Demanding 'American' in stimulus gets tricky
By Martin Fackler and James Kanter - Feb 4, 2009
Last week the U.S. House of Representatives voted to require that public works projects financed by the more-than-$800 billion stimulus bill use only American iron and steel. The draft bill the Senate is considering would extend the "Buy American" provision to all manufactured goods bought under the program.
...
In a series of television interviews on Tuesday, President Barack Obama signaled that he would try to remove the "Buy American" restrictions that would cover projects like airports, dams, railroads and mass transit systems. A critical concern, the president said, was to avoid creating frictions with trading partners that could lead to a full-blown trade war.
[continues ...]
(emphasis added)
Exactly WHO is supposed to be helped with our Tax Payer dollars, again?
American Workers or our "trading partners"?
[contining ...]
Syed Kamall, a spokesman for the Conservative Party in the European Parliament, has warned that the provision could lead to "a new economic Iron Curtain" between Europe and the United States.
In Japan, industry executives and government officials say building American plants will become a common strategy for Japanese companies, both to bring production closer to customers and to avoid trade friction.
(emphasis added)
http://www.iht.com/...
Seems like "our Trading Partners" sure what big slice, of our Economic Stimulus Pie.
And it seems our President is all too willing to oblige...
Maybe this is the next version of "bi-partisanship", but elevated to the Global Stage? (Got to placate our Trade Imbalance opposition too.)
Obama Disavows Trade War with Europe
Responding to criticism of the Buy America clause in the $900 billion stimulus package, the President said he was eager to avoid being protectionist
By Andrew Willis -- Europe, Feb 4, 2009
"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," [Obama] told Fox News in a separate interview.
The response comes after mounting European criticism of the proposed measure that would prohibit foreign steel companies bidding for US infrastructure contracts financed by the stimulus plan.
(emphasis added)
http://www.businessweek.com/...
Huh? Now we have to apologize for "looking after ourselves"?
Give me a break!
I bet we don't get the same consideration from our "trading partners"... Let's check a few Headlines, shall we?
China’s Surge in Lending Weakens Case for Rate Cuts
By Kevin Hamlin and Luo Jun
Feb. 4 (Bloomberg) -- China’s central bank may become less aggressive in cutting interest rates as lending surges and the world’s third-biggest economy shows signs of bottoming out, Deutsche Bank AG said.
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Central bank Governor Zhou Xiaochuan says a 4 trillion yuan ($585 billion) stimulus package announced in November has had "initial positive results" and an official newspaper reported today that lending rose by a record in January. Policy makers are trying to reverse an economic slide that has already cost the jobs of 20 million migrant workers.
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The four biggest state-owned banks, China Construction Bank Corp., Industrial & Commercial Bank of China Ltd., Agricultural Bank of China and Bank of China Ltd., completed 20 percent of their full-year lending targets, the newspaper said. Most of the money went to railways, highways, electricity grids and infrastructure, it said.
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China faces the risk of protests and social unrest as 20 million jobless workers return to the countryside from cities, a senior rural planning official, Chen Xiwen, said Feb. 2.
(emphasis added)
http://www.bloomberg.com/...
Chalk one up, for China quote, "looking after their own" ...
Economic stimulus plans now Global phenomenon
At least 34 countries have plans, worth a total of $2.25 trillion.
By Ron Scherer - The Christian Science Monitor - Feb 4, 2009
Economic stimulus packages have gone global.
While Congress is still arguing over the size and shape of the US package, at least 33 other nations have started programs that are far more ambitious than were planned even a month ago.
Many are oriented toward spending on roads and other transportation projects, such as China’s plans to build or renovate airports, subways, and railroads. Others are providing tax cuts for consumers and businesses, as is the case in Canada and Brazil. Russia is trying to restructure the massive debt hanging over its corporations. Some countries, such as France, are aiming the stimulus at key industries, including Airbus, the giant aerospace manufacturer.
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"For a lot of the European economies, the stimulus packages will be 1 percent to 2 percent of GDP, the same with Japan. And from my perspective, it needs to be bigger in those economies," says Mr. Behravesh.
For example, France’s economic stimulus package totals 26 billion euros, 1.3 percent of French GDP. Although it includes hundreds of smaller infrastructure projects, such as repairing the roof of the Cathedral of Notre Dame in Paris, a significant amount of the effort is aimed at large businesses such as Airbus and Areva, the nuclear giant.
"The bulk of the spending is for research and innovation to boost investments in the private sector," points out Adrien de Tricornot, financial columnist for Le Monde.
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The Japanese approach – its second fiscal package this fiscal year – includes a controversial cash payment of $135 for every resident. ... Other critics would like to see more spent on bricks-and-mortar projects. "Japan should carry out large-scale public-works projects to create jobs," says Minoru Morita
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China’s massive stimulus package – representing more than 6 percent of its GDP
(emphasis added)
http://features.csmonitor.com/...
Chalk up, decided "self-interest" in Europe, Russia, France, Japan, and chalk up a few more strikes, for China again too ...
SO, Who's looking out FOR YOU, on the Global Stage with public whining about "Trade Wars", meanwhile investing locally in their OWN INFRASTRUCTURES!?
Say Europe, how about letting Americans fix your roads, cities and companies, eh?
US Union Leaders are shouting against the whirlwind -- but few hear them given the Media Roar for Pro-Global Nationalism, "There be corporate profits dead ahead!"
United Steelworkers: Time for Economic Patriots
Union dispels 'Buy America' myths as activists descend on D.C.
Feb 4, 2009
WASHINGTON, Feb. 4 PRNewswire-USNewswire -- The United Steelworkers (USW) today called for an end to the myths and mistruths about "Buy America" and domestic sourcing that are clouding the debate and generating roadblocks to creating good jobs and renewing our economy.
"The country is in the midst of the fastest, most severe economic downturn since the Great Depression. In 2008, the United States lost 2.6 million jobs -- the largest loss in over 60 years and so far this year isn't any better," said Leo W. Gerard, USW International President. "This is a time for economic patriots. Our members and others are suffering. We can't afford to let greedy multinational corporations and others get in the way of common sense solutions that will get people back to work."
Gerard continued, "Let's be clear: the Buy America provision in the economic recovery package does not break any existing U.S. trade obligations. It will not ignite a trade war. It will not raise the cost of infrastructure projects. What it does is what countries like France and China have already done -- ensure that taxpayer dollars are used to buy goods produced in our country and create jobs at home."
(emphasis added)
http://sev.prnewswire.com/...
Let's me REPEAT THAT: "the 'Buy America' provision in the economic recovery package does not break any existing U.S. trade obligations."
None, Nada, Zip!
AND
It is just what countries like France and China have already done -- spending their Tax-Payer Dollars AT HOME!
If those countries, still don't want American Dollars, AFTER WE FIX OUR OWN COUNTRY -- well then, that will be THEIR Loss -- See ya, Foreign Multi-Nationals. Have a nice life!
And tell them to take all their "Wal-Marts" with them -- when they leave, too!
Enough Already!
Put Americans to Work -- with American Tax Dollars ... NOW!
If it's good enough for China ... Well ... it's good enough for US to BUY at Home too.
IMO.