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Era of U.S. financial dominance over: Medvedev

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Russian President Dmitry Medvedev said Thursday the era of U.S. financial dominance was over, and he won the backing of Germany's visiting chancellor in calling for a "more just" system.

Both Medvedev and German leader Angela Merkel called for new measures to respond to a credit crunch that has raised fears of a deep worldwide recession since it spread from the United States into international markets.

"The time of domination by one economy and one currency has been consigned to the past once and for all," Medvedev said during a forum alongside Chancellor Merkel.

"We must work together toward building a new and more just financial-economic system in the world based on the principles of multipolarity, supremacy of the law and taking account of mutual interests."

On Wednesday, the U.S. Senate resoundingly passed a $700 billion Wall Street bailout, widely seen as the best chance of stemming the turmoil. The House of Representatives has yet to approve the move.

Medvedev said the crisis showed the United States was not powerful enough to control world markets alone.

"The events of recent times confirmed that a single country, even powerful, is unable to be a kind of mega-regulator," he stressed.

His comments came a day after Russia's powerful Prime Minister Vladimir Putin lashed out at U.S. economic "irresponsibility" for the global financial crisis.

Russia's fledgling stock markets, rarely predictable in normal times, have swung wildly in recent weeks as the scope of the U.S.-rooted crisis has become clear, forcing regulators to repeatedly suspend trading.

Speaking through a translator, Merkel said: "We need new mechanisms of international (financial) architecture. I have long been convinced of this, not just during the latest financial crisis."

Germany is widely considered Russia's closest ally in Western Europe, but Merkel has sharply reproached Russia over its brief August war with the former Soviet republic of Georgia.

She reiterated her criticism Thursday of Moscow over its military intervention in Georgia, while questioning the scope of a European Union peace monitoring mission launched in the Caucasus state.

"Russia's reaction in this conflict had not been appropriate," said the German leader.

"We still need to talk about the role of OSCE (Organization for Security and Cooperation in Europe) observers, see how it will develop," she said, alluding to the deployment of monitors in two Russian-backed rebel regions of Georgia.

Russia refuses to yield to this demand, saying the decision belongs to the two breakaway republics, whose independence it recognized in August.

But at a joint press conference held later alongside the Russian president, Merkel said: "We believe Georgia's territorial integrity is not open for discussion."

She also addressed the contentious issue of NATO membership for Georgia and Ukraine, which Russia opposes, saying it was too soon to provide the ex-Soviet republics with a so-called Membership Action Plan, which sets in motion the procedure for joining the alliance.

A NATO ministerial meeting in December that many predicted would be the occasion for the alliance to extend MAP to Georgia and Ukraine would instead be only "an initial evaluation on the road to MAP," Merkel told journalists.

"The position in favor of membership as soon as possible is not the German position," Merkel said.

The German chancellor has stood out in the European Union by pressing for the lines of communication with Moscow to remain open.

Since the August war, tensions over Georgia have spilled over into other areas of German-Russian cooperation.

An EU summit due this month to debate the resumption of negotiations with Russia on a new partnership and cooperation pact was also on the agenda at Thursday's summit.

Russia last week pulled out of a meeting at the U.N. General Assembly of foreign ministers from Germany and four other world powers who were working to resolve a crisis over Iran's disputed nuclear program.

Merkel, whose country is Russia's biggest trading partner, also discussed trade and Iran's controversial nuclear program with Medvedev during the talks between Germany and Russia.

The talks, held each year alternately in Russia and Germany, have been limited this year to one day and included fewer ministers than usual, indicating the strained bilateral relations.

© Wire reports

©2019 GPlusMedia Inc.

13 Comments
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Gold anyone?

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coulrophobic at 08:43 PM JST - 3rd October

Problem 1: Your boss, absolute ruler of the nation, is ex-KGB.

Problem 2: Roughly 52 billion US dollars in private capital has fled your country since you invaded a fledgling democracy rekindled fears of a new cold war.

Course of action: Blame the United States.

Attention Sumo wrestlers... this type of answer to a non asked question is why you shouldnt use drugs... Enough said!!!!

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Problem 1: Your boss, absolute ruler of the nation, is ex-KGB.

Problem 2: Roughly 52 billion US dollars in private capital has fled your country since you invaded a fledgling democracy rekindled fears of a new cold war.

Course of action: Blame the United States.

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Naw, the U.S. still has some financial dominance in the form of military expenditure. The business of war and death; although not currently a lucrative one for America, is still alive and well. I'm just worried that the economic gap, which has always been present, is widening at a maddening pace. Under Bush, incomes in the lower fifth of the economic ladder have declined by almost 3%, while the top fifth have increased by 9%.

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The US will recover as soon as they cut military spending to a sustainable level like about 10% of current funding." very immature statement.

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"America hasnt been a financial leader for a long time"

Depends on how you define "financial leader". In terms of "we buy your junk"... yes, the USA is number one. And really now isn't that the root of all these flames being tossed around by the Europeans. The fact that they will no longer be able to sell their junk to Americans. And the possibility that the US may just now have good reason to insist on managed trade rather than open trade ? Here's an idea Medvedev, try buying "made in the USA" for a few years. Do your own country some good.

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has this guy been living under a rock and only just noticed this? been over for a few years now...

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What is financial dominance ? We spend more then others? we produce more then others? Our money has Higher value then others? Or everyone wants to be us?

We spend the most but that doesnt make us a power it makes us a buyer. We dont produce more then others we actually are low on that side, Our money isnt worth more then others of same value, just look at the pound and how loing its been worth more, and other countries trying to be like us has nothing to do with our standing in the financial world.

America hasnt been a financial leader for a long time, we produce more money then we have true resources to pay for. We borrow from other countries that actual dont have the resources to cover the money they produce.The whole money system in the world is based on a belief and not on actual worth...

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The US will recover as soon as they cut military spending to a sustainable level like about 10% of current funding.

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Ok.. well someone is always going to be on top. I just hope all have been careful on what they wished for.

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Take a look at the source of this..Russia? Oh yes they sure know about NOT having dominance don't they commrade.

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About time the US was taught a lesson i think. Better late than never. ADAYDREAM- now the Chinese can spend 'YOUR' money!

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Those days of the US having financial dominance were over years ago. Where has Medvedev been?

george bush isn't spending our money. he's been spending China's money. < :-)

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