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Tuesday, March 24, 2009

Obama's Op Ed To The World

Appearing in newspapers world wide
WASHINGTON: We are living through a time of global economic challenges that cannot be met by half measures or the isolated efforts of any nation. Now, the leaders of the Group of 20 have a responsibility to take bold, comprehensive and coordinated action that not only jump-starts recovery, but also launches a new era of economic engagement to prevent a crisis like this from ever happening again.

No one can deny the urgency of action. A crisis in credit and confidence has swept across borders, with consequences for every corner of the world. For the first time in a generation, the global economy is contracting and trade is shrinking.

Trillions of dollars have been lost, banks have stopped lending, and tens of millions will lose their jobs across the globe. The prosperity of every nation has been endangered, along with the stability of governments and the survival of people in the most vulnerable parts of the world.

Once and for all, we have learned that the success of the American economy is inextricably linked to the global economy. There is no line between action that restores growth within our borders and action that supports it beyond.

If people in other countries cannot spend, markets dry up -- already we've seen the biggest drop in American exports in nearly four decades, which has led directly to American job losses. And if we continue to let financial institutions around the world act recklessly and irresponsibly, we will remain trapped in a cycle of bubble and bust. That is why the upcoming London Summit is directly relevant to our recovery at home.

My message is clear: The United States is ready to lead, and we call upon our partners to join us with a sense of urgency and common purpose. Much good work has been done, but much more remains.

Our leadership is grounded in a simple premise: We will act boldly to lift the American economy out of crisis and reform our regulatory structure, and these actions will be strengthened by complementary action abroad. Through our example, the United States can promote a global recovery and build confidence around the world; and if the London Summit helps galvanize collective action, we can forge a secure recovery, and future crises can be averted.

Our efforts must begin with swift action to stimulate growth. Already, the United States has passed the American Recovery and Reinvestment Act -- the most dramatic effort to jump-start job creation and lay a foundation for growth in a generation.

Other members of the G-20 have pursued fiscal stimulus as well, and these efforts should be robust and sustained until demand is restored. As we go forward, we should embrace a collective commitment to encourage open trade and investment, while resisting the protectionism that would deepen this crisis.

Second, we must restore the credit that businesses and consumers depend upon. At home, we are working aggressively to stabilize our financial system. This includes an honest assessment of the balance sheets of our major banks, and will lead directly to lending that can help Americans purchase goods, stay in their homes and grow their businesses.

This must continue to be amplified by the actions of our G-20 partners. Together, we can embrace a common framework that insists upon transparency, accountability and a focus on restoring the flow of credit that is the lifeblood of a growing global economy. And the G-20, together with multilateral institutions, can provide trade finance to help lift up exports and create jobs.

Third, we have an economic, security and moral obligation to extend a hand to countries and people who face the greatest risk. If we turn our backs on them, the suffering caused by this crisis will be enlarged, and our own recovery will be delayed because markets for our goods will shrink further and more American jobs will be lost.

The G-20 should quickly deploy resources to stabilize emerging markets, substantially boost the emergency capacity of the International Monetary Fund and help regional development banks accelerate lending. Meanwhile, America will support new and meaningful investments in food security that can help the poorest weather the difficult days that will come.

While these actions can help get us out of crisis, we cannot settle for a return to the status quo. We must put an end to the reckless speculation and spending beyond our means; to the bad credit, over-leveraged banks and absence of oversight that condemns us to bubbles that inevitably bust.

Only coordinated international action can prevent the irresponsible risk-taking that caused this crisis. That is why I am committed to seizing this opportunity to advance comprehensive reforms of our regulatory and supervisory framework.

All of our financial institutions -- on Wall Street and around the globe -- need strong oversight and common sense rules of the road. All markets should have standards for stability and a mechanism for disclosure. A strong framework of capital requirements should protect against future crises. We must crack down on offshore tax havens and money laundering.

Rigorous transparency and accountability must check abuse, and the days of out-of-control compensation must end. Instead of patchwork efforts that enable a race to the bottom, we must provide the clear incentives for good behavior that foster a race to the top.

I know that America bears our share of responsibility for the mess that we all face. But I also know that we need not choose between a chaotic and unforgiving capitalism and an oppressive government-run economy. That is a false choice that will not serve our people or any people.

This G-20 meeting provides a forum for a new kind of global economic cooperation. Now is the time to work together to restore the sustained growth that can only come from open and stable markets that harness innovation, support entrepreneurship and advance opportunity.

The nations of the world have a stake in one another. The United States is ready to join a global effort on behalf of new jobs and sustainable growth. Together, we can learn the lessons of this crisis, and forge a prosperity that is enduring and secure for the 21st century.

4 comments:

Glynn Kalara said...

China is actively looking to move away from the dollar as the World's reserve currency. This will eventually mean we will be headed for the dustbin of history and join the Soviet Union as another failed military power. In effect we will be just another 3rd world country with nukes and a military way beyond our needs. The so called defense budget is the real 800 pound Gorilla in the room and everyone knows it. Obama is trying to avoid a confrontation with this sector but I don't see how he can? The Chinese are tiring of our pretensions as the world's leader. So are many of us at this pt.

Jim Sande said...

Its hard to see this happening any time soon. These were the words of China's elite and although they probably are the sentiment of many in China and other parts of the world, its not going to happen. The world is pissed at America for all this bad credit and mortgage crisis stuff. It will clear. America is still the world's economic engine. Take away America and China is also resigned to the dustbin.

Glynn Kalara said...

We'll have to agree to disagree. I've had family and friends who have been over there recently and traveled about on business and vacations. They all say at it's present rate of development China will be the world's economic power in 10 yrs or less. We've transferred all out Industrial base to them. It's our own Corp. leadership that has in essence made China what it is today and they've all profited hugely. s for the rest of us , our patriotic Corp. leaders could care less. They're advice, shop daily @ Wallymart and Home Depot and keep us rich and you peasants, oh but the stuff is cheap isn't it? Suckers!!

Jim Sande said...

I think its a reality I don't want to face, the implications are harsh.

Its interesting everybody was saying buy into the Chinese economy for a while. I was looking at all kinds of Chinese corporations. The last year that tune has changed quite a bit because the Chinese turned down with the recession as well. Shipping is way down, right now because sales are slow. Most of the shipping is all about Chinese exports, companies like Genko and Ocean Freight and Eagle Bulk are all down. Business at present is way down. Raw material companies are down, companies that provide aluminum like Alumina are down because Chinese production is down. When it all shakes out, there's a lot of wealth pouring into China but they are way behind on so many fundamentals, even worse than us.

One thing this recession has shown us very clearly is that the game really can change very fast where we are all third world in a matter of months. We shall see indeed.