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Barack Obama to dilute 'Buy American' plan after Europe threatens US with trade war
The Telegraph ^ | 1/31/2009 | Tim Shipman in Washington and Philip Sherwell

Posted on 01/31/2009 3:04:09 PM PST by bruinbirdman

The White House has promised to review the protectionist proposals, passed last week by Democratic allies in the House of Representatives, which would ban the use of non-American steel in the $800 billion of construction projects.

Obama officials are under pressure from what European diplomats in Washington describe as a discreet but outspoken campaign of "quiet fury" from America's closest allies.

They regard the move as a provocative shift away from free trade and towards economic populism at a time of turmoil.

In a bid to win further favour with impoverished voters, Mr Obama announced yesterday that his Treasury team will launch a dramatic overhaul of the existing bank bailout programme this week, designed to rein in executive bonuses and ensure banks do more to help mortgage holders.

In his weekly radio address, Mr Obama promised to "help lower mortgage costs" and repeated his moral denunciation of corporate executives who ask for taxpayers money and then pay gigantic bonuses to their staff.

"We learned this week that even as they petitioned for taxpayer assistance, Wall Street firms shamefully paid out nearly $20 billion in bonuses for 2008," Mr Obama said. "The American people will not excuse or tolerate such arrogance and greed."

His Treasury team has calculated that a "big bang" announcement to overhaul the unpopular bailout programme - including new measures to reduce home repossessions - is most likely to restore public confidence. The plan will include limits on executive bonuses in firms which take public cash.

Mr Obama also called for the stimulus package to be passed quickly. But the Buy America provisions in the plan are forcing him to choose between a showdown with Congress and a collision course with other Western governments that could end in a trade war.

"The administration is reviewing that provision," said

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: bho44; bhostimulus; bhotrade; buyamerican
Hussein Obama doesn't know one-tenth of what is in the monstrous pie-in-the-sky omnibus spending bill. Note "spending", not "stimulous" bill.
1 posted on 01/31/2009 3:04:09 PM PST by bruinbirdman
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To: bruinbirdman

Smoot-Hawley ... in a PorktheUS bill.... say it ain’t so... Obama pissing off the Europeans....

LOL... Hey OBAMA you are making it so that the world really hates us now....


2 posted on 01/31/2009 3:06:02 PM PST by tomnbeverly (Taxpayers doing time on the Obama Plantation.)
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Comment #3 Removed by Moderator

To: bruinbirdman

I guess the toadies in the Obamedia will call this yet another “win” for Obama.


4 posted on 01/31/2009 3:06:33 PM PST by FlingWingFlyer (I wish it was 20 January 2013. I've had enough of this crap already.)
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To: bruinbirdman

What a Pussy!


5 posted on 01/31/2009 3:08:13 PM PST by screaminsunshine (f)
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To: bruinbirdman

The guy is a dim bulb. He was probably told by one of his mysterious advisers that this would make him look like he was on the side of the “little people” and make him popular with the God and guns crowd he despises but fears. Fortunately, we’re smarter than he is, although that’s not saying much.


6 posted on 01/31/2009 3:10:41 PM PST by livius
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To: bruinbirdman

If I (a Dewars guzzling, parmazzan and brie eating patriot) can do without European goods until the US economy recovers, then so can Obama. He needs to tell them to (diplomatically, of course) kiss his ass.


7 posted on 01/31/2009 3:13:16 PM PST by ExpatCanuck
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To: bruinbirdman

Exactly how is it any of the Europeans’ damn business how the U.S. government spends U.S. taxpayers’ money? Screw them. Let them spend their own damn money on their own damn steel.

It might be nice for America to have a steel industry if it ever decides to build another tank or warship. It might also be nice to have some manufacturing jobs in the U.S.


8 posted on 01/31/2009 3:14:59 PM PST by tvdog12345
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To: bruinbirdman
“Hussein Obama doesn't know one-tenth of what is in the monstrous pie-in-the-sky omnibus spending bill. Note “spending”, not “stimulous” bill.”

That may be the case, but I think one of the biggest factors in what is happening already in his administration is that he has an over simplified world view. This is true, in my opinion, of many liberals. “If we are nice to them they will be nice to us and stop hating us.” “All those who have less have less because they are victims, and they need the government to help them.” “If we just ask people to buy American, they will and this will result in a massive increase in dollars spent in the USA.”, Workers are all well-intentioned Bob Cratchits and owners are generally Scrooge-like”. The world is a lot more complex than that, and no single person or single group of persons has all the answers. Sadly, that is a lesson that the Harvard, Yale, Princeton etc. crowd just doesn't get. They have a very limited world view, even though there are a lot of very capable and smart people in those institutions. Ironic, but true. As an aside, if Obama wants to have a successful administration he should start picking advisors from a much wider distribution of society. So far many of the people he's picked are ideological clones. Just my opinion.

