Clashing Agendas At High-Stakes G20 Summit

U.S.-British Push For More Stimulus Spending Will Likely Get Cool Greeting At Economic Meeting

(CBS/ AP)  A U.S.-British push for more stimulus spending and widespread European agitation for tougher financial rules amid a global economic crisis will likely get a cool greeting at a G20 summit of receding expectations.

There are signs of discord before the summit has even begun: France's finance minister told the BBC that the nation will walk away from the summit if its demands for stricter financial regulation are not met.

For U.S. President Barack Obama, the stakes were high for his first time on the world stage, both in dealing with the economy and in face-to-face sessions with other leaders.

He was arriving in London on Tuesday night, and planned a round of meetings with leaders on Wednesday, including Queen Elizabeth II, summit host British Prime Minister Gordon Brown and the presidents of Russia and China.

The world economy is in far worse shape than when the group of rich and developing countries last met in November and set lofty goals for international cooperation.

Trade is deteriorating, protectionism is on the march and joblessness is rising. Street demonstrations have increased and widespread protests in London were expected.

Brown, the host, had initially trumpeted the gathering as "a new Bretton Woods - a new financial architecture for the years ahead." But the meeting was shaping up as bearing little similarity to the 1944 conference in New Hampshire where the winners of World War II gathered to set postwar global monetary and financial order.

In their meeting in November, the G-20 members vowed to avoid protectionism that could stifle trade. But since then, 17 have acted to pass subsidies to protect their own industries or limit imports.

There's no clear consensus on a way forward - other than general vows of cooperation, more money for the International Monetary Fund, and a greater voice for rising powers like China and Saudi Arabia.

World Bank President Robert Zoellick called for the G20 to back a $50 billion liquidity fund to keep trade moving. In rich countries, he said, "people talk of bonuses or no bonuses. In parts of Africa, South Asia and Latin America, the struggle is for food or no food."

In fact, giving such economies a regular place at the table for economic summitry may be the one of the few accomplishments of this summit and the one held in November in Washington, recognizing the modern economic realities that countries such as China, India, Brazil and Saudi Arabia have more impact on the world economy now than some of the old victors of World War II.

The leaders were mindful of the importance of appearing united, even if such statements papered over underlying disagreements.

"You've got all world leaders very cognizant of the fact that any open disruptions or disagreements could shake markets and shake confidence in the way going forward," said Steven Shrage, a former U.S. trade official who is an international business analyst with the Washington-based Center for Strategic and International Studies.

London does not have a good history for successful economic summits. One held in London in 1933 failed to do much of anything to halt a global international depression - and may have actually led to more self-protective trade measures.

Still, leaders were upbeat in statements Tuesday as they headed to London.

"It is important and necessary for the summit to take credible decisions which will help to halt and reverse the current slowdown and to instill a sense of confidence in the global economy," said Indian Prime Minister Manmohan Singh as he headed to London.

Summit partners will meet for dinner on Wednesday evening, then hold a business meeting on Thursday.

It seemed likely major new declarations or initiatives would be subject to watering-down conditions at this summit.

U.S. officials, for instance, backed away from pressing too hard to urge for other nations to do far more stimulus spending.

A draft of the communique circulating ahead of the meeting suggested that global leaders will embrace stimulus spending totaling about $2 trillion. But that includes a number of measures already announced.

"There isn't any single number that is sacrosanct," said Mike Froman, a White House international economic adviser.

Leaders of European countries, led by Germany's Angela Merkel, continued to resist calls for more stimulus and for printing money as the U.S. Federal Reserve and the Bank of England have done to try to jump-start a recovery.

Memories of the hyperinflation in the 1920s in Germany that gave way to the rise of Adolf Hitler's Nazi party still haunt modern-day Germany.

"International policy is, for all the friendship and commonality, always about representing the interests of one's own country," Merkel said in a pre-summit interview with The New York Times.

Merkel first met Obama when he traveled to Europe on a campaign trip last summer, a trip in which he was met by thronging crowds, but at a time when the economic world order seemed a lot simpler.

