G20 Washington Summit Will Not Test President-elect Obama

Posted by Louis Navellier on 11/11/08 10:32 am

The summit of G20 leaders in Washington this Friday and Saturday will be crucial to helping restore confidence and will likely result in new international capital rules for banks and other financial institutions, possibly including hedge funds, which are responsible for triggering much of the recent panic selling in stocks.

President-elect Barack Obama was expected to attend the conference and meet some concerned allies, but his spokesman Robert Gibbs said Obama will stay away in protocol.

During Obama’s presidential campaign, he said that China’s huge trade surplus with the U.S. was due to “manipulation of its currency.” On Thursday, China’s foreign ministry spokesman Qin Gang responded by saying, “We hope that the policy of free trade will continue… We must prevent trade protectionism, which is no good for either side.” Over the weekend, China also said that it plans to spend four trillion yuan ($586 billion) by 2010 for stimulus measures, to combat slowing domestic and trade growth, and lower consumer spending.

On the foreign affairs front, China is not the only nation eager to test President-elect Obama.  Afghanistan, Israel and Russia also want to “test” the new President-elect.  In the case of Afghanistan, recent civilian casualties are prompting President Karzai to publicly ask Mr. Obama to change U.S. military tactics next year.  Israel made it crystal clear that Obama should not open direct talks with Iran, since it would be a sign of weakness.  Russia is piling on the young President-elect, asking him to reconsider the U.S. strategic missile shield in Poland. Otherwise, Russia said it would move to station new missiles near Poland’s border, in response.

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