Trade Goals are Stymied at G-20 Summit in Seoul

(USA Today) Currencies, cars, and cows all blocked U.S. administration goals in bilateral meetings ahead of the Group of 20 summit of the world's top economies that kicked off Thursday night in the South Korean capital.  President Obama and Chinese leader Hu Jintao spent most of their 80-minute huddle discussing the often contentious issue of the Chinese yuan, White House press secretary Robert Gibbs said.  But no breakthrough emerged on faster appreciation of a currency Washington says is deliberately undervalued to aid Chinese exporters.  Despite extensive, last-minute negotiations, Obama and South Korean President Lee Myung Bak announced that a long-awaited free-trade agreement still needs work.  The sticking points: greater market access for U.S. automobile and beef exports to Korea, U.S. Trade Representative Ron Kirk said.

According to Fox News, the group of 20 meeting of leading rich and developing nations ended Friday in South Korea with no solutions to longstanding tensions over trade and currency.  The U.S. couldn't persuade other countries to pressure China to stop manipulating its currency or limit their own trade surpluses and deficits.  The U.S. was charged with doing some currency manipulation of its own by pumping $600 billion into its economy.  Eswar Prasad, Professor of trade policy at Cornell University, said trade disputes could intensify.  He worries that there may be more "open conflicts on currency matters."  He's in essence implying that more explicit forms of protectionism could set back this "global recovery".  It was considered a diplomatic setback for the United States.  Last week the Federal Reserve stated that it would pump $600 billion to jolt the U.S. economy back to life.  The Fed says it plans to buy treasury bonds to lower long-term interest rates, spur economic growth, and create jobs.  Consequently, the Fed's intent to monetize the debt could hike inflation and in doing so could wipe out our economy.  However foreigners saw a more sinister intent: to flood world markets with dollars, driving down the value of the U.S. currency and giving U.S. exporters a price edge. 

One of the things that was evident during this G-20 summit in Seoul is that the world leaders such as Germany, China, Japan, to name a few, view America as devoid of leadership.  They don't have confidence in America's economic policies.  America is buried in debt over $13 trillion and ever growing.  There are no real signs that our political leaders are serious about reducing unnecessary spending.  We have the man-child of the universe who appears to be clueless when it comes to economic issues.  President Obama has never owned a business nor met payroll.  He's worked in the government all his life whether it be community organizer, state legislator, U.S. Senator, or president.  The United States isn't in control of its economic destiny.  The Federal Reserve controls the United States' economic destiny.  The Fed is the one responsible for pumping $600 billion into our economy.  The Fed is the one who's responsible for trying to monetize our debt.  The Fed is unconstitutional.  Nothing was solved in regards to the United States' trade deficits.  Unless we renegotiate some of our trade agreements, then the manufacturing base in the United States isn't going to recover.  If we have any hopes of reigning in spending and reducing the debt, then America needs to regain its manufacturing base.  It will be the jobs that are created through the private sector which will enable new revenue to be collected from the government.