Obama Adviser Invokes Great Depression in Warning of Need for Nations to Cooperate
EmailLONDON — "The stakes for this summit are very high," said Mike Froman, the deputy national security adviser for international economic affairs today in an OFF CAMERA briefing for reporters. "They are magnified by the fact that much as happened since the G-20 summit in November. The last summit focused largely and importantly on a number of regulatory issues. But the economy has declined, and in November and December the crisis has spread and the countries of the G-20 have been focused on restoring demand and restoring growth."
Invoking the Great Depression — and the failure back then of the world’s industrialized nations to cooperate — Froman said it was critical that the challenges of the summit be met.
"If you look back at the history of summits," he said, "there have been very few examples of summits that have achieved significant gains in terms of international cooperation during times of crisis." During the Great Depression, "there was a global economic summit here in London in 1933. …The U.S. president did not attend and the summit failed to provide what at the time was seen as good direction to try and get out of the Depression at the time."
"Most people agree that the Depression was made ‘Great’ by lack of cooperation," Froman said.
The Obama administration has two goals for the summit. One is to restore economic growth: This includes encouraging the G-20 nations — which control 85 percent of the world’s wealth — to dedicate at least 2 percent of the combined GDP toward stimulus; right now the figure committed is closer to 1.8 percent. Here the president is getting much resistance from Germany and other countries, but the Obama administration is choosing to accentuate the positive.
“It is important to know what’s already been done since November when the economy declined. The G-20, and I believe all G-20 countries, have adopted or are in the process of adopting significant stimulus plans," Froman said. "By some estimates, that reflects 1.8 percent of GDP this year, over 2.5 trillion over 2009 and 2010.”
But German Finance Minister Peer Steinbrueck today said it makes no sense to pump more and more money in our economy whenever we haven’t restored the confidence in the financial markets." Restoring confidence in the financial markets "is a presumption or precondition to launch successfully these stimulus packages," Steinbrueck said.
The president will also be promoting ways to encourage international trade, to unfreeze the credit markets, taking steps to minimize the spread of the crisis to emerging markets and developing countries by making sure there are the resources and tools available and the international financial institutions, and lastly, avoiding protectionism.
“I think all of the G-20 seized with the importance of avoiding steps that would further reduce or destroy trade," Froman said. "The sense is there will be a reaffirmation of that commitment" in the G-20 communiqué.
Two, President Obama will be pushing deep regulatory and institutional reform. The G-20 nations aspire to agree on an expansion on the scope of regulation to any institution, market or product that is systemically important to the international system, including hedge funds. There’s an effort to encourage offshore financial centers or tax havens to sign onto and implement a number of standards of international behavior and bring them into the regulatory environment. President Obama wants the G-20 communiqué to express a commitment that financial institutions will make sure that capital requirements prevent a crisis like this from developing again.
Regulatory reform is a big issue for French President Nicolas Sarkozy, who is said to think American and British regulatory ideas don’t go far enough. Sarkozy was quoted in Le Figaro as saying on the sidelines of a March 18 cabinet meeting, "If there’s no progress in London, there’ll be an empty chair. I’ll get up and leave."
“I haven’t seen specific comments from Sarkozy," Froman said today. "All I can say is we’re working closely with all of the G-20 on a robust regulatory reform agenda. The president has been personally involved in this.”
Additionally, there will be a recognition that the major emerging markets in developing countries have a critical role at the table in helping to manage the international financial system, and there will be a move to give them a greater voice and vote.
“The U.S. comes here obviously prepared to lead but also to lead by example," Froman said. "The U.S. comes here well positioned to talk about what we’ve done, to talk to other countries about what they are doing. And to fulfill really a remarkable agenda for international cooperation at a critical time.”
“The G-20 is looking to a number different approaches to that when I say incentives for offshore financial centers to adopt and implement these rules, there are a number of things in the tool box that might be available and that’s part of what is being discussed this week.”
– Jake Tapper and Sunlen Miller
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Can Mitt Romney Win Conservatives Back?
Using the Great Depression to scare the Euros is a pretty good tactic but, a more effective scare tactic would be to announce to them that Jimmy Carter has just been employed as senior economic advisor to President Obama.
