Obama Backs Down on 'Buy American'

[SlowDownFast]

President Obama to water down 'Buy American' plan after EU trade war threat
David Charter, Rory Watson and Philip Webster

The European Union warned the US yesterday against plunging the world into depression by adopting a planned “Buy American” policy, intensifying fears of a trade war.

The EU threatened to retaliate if the US Congress went ahead with sweeping measures in its $800 billion (£554 billion) stimulus plan to restrict spending to American goods and services.

Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that “history has shown us” where the closing of markets leads — a clear reference to the Depression of the 1930s, triggered by US protectionist laws.

Last night Mr Obama gave a strong signal that he would remove the most provocative passages from the Bill.

“I agree that we can’t send a protectionist message,” he said in an interview with Fox TV. “I want to see what kind of language we can work on this issue. I think it would be a mistake, though, at a time when worldwide trade is declining, for us to start sending a message that somehow we’re just looking after ourselves and not concerned with world trade.”

more:
http://www.timesonline.co.uk/tol/news/world/europe/article5655115.ece

[Riverman]

1. Screw World Trade: Buy American - Get some Balls Obama!

Just stop wimping out to republicans, former Clintonistas, and the corporate media. I am getting too old to wait for the change I need and this country needs. God damn son of a bitch!

Mr. President Obama,

I voted for you. I have waited my whole life to be able to vote for and see someone like you to take command of this country. I cried the night of your nomination and your election. We have prayed and fought for someone like you - honest, with intelligence and integrity. Someone who could think and speak in full sentences. More important than the policies that need to be implemented now, is projecting a tone of confidence and not taking crap from anyone anymore. We need a leader, someone to inspire more than hope, - one who will make urgency-based, course changing decisions, right now. Stop with the bipartisan bullshit. We don't have time to wait for the republicans or the media to come along and agree with the decisions that must be made today. Go with your gut, your instintcs and make decisions without regard to their noise. I believe that those instintcs are in alignment with knowledge and beliefs held by the vast majority of the American people, and the people of this planet. If you are a one-term President, so be it. Without the tough decisions that need to made now - such as nationalizing the banks, there will be no country to run after 2012. The Fierce Urgency of Now! Get with it. One tough decision that needs to made today is to admit that you also made a mistake with your Treasury Secretary choice, a man who did not pay his taxes, but will oversee the IRS, gets a pass! No, you must fix that. You will get massive acclaim. Saying you screwed up on Daschle was the right thing to do, because you did and were courageous to say so on network TV. Now, by also admitting the mistake with the Treasury Sec, and firing him, the people will be behind you. There must be a dozen experts who could run the Treasury. Admit the mistake, fix it and move on to the vastly more important decisions.

Thank you. I dearly want you and the country to succeed!

[Deja Q]

17. He's at least trying. Can't say that about * or McPalin.

At least confident sounding uncertainty is more relaxing than the usual thrusted memes in threat format. That's ultimately why McCain/Palin failed.

[dbonds]

2. I disagree with him on this, although I can understand not wanting the trade war.

It wouldn't have to come to a trade war though, this is not money that should be allocated for anything outside the US. If it doesn't stay here don't bother allocating it. But then again, if congress pass it with Buy American in it, then Obama can't selectively get rid of it.

[elocs]

3. I wonder what would happen if the rest of the world decided to NOT buy American,

but to purchase as much as possible things that are made in their own countries. Now that could really make things interesting.

[Hello_Kitty]

4. I wonder what would happen if the rest of the world realized it wasn't entitled to U.S. tax dollars

The stimulus package is funded with U.S. taxpayer dollars with the intention of creating American jobs. What is so hard to understand about that?

[elocs]

6. Wow! I guess you told me! I bow to your obviously superior intellect.

What a moran I am.

[Hello_Kitty]

8. It wasn't my intention to "tell you"

I just don't understand how a U.S. taxpayer stimulus will cause a "trade war" if we don't send other countries our tax dollars. How did this become about trade?

[Hello_Kitty]

5. Oh I knew this was going to happen.

"Oh noes! We can't have a trade war!" Newsflash: The trade war has been going on for decades and guess what? The workers are losing.

[Riverman]

7. BINGO!

[JohnWxy]

9. FUCK! people need to email Prez, tell him threats of trade war are just that, threats. it won't

happen. we import far more than we export. the countries that export more to us than they import would have nothing to gain from acting on such a threat.

[Hello_Kitty]

10. Thank you. Except I don't even think it's about a "trade war"

It's a red herring thrown out by the multi-national corps who want to get their grubby greedy hands on the stim money so that they can use the cheapest labor and materials and do shitty work while raking in huge profits. Just like they're doing with the post-Katrina rebuilding. Halliburton was caught using undocumented immigrants and cheating them out of their wages!

[SlowDownFast]

11. Well said.

Everybody see this thread in LBN?

