Op Ed: Foreign Leaders are Right to Complain

Blawgconomics considers itself to be a bit more internationalist than many Americans. We seek out and try to discuss views from around the world, keep abreast of political and economic developments abroad, and often get our news from places that do not include Washington or New York City. Despite this, we are under no illusion that most of the time, when heads of state speak out against American policies, they are motivated by everything from national interest to self-interest to politics to plain old posturing. Oftentimes, this means that foreign prime ministers or presidents decry the policies of US not because they are bad policies, but simply because they are contrary to their own interests. In other words, everything every world leader says about the US, or any other nation for that matter, should be viewed with a grain or two of salt.

However, sometimes the world is right when it complains about US policies. In retrospect, one example was the US invasion of Iraq. There, a lot of nationalist pride mixed with incorrect information and data led many, including your author (and just about all of Congress) to brush aside the opinions and criticisms of sceptical world leaders as if there were merely a language barrier that didn't allow them to see our impeccable and inscrutible logic. A more recent example, one that tellingly sees many Americans agreeing with foreign leaders, is the current economic policy of the US.


The G-20 is providing a stark example of this as leaders from economies as diverse as Germany and China who can't seem to agree on much are at least agreeing on a few basic ideas. For example, the US has a special responsibility to the world due to the dollar's reserve currency status. Also, it is not merely ironic, but borderline insulting for the US to tell countries who have been wise enough to create surpluses that they should change their policies. Additionally, and in a similar vein, American claims of currency manipulation by China and others is becoming more and more like a boy who cried wolf scenario, particularly as some of the only Americans getting overtime hours right now are the ones running the Treasury's printing presses.

The world is chafing at the economic policies of the US right now. Foreign leaders are complaining about the Keynesian approach of the Obama government and the money printing of the Fed. They are not only complaining about, but are privately infuriated by suggestions that they are at fault for economic malaise in the US. And they don't even bother to give lip service to the idea that they should be changing their own policies to accomodate the US. The leaders of the world, as they so often do, are decrying the policies of the US. Certainly much of this, as per usual, is based on their own self interest. Unfortunately, this time, they are right.