Busted: Bankers and The Global Economy

February 3, 2009

EU Complains about US Protectionism

made-in-usaAt a time when global job loss in 2009 is expected to top 51 million, the European Union is complaining about the protectionist policy exhibited in the recent stimulus plan heralded by President Obama. U.S. economic output has further contracted by 3.8% in the last quarter of 2008. President Obama has announced a new task force to look after ‘middle-class American families’, to be headed by Vice President Joe Biden. This task force is designed to work on creating well-paid jobs for middle-class working families in America. In line with that thinking, the current stimulus legislation contains a clause seeks to ensure that only U.S. iron, steel or manufactured goods are used in projects.

The reality remains that most of the stimulus money in the current plan is designed to support the government and state safety net for government activities, benefits and the disadvantaged over actual economic business stimulus. Still globalist politicians consider that the precedent set in the stimulus bill is policy that encourages nothing less than more protectionistic policies in future at a time when the global economy is in tailspin.

Many would reason that at times like this, any domestic government should encourage the consumption of home produced goods. Globalist leaning politicians and lobbyists don’t color their world in such a way.

The EU is threatening to file a complaint with World Trade Organization about the protectionist policy and are considering other retalitory moves against the U.S. The reality is that the brain trust at the EU realizes that their options are quite limited as far as dealing with the new trade direction that the U.S. seems to be taking, but see their only option as taking it up with the watchdog WTO. Many foreign trade partners are fearful of President Obama dismantling the NAFTA agreement which gives them preferential treatment in trading while continuing to put the economy of the United States at a disadvantage during a time of record economic heartbreak in the U.S. For decades, the United States has quietly supported a global expansionist policy. Now the support is in question during dark economic times. Where the Obama administration really stands regarding ‘free trade’ is in question as concern and fear rises among foreign powers and authority. ~ E. Manning

For those wondering about the health of the U.S. economy, the Federal Reserve has extended the date of all expiring liquidity programs through October 30, 2009 in an effort to improve the ailing economy. They will have the privilege of extending the programs again when October comes around barring better ideas.

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