EU presidency: US stimulus is 'the road to hell'

[David_NSU]

Source: Huffington Post

BRUSSELS — The head of the European Union slammed President Barack Obama's plan to spend nearly $2 trillion to push the U.S. economy out of recession as "the road to hell" that EU governments must avoid.

The blunt comments by Czech Prime Minister Mirek Topolanek to the European Parliament on Wednesday highlighted simmering European differences with Washington ahead of a key summit next week on fixing the world economy.

It was the strongest pushback yet from a European leader as the 27-nation bloc bristles from U.S. criticism that it is not spending enough to stimulate demand.

Shocked by the outburst, other European politicians went into damage control mode, with some reproaching the Czech leader for his language and others reaffirming their good diplomatic ties with the United States. The leaders of EU's major nations _ France, Britain and Germany, among others _ largely ignored Topolanek and his remarks.

Obama pays his first official visit to Europe next week, aiming to thrash out reforms to the global financial system with the Group of 20 nations and call on NATO allies to commit more troops to the U.S. war in Afghanistan.

Europeans leaders hope the new U.S. administration will agree with them on tightening oversight over the global financial system _ which they see as crucial to fixing the global economy.

Instead, the United States is focusing its efforts on economic stimulus and plans to spend heavily to try and lift itself out of recession with a $787 billion plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.

To encourage banks to lend again, the U.S. government will also pump $1 trillion into the financial system by buying up treasury bonds and mortgage securities in an effort to clear some of the "toxic assets" _ devalued and untradeable assets _ from banks' balance sheets.

Read more: http://www.huffingtonpost.com/2009/03/25/mirek-topolanek-us-econom_n_178868.html

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I bet he loves the attention he is getting for making this comment. After being on the losing end of the 'no-confidence' vote he seems to be doing what he can to shake things up. Great job Topolanek, thanks for undermining the only logical stimulus proposal that has come before the American people.

[CountAllVotes]

1. Topolanek is irrelevant

>> The leaders of EU's major nations _ France, Britain and Germany, among others _ largely ignored Topolanek and his remarks.

Given this part of the above statement it does not sound like he has an audience.

No confidence is his present status.

He's probably jealous!

WE have a plan that will work!

GO AMERICA!!! :patriot:

:kick:

[LeftishBrit]

2. Latest on Topolanek: his government lost a vote of no confidence today

I am sure that all this ranting was for domestic consumption, and it evidently didn't work.

[Demoiselle]

3. What are this guy's credentials?

Has he demonstrated his economic expertise with the Czech Republic's economy?
Just asking.

[unkachuck]

4. "Americans will need liquidity..."

....you can't argue with that....

"All of these steps, these combinations and permanency is the road to hell," Topolanek said. "We need to read the history books and the lessons of history and the biggest success of the (EU) is the refusal to go this way."

"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the liquidity of the global financial market," Topolanek said.

....while some European leaders are chastising Topolanek on his ability to be discreet, aren't they all doing relatively small amounts of bailout/stimulus?

....and if they don't increase their spending won't we run the risk of witnessing our bailout/stimulus dollars being shipped to Europe in counter-party payouts and corporate profits?

[not fooled]

5. Hmmm...

...wonder whether he is some brainwashed "Friedmanite" free marketeer indoctrinated by the crazies a la Shock Doctrine (Naomi Klein). Yeah, because that approach has worked so well for the economies of sooo many countries. :eyes:

Would explain the kneejerk neg reaction.