Posted by: Sigmond | March 31, 2009, 2:39 pm 2:39 pm
Is this legit or simply fear-mongering?
Posted by: Matt | March 31, 2009, 2:56 pm 2:56 pm
I know President Obama is really popular with the people of Europe, but I wonder what the seasoned world leaders think of his ideas, given he has little experience compared to them in dealing with economies.
Posted by: MayBee | March 31, 2009, 3:31 pm 3:31 pm
It is pathetic. It is a embarrassing to the US because we have a President now have a lack of inexperience and leadership. It kind remind me of former Pres. Carter. I didn’t vote for Obama, Clinton, and Carter because of their inexperience and leadership.
Posted by: anonymous | March 31, 2009, 3:34 pm 3:34 pm
Invoking the depression…yeah, that should go over really good with the angry mobs…
Posted by: samhiguchi | March 31, 2009, 3:38 pm 3:38 pm
I love this:
“The U.S. president did not attend and the summit failed to provide what at the time was seen as good direction to try and get out of the Depression at the time.”
“Most people agree that the Depression was made ‘Great’ by lack of cooperation,” Froman said.”
===========================
Get that? The difference between the Great Depression and now is…The US President will attend this summit! And if you take this opportunity to cooperate with him, the world may just avoid a catastrophe.
I love these guys.
Posted by: MayBee | March 31, 2009, 3:43 pm 3:43 pm
obama is a rookie. embarrassing to say the least. Doom and gloom on one hand, fundimentally sound on the other. Just depends on his audience and how much money he wants to spend. And better yet, the Gov’t plans to fix your car with tax money now… STATE RUN everything.
Posted by: chad | March 31, 2009, 3:46 pm 3:46 pm
chad:”And better yet, the Gov’t plans to fix your car with tax money now… STATE RUN everything. ”
And that, folks, is what passes for Republican “critical thinking.” Is it any wonder they live in a state of perpetual fear (of drugs, terrorists, liberals, gays, socialists, communists, evolutionists, etc).
Posted by: jhw539 | March 31, 2009, 3:51 pm 3:51 pm
jhw539 – please dispute, i am waiting. If GM can’t fix your car, uncle sam will. How do you think they will pay for it? How does gov’t pay for anything? What business does the gov’t have paying for auto repairs? there you have it folks, liberals thinking the gov’t will come and save everything. They won’t be happy until the leash is put around their necks and the state runs their pathetic lives.
Posted by: chad | March 31, 2009, 3:54 pm 3:54 pm
“Using the Great Depression to scare the Euros is a pretty good tactic but, a more effective scare tactic would be to announce to them that Jimmy Carter has just been employed as senior economic advisor to President Obama.”
Or that W is on speed dial.
Posted by: silky | March 31, 2009, 3:55 pm 3:55 pm
Obama speaks and the whole world laughs now…….
Posted by: Obama and his party of clowns | March 31, 2009, 3:56 pm 3:56 pm
Here you go…
That’s what President Obama is telling American car owners and buyers, making them an offer they can’t refuse: If General Motors or Chrysler won’t honor their warranties, he will.
Playing pitchman for the ailing U.S. auto industry, Obama on Monday offered guarantees on the warranty of every new vehicle sold by the Detroit automakers during their restructuring efforts. Obama said with additional incentives for new car buyers, the industry could sell an additional 100,000 new cars this year.
want more proof or does this quote from obama NOT help you understand? Obama is just throwing tax dollars and failing business. And wanting to take it over himself. Just like the banks, just like health care. And tell me, what has the gov’t been successful at ever? you really need to put down the kool-aide.
Posted by: chad | March 31, 2009, 4:01 pm 4:01 pm
“And wanting to take it over himself.”
Exactly how does that work?
