Who bennefits from Obama's Stimulus Bill?

[Krustee]

I posted some comments in another thread about the "Buy American" provisions in the Obama stimulus bill.

The following articles, I found to be a good read on the subject.

"I come to Berlin as so many of my countrymen have come before. Tonight, I speak to you not as a candidate for President, but as a citizen - a proud citizen of the United States, and a fellow citizen of the world." –Barack Hussein Obama, speech at Berlin's victory column on July 24, 2008 (see speech)

Wait a minute didn’t you think the Stimulus bill was about America? I was foolish enough to think that too.

You know strengthening America, creating American jobs and improving the American economy, well maybe not. Apparently the European Union has something to say about what’s in the Pelosi Obama stimulus package. (see story)


First of all, somebody please tell me why the European Union is getting in America’s Kool-aid? (hand on my hip)

I hope it doesn’t have anything to do with Obama’s pre-Presidential “People of the world…” tour. Do you think Obama was signaling to the world that if he were elected they would be able to join in with our Congress to legislate American laws? Certainly looks like it. It’s like the European Union is all up in America’s business.

Personally I think that the EU should step-off and mind their own business but apparently not the president.
The EU spokesman said Europe would launch a complaint with the World Trade Organization (WTO) if the clause [Buy American] remained.
Under the “Buy American” clause passed by the US House of Representatives in the stimulus bill, American iron and steel must be used in construction projects that form part of the recovery plan. This is perhaps one of the few good things in this stimulus package. And the US Senate wants to extend the scope of the clause before the Bill goes to the White House for approval.

But the citizen of the world who is now the President of the United States is indicating that he has heard the people of the world of the European Union and he will remove the Buy American clause (which Congress wrote in the stimulus bill specifically to help the American economy) from the stimulus package to satisfy his fellow world citizens particularly those in the European Union.(see story)

Now I know that international relations are complicated but shouldn’t the President of the United States be concerned first with America’s interest? Like all those good middle class jobs that would be created under the buy American clause of the Stimulus bill.

And here’s another thing why is it when a nation focuses in on its own economic health and well-being the international types start throwing around pejoratives like protectionist, xenophobic, and nationalistic.

Ladies and Gentleman we’ve just witnessed the European Union dictating United States policy and the President of the United States acquiescing to their demands.

That is not the behavior of a sovereign nation. I hate to be the bearer of bad news but we are no longer a government, of the people by the people and for the people.

No we are but one of many satellite nations governed by both the G20, the world’s leading economic nations and the World Trade Organization. And here’s the worst part, our newly elected President and Congress are puppet rulers whose first allegiance is to the one world economy.

…You did vote for change didn’t you?

http://creatingorwellianworld-view-...2009/02/eu-attack-americas-stimulus-bill.html

 

[LightBearer]

It benefits Wall st and there stranglehold on the US economy and Obama is leading the charge. I see all these beady-eyed Obamanoids, they look like an innocent puppy right before master stuffs puppy in a bag and tosses it into a river. Wake up.

 

[Krustee]

Here's more:

Does 'buy American' send the wrong message?
An economic stimulus package clause raises concerns of repercussions by US trading partners.
By David R. Francis

Many officials in the United States and abroad fear the global economic slump will revive protectionism. The immediate cause for concern is a "Buy American" clause in the $900 billion economic stimulus package now moving through Congress.

A probable casualty of the recession already is the Doha Development Round. The goal of these worldwide negotiations, started in 2001, is to further reduce barriers to international trade and commerce.

But this round just went into "a deep freeze," says Harald Malmgren, a Washington economic consultant who helped negotiate the successful 1964-67 Kennedy Round of trade talks. It's "virtually impossible" to liberalize trade in a synchronized world recession, he adds. World trade and shipping are now declining.

In an attempt to revive the stalled Doha talks, key trade ministers met last month on the sidelines of the World Economic Forum in Davos, Switzerland. But the private session "ended in acrimony," says Mr. Malmgren.

Afterward, Pascal Lamy, director-general of the World Trade Organization, issued a statement expressing hope that an April 2 meeting in London of the Group of 20, which includes the world's biggest trading nations, will "provide further impetus" to the negotiations. Malmgren suspects the talks have been frozen so often they have "freezer burn," and will be just dumped in the garbage.

Whatever the case, Americans are still buying substantially more foreign goods and services than they are producing and selling abroad. The US current account, the broadest measure of international commerce, was about $700 billion in the red last year. This amounts to almost $2 billion a day. That deficit is "clearly unsustainable," says Charles McMillion, a Washington economic consultant. He calls for direct action to reduce imports and describes the Buy American clause in the stimulus package as "absolutely essential" to creating more jobs at home.

In contrast, a bipartisan report by 22 of the nation's top trade experts was distributed to key members of Congress last week in an attempt to persuade them that protectionism would damage US interests and could stir up countermeasures by US trading partners.

Last Tuesday, a spokesman for the European Community called the Buy American provision the "worst possible signal" that President Obama's new administration could send out. Canada's ambassador to Washington similarly warned that passage of the clause could prompt global repercussions. The Canadian economy is highly dependent on trade with the far larger US economy for its prosperity.

The Buy American provisions would perhaps save 1,000 jobs in a country with 140 million workers, says Jeffrey Schott, an economist at the Peterson Institute for International Economics in Washington. "Why take such big risks [of prompting a trade war] for little or no gain," he wonders.

Mr. Schott wrote most of the trade section in the 12-page Trade Policy Study Group report intended to help Mr. Obama understand world trade issues and proposed solutions. During the election campaign, Obama spoke of a need for renegotiating the North American Free Trade Agreement and talked much of "fair trade." Such statements prompted concerns he might be inclined toward more protectionism.

Yet his appointment of key economic officials with strong free trade credentials, some from the Clinton administration, prompted consternation among some advocates of a tougher American trade policy.

Both Mr. McMillion and Schott reckon the US will have to be sterner with China. The charge is that China manipulates the value of its currency, the yuan, in order to have a price advantage in selling goods to the American market. The trade group report states the yuan is "substantially undervalued."

But Mr. Malmgren maintains that the Chinese economy is no longer growing. Its exports and imports are collapsing in reaction to the world recession. China's top economic policymakers, his high sources tell him, are divided on what to do to revive the nation's economy in addition to a $600 billion stimulus package.

"The China threat is over," he says.

Malmgren's main concern is that China will use a large chunk of its perhaps $2 trillion in US Treasuries to finance another domestic rescue package, putting upward pressure on US interest rates.

Meanwhile, a huge trade deficit continues. From 2001 to 2008, the European Union, Japan, and Canada sold the US $1.9 trillion more than they bought. China's surplus has been about as big.

In order for the US trade deficit to shrink to a more manageable level, its trading partners will have to make concessions in future trade deals, says McMillion.

http://www.csmonitor.com/2009/0209/p15s01-wmgn.html

At the World Economic Forum the fears were voiced over the protectionist measures proposed by Britain, France & America.

The argument from each country of course was that if the taxpayer is going to bailout these institutions they want guarantees they will see the benefits of their money in the local economy & not send jobs outside the country.

How do they reward the taxpayers who have been burdened with spending their tax dollars on bailing out institutions & not upset the many trading partners the US has? The largest trading partner being CANADA!

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