9 posted on 01/31/2009 3:15:34 PM PST by pieceofthepuzzle
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To: ExpatCanuck

Having said that - what the hell is wrong with a buy American first requirement for any stimulus initiative?


10 posted on 01/31/2009 3:15:49 PM PST by ExpatCanuck
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To: bruinbirdman

Hope and Change. Step right up ...

11 posted on 01/31/2009 3:38:01 PM PST by VRWC For Truth (Throw the bums out who vote yes on the bail out)
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To: ExpatCanuck

” Having said that - what the hell is wrong with a buy American first requirement for any stimulus initiative? “

My first instincts are with you, but refer to lessons learned (and forgotten) from Smoot-Hawley, see above. Protectionism was a major, major part of making the Depression of the 1930’s into THE GREAT Depression.


12 posted on 01/31/2009 3:53:08 PM PST by Humble Servant
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To: bruinbirdman

My uncle who owned a tool and die was buying steel from overseas......40 years ago.


13 posted on 01/31/2009 3:53:33 PM PST by Sacajaweau (I'm planting corn...Have to feed my car...)
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To: livius
" He was probably told by one of his mysterious advisers "

The Council of 500. Sounds familiar. Whatever happened to them? Council of 535 facing a similar fate?

yitbos

14 posted on 01/31/2009 3:56:55 PM PST by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

DumbObama is a hilarious loser and he’s going to be one huge FAILURE.


15 posted on 01/31/2009 4:01:42 PM PST by MichiganConservative (You are a slave. The government is your owner and master. For many slaves, it is also their god.)
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To: bruinbirdman

The Obamanation opened up Pandora’s box by writing into the bill that the stimulus had to be directed to American companies. What he should have done is what the Europeans do: Bring antitrust charges against any foreign company that is a competitive threat to American business, and then the only companies left to bid are American companies.


16 posted on 01/31/2009 4:06:58 PM PST by Brilliant
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To: bruinbirdman

Please, please, please bring on the trade war. I want to see various countries around the world complain to the WTO about the “Stimulus” bills and I want to see DumbObama have to deal with problem after problem. They will fail because, even if they were to stumble on the cause of the problems, they would never figure out the right solution.

Please let it get worse for the Obamessiah.


17 posted on 01/31/2009 4:07:00 PM PST by MichiganConservative (You are a slave. The government is your owner and master. For many slaves, it is also their god.)
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To: ExpatCanuck
It's better than buying Chinese steel. Who knows what's in that junk. They put cars, tires and all, in the furnace. An analysis of Chinese steel has shown rubber compounds present. At least the Euro’s make a quality product.

There are three parts to a job - schedule, cost and labor. If the U.S. steel plants are unable to supply the required structures at a fair price, program managers will look elsewhere for material to keep on schedule. Either that or pay U.S. steel companies a big pile and increase the program cost.

Program manager and his company get a beating from the customer, an possibly the last contract, for increased costs. Hence, the law of supply and demand - and self interest - keep costs in line.

18 posted on 01/31/2009 4:09:02 PM PST by muleskinner ("You know the Germans always make good stuff')
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To: bruinbirdman

The education of Hussien continues, and will take a long time.

BTW, the Dem’s wrote the bank bailout bill. Hussien supported the bailout bill.

These guys have zero creditbility with respect to making corrections and revisions


19 posted on 01/31/2009 4:10:09 PM PST by Steven Tyler
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To: MichiganConservative

And Canada is also pissed off, not just the Euros.
Nobody wants a trade war


20 posted on 01/31/2009 4:13:43 PM PST by Steven Tyler
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To: ExpatCanuck
He needs to tell them to (diplomatically, of course) kiss his ass.

But he's so fond of having them kiss his feet!

It's very telling that the Euroweenies have more influence on Zero than do Republicans here at home. Should provide us with some very nice ammunition November of next year.

21 posted on 01/31/2009 4:16:36 PM PST by hunter112 (SHRUG - Stop Hussein's Radical Utopian Gameplan!)
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To: Steven Tyler

I think Australia is also pissed off. China has been recently telling us how we’re abandoning capitalism. Americans deserve all the financial pain they get. They embraced socialism. Let it hurt - a lot.