Posted by: silky | March 31, 2009, 4:03 pm 4:03 pm
“The difference between a leather jacket (cool) and a leather vest (lame). . . are leather sleeves.” -Demetri Martin
Posted by: vinman | March 31, 2009, 4:04 pm 4:04 pm
not sure how it works, but he already has a part in firing Wagoner. Wonder how he can do that? is he the boss? Can he now fire Gettelfinger too? You libs are basing everything on emotion. NO facts ever. the gov’t has no business in private business unless you want state run everything which is socialism on the way to communism. And maybe that’s your goal. Not mine. I work for what i get. And when the gov’t owns the banks, when it runs GM and covers their warranties where do you think this money is going to come from? PLEASE TELL ME>
Posted by: chad | March 31, 2009, 4:07 pm 4:07 pm
MayBee, what are you saying? Clearly, pls.. btw, how intimate is your knowledge of European/world leaders? know any [well]? Technically, we ought not talk about things that we know nothing about.
anonymous, you write that as if history has vindicated your votes or something. It didn’t/hasn’t…
chad, “fundamentally”. yeah, he is embarrassing, isn’t he?
Jake, do you see something wrong with invoking the GD? I don’t know if that is what you are implying. I suspect not, but I see commenters running with that assumption.
Posted by: Question | March 31, 2009, 4:07 pm 4:07 pm
chad: “And tell me, what has the gov’t been successful at ever? ”
The internet (US government invented, implemented, and overseen up until a few years ago). The post office (cheapest in the world and non-subsidized). National security. Hoover dam. Interstate highway system. Universal literacy. Commercial airplane travel as safe as walking. Orders of magnitude reduction in lead poisoning.
If you are this blindingly ignorant of basic history, you’re not worth the time.
“want more proof or does this quote from obama NOT help you understand?”
One, that was not a quote it was paraphrase (and with your apparently poor comprehension skills that is a very important distinction). And two, that quote does not change the rationale underlying my opinion at all.
“you really need to put down the kool-aide.”
I’m afraid you haven’t left a single drop for anyone else at this point.
Posted by: jhw539 | March 31, 2009, 4:09 pm 4:09 pm
I love America’s new image under the Obama administration.
Soft on terrorist, in debt to communist countries, powergrabbing, out of control spending.
We are vulnerable, almost bankrupt and no longer a superpower–Obama doesn’t intimidate anyone.
But hey Obama and his supporters are happy as long as he is still popular.
Posted by: sammy | March 31, 2009, 4:11 pm 4:11 pm
OMG, i am laughing at the internet and post office comment. yeh, the post office is a stellar business. Whatever. AGain, thanks for your babble. You have yet to dispute any facts i have laid out regarding your messiah and his bankrupt plans for this country.
Posted by: chad | March 31, 2009, 4:13 pm 4:13 pm
chad:”You have yet to dispute any facts i have laid out regarding your messiah and his bankrupt plans for this country.”
You have laid out no facts, and everyone can easily read your posts on this page and see that. You’re just a partisan troll (who doesn’t even seem to know how the internet was invented and developed under DARPA).
Posted by: jhw539 | March 31, 2009, 4:16 pm 4:16 pm
Concerned in OH: Have you ever left the country and experienced the postal system of any other country? So the fact the post office may need to tack an extra dime onto the rate of postage is your big gotcha?
That’s just pathetic. Every business is taking losses this year.
Posted by: jhw539 | March 31, 2009, 4:19 pm 4:19 pm
“But hey Obama and his supporters are happy as long as he is still popular.”
Yeah, that’s what’s important to his supporters. You people are utterly illogical. It’s no wonder you cling to God the way you do. You’ll spin off the planet if you don’t.
Posted by: silky | March 31, 2009, 4:23 pm 4:23 pm
People from the Great Depression had a mindset of saving and not spending. They knew the value of hard work and every dollar they earned. The economy was worse under the Carter administration and we bounced back without going into a spending free fall.
Posted by: aray | March 31, 2009, 4:24 pm 4:24 pm
“The economy was worse under the Carter administration”
It was?
Posted by: silky | March 31, 2009, 4:25 pm 4:25 pm
Regulatory reform is a big issue for French President Nicolas Sarkozy, who is said to think American and British regulatory ideas don’t go far enough.
===========
President Obama can always just promise Sarkozy whatever regulations he wants, then put Elizabeth Warren in charge of that too.
