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Obama did not say strong dollar a problem: US official

obamaA US official on Monday disputed a French source’s account that President Barack Obama had told his allies at a G7 summit the strong dollar posed a “problem”.

Amid mounting fears over the Greek debt turmoil’s impact on the fragile global economy, a US official said: “The President did not state that the strong dollar was a problem.

“He made a point that he has made previously a number of times: that global demand is too weak and that G7 countries need to use all policy instruments, including fiscal policy as well as structural reforms and monetary policy, to promote growth.”

Fears over Greece’s finances have weakened the euro sharply in the last four months, with the single European currency trading at close to parity with the dollar in May. On Monday, the euro was trading at $1.1143.

A French diplomatic source had said earlier Monday that Obama told participants at the summit in southern Germany that the “strong dollar posed a problem.”

A highly valued currency weighs on the competitiveness of a country’s industries and exports.

The French source added Athens’s woes and the “volatility” they have created on world markets had been a key topic of discussion at the meeting of the leaders of Britain, Canada, France, Germany, Italy, Japan and the United States.

International Monetary Fund chief Christine Lagarde, who is also attending the meeting, is due to hold bilateral talks with various leaders at the summit, another French source said.

The IMF is one of Greece’s main creditors along with the European Commission and the European Central Bank.

The United States has long called on European leaders to resolve the Greek debt turmoil as quickly as possible given its negative impact on a shaky global economy.

Greece’s radical-left government and its creditors have been negotiating for five months on reforms needed to unlock 7.2 billion euros ($8 billion) in rescue funds that Athens desperately needs.

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1 Comment
  • Amos Ben

    G7 INTERNATIONAL CONSPIRACY AGAINST THE WORLD

    The Group of 7 (G7) is a group
    consisting of the finance ministers and central bank governors of seven major
    advanced economies as reported by the International Monetary Fund: Canada,
    France, Germany, Italy, Japan, the United Kingdom, and the United States
    meeting to discuss primarily economic issues. The European Union is also
    represented within the G7. The G7 countries represent more than 64% of the net
    global wealth ($263 trillion) according to the Credit Suisse Global Wealth
    Report October 2014. The IMF’s Managing Director usually participates. This is
    simply to tell you that these are the owners and controllers of the entire
    world wealth.

    The G7 has been criticized for
    their representational deficit. The G7 does not include the major emerging
    economies, Brazil and India, nor the current world’s 2nd largest economy,
    China. Walden Bello calls the G7 an undemocratic institution. The G7 decision
    making process has been described non-transparent, by former insider Leo Van
    Houtven, Secretary of the IMF from 1977 to 1996: “(The G7’s) frequent
    contacts with IMF management on both policy and operational issues lack
    transparency…”

    They come up with disastrous
    trade deal, stripping of regulations protecting labour rights and the
    environment, and a dramatic erosion of democratic process for their own
    egocentric gain. That is why they supported Buhari of Nigeria by imposing him
    on Nigerians. They actually funded medial houses e.g. Sahara reporters to the
    tune of almost $800,000.00 through FORD & Omiyar foundation to achieve
    their political aim in Nigeria. They influence democracy all over the globe
    with the aim of always causing chaos to achieve a financial gain. Goodluck
    Jonathan Administration was bringing up policies that are going against the
    main objective of the G7; hence they have to find a replacement in Nigeria so
    that their aim and objectives will continue.

    AIM AND OBJECTIVE OF G7

    The G7 was founded in 1975. The
    organization was originally founded to facilitate shared macroeconomic
    initiatives by its members in response to the collapse of the exchange rate
    1971, during the time of the Nixon Shock, the 1970s energy crisis and the
    ensuing recession. Its goal was fine tuning of short term economic policies
    among participant countries to monitor developments in the world economy and
    assess economic policies. The implication of the statement above is that,
    economy of countries like Nigeria was at their best that period. The energy
    crisis and the ensuing recession in their region was oil boom for countries
    like Nigeria.

    So G7 was formed to reverse the
    trend that is why former insider Leo Van Houtven said “both policy and
    operational issues lack transparency…”. They started by encourage
    corruption through capital flight from countries like Nigeria and subsequently
    got a formula to manipulate the exchange rate. The US Dollar increased to
    199.05 Nigerian Naira in May from 198.85 in April of 2015. The Nigerian Naira
    averaged 125.17 from 1960 until 2015, reaching an all time high of 204 in
    February of 2015 and a record low of 0.53 in September of 1980. This is to tell
    you the exchange rate and economy of Nigeria was doing well during their own
    crisis period but they over tuned it with our own cabal (Born To Rule in Nigeria).

    The evil group that is
    controlling the world was suppose to be Group of 8 (G8) because Russia was
    formally invited to joined the group in 1998, resulting in a new group, the
    Group of Eight but because of their lack of democratic process and they feel
    threatened Russia is taking their job, hence On March 2, 2014, the G7 condemned
    the “Russian Federation’s violation of the sovereignty and territorial
    integrity of Ukraine.” The G7 stated “that the International Monetary
    Fund(IMF) remains the institution best prepared to help Ukraine address its
    immediate economic challenges through policy advice and financing, conditioned
    on needed reforms”, and that the G7 was “committed to mobilize rapid
    technical assistance to support Ukraine in addressing its macroeconomic,
    regulatory and anti-corruption challenge. This was not true because Russia is
    not giving them the opportunity to explore and drain dry Ukraine with their
    capitalist economic concept.

    Because of their dangerous
    monopoly of the world economy, many activists all over the globe have risen
    against their draconian policies. The G7 meeting which is holding between 7-8
    June, 2015 is marred with various protests with about 7,500 people in the
    protest, but because the summit is always marred with protests, they
    proactively made provision for about 22,000 police at the venue as if there is
    war in the land. Also there is tight security in German border where the summit
    is taking place. But a court ruled that 50 protesters could be allowed inside
    the security zone, so G7 leaders would be able to hear them outside. We think
    it shows an arrogant attitude toward freedom of assembly,” said by one of the
    Activist.

    The summit is also expected to
    discuss the possible renewal of sanctions against Russia (which was refused an
    invitation to what would have been a G8 summit and the risk of a Greek exit
    from the euro. Instead of bailing Greek out of their economic recession, they
    are looking for possible ways to worsen their problem so that there will be
    more crises in that region.

    Finally, my submission here is
    that President Buhari of Nigeria has no place in this meeting, yet they invited
    him and some other countries leaders like Iraq so that they can fine tune their
    evil plans on these countries and all over the Globe. The invited president are
    not to sit at their proceedings but to have side talks with them in other to
    keep enslaving the citizens of those countries.

    Below is a link to the activists
    protesting.

    http://www.theguardian.com/global/2015/jun/06/g7-summit-protesters-gather-garmisch-partenkirchen-germany-alpine-resort

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