Posted by: Puma1 | January 30, 2009

Obama Stimulus Angers Europe (So Much for Restoring America’s Image Abroad)

From Gateway Pundit, on the Great Generational Theft Act of 2009…

“…the inclusion of protectionist measures it is likely to start a trade war with Europe. That is what democrats did in the 1930’s that helped turn the national recession into a national depression.”

via Gateway Pundit: Generational Theft Act Will Re-Start Trade Wars– Expand Welfare State & Nationalize Healthcare.

Gateway Pundit’s analysis is based on a article in The Telegraph, a UK Paper:

“The prospect of a trade war between the US and Europe is looming after “Buy American” provisions were added to President Barack Obama’s $820 billion (£573 billion) stimulus package.

The EU trade commissioner vowed to fight back after the bill passed in the House of Representatives late on Wednesday included a ban on most purchases of foreign steel and iron used in infrastructure projects.

The Senate’s version of the legislation, which will be debated early next week, goes even further, requiring that any projects related to the stimulus use only American-made equipment and goods.

The inclusion of protectionist measures has quickly raised hackles in Europe.

Catherine Ashton, the EU trade commissioner, said: “We are looking at the situation. The one thing we can be absolutely certain about, is if a bill is passed which prohibits the sale or purchase of European goods on American territory, that is something we will not stand idly by and ignore.”

Despite the parlous state of the US economy, some major American firms, including General Electric, are also opposed to the Buy American stipulations, fearing reprisals from overseas and further damage to the global economy.

Bill Lane, government affairs director for Caterpillar, which has just laid off nearly a fifth of its 112,000 work force and is the tenth largest US investor in Britain, warned it was a dangerous step.

He said: “We are the first to recognise that if the US embraces Buy American then the whole notion of buying national will mestastasize and limit our ability to take part in overseas projects.

We are students of history. A major reason a very deep recession turned into the Great Depression was the fact that countries turned inward.”

Some industrial giants also question whether the Buy American laws would contravene US obligations reached in various World Trade Organisation agreements.

They also point to the 1930s as a lesson in the perils of protectionism. Congress passed the Buy American Act in 1933, allowing the government to favour US products for government contracts. Restrictions were eased in 1982, but the plans currently working their way through Congress would bring the new law close to its forebear of 75 years ago…

Mr Obama has sent mixed signals on free trade throughout his campaign and the early days of his presidency. He has argued that the North American Free Trade should be recalibrated in favour of American workers, but has stressed the need for a co-operative international approach to the economic crisis.”

via US-EU trade war looms as Barack Obama bill urges ‘Buy American’ – Telegraph.

Sigh. Good Lord have mercy. So, not only is this hideous bill — which stands next to the Patriot Act as the worst legislation in US history — a grossly excessive, unfocused boondoggle threatening to turn the recession into a depression, its exponentially brainless trade measures might further exacerbate the current global economic crises. Just great.

On top of that, it is antagonizing our European allies…but don’t hold your breath and wait to hear about it from American news outlets, whose carelessless on reporting the truth about this stimulus is eerily reminiscent of their dereliction of duty pre-Iraq.

But, wait…wasn’t Obama supposed to restore America’s position as a world leader and improve our image abroad? Goodbye with all of that, I guess.

This stimulus bill is a hot tranny mess. Period.

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Responses

  1. Don’t know why Europe is angry at The Anointed One’s Stimulus package. They’ve been taking Aspirin for years without complaint and, as everyone knows, half an Aspirin will stimulate you more than this “Pork Package.”

