You know things are bad when Vladmir Putin warns an American president (again) of his dangerous economic policies. The Moscow Times reports, via Gateway Pundit:
Prime Minister Vladimir Putin on Monday criticized U.S. President Barack Obama’s plan to raise taxes on U.S. companies’ foreign operations, saying it would amount to double taxation that will hurt the global economy.
“This is a serious decision for the world economy,” Putin said at a meeting of the Presidium, the government said on its web site. “If taxes are imposed on all companies working abroad, then it will mean the total destruction of the system for avoiding double taxation.”
Putin instructed Finance Minister Alexei Kudrin to hold discussions on the plan with Obama’s administration.
If that’s not bad enough, Investors Business Daily reports, via Free Rebublic:
The Bush administration took a lot of flack for its supposed “unilateralism” in global affairs. But there’s a new breed of go-it-alone “unilateralism” in the unrestrained U.S. fiscal spending that’s causing trading partners to worry about the value of their dollar assets.
It’s hitting Brazil, Russia, India and China in the pocketbook as they fret about the value of their $2.8 trillion in dollar holdings, about 42% of the world’s total.
So it’s no surprise that the four big emerging economies, dubbed the BRIC nations in 2001 by Goldman Sachs, met in Yekaterinburg, Russia, this week to try to find a way to defend their interests. At the summit’s conclusion, Russian leader Dmitry Medvedev spoke of wanting a new global reserve currency that is “diversified, stable and predictable,” because the dollar isn’t fitting that bill right now.
The four tried to find ways to reduce their reliance on dollars. They fear that it’s headed for a big devaluation.
They agreed to trade more freely with each other and to move dollar reserves into International Monetary Fund bonds. And China made a symbolic gesture Wednesday of selling some Treasury assets, which is where it parks most of the dollars it earns from trading with us. ..
As news leaked out about BRIC wanting to break free of the dollar, the dollar’s value fell. And even that hurt the BRIC’s dollar assets, by devaluing them.
Even so, that doesn’t mean their discontent is invalid.
With Congress and the Obama administration spending $3.9 trillion this year, $3.6 trillion next year, and another $4 trillion for health care, all emerging nations that depend on trade with us have reason to worry. As the dollar goes, so go their dollar holdings.
So these countries will do what they can to break free of us. In the end, it means lost influence for the U.S.
President Obama doesn’t like the fact that the United States is a – the – world leader. He’s doing everything he can to change that fact. The rest of the world seems to be waking up to the fact that he’s going to take them down with us. When will the American people come to the same realization?
[...] Read more here: Obama's Unilateral War on the World Economy | The Lonely Conservative [...]
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