Obama could also create a website called WorldRecovery
Sarkozy could log on and see how often our Administration is actually meeting with the oversight boards.
Another thing President Obama could suggest at the G-20 is a really cool World Stimulus logo.
Posted by: MayBee | March 31, 2009, 4:26 pm 4:26 pm
I’ll bet that people standing in the soup line will still be using their PDA’s.
Posted by: DontGet818OnMeNow | March 31, 2009, 4:27 pm 4:27 pm
“OMG, i am laughing at the internet and post office comment. yeh, the post office is a stellar business. ”
The post office will be even better once they are reconfigured to accept and repair automobiles under warranty.
Posted by: Sigmond | March 31, 2009, 4:31 pm 4:31 pm
Concerned in OH: Have you ever left the country and experienced the postal system of any other country?
================
Yes! I’ve had excellent experiences with the postal systems of the other countries I’ve lived in.
I’m quite fond of the US Post office, but no need to knock the rest of the world.
Posted by: MayBee | March 31, 2009, 4:32 pm 4:32 pm
“That’s just pathetic. Every business is taking losses this year. ”
Mine’s not.”
Does anyone really believe the spreader of the Ashley Todd hoax on how his business is doing?
Posted by: Ryan C | March 31, 2009, 4:34 pm 4:34 pm
The postal service lost $2.8 billion last year. Is Obama going to fire the CEO?
Posted by: Sigmond | March 31, 2009, 4:35 pm 4:35 pm
“You can make your ad-hominem attacks all you want. The facts remain the same. FINSOB hasn’t met since 1/15. They are legally mandated to meet.”
What was ad hominem about pointing out the source of your discovery or that you had the information wrong?
Pointing out how you spread the Ashley Todd hoax is ad hominem.
Posted by: Ryan c | March 31, 2009, 4:35 pm 4:35 pm
“Tim Geithner’s new nominee for number two at the Treasury Department, Neal Wolin, played a key role in drafting legislation in the late 1990s deregulating the banking system, a former Treasury Department official confirms to us. The law that Wolin helped draft has been blamed by some critics, many of them Democrats, for easing up regulatory pressure on huge financial institutions, tangentially helping create today’s mess — and his role drafting it could come under questioning at his upcoming confirmation hearings.”
=======================================
Wolin is a controversial nominee.
Posted by: mad | March 31, 2009, 4:42 pm 4:42 pm
“Pointing out how you spread the Ashley Todd hoax is ad hominem. ”
Persistent, obsessive sniping of other poster’s comments is ad hominem. Why not try to add something to Jake’s blog topic instead of attacking the posters?
Posted by: Sigmond | March 31, 2009, 4:43 pm 4:43 pm
“From someone who did their best to spread the Ashley Todd hoax and stoke racial anger, that is more sad than funny. ”
That’s another excellent example of ad hominem. It gets old after a while, don’t ya think?
Posted by: Sigmond | March 31, 2009, 4:53 pm 4:53 pm
“In a statement on Wednesday morning, Obama said he appointed Neal Wolin, division president of The Hartford Financial Services Group Inc., to become his deputy White House counsel for economic affairs. That makes Wolin the top legal adviser on economic issues.
The Hartford in mid-November purchased a Sanford, Fla., thrift — Federal Trust Bank — a move that allowed it to seek as much as $3.4 billion in Wall Street bailout money. On Nov. 14, it applied to become a thrift holding company entitled to between $1.1 billion and $3.4 billion in funds under the much-maligned Troubled Asset Relief Program, or TARP.”
—————————————-
Wolin is supposed to be Geithner’s assistant. How does he recuse himself from all things TARP and still contribute at Treasury?
Posted by: mad | March 31, 2009, 4:59 pm 4:59 pm
Hey Jake, how about asking Obama (or ask Gibbs) how he can justify the nomination of Neal Wolin for #2 at Treasury? Wolin was instrumental in drafting Gramm-Leach-Bliley, which got us into this mess in the first place!