  2. Someone is lying, It can’t be my senator, can it?? I emailed him regarding all the earmarks mentioned in this article, guess what? He claims there are no earmarks. below is his reply to my query as to what good will all this do for our economy and job growth? Here is what he said to me:
    >
    > Dear Mrs. SXXXn:
    >
    > Americans everywhere are suffering due to the economic
    > downturn, with jobs, life savings, and basic needs at stake. Our
    > economy has officially been in a recession since December 2007,
    > and America has lost 2.6 million jobs in that time, the biggest loss
    > since 1945. I support a broad recovery package to help struggling
    > families through these difficult times and jumpstart our faltering
    > economy through sound investments. I appreciate hearing your
    > thoughts on this issue, and welcome this opportunity to respond.
    >
    > The American Recovery and Reinvestment Act of 2009
    > strikes a balance between government investments and tax breaks
    > to foster economic development and help Americans make ends
    > meet. The package invests in energy independence, education,
    > health care, transportation, job training, and small businesses.
    > Additionally, the legislation includes tax breaks such as the
    > “Making Work Pay” tax credit, which reduces payroll taxes for
    > middle class Americans and increases take home pay on every
    > paycheck. Existing federal benefits for disabled veterans and
    > seniors will also be increased to help these vulnerable populations,
    > and the earned income tax credit will be expanded to assist the
    > nation’s struggling working families.
    >
    > I am working hard to ensure the recovery package helps
    > those Americans who need it most. I led efforts in the Senate to
    > include $1 billion for job training programs to help displaced
    > workers update their skills, because putting people back to work is
    > fundamental to restarting the economy. As Chairman of the
    > Agriculture Appropriations Subcommittee, I supported a
    > temporary boost in food stamps. I also fought for school
    > breakfasts and lunches, and the Women, Infants, and Children
    > program (WIC). With people losing their jobs, I am committed to
    > keeping resources in place to help families put food on the table.
    > Most economists agree that a food stamp increase, because of the
    > way food stamps are distributed and spent, is one of the quickest
    > ways for government to stimulate the economy.
    >
    > While I believe an expansive recovery package is necessary
    > to confront the recession, it is critical for Congress to spend these
    > funds prudently and avoid waste, fraud, and abuse. The American
    > Recovery and Reinvestment Act does not include any earmarks.
    > The legislation uses formula-based funding that flows directly to
    > the states. Formula funding allows state and local officials – who
    > best know state and local needs – to direct resources to the highest
    > priority projects. They can also direct resources to projects that are
    > most “ready to go.”
    >
    > I will keep your thoughts in mind as the legislation comes
    > before the full Senate. I have heard from many Wisconsinites with
    > a wide range of viewpoints on this issue, and I appreciate every
    > letter and phone call I receive because they help me to know what
    > is important to people back home. Please do not hesitate to contact
    > me again in the future if I can be of any further assistance to you.
    >
    >
    >
    >
    > Sincerely,
    >
    >
    > Herb Kohl
    > U.S. Senator
    >
    >
    >
    > Please do not reply to this message; to make further comments or to find additional information, please
    > visit

  3. I couldn’t agree with President Obama more. Furthermore, I think the people that disagree with him are either Republicans trying to keep the parties un-united, Europeans that only benefit from our use of their materials, services, and products, or, I don’t even know, its hard to explain.
    America spends a lot of time and money on other countries. It may be time that we take care of ourselves for a change. People say that Obama’s Stimulus Bill is dangerous. However, I believe that most moves that end up being turning points in history are not the safest routes that can be taken. George Washington, Martin Luther King Jr., Abraham Lincoln, Rosa Parks, and Barack Obama are clearly examples of that.
    I totally am standing behind our president on this one. It would be nice if for a change the United States could come together and stand behind our president and be, umm, united.

  4. I don’t pretend to know the history of the Great Depression but it seems to me that we got into this mess by buying more foreign goods than American-made goods.

    It’s seems to me that Americans have to make a commitment to buying American or there will be no way of getting out of this mess. Of course the rest of the world, including Europe won’t like it, they benefitted at our peril.

    I was thinking why not use the stimulous money to reopen factories and bring back some of the sectors that moved off-shore due to cheap labor.

    I know that’s a tall order. But by the sound of things we already have a tall order. Americans are being asked to sacrifice. Wouldn’t that sacrifice better serve us all if it came in the form of paying higher prices for AMERICAN MADE goods? just sayin


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