Larry Kudlow Has a Fit as Obama the “Declinist” Opens His Mouth in Japan; Says Obama is “Not His President”

~~By  InsightAnalytical-GRL

Well, Larry Kudlow over at CNBC is already having fits about Obama’s first statement since his arrival in Asia. You can see Kudlow flip out in this video.

On the Friday night  Kudlow Report (11/13/2009),  Larry bellowed that Obama was “not his President.”

I had to laugh.  I’ve never called Obama “President” either, in real life or on this blog.  Which just continues my tradition, since I never attached the word “President” to George W. Bush, either.  However, arch-conservative Kudlow apparently thought Bush was peachy keen at the time having no problem refrerring to Bush as President.

Kudlow ranted about how Obama does not do “optimism” and, in fact, preaches “declinism.”  And he cheerleaded about U.S. exceptionalism and our huge economy then railed about how Obama doesn’t understand how oversimplified it is to say that “the American consumer won’t bail out” the world economy.

Here’s the article from the Wall Street Journal that flipped out Kudlow:

Obama Carries a Message to Asia

Trade-Talk Revival a Goal, but World Economy Can’t Rely Solely on U.S. Consumers

(snip)

Mr. Obama’s emphasis on pursuing new pacts comes as he makes his way through an export-dependent region that has grown nervous about his trade policy, and skeptical about his willingness to use political capital at home to support free trade. He has yet to achieve tangible advances on the trade front, nor did he offer specific proposals Saturday beyond a promise to complete the next global round of free talks — dubbed Doha — “in a timely fashion.” So far, his most dramatic moves on trade have involved slapping tariffs on Chinese tire imports and, just last week, steel pipes. In his speech, he said his administration will “pursue pragmatic cooperation with China on issues of mutual concern.”

The speech in the vast Suntory Hall here Saturday morning had a somewhat different tone than many of Mr. Obama’s foreign-policy addresses. He has spent much of his first year in office working toward burnishing what he has called his nation’s diminished stature in the globe. While he also talked of multilateral cooperation and human rights, he came to Asia to deliver the message that the rapidly growing export-driven economies can no longer count on the U.S. consumer to keep them afloat.

Doesn’t this sound sort of arrogant?  I have to wonder what “consumer” Obama’s talking about.  They seem to be half-dead here. I’m sure the Chinese know that, too. They are not dumb, Barack.

Panel member Zachary Karabell of  Rivertwice Research, who has written a book on something related to all this, played both sides of the fence…he sort of believes that we’re not the biggie we used to be (which is the sort of thing that pushes Kudlow’s buttons) but he says there’s a moment at hand now where we have to continue to make sure that we remain a hub of innovation.  He made sure he agreed with Kudlow that a “dual hub” situation is occurring–U.S. & China–which is OK with both of the because they see this as being “very beneficial.”  But Kudlow is totally pissed about how we’re wrecking other economies because of the weak dollar, which is creating an inflationary bubble in Asia region. Basically,  he says Obama is ignoring all this because he’s too preoccupied with “bashing” the American consumer.

Andrew Busch of BMO Capital Markets said he thinks the Administration’s strategy, which he doesn’t like, is to go “hat in hand” to China to try convince China to help us by letting the yuan appreciate…That is where the INSISTING part I discussed in my previous post is supposed to come in, I guess.

Stephen Moore of the Wall Street Journal editorial board sees this weak dollar situation is what set up the Bush Administration to go down as a failure in terms of economic policy and that’s what we’ve got now.  How encouraging!

Ah, but Kudlow and Karabell think that American companies like Nike and Walmart making stuff in China and selling it here is great (but I’m asking, what about American jobs HERE, Larry!).

Kudlow made some dreamy comments about “stabilization” and “currency cooperation” and “coordination” with Asia. And then, Karabell dropped the bomb about an Asian ‘unified currency bloc to facilitate strength.”   And he said that if we want China to continue to “hitch” themselves to us more, we’re not supposed to freak out if China wants to buy businesses HERE and not have a “knee-jerk xenophobic response.”  Kudlow even decided there should be FUSION.  Later, he also espoused an Asian currency zone a la the Euro.  Kudlow also opined that Karabell should get a Nobel Prize for his book.

Karabell and Busch both think that China WILL  revalue the yuan by 5% with other countries in the region to follow.  Busch pointed out that China could face World Trade Organization actions for protectionism if they don’t.   As for Obama, during the presidential campaign Obama promised to “crack down on China” but during the primaries there was chatter: “But his commitment to that point of view was thrown into doubt during the primaries when a Canadian official said an Obama adviser had privately characterized his tough stance on the North American Free Trade Agreement as political posturing.” (As an example, see: U.S. to Impose Tariff on Tires From China, Wall Street Journal, September 12, 2009.  Detractors figure that “the tariff won’t result in more jobs. Tires will simply come in from other low-cost countries, they say, and U.S. manufacturers, keep making their cheaper tires in China.”) Of course, this is classic Obama…all that “get-tough” talk and “insisting” while we have to go “hat in hand” to China…more blowing smoke.

I have no idea what a 5% revaluation really means in the long run but I doubt it will miraculously revive our exports and restore many American jobs that have left the country.

All I know is that Kudlow finished the segment by again repeating that he likes his Presidents to be “optimists” and not “declinists” and that he was furious about Obama’s first utterances in Asia.  It’s worth checking out the video because I can’t due full justice to everthing that was discussed.

But what’s all this about “FUSION”? Well, it’s that “free-trade” stuff again. Kudlow seems to talk about U.S. economic leadership but embraces all this business leading to globalization.

