German Chancellor Merkel Defies Obama, Just Says No to Kenseyian Economics & More Stimulus

Just days after Obama pleaded with Europe to go further down the rabbit hole into debt, German chancellor responded with a Hell no. Apparently, Europe has learned the lessons from what happened to Greece better than Obama has:

Europe will push for a swift exit from fiscal stimulus programs and a focus on budget consolidation at the G20 meeting next week, German Chancellor Angela Merkel said on Saturday.

"European participants are of the opinion that this is urgently necessary to prevent such crises from happening again in the future," Merkel said in her weekly podcast.

As Ed Morrissey explains, this is going to put Obama and the US, as a whole, in a different role than we're used to fulfilling. We'll be taking a back-seat to Europe regarding financial matters instead of a leading role:

It’s a strong rebuff to Obama, who explicitly asked the EU to continue its stimulus spending despite the debt issue in the US reaching a critical stage.  It puts the Obama administration to the left of Europe on economic policy, never a comfortable political position in the US.  With the Europeans abandoning big-spending programs in order to start whittling down the massive debt piled up from decades of social spending and weak economic growth, there will be less enthusiasm for continuing to ignore the American national debt in favor of make-work projects in the US that has done little to lift the economy here.

Furthermore, the divide threatens to weaken American economic leadership in the G-20 if Obama insists on pursuing big-spending programs and increasing American debt.  Europe will see that as a sign that the US has not learned any lessons from the Greece failure, and that the Obama administration wants to follow the Greeks into collapse.  We’re becoming a bad bet, and the EU knows what that looks like.

Are we living in bizzaro world? Has the United States started moving to the left of Europe? The European Union has seen right there in their own backyard with Greece what happens when deficit spending and debts run amock, and their not wanting to see the sequal in their own countries. So, they've decided to go back to black instead of diving deeper in the red as Obama seems determined to do.

Europe has been inching to the right for a while now. With the election of more center-right candidate like the German Chancellor Angela Merkel, Europe has seemed to have seen the error in their socialist ways, for now. Will Obama learn from their mistakes? Doubtful. Apparently, he won't believe them that the iron is hot. He's going to burn his hand learning that drowning in debt is no the way to dig ourselves out of this economic and financial hole that both parties have dug ourselves into. Hopefully, the upcoming conservative wave that should hit Washington in November will turn things around, and we'll focus back on the getting rid of the debt instead of adding to it.

RINO California Governator "Happy" About Reckless Deficit Spending on Illegal Immigrants

Um, Arnie, isn't this kind of free spending what got your state on the edge of bankruptcy in the first place. How can you say that you're "happy" about it:

Gov. Arnold Schwarzenegger says he's "happy" illegal immigrants get state services and says they're not to blame for California's $24.3 billion budget gap.

Top US Trading Partners Worried Over Obama, Democrats' Protectionist Policies

Last week, it was reported that Canadian officials have already started to fight back against possible American protectionism. Now, other European countries seem to be considering joining Canada in the trade war against Obama and the Democrats' "Buy American" provisions:

America's largest trading partners are warning that protectionist moves by Congress could poison global trade relations, despite President Barack Obama's assurances that he wants to keep U.S. markets open.

Businesses in the European Union and Canada complain they have been shut out of U.S. markets because of the "Buy American" provision in the massive stimulus bill, passed in February, which requires the use of U.S.-manufactured products.

EU and Canadian officials worry the practice is widening, as Congress is considering adding similar measures to other spending bills.

Here we go again. I'm getting flashbacks to the 1930's when Hoover and FDR's administrations implemented protectionist policies that deepened the depression and made it last years longer.

Labor unions are hugely in favor of this economically destructive policy. Since the Democrats are so beholden to the unions, they have no choice but to pass the protectionist policies to keep the unions happy no matter how bad it would be for the rest of Americans or the world. Unions drove GM and Chrysler into bankruptcy. Ford and the airline industry may not be far behind. The teacher's union is partly responsible for the decline in our kids school grades and the mass exodus from public schools to private schools. Now, they want to ruin the rest of the country.

Biden Pleads With Europeans "Give Us A Chance"

'Give us a chance,' Biden tells G20 protesters
Mar 28 01:38 PM US/Eastern

US Vice President Joe Biden on Saturday called for tens of thousands of protesters already on the streets of Europe ahead of a G20 summit next week to give governments a chance to tackle the economic crisis.

