumers.
It appears that the US has lost the trust of the global community in handling its own financial affairs and still has not put its house in order financially. Today two years after the meltdown in 08, more Americans face foreclosure by banks who are forcing homeowners, out of their homes without documentation.
The trade treaties do not prevent other countries from not buying US goods but the Asia Pacific countries expect the US to open their markets, after all Americans consume more imported goods including food than any other country.
Another country, another photo op for the President but hardly any solid results in correcting the trade imbalances and pumping up the economy at home.
Meanwhile protesters are arriving in Yokohama to set up camp to protest the world globalization as they did at the last summit in Toronto Canada. The cost to Canadian taxpayers for that G-20 was 1 billion dollars which the Harper government could ill afford. Governments are still spending like drunken sailors while taxpayers are being taxed more each year, which puts less money in the economy for businesses to be profitable.
To-date Obama has traveled to four countries to peddle US goods from India, South Korea, Japan and Indonesia stating he has “deepened friendships” however that does not translate into jobs or dollars for the US economy. This was not a “friends” tour but seriously the security of America is financially at risk as well as its future prosperity.
There is a trade imbalance and the fact that China’s trade surplus is 3% this year has more to do with American’s tightening their belts and buying less from China due to the recession. The United States should consume less of China’s products and export more to other trading partners.
China’s currency has risen 25 percent over the US dollar and calls for China’s dollar to become the world currency have not gone unnoticed by the world. China after all has the money to call the shots now that the US is in a financial ruin of its own making and of which it has not recovered. The old saying ” always hit your enemy when they are at their weakest” fits the current economic situation. But if China continues on it’s path to become the world’s leading currency the Americans are too busy fighting each other to do anything about it.
Tags: World Leaders Meet in Japan for another G-20 Meeting, Obama making Friends-does not bring home the bacon, economic treaties and trade imbalances, China’s Currency manipulation, President Obama globe trotting, economy, global economy, globalization.