It seems the economic turmoil is now taking epic proportions. In a failing campaign it seems McCain wants to halt all campaigning efforts and work on the economy. He certainly does not have the best financial team on his side for handling the problems, and that might weaken his efforts. I wonder if the current FBI investigations and public opposition to the rescue packages of late has resulted in panic. If a campaign starts early to formulate any solution to the crisis they are almost claiming victory by showing his "leadership" or trying to divert attentions again. The response overseas to the economic fallout in the US is reaching a crescendo of outrage, but also worries for those economies strongly intertwined. The outcome of this HAS to be a stronger decoupling from the US economy to protect themselves. Therefore the really smart thing would be to encourage stronger cooperation with foreigners to keep the current system and flow into the US going. Isn't transparency and perceptions what really needs bolstering if the current consumption super-sizing could continue in the US?
I have been mentally preparing myself for McCain presidency since the end of February. It is over. The debates will be filled with demagoguery and Joe Biden wont be able to dismantle Sarah palin for fear of being called sexist.
Yeah, those foreign countries hold a real strong hand. Their dollar denominated assets can tank, and they can sell their goods somewhere else, like maybe Africa, for instance. LOL
There is no doubt that in the short term, the US market is the most important market for many exporters - especially for more refined and advanced goods and services. On the longer term, all this confusion will no doubt lead to more attention elsewhere - and there is a strong growth outside of the US. Therefore I think it would be in the best interests of the political leadership in the US to bolster perceptions about the US abroad and get "other nations on the team" of supporting the US economy. I don't think the campaigns can do much in terms of the domestic situation anyway, and their efforts - if they want to contribute - is best served by strengthening and keeping relations in this difficult time for the US economy. Just my â¬0.02
Also funny is how Paulson tries his best to look as stern as possible, while Bernanke is like "I don't care..." and a look of just open void, abyss. Bernanke in the last month just smiled broadly - like he had it under control, and now he is crumbling. I think the political campaigns can add little right now; the economy and rescue measures need to be handled by congress, not become entangled in the respective campaigns and dependent on strategy moves from the not-yet-incumbent-leaders.
Now it seems like there is dissent and that the campaigns are caught in between a rock and a hard place. It seems that there will be leadership, but not like some may have envisioned it. The political and financial elite are scrambling to rescue their static system from crumbling, while the population is getting enraged. Around the world - people are not exactly thrilled either; have the smoky veils finally lifted from all their eyes?
Therefore I think it would be in the best interests of the political leadership in the US to bolster perceptions about the US abroad and get "other nations on the team" of supporting the US economy. I don't think the campaigns can do much in terms of the domestic situation anyway, and their efforts - if they want to contribute - is best served by strengthening and keeping relations in this difficult time for the US economy. what?? first of all, when other countries care about how I perceive them then I may start to care how they perceive me. Anyway, don't grown ups actually try and live by principle first instead of trying to make sure everyone likes them? We have just fine relations with the friends that matter. We already cooperate with the G8 and others in terms of economics, China is and always will be trying to screw us so it hardly matters to ask them for anything, can't think of too many others that are relevent.
Mav88, my point is that trust in the US economy is badly needed. Remember just how dependent the US is of foreign funding for their economy - USD 2 bn per day. Imagine that starting to falter - it would be devastating to the US.
what do you mean if it faltered, it already is. This relationship we have with foreigners in terms of credit is not healthy in the first place, so it is doomed to fail at some point no matter what.
Mav88, exactly my point about perceptions abroad. If there is something that the presidential candidates could really help out with - it would be about commitment and confidence in multilateral talks. That could keep the US economy afloat while steps are done to fix the flaws. If the inflow of foreign funding dries up, there will be grave consequences.