"I would hope that the protesters give us a chance, listen to what we have to say and hopefully we can make it clear to them that we're going to walk away from this G20 meeting with some concrete proposals," Biden said at a news conference after a meeting of center-left politicians in Chile.

Copyright AFP 2008

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http://www.breitbart.com/article.php?id=CNG.fcf7d52916b4b8d5cd940c4df33235a1.791
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My Thoughts

The problem with Biden's plea is that the people of Europe have heard the socialist propaganda for decades. They see where it takes them, and it is not success and prosperity. It will stifle growth and keep their economy figuratively stuck in the mud with their wheels spinning in vain. They are tired of it.

EU Leaders Led by Germany's Merkel: Rejects $2 Trillion Stimulus, Says "Enough Is Enough"

Brown snubbed over tax Germans wreck ‘global new deal’
From The Sunday Times
March 29, 2009

Jonathan Oliver and Bojan Pancevski

GORDON BROWN’S carefully laid plans for a G20 deal on worldwide tax cuts have been scuppered by an eve-of-summit ambush by European leaders.

Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

“I will not let anyone tell me that we must spend more money,” she said.

The Spanish finance minister, Pedro Solbes, also dismissed new cash being pledged at Thursday’s London summit.

“In these conditions I and the rest of my colleagues from the eurozone believe there is no room for new fiscal stimulus plans,” he said.

Nicolas Sarkozy, the French president, has insisted that “radical reform” of capitalism is more important than tax cutting.

The attacks on Brown’s ambitions for the G20 to inject more money into the world economy come at the end of a week where the prime minister has travelled to three continents to build support for his proposals.

The likely deadlock at this week’s meeting will kill any remaining hope that Alistair Darling’s April 22 budget will offer significant tax cuts.

The assault by European Union leaders also represents a defeat for President Barack Obama, who is desperate for other big economies to copy his $800 billion stimulus plan.

“There will be a very long communiqué, but there won’t be much in it,” said a Washington economist.

Adding to the disarray, a draft of the agreement Brown hopes to secure was leaked to a German news magazine, prompting suggestions of “dirty tricks” by Berlin.

The draft stated that Britain wanted a “$2 trillion” global fiscal stimulus. However, the figure appeared only in brackets, indicating agreement on the package had yet to be reached.

“We believe that an open world economy, based on the principles of the market, effective regulation and strong global institutions, can ensure sustainable globalisation with rising well-being for all,” it said.

A No 10 source expressed “disappointment” at the leak and insisted the $2 trillion figure was not new money but an expression of the total tax and spending packages already pledged by G20 members.

Privately, government officials admit that no further fiscal stimulus will be announced this week, although there will be a $250 billion package for the International Monetary Fund to help rescue struggling poor nations.

Lord Mandelson, the business secretary, said he sympathised with the concerns of demonstrators planning to disrupt the London summit. “There is understandable frustration and some anger. The global economic systems has stalled and what we have got to do is get it started.”

George Osborne, the shadow chancellor, yesterday warned Brown against further tax cuts in the budget. “When it comes to your plans for a second fiscal stimulus, I say this Gordon Brown: enough is enough,” he said in a speech. “We will not let you play roulette with the public finances yet again.”

UK officials have not given up on the idea there could be agreement on a fresh boost for the world economy later in the year. “It is likely that there will be another heads of government meeting probably in Asia in the autumn,” said an official.

“This will be the forum where the next round of stimulus will be discussed.” Brown still hopes to establish the IMF as an informal referee for international tax cuts. The plan is that the Washington-based body could advise on the timing of any future cuts.

Merkel’s criticism drew an angry response from Labour MPs. Denis MacShane, the former Europe minister, said: “Who does Mrs Merkel think is going to buy Mercedes and BMWs if she . . . says putting demand into the economy is a bad thing?” Another Labour MP said: “One has to ask who had something to gain from the leak of the communiqué. This feels like a dirty trick.”

There are growing fears that protests at the summit venue, the ExCeL centre in London’s Docklands could be marred by violence. Scotland Yard will be deploying specialist officers trained to use 50,000-volt Taser stun guns.

