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Obama Rejects Global Regulator – For Now

From a disappointed (for now) New York Times:

In Europe, Obama Faces Calls for Rules on Finances


April 2, 2009

LONDON — In his first full day in Europe, President Obama conceded Wednesday that the United States had “some accounting to do” for failures that led to the world’s financial crisis, even as he tried to brush past heavy pressure from Germany and France to accept global financial regulations that could reach well inside American borders.

Speaking on the eve of a summit meeting here to address the financial crisis, Mr. Obama acknowledged that regulatory failures in the United States had a role in the meltdown, but he urged world leaders to focus on solutions rather than on placing blame. He also cautioned that the United States was unlikely to return to its role as a “voracious consumer market,” and he urged other nations to do more to revive growth in their home markets.

Despite calls for unity from Mr. Obama and the British prime minister, Gordon Brown, the host of the Group of 20 meeting that will formally begin Thursday, a rift intensified over Anglo-American calls for greater fiscal stimulus spending and French and German demands for more intrusive global regulation of financial institutions.

While President Nicolas Sarkozy of France did not repeat an earlier threat to walk out of the conference — “I just got here,” he joked — he made it clear he would reject an agreement that puts off stringent new regulations on banks, tax havens, and hedge funds…

Mr. Sarkozy added that tougher regulation — he has called for a “global regulator” that would be able to reach inside the borders of the United States and other large nations to deal with international financial firms — is “nonnegotiable.”

“The compromise has to come from all countries around the world,” he said. Saying he trusted Mr. Obama, Mr. Sarkozy said he did not want to point fingers about the crisis. But then, in a verbal jab he has used before, he added, “The crisis didn’t actually spontaneously erupt in Europe.”

Chancellor Angela Merkel of Germany rejected Mr. Obama’s plea for other nations to follow America’s lead and pledge greater fiscal spending to stimulate their economies. She said more spending was not worth debating. “That is not a bargaining chip,” she said, adding, by contrast, “Regulation is something that is in everyone’s interest.” …

Mr. Brown argued that the world had learned the hard lessons of a similar summit meeting here in 1933, which ended in failure. That outcome will not be repeated, Mr. Brown argued…

Mrs. Merkel and Mr. Sarkozy laid out a different argument: that the United States had only now begun to understand the cost of poorly regulated free-market capitalism, and must now bow to the European model. “The foundation for this new financial architecture must be laid now,” Mrs. Merkel said. “That is why we seem to be so tough.” …

Mr. Sarkozy said France had made a gesture to the United States by rejoining the command structure of the NATO alliance, and he implied that the United States needed to make a similar gesture in the regulatory arena.

Isn’t it touching how eager Mr. Obama is to place the blame for the world’s economic woes on the United States?

(Oddly enough, he never seems quite as eager to give the US economy any credit for the last several decades of unprecedented economic growth.)

But of course it is only a matter of time before the United Nations or the International Monetary Fund will be deciding how much money we can make and what we can spend it on.

All in the name of protecting the world’s economy – and advancing social justice, of course.

This article was posted by Steve on Thursday, April 2nd, 2009. Comments are currently closed.

4 Responses to “Obama Rejects Global Regulator – For Now”

  1. Liberals Demise says:

    When Oblomy is through with screwing up our finances………ya’ll are next!!
    Sooner than you think too! This man(?) is in a hurry about everything.
    No wonder Mitchele is always seen with a scowl / sourpuss look on her(?) face!
    Barry…..the Ladies man!!

  2. MinnesotaRush says:

    “So many countries .. so little time.” – b. h. o-blah-blah

  3. Reality Bytes says:

    And a shiny red tie for young Oblamanot. Funny everyone else wore blue. I swear even a snail suckin’ Euro creep will not be able to keep this act up for 4 years.

  4. TwilightZoned says:

    “Regulation is something that is in everyone’s interest.” What Chancellor Merkel said. What she meant. “We (Europeans) must regulate America.”

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