Marathon Pundit: Wrong side of history: As world leaders embrace fiscal austerity, Obama pushes more stimulus spending

President Obama normally loves all things foreign, but he's slow on the latest international trend: living within means.

From the Senate Republican Communications Center:

“FAILURE OF LEADERSHIP”

Even As World Leaders “Embrace A New found Desire For Fiscal Austerity” The Obama Administration Will Urge The World To Continue “Stimulus” Spending

PRESIDENT OBAMA WILL URGE WORLD LEADERS TO CONTINUE STIMULUS SPENDING

“The U.S. Plans To Press Its Economic Partners At A Summit To Move Cautiously With Plans To Tighten Their Fiscal Policies while the global economic recovery remains uncertain, for fear of producing a ‘Hoover moment.’” (“Spending Fight At G-20,” The Wall Street Journal, 6/22/10)

PRESIDENT OBAMA: “We Must Be Flexible In Adjusting The Pace Of Consolidation And Learn From The Consequential Mistakes Of The Past When Stimulus Was Too Quickly Withdrawn And Resulted In Renewed Economic Hardships And Recession.” (“UK Says To Slash Deficit Now Despite U.S. Warning,” Reuters, 6/21/10)

BUT WORLD LEADERS ARE TRYING TO CUT THEIR SPENDING AND STIMULUS OUT OF FEAR OF BECOMING THE NEXT GREECE

“But At Precisely The Same Time, Politicians Around The World Are Starting To Embrace A New found Desire For Fiscal Austerity.” (“Spending Fight At G-20,” The Wall Street Journal, 6/22/10)

“European Leaders Are More Cautious About Spending, Chastened By The Example Of Greece, Where Investor Confidence Was Shattered By Mounting Debt And The Possibility Of A Default, Prompting A Nearly $1 Trillion Rescue Fund.” (“Spending Fight At G-20,” The Wall Street Journal, 6/22/10)

“German Chancellor Angela Merkel On Monday Defended Her Government's Plans To Pursue Budget Cuts After U.S. President Barack Obama Preached Patience In Clamping Down On Public Spending. Merkel Unveiled Plans This Month For 80 Billion Euros In Budget Cuts Over The Next Four Years, a package she hopes will bring the structural deficit of Europe's biggest economy within European Union limits by 2013 and revive her political fortunes.” (“Merkel Defends German Budget Cuts After Obama Letter,” The Vancouver Sun, 6/21/10)

“‘This Is Not About A Radical Savings Program,’ She Told A News Conference In Berlin. ‘If We Don't Arrive At A Sustainable Growth Path, But Instead Just Generate Puffed Up Growth, We Will Pay For That With Another Crisis. That Is Our Deep Conviction.’” (“Merkel Defends German Budget Cuts After Obama Letter,” The Vancouver Sun, 6/21/10)

AP: “Britain Announced The Toughest Cuts To Public Spending In Decades And New Tax Rises On Tuesday In An Emergency Budget Aimed At Sharply Reducing The Country's Record Debts.” (“UK Makes Sharpest Cuts In Decades In New Budget,” AP, 6/22/10)

“Britain Needs To Move Quickly To Reduce Its Budget Deficit Despite U.S. President Barack Obama's Warning About The Perils Of Withdrawing Economic Stimulus Too Soon, Prime Minister David Cameron's Spokesman Said Monday. … Tackling The Deficit Effectively Was Essential To Maintaining Confidence In Public Finances, Which Would In Turn Underpin Economic Growth In The Future, The Spokesman Said.” (“UK Says To Slash Deficit Now Despite U.S. Warning,” Reuters, 6/21/10)
“Cameron, Who Heads A Coalition Of Centre-Right Conservatives And Centre-Left Liberal Democrats, Has Rejected Such Arguments, Saying That The More Immediate Threat To The British Economy Was The Bulging Deficit And The Risk Of A Greek-Like Debt Crisis.” (“UK Says To Slash Deficit Now Despite U.S. Warning,” Reuters, 6/21/10)
“The Word ‘Austerity’ Had Been Taboo In The French Government For Months, Even As Many Of The Country’s Neighbors Slashed Spending To Remain In The Market’s Good Graces. No Longer. Over The Weekend, President Nicolas Sarkozy’s Government Announced €45 Billion, Or $55 Billion, In As-Yet-Unspecified Budget Cuts. On Wednesday, it is expected to take another big step with proposals to raise the retirement age to 62 or 63 from the current 60, and to lengthen the number of years workers must contribute to receive a full pension from the state.” (“France Ready To Make Cuts Despite Pain,” The New York Times, 6/14/10)

“In China, Officials Worry That Continued Stimulus Could Create Unsustainable Asset Bubbles. Indeed, one reason China may have pledged Saturday to allow the value of its currency some flexibility is to resist inflation by making imports less costly, economists speculate.” (“Spending Fight At G-20,” The Wall Street Journal, 6/22/10)

“Canada, Whose Weight In The G-20 Is Magnified This Year Because It Hosts The Summit, Is Pressing For Deficit Reduction, Urging Its Peers To Halve Their Deficits By 2013.” (“Spending Fight At G-20,” The Wall Street Journal, 6/22/10)

THEN SEN. BARACK OBAMA (D-IL): “Increasing America's Debt Weakens Us Domestically And Internationally. Leadership Means That ‘The Buck Stops Here.’ Instead, Washington Is Shifting The Burden Of Bad Choices Today Onto The Backs Of Our Children And Grandchildren. America Has A Debt Problem And A Failure Of Leadership.” (Sen. Obama, Congressional Record, S.2237-8, 3/16/06)