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http://www.timesonline.co.uk/tol/news/politics/G20/article5993184.ece
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My Thoughts

As most of Europe seems to be moving away from socialism the last few years since the beginning of the millenium, we will hopefully see more of this type of rejection of Obama's style of "stimulus". As Europe wakes up to reality, I wonder if Obama and those in our government will follow suit. Our children's future depends on it.

I Propose A Trade: EU President Topolanek For Obama

EU presidency: US economic plans 'a road to hell'
By RAF CASERT
Associated Press Writer

The president of the European Union on Wednesday slammed U.S. plans to spend its way out of recession as "a road to hell.

"Czech Prime Minister Mirek Topolanek, whose country currently holds the rotating EU presidency, told the European Parliament that President Barack Obama's massive stimulus package and banking bailout "will undermine the liquidity of the global financial market."

A day after his government collapsed because of a parliamentary vote of no-confidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.

The blunt comments pushed other European politicians into damage control mode, with some reproaching the Czech leader for his language and others reaffirming their good diplomatic ties with the U.S.

Most European leaders say the focus should be on tighter financial regulation, while the U.S. is pushing for larger economic stimulus plans — but nobody has so far escalated the rhetoric to such strident levels.

Topolanek's words are the strongest criticism so far from a European leader as the 27-nation bloc bristles from recent U.S. criticism that it is not spending enough to stimulate demand.

They also pave the way for a stormy summit next week in London between leaders of the Group of 20 industrialized countries.

The host of the summit, British Prime Minister Gordon Brown, praised Obama on Tuesday for his willingness to work with Europe on reforming the global economy in the run-up to the G-20 summit.

The United States plans to spend heavily to try and lift its economy out of recession with a $787 billion economic stimulus plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.

To encourage banks to lend again, the government will also pump $1 trillion into the financial system by buying up treasury bonds and mortgage securities in an effort to clear some of the "toxic assets" — devalued and untradeable assets — from banks' balance sheets.

Topolanek, who will remain EU president until a new Czech government is established, bluntly said that "the United States did not take the right path."

He slammed the U.S.' widening budget deficit and protectionist trade measures — such as the "Buy America" policies included in the stimulus bill, although Obama has said he opposes protectionism in principle.

Topolanek said that "all of these steps, these combinations and permanency is the road to hell."

"We need to read the history books and the lessons of history and the biggest success of the (EU) is the refusal to go this way," he said.

"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the liquidity of the global financial market," said Topolanek.

Since the EU presidency is expected to always to take the sensitivities of the member nations into account, the statement was daring and alarmed other European leaders, who moved quickly to mend fences with Washington.

Martin Schulz, leader of the Socialist group in the European parliament, said it was "not the level on which the EU ought to be operating with the United States."

"You have not understood what the task of the EU presidency is," he told Topolanek in the debate.

European Commission President Jose Manuel Barroso also weighed in with a tribute to trans-Atlantic cooperation.

"I really believe it is not a helpful debate, as I see sometimes, to try to suggest that Americans and Europeans are coming with very different approaches to the crisis," he told legislators. "On the contrary, what we are seeing is increased convergence."

Although German Chancellor Angela Merkel has warned against a spending race and said that ever bigger bailouts would create too much of a budgetary risk, French President Nicolas Sarkozy said Tuesday he is prepared to support the economy with a new spending package that may go down well in Washington.

Obama insisted Tuesday that his massive budget proposal is moving the nation down the right path and will help the ailing economy grow again. "This budget is inseparable from this recovery," he said, "because it is what lays the foundation for a secure and lasting prosperity."

Obama also claimed early progress in his aggressive campaign to lead the United States out of its worst economic crisis in 70 years and declared that despite obstacles ahead, the U.S. is "moving in the right direction."


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My Thoughts

I'm beginning to love this guy. First, he calls the global warming alarmists out on their demagogeury. Now, he calls Obama's economic "rescue" plan for exactly what it is.

Can we call the EU and ask them for a trade? I want Topolanek for Obama straight up, president for president. Just for the fun of it, I'll even throw in Tim Geithner in for free to sweeten the pot.

Do you think they'll accept? Considering how many left wing nuts are in the EU the he must be rubbing the wrong way, they might just be willing to part with him.

Hey, it's worth a shot. Ain't it?