President Obama Asks The World To Trust Us

Mar 31, 09 President Obama Asks The World To Trust Us
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Mr. Obama has proposed a relatively bold and ambitious agenda.  Despite the fundamental challenges to our economy, Mr. Obama has submitted a budget that outlines a number of mildly progressive proposals that belie the current state of the economy.

The president has chosen to double down on America’s future and refuses to succumb to those in Congress that have suddenly gotten “deficit religion”.  The CBO’s projected deficit numbers are troubling, but Mr. Obama insists that the investments that he makes within this budget will pay off in the immediate and long-term future.

Those in Congress, especially Congressional Democrats, should be inclined to support him.  Considering their reckless support for deregulation of the CDS markets, Mr. Bush’s unfair tax cuts for the rich, and his feckless war waged on the basis of a mountain of lies and half-truths, the Democrats burgeoning challenge to Mr. Obama’s plans is cowardly, opportunistic, and disheartening.

This week Mr. Obama will pivot from carping American politicians towards carping and preening European politicians.  Mr. Obama will be participating in the G-20, or a conference composed of the twenty largest economies in the world.

The stated purpose of the organization is to foster cooperation on matters regarding the international finance system.  Needless to say, this is one of the most important G-20 meetings in recent memory.

Paul Krugman has argued that although the United States’ response to the global economic meltdown has been inadequate, many of the largest European economies have done even less.  However, they have not, as of yet, been too hurt by the crisis because of their expansive social safety nets.

Mr. Obama’s goal is to convince the two largest euro economies, France and Germany, that it is in everyone’s interest for them to match the United States and Britain in domestic capital injections.  Though Mr. Obama received enthusiastic praise from foreign nationals during his worldwide campaign swing, as president he will have a difficult time persuading these individuals of the merits of massive bailouts.

Most economists believe that worldwide cooperation is essential to combat the global recession.  The highly integrated nature of the world’s economies makes it unlikely than any one country can lift itself out of the recession.  However, many of the G-20 countries blame the United States and Britain for creating this crisis.

Armed with personal charisma but diminished national prestige, Mr. Obama has a difficult task this week.  However, the concessions he receives will have a definite impact on how soon recovery will begin.  After eight years of an impetuous foreign policy, President Obama asks the world to trust us again.

It will take every ounce of his political skill to rebuild the damaged, frayed relationships with global politicians confronting a specific set of political and economic problems in their countries.

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