LCACM

G20 Urges 'Balanced Global Demand'; China Says 'No'

The US voters need to wake up to perils that lie ahead caused by the huge trade deficits. A number of candidates in the Presidential primaries brought up these trade imbalance issues but did not get anywhere in the primaries. The voters preferred to vote for the media annointed Obama with help from super rich campaign donors. Now Obama has to worry about getting reelected and campaign funds. At this juncture it is safer for him to listen to the oligarchs and ignore Chinese trade malpractices, as he will be relying on the oligarchs to provide him with the necessary re-election funds. In return he will have to take orders from the oligarchs who profiteer by importing Chinese goods to take advantage of the US market.

The Bush Legacy Market Returns

President Clinton initiated NAFTA and since then we have had a slippery US market, constantly sliding into recessions. So he is equally to blame for the current crisis, as he helped create the huge trade deficit that has made lower interest rates useless as far as igniting the economy is concerned. When a tire has a leak, all attempts to inflate the tire will fail until the leak is fixed. President Clinton had partly fixed the Budget leak(deficit) but he made a new leak (deficit) by introducing NAFT., Some of the President Clinton's administration officials who created the leak by supporting NAFTA are now in power, so it is unlikely that the leak can be fixed.

Return of Weimar Monetary Policies?

In Asia for the long term they invest in their children and grandchildren's education.