1. Interesting headline: Instead of "US Economic View" etc, the Times has personalized it to seem as if it is the president's personal view.
2. China, Britain, Germany and South Korea are the culprits. China is understandable it is not our "ally" but a revolt in the client states bodes ill for the empire.
3. BO (the US) wants to procure economic growth before reducing deficits. This core strategy is being outright rejected by other world leaders. This is a first for an American president at a G20 meeting.
4. The other leaders are upset over the Federal Reserve's devaluing the dollar and accuse the US of doing so to make the rest of the world pay for the American trade deficit instead solving its problems by decreasing spending at home. Nice try, but no cigar.
5. Here is what China told the US-- since the dollar is the world's reserve currency (for the time being) the US should consider the "global economy" not just its "national circumstances." Right. BO is supposed to come home and put US national interests second to those of China and others. That's a lead balloon if ever there was one.
6. Greenspan agreed that we were weakening the dollar to make the rest of the world pay for our mistakes!
7. Geithner denied this, saying we would never do that just "to gain competitive advantage."
8. Many other "big" powers see it Greenspan's way! The leaders of the UK (PM David
Cameron) and Germany (Chancellor Angela Merkel) dismissed BO's plea for stimulus spending and favored austerity.
9. This whole G20 disagreement is between the capitalists of the US and their allies (plus China) on how to get the world economy out of the doldrums but to the advantage of capitalists. BO's plan would favor American workers-- stimulus = more jobs-- and if the "world" follow's suit a bigger market for US goods so US capitalists also benefit.
10. The other nations reject this and want to help their capitalists through austerity-- balance their budgets by cutting social programs and reducing benefits to the masses of the working population and retired people. This allows for longer working hours and less taxes on the corporations to sustain benefits.
11. The US was more or less getting its way until this current G20 meeting-- the Europeans and others were reluctantly letting the US call the shots-- but the tea party takeover in our mid-term elections has weakened BO in the eyes of other world leaders so they are rejecting his leadership vís a vís the world economy.
12. The free trade accord with South Korea fell through as it was felt by BO's advisors better to return empty handed than to look as if (because he had) given too many concessions to get it signed.
13. Now that the world thinks WE manipulated the value of the dollar (as we did) to help our economy, we can't complain about the Chinese "under valuing" their currency. What's good for the goose is good for the gander.
14. The sub-text of this G20 meeting is that plans are afoot for the creation of "rules for a new global financial order" not dominated by US capital-- that will truly be a New World Order-- but not the one the US planned on. First the decline, then the fall.
Thomas Riggins is the associate editor of Political Affairs online.