Sign of an Era Passing

[Verrocchio]

After 7 Years, Talks Collapse on World Trade


By STEPHEN CASTLE and MARK LANDLER
Published: July 30, 2008
GENEVA — World trade talks collapsed here on Tuesday after seven years of on-again, off-again negotiations, in the latest sign of India’s and China’s growing might on the world stage and the decreasing ability of the United States to impose its will globally.
Pascal Lamy, director general of the World Trade Organization, could not bridge differences between a group of newly confident developing nations and established Western economic powers. In the end, too few of the real power brokers proved committed enough to make compromises necessary to deliver a deal.
The failure appeared to end, for the near term at least, any hopes of a global deal to further open markets, cut farm subsidies and strengthen the international trading system.
“It is a massive blow to confidence in the global economy,” said Peter Power, spokesman for the European Commission. “The confidence shot in the arm that we needed badly will not now happen.”

This indicates that the global expansion that has fueled spectacular growth has begun to recede.

[Nervous Drake]

Re: Sign of an Era Passing

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[Verrocchio]

Re: Sign of an Era Passing

How can there truly be a global economy when the mindset of the people in one continent is radically different from that of another continent?

All the lure of globalization seems to do is create false hopes and massive conflict in the end.

A marketplace, global or otherwise, is based on the concept of mutual advantage, willing sellers and buyers. These are necessary conditions for a sustainable and thriving place of exchange. You are, I think, quite right to identify a mindset as the condition that underlies these conditions. If people (e.g., nations, commissions, boards, etc.) lose their enthusiasm for trade, the momentum slows and, in this case, I believe, reverses. The long expansion has ended and we have entered a period of contraction.

[phirang]

Re: Sign of an Era Passing

Bah, this has happened before.

Steel prices will remain high. Remember when Marc Faber said to short US steel at $135? It's what, over $160 now?

[FRED]

Re: Sign of an Era Passing

Bah, this has happened before.

Steel prices will remain high. Remember when Marc Faber said to short US steel at $135? It's what, over $160 now?

China is now the world's largest steel exporter, with the US at par with the EU as importers.

All of the production growth is in Asia. Production is declining in the US.

[metalman]

Re: Sign of an Era Passing

china vs usa...

[medved]

Re: Sign of an Era Passing

Wonder if it will ever be understood that the first step to a real global economy will be to establish a world belief system for all countries involved.

Not true. It is understood by everybody. Americans are sure, the world should follow their lead and adapt to their vision. So are Russians, Chinese and Saudis.

How can there truly be a global economy when the mindset of the people in one continent is radically different from that of another continent?

Very simple. Every part (country) of the global economy should use tariffs and controlled trade/workforce/capital barriers to cooperate with the rest of the world.

All the lure of globalization seems to do is create false hopes and massive conflict in the end.

That's what it is for. 'Unrestricted' globalization is just another way to enrich gov't bureaucrats, their cronies and whomever can buy them off.