Beijing’s concerns about inflation have come to the forefront in the Group of 20 Summit. With the Federal Reserve’s plan to pump $600 billion into the U. S. economy, coupled with President Obama’s party on the ropes, China was emboldened to lecture the US on its currency plans.
Not only did Mr. Obama find himself the victim of bad political timing at home, the G2 meetings underscored the fact that China, Brazil and Germany have emerged from the global economic crisis faster and stronger than the U.S.
President Obama also failed to reach a free trade agreement with South Korea by a self imposed deadline set for Thursday. All this comes as a blow to a president who pledged to double U.S. exports over the next five years.