Empty Handed Obama
Research for Online Investors

by John Dalt

11/12/10

The G-20 Summit closes shop and President Obama comes home empty handed.  Germany and China thwarted the U.S. move to balance imports and exports from countries that have large trade imbalances.  With 25% of the world economy, the U.S. feels these countries need to increase domestic demand for their manufacturing capacity rather than rely on the U.S. market to increase imports of their products.  The New York Times covers the meeting.

President Obama met with S. Korean President Lee Myung-bak to press for changes to the U.S.-S. Korean trade pact that was negotiated three years ago under President Bush.  The democrats in the Senate will not bring the trade pact up for a vote because of pressure from the United Auto Workers (UAW).  The UAW, and Obama, want S. Korea to LOWER their emission and mileage standards for vehicles so U.S. manufacturers can meet them.  The S. Koreans did not budge.  The trade pact would eliminate tariffs on automobile trade between the countries.

Pretty amazing that the democrats want to push higher mileage and emission standards on U.S. citizens, and democrats want all trade agreements to strengthen environmental and labor laws of our trading partners.  In this case, our government wants lower mileage and emission requirements.

The world leaders now turn their attention to the next Climate Change conference in Cancun, Mexico.  On the final day of the G-20 summit they vowed to “spare no effort” to reach an agreement in Cancun.  The leaders at the G-20 affirmed they “Remain fully dedicated to UN climate change negotiations.”  The confab in Cancun will convene on Nov. 29. One interesting side note to the Cancun location is the Mexican drug gangs have threatened this vacation spot.

Last year’s meeting in Copenhagen ended without any commitments or agreements.  The release of emails from climate scientists last year showed the politicization of the scientific studies.  We wrote how money flowed to scientists that ‘found’ evidence of climate change and traced it to society’s actions in Climate Change Honesty on Dec. 23, 2009.

What kind of agreement can we expect out of Cancun?  Nothing dramatic.  The conference is shaping up to be another series of meetings to fleece the developing world.  G-20 leaders announced, “We are committed to support country-led green growth policies that promote environmentally sustainable global growth along with employment creation while ensuring energy access for the poor."

Read that statement as more foreign aid needed for developing countries that export to the U.S.  With the mid-term elections in the U.S., much of this will be hot air without the ability to follow through.  Aid for developing countries was what climate change and global warming was and has always been about.  China was in line to receive aid last year to help them reduce pollution from manufacturing do-dads to sell to crazy Americans.

U.S. President Obama and Chinese President Hu Jintao hold hands at the G-20 Summit
Photo courtesy of Sky News.

Here is a great video from Newt Gringrich.  He gives a historian's view of how our founders handled problems like we face today.  He also tells an inspirational story about General Washington crossing the Delaware River during the Revolutionary War.  The four preceding installments of his speech are also available.  I found them revealing to watch, even now, one year after they were recorded.

The market is selling off today.  The dollar is stronger on news that Ireland may have to seek a rescue from the European Central Bank.  Financial writers are concerned the contagion may spread to Portugal and Spain.  China is expected to raise interest rates this weekend to slow the growth in their economy.  Inflation hit a two year high in October.

Diplomacy is the art of telling a person to go to hell, and have him glad he is on his way----John Dalt as County Commissioner

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future. 

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