Oh What is Brewing When Paulson Proclaims "No Protectionism"

The minute I hear the word Protectionism being denounced, odds are policy for the American people is being fought against by Corporate lobbyists.

Treasury Secretary Hank Paulson is now pronouncing the evils of any international regulation or anything geared to reduce the United States trade deficit:

Although we in the United States are taking many extraordinary measures to ease the crisis, we are not pursuing policies that would limit the flow of goods, services or capital, as such measures would only intensify the risks of a prolonged crisis

We already know the G7 is putting out vague press releases that say all nations will work together without specifics, but is buried within more bad trade deals?

From a Hank Paulson press release:

Our current actions focus on five areas: liquidity, capital, protecting investors, macroeconomic response and the regulatory environment.

Nothing about the homeowners or people in trouble, they are out to protect investors as clearly stated.

Paulson on the IMF, which they are reforming:

The IMF, along with the OECD, must continue to facilitate multilateral efforts to resist protectionism and maintain an open and stable international financial system. The recent agreement by the International Working Group of Sovereign Wealth Funds on a set of Generally Accepted Principles and Practices (GAPP), facilitated by the IMF, is a major step forward. We also welcome the OECD's work on investment policy principles to promote open, transparent, and predictable inward investment regimes.

The term inward investment regimes, appears. Once again our global elite bankers who should be bankrupt instead of making sure they dictate trade policy?

Indeed the credit freeze is affecting international trade, as grain piles up in ports.

No one is suggesting the Smoot-Hawley tariff so why the sudden warnings of protectionism, could it be that countries like Brazil want yet another global trade agreement? G-20, which includes Brazil, China, India are suggesting even more bad trade deals and out to reform the G-7. Meanwhile anything to strengthen the US economy is once again being labeled protectionist or hearkening falsely to the incredibly high tariffs of Smoot-Hawley, often the scapegoat, not the cause of the Great Depression.

Seeking Alpha, which is an investment blog, called it as they see it, New World Order.

Even one of my heroes, one of the few voices of reason for the past decade, Nouriel Roubini, has surmised that the only way out of the mess the world's bankers have got us into is to completely give into them and surrender our liberty.

Subject Meta: 

Forum Categories: 


should definitely check out the plan that the German government put together to handle the crisis. Highlights:

1. Obligation to keep innovative financial instruments on the balance sheet, and they must be supported with sufficient equity.
2. Bank liquidity cushions must be increased, and a minimum size must be set for them.
3. International standards should be created for greater personal liability for the financial market participants accountable (to prevent golden parachutes).
4. Incentive and remuneration schemes should be adjusted in the financial sector (Steinbrück links those to the insane push for high profit margins).
5. Closer coordination between FSF and IMF.
6. Detrimental short-selling should be temporarily banned by international agreement.
7. A ban on the securitization of 100% of lending risk (to make lenders aware of risk).
8. Enhance cooperation between national regulators.

Olbigation to keep "new financial instruments"

I'm not sure if that means regulate derivatives or keep the ponzi scheme going, or both. Anyone else notice when there is mischief afoot the wording becomes increasingly vague?