Obama: U.S. alone can't drive recovery

LONDON - President Obama heads into a global economic summit today warning that the world can no longer depend on the United States to be the consumer-driven engine of growth and that other nations will have to do more.

"The world has become accustomed to the United States being a voracious consumer market," he said yesterday. But he cautioned that the United States eventually would have to scale back its appetite for the world's goods to pay the bills for all its stimulus spending.

"If there's going to be renewed growth, it can't just be the United States as the engine," he said. "Everybody is going to have to pick up the pace."

The streets of London's financial district, the City, were clogged with protesters venting anger over lost jobs and scorning the excesses of capitalism. Some turned violent, attacking a nationalized bank and pelting police with eggs and fruit.

For Obama, it was an eventful first day on the world stage as president. He talked arms control with the Russians, sought to place China ties on fresh footing, and tried to calm fears for the U.S. economy.

One key debate heading into the summit's main working session today was over how much more each government should spend to stimulate its own economy.

The United States, the United Kingdom, and China favor huge government stimulus programs, while France and Germany emphasize tough new regulations.

French President Nicolas Sarkozy and German Chancellor Angela Merkel arrived yesterday, vigorously pushing for more regulation.

"We do not want results that have no impact in practice," Merkel said at a news conference with Sarkozy.

Sarkozy repeated his demand for creation of an international financial regulator's job. Both also called for increased registration and transparency of hedge funds.

Obama said that the United States, Britain, France, and Germany agreed broadly on the need to stimulate their economies and better regulate financial systems. The differences between countries, he argued, amount to "just arguing at the margins."

Yet the assertive language used by Sarkozy and Merkel suggested they had serious concerns about the summit's purpose.

Mindful that many countries blame the financial centers of New York and London for the mess, Obama conceded the U.S. share of responsibility.

But, he added: "What is also true is that here in Great Britain, in continental Europe, around the world, we were seeing the same mismatch between the regulatory regimes that were in place and the highly integrated global capital markets that had emerged."

He said he was "less interested in identifying blame than fixing the problem."

Outside, an estimated 4,000 demonstrators virtually emptied a swath of the City, and by late afternoon a mob attacked a branch of the Royal Bank of Scotland, which was nationalized with taxpayer funds last year.

Riot police were called in as demonstrators, many with black bandanas over their faces, broke windows of the branch, which was closed ahead of the march, and entered it.

Protesters also climbed onto the roof of the Bank of England, Britain's central bank. By midafternoon, police had arrested 23 people, the BBC reported.

Separately, Scotland Yard reported arresting 11 people on suspicion of possessing police uniforms after they were found traveling in a renovated armored personnel carrier.

Ellie Blake, a 20-year-old college student from Reading, England, said she came to the march to voice concern about the economic crisis.

"People haven't got jobs," she said. "They're getting the banks out of trouble but leaving their own people in trouble."

Obama dashed through a dawn-to-dark schedule despite a head cold.

Schoolchildren ran alongside his nearly 20-vehicle motorcade.

His wife, Michelle, attracted breathless attention with every stop, fashionable outfit, and sip of tea.

Obama's first task was a repair job. British feelings were hurt by what was perceived as a cold shoulder from Obama toward British Prime Minister Gordon Brown when the British leader visited Washington last month.

So when Obama and Brown appeared together before American and British reporters, Obama noted that his talks with Brown were his first on his first overseas trip.

"The United States and the United Kingdom have stood together through thick and thin, through war and peace, through hard times and prosperity, and we've always emerged stronger by standing together," Obama said next to a beaming Brown.

During a private meeting with Queen Elizabeth II, the Obamas gave her a personalized iPod and a rare songbook signed by composer Richard Rodgers.

In return, the queen and her husband, Prince Philip, gave them a signed portrait of themselves.