Last week President Obama sent a letter to the leaders of the G20 nations to refrain from spending cuts. After the three day summit in Toronto of the G8 and G20 heads of state, the resulting message was clear: reduce deficit spending by 50% by the fiscal year of 2013. A complete and total repudiation of Obama and his economic policies. Obama held a short press conference after the sessions concluded, declaring success. He claims that he has already begun deficit reduction by freezing discretionary spending, cutting programs, instituting PAYGO and forming a fiscal commission.

However, what he doesn’t say is that he’s increased budget deficits, launched a whole new expensive spending program for health care, what spending cuts he has achieved amount to barely what the government spends in a week, and his Democrat Congress can’t even write a budget that cuts 5% of the deficit this year or even adhere to PAYGO. The fiscal commission is more of a ruse to justify tax increases, especially on investment and the middle class.

Obama claims that job creation is his Number One priority. Yet, after 18 months in office, nearly one-fourth of working-age adult Americans do not have a full-time job. Job creation in the private sector has been anemic. On at the Federal level has it been robust and in both cases, mostly temporary jobs.

Other G20 issues gave Obama some breathing room. Our allies in the War in Afghanistan will not hold him to an earlier pledge of beginning troop withdraws next summer. Instead, a commitment to stay engaged until at least 2015 was announced. Also, talks brokered by Pakistan between Afghanistan and the Taliban have been given mild support. Also, China may be more open to sanctions on North Korea.

All in all, the G20 Summit in Toronto was a major defeat on Obama’s economic policies. Obama was the biggest loser with Germany, China and the UK coming out as winners. Reductions in deficit spending especially benefits Germany and China. In the UK, the decision gives support to the policies of newly elected David Cameron. Canada also comes out as a winner. Despite some violence, the city of Toronto showed that it could handle a major international conference.