Sunday, June 14, 2009

Words Versus Actions

Once again the Obama Administration has said one thing and done another. Not surprisingly, the stimulus package ended up with a "Buy American" provision that is basically a retreat to protectionism. Our biggest trading partners are Canada and Mexico. 75 percent of Canadian exports go to the US, so they have an interest in the proceedings.

Here's Hillary"s view: "the Buy American provisions in the economic stimulus package will not interfere with US trade obligations." If they are as insignificant as Hillary thinks, wonder why they are in the package at all?

Here's what the Canadian Minister of Foreign Affairs, Lawrence Cannon, thinks: "Canadians are worried about a rising tide of protectionism in the United states, in various circles, and our government is very concerned in particular about the negative impact of the "Buy American" legislation being felt on Canadian businesses." Mr. Cannon made these remarks while standing next to Hillary Clinton on Saturday.

This is a typical example of Obamaisms. Just deny what everyone knows is true and just keep denying it. There will be no new taxes, there will be no interference with the private sector, no bailouts. We will balance the budget, etc., etc., etc., etc. The truth doesn't seem to matter to President Obama and his Secretary of State Hillary Clinton. But, it does matter to people of Canada and the people of Mexico and the people of the United States.

This Adminstration and its spokewomen have trouble telling the truth about economic matters. (Witness Larry Summer's embarrassing speech at the Council of Foreign Relations last Friday. He neglected to comment on the Administration's forecast in their budget that unemployment would never get higher than 8.5 percent in this downturn, an assumption critical to their rosy deficit forecasts. Does the Administration have any interest in revisiting the absurd assumptions that their budgets are based upon or should we just keep pretending that facts don't matter anymore?).

There is a rising tide of protectionism both in the law and in the Administration's actions. The world economy will suffer because of it and so will the United States, regardless of Obama and Hillary's efforts to distort the facts on the ground.

The incredible spending and deficit financing of this Administration has frightened the world and threatened the fiscal soundness of the US Government. Instead the Administration goes ahead as if our current fiscal situation requires more spending, more transfer payments, more mandates on business.

If the Obama Administration thinks its fooling anybody by calling an apple an orange, perhaps they should look at recent comments coming out of Canada, China, Germany, Russia, etc. regarding the absurd economic policies of the Obama Administration. No one is fooled. Watch the yields on treasuries....they are headed much, much higher.