Originally posted by ghaleon12
reply to post by Dermo
Not sure if I understand what you're saying, but if the American government is going to rack up debt via the stimulus package, all the "benefit"
from that debt better go to helping Americans, hence the "Buy American" clause. We aren't going to rack up debt to stimulate someone elses'
economy. But if other countries were to follow suit with a stimulus package of their own, then we wouldn't have to "Buy American" since part of
the debt other countries would rack up would be used to buy our products.
Historically speaking.. protectionism.. which is a socialist measure by the way.. has been proven to be inadequate to stimulate growth past the point
of stability.. it actually stagnates growth completely as the countries who have been hard done by in the process attempt to return the gesture and
foreign relations suffers for years.
The thing is.. and this point has been missed in so many threads on the subject.. most EU countries don't need to bring in massive stimulus packages
because toxic assets haven't crippled most of their financial systems in the same way as has happened to a number of US financial institutions.. >
Why would a country that is not in a recession.. give billions to toward a stimulus package that will probably end up damaging their economy in the
mid term?
Toxic assets have not become a massive issue in the Eurozone.. simply because overall property prices have not dropped enough... thats it in a
nutshell.
Look at this from a perspective of the shoe being on the other foot and the EU having dumped trillions of EUROS into the world economy (in a scenario
where the EURO is the worlds reserve and basically 'devaulable' and the dollar is not in the same situation) and asking the US to do the same where
the US is not in anywhere as much difficulty in overall debt to capital ratio...
It doesn't make sense.. in any way.. full stop.
Also.. the majority of corporations that are in trouble in the EU are actually US owned..
I can understand the argument that the EU should help bailout these business's but would the US do the same in the situation? No!! It does not make
sense in a capitalist environment where profit is going to another country!
Across the globe.. this is viewed as a US problem and mess that has transferred cross market through dodgy investment deals and shoddy management of
global corporations. While it is obviously a global problem and an EU problem, you have to remember this simple point.. and don't get offensive over
it.. its a pretty correct observation.. and its the mindset of most EU leaders..
That this problem wouldn't have occurred with the same ferocity if the US system was regulated as it is in the EU..
The other end of the argument is that we would be ten years behind in development in the US used the EU system.
6 of one.. half dozen of the other... we're still after being put back ten years..
Finally.. the reason for the uproar about the "Buy American Clause" is because of the WTO agreement. Obviously this is extremely important for the
US is more ways than are evident because as soon as it was brought up.. Obama stepped back from the 'Buy American Clause' instantly. There is
obviously more to it than meets the eye so there is no point in really debating it or its consequences without knowing the full story..
Where is this thread going? 
In risk of a one-liner, nice one Dermo 
You said all the stuff I would have wanted to post