Posted by: Flash Override | March 31, 2009, 5:18 pm 5:18 pm
Seems to me the Europeans have taken the Republican road in discussions. That is, blame the other guy, take no responsibility, and offer no cohesive alternative. Threatening to walk out of a meeting because you don’t get your way as the French President has threatened is downright childish. Seems to me that the Europeans were damn happy with American greed as long as they were making money too. Now, that they’re not they just want to blame the messenger and those trying to fix problems that were many years in the making.
Posted by: indy_voter | March 31, 2009, 5:31 pm 5:31 pm
Obama is so full of himself .. does he actually believe that invoking fear in Europe will make everything go his way??
He has no other way of figuring out how to deal with REAL LEADERS. Pathetic at best.
The only thing he and his wife are going to do over there, is show how much class they DON’T have. Maybe they will give Queen Elizabeth a set of DVD’s too.
Marxist/Socialist tendencies are slowly creeping in…
Posted by: mjl | March 31, 2009, 5:39 pm 5:39 pm
I hope Obama is able to get in a little basketball while overseas. I would hate for the trip to be a total waste.
Posted by: jane | March 31, 2009, 5:40 pm 5:40 pm
20 nations all with different needs and different demands made on them, plus the politics being played, will not allow much if anything to happen. They might as well stay home.
Posted by: Thinking | March 31, 2009, 5:42 pm 5:42 pm
not sure how it works, but he already has a part in firing Wagoner. Wonder how he can do that? is he the boss? Can he now fire Gettelfinger too?
****************************************
Beggars can not be choosers.
Posted by: Thinking | March 31, 2009, 5:46 pm 5:46 pm
Marxist/Socialist tendencies are slowly creeping
****************************************
Crowding out ignorance? Only so much room in that empty spot.
Posted by: Thinking | March 31, 2009, 5:52 pm 5:52 pm
As long as Obama looks good that’s all that matters.
Posted by: Full of himself | March 31, 2009, 6:02 pm 6:02 pm
Silky, yes, there was double digit inflation but no one titled it a “crisis,” it was just run away inflation…
Posted by: aray | March 31, 2009, 6:30 pm 6:30 pm
“Health and Human Services nominee Kathleen Sebelius has corrected three years worth of tax returns after finding “unintentional errors.”
Sebelius alerted senators to the changes in a letter dated Tuesday that was obtained by The Associated Press. She says the changes involved charitable contributions, the sale of a home and business expenses.
She and her husband paid a total of $7,040 in back taxes and $878 in interest from 2005-2007.”
=======================================
More deficit reduction…
Posted by: mad | March 31, 2009, 6:39 pm 6:39 pm
Unfortunately, the US does not have a leader with an ability to lead.
We don’t need more knee jerk political patchwork to solve the problem.
We don’t need more Bush bashing. Bush is gone and the Dem’s who have manipulated congress with the help of indecisive Republicans deserve more of the blame than Bush.
Years ago the looming crises was swept under the rug by the Democratic elite and we now are living with the result!
Why should the French President (by the way the best President France has had in years) remain at a G20 meeting that goes not where and wastes his time?
Posted by: Ron Chapman | March 31, 2009, 7:01 pm 7:01 pm
I truly believe Obama is a good man with a good heart…but “no man’s knowledge can go beyond his experience.” John Locke, English Philosopher…We needed someone in office who had more experience…Just hope we can hold out until 2012..
Posted by: Parallax View | March 31, 2009, 7:02 pm 7:02 pm
“We needed someone in office who had more experience…Just hope we can hold out until 2012..”
When the leading candidates will be
1 term governor Romney
1 term governor Palin
And not quite 1 term governor Jindal.
Posted by: Ryan C | March 31, 2009, 7:07 pm 7:07 pm
Power corrupts. Power blinds.
Posted by: Sally J | March 31, 2009, 7:08 pm 7:08 pm
Obama is afraid he has punched a lot of holes in the the good ship USA and it is sinking fast.
He is hoping to get the Europeans to join him and blast some holes in their economies by also going into tremendous debt so Obama won’t look so bad.
The epitaph on the Obama administration gravestone: “I inherited it and I made it worse”.
