U.S.-Korea Free Trade agreement fails to move ahead

U.S.-Korea Free Trade agreement has faltered after four days of deliberations: China and the United States manipulating their currencies with Federal Reserve's plans to pump $600 billion into the sluggish American economy.G20 see that move as a scheme to flood markets with dollars, driving down the value of the U.S. currency and giving American exporters an advantage are varied reasons thus giving a setback for the leaders of the two nations severe blow to efforts to ignite broader world trade talks. President Obama said – we have asked our teams to work tirelessly in the next days and weeks to get an agreement, and we are confident we will do so.White House officials said the discussions foundered over long-standing disagreements over U.S. access to the Korean beef and auto markets. Despite optimism from both sides as they began bargaining, domestic political concerns weighed heavily on the talks and ultimately appeared to have prevented the final compromises needed to secure an agreement.

Mr. Obama said he didn't - want months to pass before we get this done. We want it to be done in a matter of weeks. Observers feel the failure to produce a signed agreement in Seoul, where the world's largest economic powers are gathering for the G-20 summit, is significant, and illustrates the difficulties facing the Obama administration's efforts to use free trade initiatives to boost U.S. exports.

Brazil's president,Luiz Inacio Lula da Silva, warned that the world would go "bankrupt" if rich countries reduced their consumption and tried to export their way to prosperity."There would be no one to buy," he told reporters.