MercoPress, en Español

Montevideo, March 28th 2024 - 21:43 UTC

 

 

Obama arrives in Seoul but a G-20 summit consensus still out of reach

Thursday, November 11th 2010 - 06:15 UTC
Full article 2 comments

President Barack Obama tried to swing the G20 spotlight back onto global imbalances and take his own country's policies out of the glare as world leaders gathered in Seoul.

Obama, facing widespread criticism of US easy-money policy as he arrived for the two-day Group of 20 leaders summit, said a strong US economy was vital to the global recovery and urged his G20 counterparts to put aside their differences and do their part to bolster growth.

“When all nations do their part -emerging no less than advanced, surplus no less than deficit- we all benefit from higher growth” Obama said in a letter sent to G20 leader.

The bridge building came after a day of heated arguments as negotiators struggled to hammer out a closing statement that all G20 leaders could sign. Deep divisions have emerged over economic policy, particularly the US Federal Reserve's decision last week to spend another US$600 billion buying government bonds.

Critics charge the Fed's policy weakens the dollar to the detriment of other nations, but Obama said the dollar's strength ultimately rests on the strength of the US economy.

Deputies clutching mobile phones to their ears shuttled in and out of a hall as they tried to draft a final statement, to be released on Friday, but remained far apart on pivotal issues, including currency exchange rates, G20 spokesman Kim Yoon Kyung said.

“We had to open the door because the debate was so animated and the room was getting hot,” he said, referring to day-long on Tuesday.

Group of 20 leaders had hoped this week's gathering, the fifth since the financial crisis exploded in 2008, would mark the beginning of a new era of global cooperation. Hosts South Korea printed banners proclaiming a slogan of “Shared Growth Beyond Crisis.”

But the unity forged in crisis has given way to diverging national policies that reflect a multi-speed recovery from the recession, prompting critics to question the effectiveness of the G20 grouping itself.

In a letter sent to all the members of the G20, Obama sought to return the discussion to global imbalances and insisted that the United States was not the only country that must change its ways in order to drive a stable, strong recovery. (*)

“Just as the United States must change, so too must those economies that have previously relied on exports to offset weaknesses in their own demand,” he wrote in a thinly veiled reference to China.

China's politically contentious trade surplus widened to US$27.1 billion in October, more than economists had expected, according to trade figures released. US trade figures were expected to show a wide gap for September.

A Chinese official who has been helping draft the G20 communiqué said the leaders should not discuss the Yuan or any other currency specifically. The Indian official said the final statement would not single out any currency.

However, the Yuan rose to a high of 6.6353 against the dollar in the spot market, the highest level since the currency's revaluation in July 2005, after the People's Bank of China fixed a record Yuan mid-point.

Beijing typically loosens its tight grip on the Yuan as a goodwill gesture ahead of political events that apply pressure on China for more Yuan appreciation.
 

Top Comments

Disclaimer & comment rules
  • xbarilox

    HELLO, LIAR!

    Nov 11th, 2010 - 07:40 am 0
  • NicoDin

    The “inept” couple were managing a country with growth of %9.5 (2010) while the so smart Americans have to pump $900bn in green devaluated dollars to keep alive.

    And the collective American denying goes on and on.
    Poverty rises but none see it, tent cities grow but none cans notice them, real unemployment 21%.

    They are every day closer to a Mexico style country.

    Nov 11th, 2010 - 04:41 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!