Sometimes you wonder if Larry Summers is reading the blogs. The catch phrase Financial Balance of Terror has been coined by none other than 1990's Financial Terror Architect, Obama economic adviser Larry Summers!
President Barack Obama and fellow Group of 20 leaders are trying to end what Obama adviser Lawrence Summers has called the “financial balance of terror.”
World leaders, meeting in Pittsburgh last week, adopted a framework for more durable economic growth as they sought to prevent a replay of the worst crisis since the Great Depression. They also acknowledged the growing clout of China and other emerging economies by giving them a bigger voice in decision- making.
The aim is to reduce U.S. dependence on overseas capital to finance consumption, while cutting the reliance of China and other creditor nations on American consumers to buy their goods. Summers, head of Obama’s National Economic Council, has singled out the current arrangement as a risk to prosperity since it leaves each major economy a hostage of the other’s policies. “Because our global economy is now fundamentally interconnected, we need to act together to make sure our recovery creates new jobs and industries,” Obama told reporters in Pittsburgh Sept. 25 after hosting his first economic summit.
To help ensure that happens, G-20 countries agreed to give the 186-member International Monetary Fund a role assessing their efforts. The oversight function will be among the topics discussed by policy makers as they head this week to Istanbul for the annual meetings of the IMF and World Bank.
This is a lofty goal and there is no doubt stopping China from vacuuming every job and every dime from American's pockets is a good idea...
wasn't it Larry Summers who assisted with the China PNTR agreement? This trade agreement, signed in 2000 has wrecked havoc with the U.S. economy in record time!
So, will the Obama administration truly enact some modifications in trade, labor, tax policy...even making it be Americans preferred for jobs in America?
Time will tell but regardless of the history here, ya gotta love the phrase!
Putting economic and financial with the same terminology as terror is one great PR triumph.
Now ....will the real policy implementations we know will actually work and make sense please stand up?