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| Home Front: Politix |
| Never Heard That Before |
| 2010-01-31 |
| As a political barometer, the Davos World Economic Forum usually offers up some revealing indicators of the global mood, and this year is no exception. I heard of a phrase being bandied about here by non-Americans — about the United States — that I can honestly say I've never heard before: “political instability.' “Political instability' was a phrase normally reserved for countries like Russia or Iran or Honduras. But now, an American businessman here remarked to me, “people ask me about ‘political instability' in the U.S. We've become unpredictable to the world.' Mind you, people at international conferences love to criticize America, poke fun at America and complain about America. It is the only global sport more popular than soccer. But in the past, it was always done knowing that America was this global bedrock that could always be counted upon to lead. But this year is different. This year, Asians and Europeans, in particular, pull you aside and ask you some version of: “Tell me, what's going on in your country?' We're making people nervous. Banks, multinationals and hedge funds often hire foreign policy experts to do “political risk analysis' before they invest in places like, say, Kazakhstan or Argentina. They may soon have to add the United States to their watch lists. You can understand why foreigners are uneasy. They look at America and see a president elected by a solid majority, coming into office riding a wave of optimism, controlling both the House and the Senate. Yet, a year later, he can't win passage of his top legislative priority: health care. “Our two-party political system is broken just when everything needs major repair, not minor repair,' said K.R. Sridhar, the founder of Bloom Energy, a fuel cell company in Silicon Valley, who is attending the forum. “I am talking about health care, infrastructure, education, energy. We are the ones who need a Marshall Plan now.' Indeed, speaking of phrases I've never heard here before, another goes like this: “Is the ‘Beijing Consensus' replacing the ‘Washington Consensus?' ' Washington Consensus is a term coined after the cold war for the free-market, pro-trade and globalization policies promoted by America. As Katrin Bennhold reported in The International Herald Tribune this week, developing countries everywhere are looking “for a recipe for faster growth and greater stability than that offered by the now tattered ‘Washington Consensus' of open markets, floating currencies and free elections.' And as they do, “there is growing talk about a ‘Beijing Consensus.' ' The Beijing Consensus, says Bennhold, is a “Confucian-Communist-Capitalist' hybrid under the umbrella of a one-party state, with a lot of government guidance, strictly controlled capital markets and an authoritarian decision-making process that is capable of making tough choices and long-term investments, without having to heed daily public polls. Personally, I wouldn't give up on the Washington Consensus so fast. The reason it is ailing is not because of its principles promoting economic openness and trade, many of which China is practicing better than we are lately. It is failing more because of, well, Washington. It was hard to read President Obama's eloquent State of the Union address and not feel torn between his vision for the coming years and the awareness that the forces of inertia and special interests blocking him — not to mention the whole Republican Party — make the chances of his implementing that vision highly unlikely. That is the definition of “stuck.' And right now we are stuck. The sad and frustrating thing is, we are so close to being unstuck. If there were just six or eight Republican senators — a few more Judd Greggs and Lindsey Grahams — ready to meet Obama somewhere in the middle on deficit reduction, energy, health care and banking reform, I believe that in the wake of the Massachusetts wake-up call the president would indeed meet them in that middle ground to forge not just incremental compromises, but substantial ones on these key issues. But so far, the Republicans are having a good year politically by just being the Party of No. It is a shame because here we are as a country scrounging around for a few billion more dollars of stimulus to help our unemployed and small businesses — when the biggest stimulus of all is hiding in plain sight. And that is ending our political paralysis and the pall of uncertainty it is casting over everything from the cost of my health care to the cost of my energy to the way our biggest banks can do business. If the two parties could get together and remove the clouds of uncertainty over those issues, remove the growing sense that our country is politically paralyzed, you would not need another dime of stimulus money. Investment and lending would take off on their own. If, however, the two parties continue with their duel-to-the-death paralysis, no amount of stimulus will give us the sustained growth and employment we need. |
| Posted by:Beavis |
