Monday
Mar302009
Will the U.S. be put in timeout at the G-20 summit?
by Christina Lovato, University of New Mexico-Talk Radio News Service
“Now the G-20 is not an easier group to get into a consensus, it’s very much harder,” said Jeremy Rabkin, a Professor of law at George Mason University School of Law.
Today at a discussion on the upcoming G-20 meeting in London, panelists expressed their concerns about the meeting, the topics that should be addressed, and the likely results from the meeting.
J.D. Foster, a Senior Fellow in the economics of fiscal policy at the Thomas Roe Institute for Economic Policy Studies of the Heritage Foundation, said there are three issues at stake in the summit, the first being stimulus spending. “Should it be an international priority? Second, international institutions.... Should entirely new institutions of global governance be created? And third, underlying the both of the first two questions is the question of sovereignty. Should nations retain the basic right to regulate their own markets even if the result is that their systems of regulation differ?" Foster also said that at the summits they take on the task of lecturing one another usually on things that they themselves are not doing very well. "In this case we hope very much that the American president, President Obama, heeds some of the lectures of his European counterparts. It is a shameful situation to find ourselves in where we hope the European leaders are effective in lecturing the American president on the dangers of debt finance but that’s where we are.” Foster went on to say that people all over the world have the right to be angry with the U.S. “The Czechs, the French, the Germans, everybody else in the world is right to be angry at the United States and other governments engaged in this sort of enormous debt finance stimulus which won’t work, but they should be more than concerned; they should be furious. They should be furious because this is going to drive up interest rates at some point.... It will be affecting global financial markets,” concluded Foster.
Desmond Lachman, a Resident Fellow at the American Enterprise Institute for Public Policy, said “Europe to me looks like it’s basically in denial. Japan has run out of policy instruments.... interest rates are at zero. China is still counting on exports, really not being flexible on its exchange rate or trying to modify its economy..... You know that I think they diagnosed the problem correctly,” he said. Lachman went on to say, “I think what they have done is executed rather poorly.” Lachman expressed that the the fiscal stimulus package was poorly designed and that the Geithner plan is not attacking the problem in the banking system, saying that the problem is not one of liquidity but of solvency.
Rabkin stated that he thinks it is very unlikely that we are going to see enhanced global governance as the outcome of G-20 deliberations and said that the G-20 group is science fiction. “The majority of these countries are poor and somewhat chaotic. The idea that you’re going to propose a elaborate system of global controls, and ‘China’ will say yeah good idea we really want people to come into our country and monitor how we do our regulation. I think it’s fantastical,” he concluded.
“Now the G-20 is not an easier group to get into a consensus, it’s very much harder,” said Jeremy Rabkin, a Professor of law at George Mason University School of Law.
Today at a discussion on the upcoming G-20 meeting in London, panelists expressed their concerns about the meeting, the topics that should be addressed, and the likely results from the meeting.
J.D. Foster, a Senior Fellow in the economics of fiscal policy at the Thomas Roe Institute for Economic Policy Studies of the Heritage Foundation, said there are three issues at stake in the summit, the first being stimulus spending. “Should it be an international priority? Second, international institutions.... Should entirely new institutions of global governance be created? And third, underlying the both of the first two questions is the question of sovereignty. Should nations retain the basic right to regulate their own markets even if the result is that their systems of regulation differ?" Foster also said that at the summits they take on the task of lecturing one another usually on things that they themselves are not doing very well. "In this case we hope very much that the American president, President Obama, heeds some of the lectures of his European counterparts. It is a shameful situation to find ourselves in where we hope the European leaders are effective in lecturing the American president on the dangers of debt finance but that’s where we are.” Foster went on to say that people all over the world have the right to be angry with the U.S. “The Czechs, the French, the Germans, everybody else in the world is right to be angry at the United States and other governments engaged in this sort of enormous debt finance stimulus which won’t work, but they should be more than concerned; they should be furious. They should be furious because this is going to drive up interest rates at some point.... It will be affecting global financial markets,” concluded Foster.
Desmond Lachman, a Resident Fellow at the American Enterprise Institute for Public Policy, said “Europe to me looks like it’s basically in denial. Japan has run out of policy instruments.... interest rates are at zero. China is still counting on exports, really not being flexible on its exchange rate or trying to modify its economy..... You know that I think they diagnosed the problem correctly,” he said. Lachman went on to say, “I think what they have done is executed rather poorly.” Lachman expressed that the the fiscal stimulus package was poorly designed and that the Geithner plan is not attacking the problem in the banking system, saying that the problem is not one of liquidity but of solvency.
Rabkin stated that he thinks it is very unlikely that we are going to see enhanced global governance as the outcome of G-20 deliberations and said that the G-20 group is science fiction. “The majority of these countries are poor and somewhat chaotic. The idea that you’re going to propose a elaborate system of global controls, and ‘China’ will say yeah good idea we really want people to come into our country and monitor how we do our regulation. I think it’s fantastical,” he concluded.
tagged China, Czechs, Desmond Lachman, French, G-20 summit, Germans, Heritage Foundation, J.D. Foster, London, President Obama, Professor of Law at George Mason University School of Law, Resident Fellow at the American Enterprise Institure for Public Policy, Senior Fellow in the economics of fiscal policy, Thomas Roe Institute for Economic Policy Studies, United States, global financial markets, global governance, japan, jeremy rabkin, sovereignty, stimulus in News/Commentary
Six-party talks only alternative for peace in North Korea?
The planned rocket launch in defiance of international law by North Korea should not hinder U.S. hopes of achieving the peaceful denuclearization of the North, an opinion backed by senior-level U.S. diplomats.
“Korea and the U.S. are fully at one voice now in tackling the North Korea missile launch and also in pushing forward the six-party process,” said Han Duk-soo, Korean Ambassador to the United States.
“The six-party talks should be promoted. That is at present the only alternative to the peaceful denuclearization of North Korea,” said Han Duk-soo. “Peace and security and prosperity in this region is very crucial not only for this region but also for the global community.”
Lee Ki-Taek, Vice Chairman of the National Unification Advisory Council said that the launch was a threat. But “It does not matter whether it was a satellite or missile for it was clearly not hope,”he said.
Charles L. Pritchard, President of the Korea Economic Institute in Washington, D.C. said that the Obama administration has shown a “conservative” response to what’s been going on with North Korea.
“The United States, it has been said here already, intends to maintain the six-party talks as the basis of engagement of North Korea. That may not turn out to be quite as accurate as they hoped,” Pritchard said.
Pritchard said that the U.S. has made an emphasis on bilateral ties, and has been directly engaged in the consultation process with North Korea and Japan.
Pritchard suggested that the continuation of the tri-lateral coordination is necessary, but that the idea of withholding visas for North Koreans as a form of punishment should be tossed out the window.