Posted by: Wilma H. | March 31, 2009, 7:12 pm 7:12 pm
Romney…Just not about political experience Ryan C..we needed someone who has a firm understanding of economics and business knowledge as well as the experience using that knowledge..I just don’t see that in President Obama, he might have made a great teacher/community organizer/Jr.Senator but when it comes to making sound business and economic decisions..I just don’t see it..Perhaps I may be proven wrong, and will be the first to admit it, but I seriously doubt it.
Posted by: Parallax View | March 31, 2009, 7:31 pm 7:31 pm
“When the leading candidates will be ”
Newt Gingrich
Posted by: Sigmond | March 31, 2009, 7:56 pm 7:56 pm
“When the leading candidates will be”
Put me down for Mike Huckabee.
Posted by: Skip | March 31, 2009, 8:10 pm 8:10 pm
Econ professor Gin from University San Diego gave a leture Saturday that identifed the 3 issues that led to the current economical crisis.
1. Mortgage forclosures
2. Financial/Banking practices that multiply exponentially the losses. (derivitives/financial instruments)
3. Fiscal Irresponcibilty of the Federal Govt. (deficit spending increasing national debt.
The liberal democrats that control Congress not only HAVE NOT fixed any of the these core problems but are actually the source/creators of the problems.
Time to clean HOUSE and put the grown ups back in charge. A republican majority would put Pelosi out of the Speakership role and Republicans the Committe Chairs again.
Posted by: Neville | March 31, 2009, 9:21 pm 9:21 pm
We are not going to have a Republican President anytime soon, and maybe not ever again. The GOP is now just a regional Southern party. They are done.
Posted by: Joan | March 31, 2009, 10:01 pm 10:01 pm
Re: I truly believe Obama is a good man with a good heart…but “no man’s knowledge can go beyond his experience.” John Locke, English Philosopher…We needed someone in office who had more experience…”
I agree with this 100%.
Posted by: Joan | March 31, 2009, 10:02 pm 10:02 pm
A Republican majority in the House is a real possibility in 2010.
The result would be to make Obama powerless. Pelosi would lose her Speakership , Republicans would become the Committee Chairs.
The only reason that Democrats gained the majority in the House was because they ran fiscal conservatives in 2008 and those seats will be vulnerable.
As a whole, the majority of Americans are clealy unhappy with the deficit spending and outragous bailouts
Posted by: Neville | March 31, 2009, 10:13 pm 10:13 pm
Our President is just a plain liar. He has no scruples at all. He made up all kinds of things he would do as President and he’s just let all of those things go.
Wait here Obama and stop thinking your are the leader of the whole world. I’m pretty sure that nobody in Europe is looking forward to having a man who has been President of the US for about 9 weeks tell them what to do. It’s bad enough that you’re trying to scare folks here, and that’s a real hoot. I think that some folks may be polite and listen to your ideas, but they won’t be taking any kind advice from you. The U.S. has what it takes to go along until things settle down, but you, you sorry jack ass, will probably not allow any of that.
I can’t wait for 2011 to see what Republican will be the winner in 2012. Nobody is going to stand for the crap you’re telling us.
Posted by: elainekramer | April 1, 2009, 12:04 am 12:04 am
“A Republican majority in the House is a real possibility in 2010.”
ROFLMAO!
What in the world is this based on?
Posted by: Ryan C | April 1, 2009, 1:42 pm 1:42 pm
Chebama will continue the pattern of using fear and scary doomsday predictions and Stalin like power grabs as long as he is in office.
The only change apparent is that of Zimbabwe like politics that this moron has brought into the former White House. Listening to The Obamamessiah’s press conferences are like reading Pravda. They are that laughable and transparent in their attempt to influence public opinion.
We traded the frat boy for the fruits of Government by affirmative action.
America is done and the decline is going to be rapidly brought on by The One.
So sad the media and fellow republipukes made Ron Paul into someone not to be taken seriously. We would not be in this mess now if he was in office. The corrupt two party government system is going to continue to gurantee incompetent leadership like Obama and Bush.
This country needs real change, not even more political opportunism and economic looting of the taxpayer.
Obama is just Hugo Chavez with a PC face, and about as much subtleness.
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