Obama Fails To Sway Others in G-20 Summit
“Obama leaves G-20 empty-handed on currency spat,” is the headline news today on the recent summit of twenty of the most important nations held in South Korea.
This headline is an indicator how far our nation has come from the global position of power that we enjoyed only a few years back. In Seoul, the U.S. pushed hard to get China to agree to let its currency rise, however, China pushed back harder. The leaders of the 20 major economies refused to endorse our demand, and it created the headline that you just read.
No one paid attention to the U.S. complaint that Beijing is artificially keeping its currency weak to the dollar to gain a trade advantage, because they were irate over the Fed’s unilateral plans to inject $600 billion into the sluggish American economy. The other countries see that ploy as an irresponsible design to flood markets with dollars, in order to devalue the U.S. currency and giving American businesses an unfair advantage.
How did all this start?
It all started with Ronald Reagan. In1988, he signed Free Trade Agreement with Canada giving birth to the grandiose idea of global village. Then Bill Clinton expanded it to the North American Free Trade Agreement or NAFTA by including Mexico. He also opened the floodgate to China and continued implementing policies that encouraged export of US industries to the countries where there were no regulation on industries and workers had no rights.
The free trade agreement is a misnomer, because it did not create the environment where trade was really free, it rather made the playing fields uneven. The treaty created a situation where US workers were pitted against Chinese slave labors, who were locked in their work places, and forced to work without sufficient breaks in unsafe conditions. There was no way the U.S. workers could compete with that.Continued on the next page