22 posted on 01/31/2009 4:17:59 PM PST by MichiganConservative (You are a slave. The government is your owner and master. For many slaves, it is also their god.)
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To: tvdog12345

For Euros it does not matter who buys it, the US gov or Americans, steel is steel.

Welcome to the NWO lesson for Obama elect of the world.


23 posted on 01/31/2009 4:21:50 PM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: Steven Tyler

Awsome. The Peace Messiah gives us a trade war, great depression and nukes next. Plus his little arrogant face of popularity worldwide is not making the Iranians happy, no matter how appeasing he will be.

Change indeed... hmm...
(sarc off)


24 posted on 01/31/2009 4:27:56 PM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: hunter112

Yeah, whatever happened to pro-Union bipartisanship and Rush scapegoat stopping the bill.

When Eurowiennies step up, Barry changes his tune pants down.


25 posted on 01/31/2009 4:32:32 PM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: bruinbirdman

>> Barack Obama to dilute ‘Buy American’ plan after Europe threatens US with trade war

We need to trade with our friends oversees.


26 posted on 01/31/2009 4:37:08 PM PST by Gene Eric
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To: bruinbirdman

I did not expect either Obama or the GOP to stand up for the USA and tell the EU to bleep off..


27 posted on 01/31/2009 4:53:47 PM PST by montanajoe
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To: Humble Servant
My first instincts are with you, but refer to lessons learned (and forgotten) from Smoot-Hawley, see above. Protectionism was a major, major part of making the Depression of the 1930’s into THE GREAT Depression.

A myth. Trade was only 5% of GDP back then

28 posted on 01/31/2009 5:10:03 PM PST by dennisw (white trash philosophizer)
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To: JudgemAll
"Awsome. The Peace Messiah gives us a trade war, great depression and nukes next."

Plus, $2 trillion in increased vote buying while cutting military expenditures by 10% (oh, but he increased funding for military housing for votes).

yitbos

29 posted on 01/31/2009 5:18:44 PM PST by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

So the House Pubbies will have to vote again?


30 posted on 01/31/2009 5:47:42 PM PST by Sybeck1 (WHITE AND EMBRACING WHAT IS RIGHT!!!!!!)
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To: bruinbirdman
President Scatterbrain just may be the most naive and ignorant President in this country's history. All because 60 mil Americans longed to be a part of histrionics history.
31 posted on 01/31/2009 5:48:26 PM PST by jla (Sarah! sarahpac.com)
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To: bruinbirdman

All softies get the money. Hard science, technology and defense/antiterror get cut... Hmmmm... It’s like firing cops before a protest is about to turn into a riot. Shades of NOLA/Katrina disaster... Bush’s fault.


32 posted on 01/31/2009 5:51:38 PM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: dennisw
A myth. Trade was only 5% of GDP back then.

And since Smoot-Hawley caused US exports (5% of GDP) to collapse by over 66% in under a year, Smoot-Hawley alone is reponsible for a rapid & permanent destructin of 3.5% of GDP. Unemployment was still at 7% when SH was passed, and rose by 150% to 17% in the 12 months following.

33 posted on 01/31/2009 6:00:57 PM PST by sanchmo
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To: sanchmo

Ridiculous.... you are reaching


34 posted on 01/31/2009 6:04:24 PM PST by dennisw (white trash philosophizer)
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To: dennisw

Every number I quoted above is accurate. Smoot-Hawley caused 3.5% GDP destruction and approx 5% unemployment for a decade. How can a country that is a net exporter not be hurt when international trade comes to a screeching halt, if there4 is no corresponding domestic demand to take up the slack? This is one of the few facts of economics that isn’t even counterintuitive.


35 posted on 02/01/2009 3:52:27 PM PST by sanchmo
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To: sanchmo

Two events happened at the same time. To pin it on Smoot Hawly is absurd


36 posted on 02/01/2009 4:16:45 PM PST by dennisw (white trash philosophizer)
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To: sanchmo

What part of “trade was 5% of GDP’ do you not understand? You can take your numbers and throw them in the ocean. You are a free market ideologue who will dig up anything that gives you a glimmer of hope


37 posted on 02/01/2009 4:19:27 PM PST by dennisw (white trash philosophizer)
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To: dennisw

Let me repeat it real slow.
Trade was 5% of GDP.
Global reaction to Smoot-Hawley destroyed 66% of US trade for the entire decade of the 1930’s.
5% times 66% = 3.5%
Smoot-Hawley erased 3.5% of GDP for the entire decade of the 1930’s.

I welcome any refutation that doesn’t involve calling people’s mothers nasty names.


38 posted on 02/01/2009 4:35:27 PM PST by sanchmo
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