Kudlow and  Obama both can give you whiplash…

But at least I hear Michelle and the girls are having a good time…

What’s Going On North of the Border: The Canadian Economy and Stimulus Plan

~~By InsightAnalytical-GRL

Recently we posted information about how Canadian banks are moving into buy U.S. financial institutions (See: Canadian Banks On the Move Buying U.S. Banks While Bailout Recipient AIG Sells Canadian Life Insurance Business to Bank of Montreal (”Picking over the Carcasses”).

Things in Canada aren’t all rosy, of course. As of late January:

“The credit crisis and the global sell-off of commodities have started to hit Canada hard. The country lost more than 100,000 jobs in the last two months of 2008, and the central bank is predicting economic output will contract 4.8 percent in the first quarter.”

When Obama visited Canada last month (February 19, the two leaders pledged to work together:

Obama said the US and Canada were working closely together bilaterally and within the G8 and G20 – two blocs made up of the world’s largest economies – to see how to restore confidence in financial markets.

Like much of the world, both nations are battling a severe recession. In Canada, the world’s eighth-largest economy, the unemployment rate in January soared to a four-year high of 7.2 per cent. That rate was at 7.6 per cent in the US, the highest since 1992. Harper said he and Obama agreed that Canada and the US “must work closely to counter the global economic recession by implementing mutually beneficial stimulus measures.”He later said: “We know, as a small economy, we can’t recover without recovery in the United States.”

SNIP

NAFTA had threatened to become an acrimonious issue during this visit. On the presidential campaign trail, Obama had said that the US would threaten to pull out of NAFTA unless Canada and Mexico agreed to strengthen labour and environmental protections. But he has softened his stance since taking office.

Well, if you’re going to have a North American community, I guess some stances HAVE to be softened…

A few days before Obama hit town, The Hill Times, “Canada’s Politics and Government Newsweekly,” ran this story:

Canada needs whistleblowers to protect stimulus package

Given the $1-billion gun registry overrun and the sponsorship scandal, there’s little reason to trust that this unprecedented expenditure will be managed competently or even honestly.

Displaying start of article containing 755 words – Many Canadians rightly fear that the massive government spending recently announced may simply be wasted or the money end up in the wrong hands, without creating jobs or helping the economy. Given the track record of our corporations (with fiascos like Bre-X and Nortel) and past government waste and corruption (such as the $1-billion gun registry overrun and the sponsorship scandal) we have little reason to trust that this unprecedented expenditure will be managed competently or even honestly.

Sounds so familiar!

And the newsletter I receive from Radio Canada International had this tidbit one day:

TORONTO: CBC IN STRAITS

Canadian Broadcasting Corp. President Hubert Lacroix says the public broadcaster is considering reducing services in coming months to cope with budget problems. In a speech in Toronto, Mr. Lacroix says the CBC faces an advertising shortfall of as much as $65 million for the fiscal year ending March 31, as advertisers reduce spending amidst the ongoing economic crisis. Mr. Lacroix says that while the CBC will likely break even this year, the future is problematic. The president said the broadcaster may sell assets, consolidate local stations or introduce more U.S. television shows. Mr. Lacroix says he has asked for a meeting with the prime minister, Mr. Harper, not to ask for a bigger subsidy but possibly for a line of credit or an advance of funding allotted for future years. On Wednesday, a spokeswoman for Heritage Minister James Moore told The Globe and Mail newspaper that the government expects the CBC to manage with its $1-billion a year subsidy. Meanwhile, The Globe reported on Thursday that private broadcaster CTV plans to close money-losing television stations in Windsor and Wingham, ON.

Meanwhile,  Canadian Auto Worker union members will finish voting today on a tentative agreement which may or may not get the approval of the Canadian government. Although union negotiators have agreed to concessions, it’s not clear sailing:

The new deal is contingent on GM winning financial support from the governments of Canada and Ontario.

Federal Industry Minister Tony Clement has suggested the deal may not be acceptable to Ottawa, although he seemed more receptive today.

“I’m not here to pass judgment,” Clement said after a speech to the C.D. Howe Institute. “For government money to flow, there has to be the ability to be competitive in the new marketplace, there has to be a viable plan on a go-forward basis, there has to be the right kind of management decisions that have been made.”

Clement suggested that in the end, the only thing that will save the auto industry is the American consumer.

“If you’re asking me what will save the auto sector in North America, it’s what American consumers do and buy, not just what Canadians do and buy.”

GM and Chrysler have until March 31 to finalize restructuring plans to get access to Canadian government financial aid.

So, while Canada may not have the same problems with its financial institutions that we are  seeing  in the U.S.,  the spillover of the U.S. banking system’s crisis and our economic woes is unavoidable.  The condition of the Canadian financial system will have to be watched as Canadian banks assume more risk as they take over U.S. assets.

And, as of the moment, the Canadian government’s stimulus package remains hung up as the budget has still not passed the “Liberal-dominated Senate” as Opposition members demand “reports” on the details:

The reports, which detail the budget’s implementation and costs, are to be delivered this March, June and December ahead of opposition days in Parliament. This would give opposition parties the chance to move a no-confidence motion against the government if they wanted to trigger an election.

How about that? An opposition that could trigger a election.

Meanwhile, there was some fighting over the price tag in the bill to fund the government through September that passed yesterday. The $410 billion bill, on top of the $787 billion stimulus package approved in February is starting to bring out the rancor. But:

While most of the votes throughout the debate were along party lines, eight Republicans crossed the aisle to vote to end the weeklong debate on the legislation while three Democrats opposed it. The Senate approved the measure by a voice vote.

So much for a solid opposition here…

***

More information on the Canadian stimulus plan and a comparison of the U.S. vs. the  Canadian situations and priorities

Canada’s Stimulus Plan–The Canadian plan focuses on infrastructure.  This article provides a list of measures and a chart of the action plan

Canada’s Fiscal Stimulus Package versus the Obama U.S. Plans