President Barak Obama is in Toronto at the G8/G20 meeting trying to convince our European and other allies to continue spending and not reign in their budgets until the economy stabilizes (if ever):


Obama: Last week, as reported by Reuters, [far from a right leaning news agency]

Obama wrote to fellow leaders warning that drastic cuts to public spending could jeopardize the tentative global recovery and risked a 1930s-style depression. “We must learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession,” he wrote.


>As reported in an English language version of Germany’s “Der Spiegel Online, the left-leaning Berliner Zeitung writes:



“If Barack Obama isn’t careful, he will become the Jimmy Carter of the 21st century.”


“In his speech, Obama tried to make a virtue of an emergency. He said a shift to new energy sources was now a ‘national mission.’ Just as the nation once mobilized its powers for World War II, now it needs to conquer its devilish dependence on fossil fuels … If Obama wins this debate, and achieves a true shift in energy dependence, then his name will perhaps be mentioned again in the same breath with great American presidents.”


“Politically, though, it’s fraught with risk. His opponents have already charged Obama with using the Gulf catastrophe to advance his climate agenda in Congress. Republicans rely on the tendency of Americans to prefer cheap fuel and big cars with a certain level of power. Over 30 years ago, after all, another president called for smarter American energy policies in a televised speech from the Oval Office. He wanted to know, ‘Why have we not been able to get together as a nation to resolve our serious energy problem?’ That president’s name was Jimmy Carter.”

Others:

The German chancellor, Angela Merkel, hit back at Obama’s warning in DW-World.DE, Deutche Welle, by vowing to push ahead with public sector spending cuts and claiming that global economic recovery can be maintained without stimulus programmes. The Canadian Prime Minister, Stephen Harper, urged the summit to agree concrete deficit-reduction goals as a way of restoring investor confidence following the Greek debt crisis.


From my perspective, I believe Angela Merkel is on the right course, simply, because it is a course that runs contrary to that demanded by socialism billionaire, George Soros as reported in DW World.de:


In the run-up to the G8 meeting, however, billionaire financial investor, George Soros, issued a withering attack on what he termed “dangerous” German economic policy. In a speech in Merkel’s own back yard in Berlin he said “by insisting on pro-cyclical policies, Germany is endangering the European Union.”


“I realize that this is a grave accusation, but I am afraid it is justified,” he added.

Look for more tinkering and undermining of the European Union economy by Soros and his groups in the future.

So, what point is this article trying to make? Expect the economic decline to continue. Expect any recovery to come very slowly and almost imperceptibly in the beginning. And expect unemployment number [that do not include government hires] to remain high. Government hires should not be counted because it takes on private sector job to support one public sector job. The public sector creates nothing that can be sold or traded, and therefore, public sector jobs contribute nothing to the economy other than the opportunity to play with statistics, e.g. over compensated census jobs that are obtained, lost due to not for cause dismissals, and recounted due to rehiring; in many cases, the same people let go. Another indicator is that housing sales dropped another 36% last month, which means property and investment devaluation is still in play with no end in sight. Guard your wallet and look for ever-increasing taxes all the way down to the poor.