| #14 As soon as I hit the definition of "Beijing Consensus" I knew who this was. Friedman has revealed himself for a while now as the type of elitist that believes HIS oligarchy should have dictatorial charge over the little people. If there's a silver lining to all the BS that's happened the past few years, it may be that the average Joe and Jane may finally wake up to the fact that within way too many liberals beats the heart of a totalitarian who really, really wants to drag anyone who dissents from leftist orthodoxy to the basement of the Lukyanka for a little neurosurgery by Dr. Makarov. |
| Posted by: Ricky bin Ricardo (Abu Babaloo) 2010-01-31 18:35 |
| #13 and not feel torn between his vision for the coming years and the awareness that the forces of inertia and special interests blocking him — not to mention the whole Republican Party — make the chances of his implementing that vision highly unlikely. That is the definition of “stuck.” Damn those corrupt special interests and Republicans! The world, as defined by that portion which shows up at Davos and chats with Mr. Friedman, is waiting with bated breath for President Obama to recreate America as a Western European country, and the world is starting to turn blue from it. How dare those corrupt special interests and Republicans discommode their betters! |
| Posted by: trailing wife 2010-01-31 17:49 |
| #12 $10 trillion swindle orchestrated by the banking, political and media elites: CHANGE! and HOPE! Push back from the taxpaying unwashed masses: Political instability. Screw the socialist clique at Davos who manipulate entire governments for their personal aggrandizement and profit. Any American that sets foot in that sordid town without a protest sign should be publicly shamed on prime time TV. |
| Posted by: ed 2010-01-31 16:49 |
| #11 This guy is an idiot. The "elites" always worry when the people rumble. As they should. Friedman should be tossed, as well as his Manhattan cocktail party and Beltway society friends who believe themselves to be our "ruling class". Defenestration from their hi-rise apartments in Mahattan and UN offices in NYC should suffice if done in large enough numbers. |
| Posted by: OldSpook 2010-01-31 15:51 |
| #10 If there were just six or eight Republican senators -- a few more Judd Greggs and Lindsey Grahams -- ready to meet Obama somewhere in the middle on deficit reduction, energy, health care and banking reform Frigging Friedman. Wants the Repubs to offer suggestions on how to run the socialist state. JUST SAY NO. We don't want a socialist nanny state, and we don't want to tacitly agree by helping to 'improve' the one we've got. Get government out of the way, while returning to a proven regulatory regime. For example, Glass-Steagall, proper underwriting of debt (i.e. can the borrower repay?), re-establishment of traditional bank reserve requirements, limitation on financial leverage, proper oversight of debt rating agencies. |
| Posted by: KBK 2010-01-31 14:55 |
| #9 Wow. Could the writer be more clueless? RJ he believes this crap. From last Sept: One-party autocracy certainly has its drawbacks. But when it is led by a reasonably enlightened group of people, as China is today, it can also have great advantages. |
| Posted by: Beavis 2010-01-31 12:46 |
| #8 yep. Alan. He's been pushing that "if only our government could impose change like those forward-thinking Chinese in the Politburo, we wouldn't have to deal with what the American people want - they'd get what their betters know is best for them. He's an A-grade arrogant asshole |
| Posted by: Frank G 2010-01-31 11:55 |
| #7 As soon as I hit the definition of "Beijing Consensus" I knew who this was. Friedman has revealed himself for a while now as the type of elitist that believes HIS oligarchy should have dictatorial charge over the little people. |
| Posted by: AlanC 2010-01-31 11:20 |
| #6 And that is ending our political paralysis and the pall of uncertainty it is casting over everything from the cost of my health care to the cost of my energy to the way our biggest banks can do business. Wow. Could the writer be more clueless? Does he really think that legislative success by Obozo would improve his health care or energy costs? Does he really think that the opinions of Davos seat warmers matters? Does he really think at all? |
| Posted by: regular joe 2010-01-31 11:06 |
| #5 Friedman should spend as much time outside America as possible. And the farther the better. |
| Posted by: Nimble Spemble 2010-01-31 11:03 |
| #4 Friedman should spend less time in Davos and more time in America, which he is clearly isolated from. |
| Posted by: Free Radical 2010-01-31 10:56 |
| #3 Had me going there for a moment..., until I red the byline. |
| Posted by: Snumble the Wide1145 2010-01-31 10:21 |
| #2 Meh.. The "America is ungovernable" meme. It was predicted. Next? |
| Posted by: whitecollar redneck 2010-01-31 10:06 |
| #1 "Tell me, what's going on in your country?" You'd be confused too if all you knew as based upon the NYT [et al] and Zinn type Marxist interpretations of American history. |
| Posted by: Procopius2k 2010-01-31 09:59 |