European countries want more aggressive coordinated regulation of risky financial strategies and transactions, such as hedge funds. The Obama administration met some of those concerns last week in unveiling a package to extend federal regulation to financial institutions not regulated as banks, such as hedge funds and insurance conglomerates.

But that didn't go as far as some European leaders had hoped.

On Wednesday, Obama will have separate meetings with Brown, Russian President Dmitry Medvedev, and with Chinese President Hu Jintao.

With Moscow, the agenda will include disputes over energy and Russia's continued opposition to U.S. missile defense sites in Eastern Europe. Obama has indicated less enthusiasm for the missile system than his predecessor, raising hopeful expectations in Moscow. But Russian leaders have engaged in tough talk lately in terms regaining their own status in the world, posing an early test for Obama.

Obama's meeting with Hu is likely to touch on recent Chinese concern about the safety of its vast holdings in U.S. Treasury bonds given dollar-eroding U.S. stimulus programs. China surpassed Japan last year as the largest holder of U.S. debt, and any Chinese flight away from those investments would rock global markets.

[noobama08]

You guys make me very sad. Our wonderful country is going to &hi! in a handbasket. We owe so much money to China and everyone else. I did not vote for Noobama, and never will support him. He has no experience, and is going into talks with seasoned veterans who will eat him alive. I know all of you liberals out there are proud of the trillions of dollars that he is costing our country, and you think that is ok. Keep your blinders on. Do you know what O.B.A.M.A stands for? ONE BIG ASS MISTAKE AMERICA.... I feel sorry for you liberals when you actually see what you have done to this country. Yes it will be your fault for voting that into office.

[fzy1hc]

The ones that voted for Obama were saying he going to take care of me!!

Now I don't hear them saying that anymore!!

Hold on maybe when something comes out for free!!!

Obama's people did good getting the 18 year old vote for him. His brothers and sisters.

We the working people and your children will be paying.

[robertx13]

By the way you forgot to mention VENEZUELA. HAHAHAHAHAHAHAHAHAHAHAHAHA.
Posted by Obama__is__Chavez at 5:34 PM : Mar 31, 2009

Nope...i put the "ect" there genius! hee heeee!!! Go ******* to a snowboarding video. haha

[Obama__is__Chavez]

You idiot you never learn.
Since when have we ever listened to the "perfect" europeans. They're just as screwed as we are. Sick of communism? hahahaha its like ur phucking five!!! Tell that to the chinese, the vietnamese, the cubans the north koreans ect. The world isnt sick of communism, u are! Speak for yourself. Oh and keep writing this $hit is funny hahahahahahahah!!!!
Posted by robertx13 at 5:14 PM : Mar 31, 2009
*******************************************************************************

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA. Sorry Bob, I rolled in the carpet when I read you list of guys who aren't sick of COMMUNISM: China,North Korea,Cuba,Vietnam. HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA.

By the way you forgot to mention VENEZUELA. HAHAHAHAHAHAHAHAHAHAHAHAHA.

[robertx13]

BARRACK OSAMA had a cold reception. Europeans and the rest of the world are sick of COMMUNISM. Even Russia sees the communist BARRACK OSAMA with suspicion.
Posted by Obama__is__Chavez at 5:03 PM : Mar 31, 2009


You idiot you never learn.
Since when have we ever listened to the "perfect" europeans. They're just as screwed as we are. Sick of communism? hahahaha its like ur phucking five!!! Tell that to the chinese, the vietnamese, the cubans the north koreans ect. The world isnt sick of communism, u are! Speak for yourself. Oh and keep writing this $hit is funny hahahahahahahah!!!!

[Obama__is__Chavez]

BARRACK OSAMA had a cold reception. Europeans and the rest of the world are sick of COMMUNISM. Even Russia sees the communist BARRACK OSAMA with suspicion.

[robertx13]

Some people voted for Obama, not everyone. Half of those who voted for him are begining to regret it.

