Democratic lawmakers facing re-election campaigns oppose the measure because of labor union and environmental concerns. He says the message is one of U.S. retreat from global leadership and a signal that open U.S. trade policy may turn protectionist. If the United States has a leadership vacuum for the next two years, the world financial crisis is going to be much worse. There is no European leadership. They are focused internally on creating the Euro and on their regional affairs.
Japan is obviously part of the problem.
No leadership from there. More than ever it is left to the United States. Again, not to belabor trade, but when there is some congressional leadership on trade and the administration not only fails to support it but actively opposes it, it sends the message that the U.S. really doesn't have its act together. Mr. Bergsten describes Malaysia's recent imposition of capital controls to revive its sagging economy as a gamble. He calls it an attempt by the government to buy time to strengthen its banking system, but he says it adds a further burden to those countries already suffering from the economic downturn.