SEOUL, Nov. 10 (UPI) -- U.S. President Obama likely will have a more difficult time reaching a consensus strategy from the Group of 20 economic summit in South Korea, observers said.
Several countries, led by China, have accused Washington of currency manipulation and the U.S. credibility is damaged because of this, The New York Times reported Wednesday.
"The world is more divided today than it was in London (site of the last G20 summit) because nations not facing the prospect of a depression have that luxury," said Lawrence Summers, who leaves the White House next month after leading the National Economic Security Council and being Obama's top economic adviser for two years. "Part of a return to normalcy is that nations more strongly and disparately assert their immediate interests".
The Federal Reserve last week decided to pump $600 billion into the economy, fueling criticism in some international quarters. Fed Chairman Ben Bernanke said it was the only tool left to tamp down interest rates and try to build demand and create jobs.
Despite the critical rhetoric -- and China's downgrading the U.S. credit rating Tuesday -- a senior administration official said the U.S. dollar remains the global currency of choice.
"People are still willing to loan money to the United States for 4 percent over 30 years," the official said. "Investment choices are choices among alternatives and the United States remains a strong choice".
Leaders gathering in Seoul for the G20 summit Thursday and Friday aren't expected to sacrifice their own interests for international economic good, economic observers told the Times.
UPI
