President Obama sent a letter (Reuters) to the G20 leaders ahead of their meeting in South Korea. The letter contains some shocking claims and statements that may ellicit some strong reactions.
"We all now recognize that the foundation for a strong and durable recovery will not materialize if American households stop saving and go back to spending based on borrowing. "
Thus... the U.S. lowers interest rates?
"coupled with a commitment to refrain from undervaluing currencies for competitive purposes"Isn't US Dollar devaluation exactly what QE does? (or is it strengthening it? ;-) )
"If we work together to avoid the kind of imbalances that weakened the global economy on the eve of the crisis, we will bolster the global recovery"Is he blaming China and emerging countries for the the financial crisis?
This is amazing. It's like they are in totally different worlds.
We'll see what the reactions to this is.