IBM Offers To Move Laid Off Workers To India
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3720170&mesg_id=3720170

[Deja Q]

18. Ditto.

[whosinpower]

12. There is another aspect to this that I am not sure any of you realize

Firstly, I want to state that I totally understand your desire to create american jobs with the american taxpayer dollars. This makes total sense to me - however, instigating a trade war can have catastrophic consequences - I want you to think about this for a moment.

The current stimulus package on the table right now is an estimated 900 BILLION dollars. Where is that money coming from? Treasury doesn't have it. The Fed's don't have it. Your going to have to borrow it from somewhere. Where? China? Japan? Saudi Arabia? Right now, the US government is in debt in the TRILLIONS of dollars. Who holds that debt?

If you print that money, then this dilutes the value of your currency - if things aren't bad enough, but if the US dollar crashes - then it is game over.

Do you really want to start a trade war with nations that hold trillions of your debt now?

With the situation as dire as it is - it seems to me that first and foremost, you must protect your currency - and that might need to downplay protectionism a bit.

I think a better, more equitable way to approach this is to somehow demand wage parity - that is that the wages earned in foreign nations who sell into the US is the same as those given to American workers. Less incentive to outsource jobs by multinational firms, when the only reason is to increase profit by decreasing input costs of labour. I recognize that this requires renegotiating NAFTA. There are many who will not want to see this happen, but, as a canadian small business owner, I am all for it. When government officials warn dire consequences of renegotiating NAFTA - we should all be aware that NAFTA and most free trade agreements favour multinational firms over the populuce of either nation - so those government mouths have been actively lobbied by vested interests, with disregard of what that would mean for workers and consumers of either nation.

[Joe Steel]

13. Borrow? No.

The current stimulus package on the table right now is an estimated 900 BILLION dollars. Where is that money coming from? Treasury doesn't have it. The Fed's don't have it. Your going to have to borrow it from somewhere.

Borrow? No.

Tax.

The wealthy and high-income taxpayers have gotten a free ride for years. Even Clinton was afraid to tax them.

Now is the time.

Tax the rich until the aren't.

[Hello_Kitty]

14. I understand what you are saying

But if other countries hope to a) get the money we've previously borrowed from them paid back, and b) get the economy of the world back in some semblence of health, Americans need to be put to work.

And of course we all know this isn't really about "trade". You nailed it when you said: "we should all be aware that NAFTA and most free trade agreements favour multinational firms over the populuce of either nation - so those government mouths have been actively lobbied by vested interests, with disregard of what that would mean for workers and consumers of either nation." Corporate pigs like Halliburton want to get their grubby cloven hoofs on that trillion dollars so they can use the cheapest labor and the cheapest materials and do shitty work while raking in the profits. The Buy American clause probably wouldn't do much to change that but at least it would be a step in the right direction.

[Deja Q]

20. Also true, and for that I have no retort because you are correct.

[blue97keet]

21. You are ignoring the fact that our massive trade deficit

and debt to other countries was caused by braindead trade policy in the first place. If we do not restore manufacturing in particlur in this country there is just no way EVER to get out of debt. Fiddling with currency will do nothing to correct the underlying physical imbalance.

As for China, how much of their imports are directly related to fueling export driven manufacturing? Would it be kind of a moot point for them to "retaliate" against such imports and a positive development of they did so anyway?

[bonito]

15. In the final run it's the American tax payer that foots this bill

So let's not pussy foot around the issue.

It's like the world is being flushed down a financial toilet and its going to be those who can find something to hang on to that the rest will be able to depend on to get out of it as well, or we can all just sink as one.

Way I see it.

[Native]

16. We live in a global economy - bottom line . . .

if we don't take that into consideration in EVERYTHING, we're just shooting ourselves in the foot. The operative words here are: "'history has shown us' where the closing of markets leads — a clear reference to the Depression of the 1930s, triggered by US protectionist laws." It is just pure ignorance to think that our policies won't come back on us.

[Deja Q]

19. Also true...

but I still worry about this, as posted earlier:

http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Expatriate_executives_making_way_for_local_hires/articleshow/4039529.cms

Now, if they are allowed to protect their economy and jobs, why can't the US with jobs for US citizens?

[amandabeech]

22. The historical community is sharply divided over whether Smoot Hawley

was responsible for the depression.

Others cite the radio bubble, various investment ponzi schemes and increasing disparity in wealth among others.

When I see someone touting Smoot Hawley as the ONLY cause, I often google the author or look at other posts on the site to get some reading on the author's proclivities and c.v.

[Hello_Kitty]

23. That has been debunked, thoroughly, by a fellow DUer

People talk about "protectionism" causing or worsening the Depression as though it's received wisdom but there's NO evidence it did.

http://journals.democraticunderground.com/unlawflcombatnt