• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Pittsburgh G-20: Three Points of View Converge at Three Rivers

    Pittsburgh is famous for its Three Rivers. The city was founded in 1758 at the militarily and commercially strategic point where the Allegheny and Monongahela rivers converge to form the might Ohio. It is somewhat ironic, then, that as the G-20 leaders arrive in Pittsburgh this evening for a sumptuous dinner hosted by President and Mrs. Obama amidst exotic flora and fauna at the Victorian-era, glass-walled Phipps Conservatory, they bring with them three major proposals for discussion.

    President Obama wants to impose upon China (and Americans) his “Framework for Sustainable and Balanced Growth” which would demand that American consume less and save more, while requiring the Chinese to ramp up domestic consumption and reduce its trade surplus (presumably by revaluing upward the yuan and making Chinese exports less attractive).

    Unfortunately the President did not consult fully with the American people before he signed them up for this potential financial fitness regimen, nor does he have any way to enforce his framework (short of ceding American sovereignty to some sort of global UN police state). The President also fails to take note in his framework of the massive, hemorrhaging fiscal deficits his costly programs could create if they are all passed by Congress. The President demands that American consumers do without and save instead of spend, but pushes “negative savings” in the form of huge Government deficit spending for as far as the eye can see. He could achieve his goal so much more easily by simply cutting the deficit by $500 billion or so per year.

    Meanwhile, the Chinese are responding by putting pressure on the President Federal Reserve Chairman Bernanke and Treasury Secretary Geithner through the rumblings they are promoting abut looking for a replacement for the dollar as the world’s reserve currency. Of course, the reality is that there is no replacement handy right now. The Chinese didn’t get very far six months ago when the floated the idea of using Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF).

    Finally, not to be ignored, the Euros are demanding that the world (read the U.S.) use government regulations to put limits and controls on bankers’ compensation. Funny how regulations come so easily to them, while trust in marketplace discipline seems foreign.

    Should be an interesting meeting……

    Posted in International [slideshow_deploy]

    4 Responses to Pittsburgh G-20: Three Points of View Converge at Three Rivers

    1. Rob, NYC says:

      Why I don't believe a word Bernanke says:
      http://robparis.blogspot.com/2009/09/select-quote

    2. Bill Carroll, Bethan says:

      The real problem with savings is the disincentive we all have from inflation and lack of return on savings acounts. Interest and other investments do not return enough to offset the loss of value from inflation.

      The problem with imports from China is also internal. We have an aggressive policy of discouraging industrial development here in the USA. This is driving output overseas. We are not developing natural resources. We are not attracting smoke stack industry. Our semi-skilled workers in factories and other industrial ouput are facing extinction as the manufacturers are denied permits to develop new plant and equipment by state and local zoning officials and federal regulators.

      It is now beyond hopeless unless someone with a copy of "Wealth of Nations" can take charge.

    3. Chris, Florida says:

      I have no issue saving except that if the dollar keeps falling how much more am I going to have to save to have the same amount of money i had just yesterday? I say go ahead and spend it now before it becomes even more worthless. I'm investing in heavy metals…i.e. lead, brass, steel, etc. Let the revolution begin!

    4. Jake, Big Lake, MN says:

      Nice comments Bill!

      Along the same line, I had a conversation with a guy last week that went something like this:

      "I used to make $35.00 per hour bolting down them A-arms on the truck assembly line. That was until this GREEDY company I worked for, shut down our plant, moved south of the border, and put us out of the job. It's the big business, exploitation of foreign labor, and greedy profit taking that have ruined America! I'm calling Michael Moore to come in and do a documentary on our story."

      How many times do we hear this same mentality from the left? And now their in charge. Hopeless is an understatement.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×