Posted by megawhy at 1:23 PM : Mar 31, 2009


Yeah well america is full of geniuses! (remember bush?) We reelected him and 4 years later we couldnt wait for obama to take office! The thing is america is stupid when it comes to voting...they really are. They expect Mr. Obama to pull $hit ot of his @$$!!! They expect quick staisfaction after electing a president and 80 days later you are all (you, republicans, so called political news anchors like O'rielly, Limbaugh and that sick ba$**** Sean Hannity!) are expecting the economy to prosper, the air get fresher and the unemployed skipping around leaving a trail of pixie dust! But of course i know better. I'll wait til' the next election to judge whether to vote for him, or God forbid vote for another Bush! Ugh! Politics makes me sick! (spit)

[robertx13]

Or we can just print more paper(money) But of courese would make sense but that would confuse washington congressmen.

[clancy49]

Will the French walk out? Will Spain, Italy, and Turkey follow? Did anyone notice that these important countries especially Turkey were recently visited by the Russian President. We are behind the eight ball again. America is not the only country in the world. The above countries have real problems like ours, only ours is worse because of the rampant spending without substance. These are skilled world leaders facing off against Britain and America. Don't be to smug, we are in deep trouble here. It is a green rookie against seasoned veterans. The Russian President made certain BHO would be playing in his ball court. The Russian President has rigged the referees. Don't expect too much American flag waving and support from these meetings. America isn't a loved and respected country in Europe. Don't think it is only one President that made this distaste in Europe. This isn't about political parties in America. This is about Europeans, their lives and their playing field. Part of the failure of American respect in Europe has been for decades the American politics with blinders on.

[LOL_AT_CBS]

ass damn dick testing

[LOL_AT_CBS]

******* awesome got to be ******** me

[realnews12]

I have never see a US president be so opposed to the Constitution and Free Markets.

Posted by megawhy at 1:23 PM : Mar 31, 2009

Sorry, but that was George W. Bush who was opposed to the Constitution and thought it was "just a piece of paper".

President Obama is thoroughly devoted to the Constitution. He is also in favor of free markets, with appropriate regulation of large financial institutions. These are extraordinary times and he is doing his best to clean up the mess left by the Bush administration.

[realnews12]

Some people voted for Obama, not everyone. Half of those who voted for him are begining to regret it.

Posted by megawhy at 1:23 PM : Mar 31, 2009

Specifically, 53% voted for him. And the average of a large variety of polls conducted by different organizations shows that 61.5% currently approve of the job he is doing (see the data at realclearpolitics.com). Note that is even more than voted for him! You are in DENIAL!

[two-cats]

The Republican haters are out in force declaring that Obama has lost favor with the people. Of course, they fervently hope this but the polls do not agree.

[architekker-2009]

CBS is one of the biggest BS in the history of news!

[fall87]

Realnews12.... good post! please be advised.. u'r dealing with a huge amt. of haters out there. Just plain ol' fashion haters. Totally unreal! But I'm like millions of others!!!! Good job Mr. President! We love you and we support you!

[bajajohn1]

Republiturds need to get a life. You lost the election dimwits. However, there is sunshine where darkness thrives in the Repubs, I will take great pleasure in knowing that you will be utterly miserable for the next four years. Suffer and suffer greatly.

[antoniof123]

The world is falling apart and all StopTheLoonyLeft can do is make noise no solutions just cut and paste from Rush and the RNC play book.

Man get it together and send your solutions to your congress rep if not shut up!

Neocons are getting dumber and dumber by the minute proof is reading StopTheLoonyLeft comments.

[megawhy]

realnews12

Good job? Good job!? Obama has done a terrible job. All he has done is put in motion spending that will do nothing but destroy our economy! He is weak in every area. Even the G20 thinks he is an idiot.

Some people voted for Obama, not everyone. Half of those who voted for him are begining to regret it. Unfortunately, the damage is already starting and can not be stopped. I have never see a US president be so opposed to the Constitution and Free Markets. Only fools voted for him.

[Underdogus-7]

I believe fiat money is doomed. I fear the reserve status of the US dollar is doomed. Where would we be if our creditors refused to accept the paper that we create?