Sarkozy seeks a new order and throws down gauntlet to China

Times Online (UK) ^ | January 28, 2010 | Helen Power

[Ernest_at_the_Beach]

President Sarkozy has promised to put the huge trade imbalances between the East and West at the centre of global financial reform when France takes over leadership of the G8 next year.

In a speech at the World Economic Forum in Davos yesterday, Mr Sarkozy called for a more responsible form of capitalism for the 21st century and backed President Obama in his attempts to break up some of the world’s biggest banks.

Yet it was Mr Sarkozy’s new promise to press countries with huge trade surpluses — such as China — to revalue their undervalued currencies that captured attention. It echoed similar comments by George Soros, the veteran investor, earlier in the day that China must let its currency appreciate.

“We cannot preach free trade and at the same time tolerate monetary dumping,” Mr Sarkozy said.

[kjo]

None of this matters folks...Greece is going down in a few months and will take Britain and France with it...the US will stand by because we can’t afford OUR bailouts let alone theirs.

Hold on, the dominos are gonna start falling soon...the only thing I can tell you for sure is that the MSM will say it’s Bush’s fault and proclaim Obama a god.

Our standard of living, long sustained with debt, can’t be any longer. It’s gonna be a long decade...like the thirties.

[pieceofthepuzzle]

“Our standard of living, long sustained with debt, can’t be any longer. It’s gonna be a long decade...like the thirties.”

The way out of this, and it will take time, is to revive US innovation and start using that innovation to ‘make things’ we can sell at home and to the rest of the world. That, however, requires vision that goes beyond the next election cycle. It also requires politicians who know how to ‘get out of the way’’.

[mjp]

countries with huge trade surpluses — such as China

When their currency is cheap, it means that we get their products at a cheaper price. And they take our worthless dollars, which helps to keep our inflation rate lower than it would actually be.

[1010RD]

Sarkozy throws down gauntlet? He cannot afford a Q-Tip, let alone a gauntlet. Sorry Nick, that train has sailed long ago (I know). ;-]

[grey_whiskers]

It also requires firing squads for an entire generation of Ivy League-"educated" bean counter MBAs, uprooting all of the parasitic Indians and Chinese who have come here to usurp the knowledge of the United States (while delivering almost NOTHING in the way of innovation in return), and re-hiring an entire generation of US engineers and tech workers.

Cheers!

[pieceofthepuzzle]

Thanks. You made my night. Now I think I’ll just uncork a bottle of wine and drink to the future.

Cheers!