Bretton Woods 2. How much can we expect?
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xieu...@gmail.com
Nov 6, 2008, 10:45:28 AM11/6/08
to World-thread
During the last weeks most think tanks, governmental agencies and
departments, international organizations, universities, etc. are
working hard (or should have been) to prepare the summit on November
15th.,
Which are the current positions? Basically three, or two dot five.
The first one, although it has no posibility at this point, is the
right wing wish, to do nothing too significant except to take funds
from developing countries to fund recovery in developed ones in the
hope that, somehow, it will produce developent in dveloping countries
later. Again the top-down approach.
The third one, although it has no posibility to win today, is to
approve the road map to fix the real problems. It means not just a
change in the financial order and its institutions, such as the IMF,
but also to change the monetary practices and in particular the
international currency. I must understand that public opinions in the
West, and in particular in USA, are not ready for such announcements,
specially when a new administration will come within some weeks.
Politics is above economics, I accept it. Then, we will have to see
more emergency summits along the next two years.
In the middle, the second one. As I wrote some weeks ago, that summit
will approve three strategies:
1. To set up a new financial toolkit that becomes mandatory for
financial institutions of any sort since rating agencies to commercial
banks. Enhancing and fixing current agreements such as Basel 2 and the
Financial Stability Forum (FSF). Obviously, international monitoring
institutions have to be created or empowered.
As the The Peterson Institute for International Economics states (1)
"The objective should be to turn the IMF into a body where national
authorities agree on the outlines of what each of them will legislate.
In particular, one envisages that an international agreement made in
the IMF will lay down minimum standards that all countries will
ensure. The actual tasks of regulation and supervision will remain
national responsibilities."
Now, the developed nations have to leave Wonderland and face the real
world. No country will fund them any longer unless those who really
own the economic means control that their funds are used properly.
As as example, it means that US economic policy will not longer be
allowed to use "shopping and tax cuts the official macroeconomic
policy of the United States." (2) as Jeffrey Sachs writes in an
article that I strongly recommend to my American friends.
Although as prof. Kenneth Rogoff wrote today (3) "Without its own
currency, the IMF is poorly positioned to intervene with the
overwhelming force needed for lender-of-last-resort operations. In
principle, the IMF could be allowed to print money (it already has its
own accounting unit, the so-called Special Drawing Rights). But this
is not realistic, given the lack of an adequate system for global
governance.".
Probably he has not received information on the proposal to
subordinate the Fed to a part of the IMF and the US dollar the
currency of the IMF. In any case,. this step will not be approved on
November. Therefore, we will have to let that the rules approved in
November fail and public opinion in the West will be ready for next
steps.
2. To create an international structure that reflects the real
situation of the economic and financial order. The West, in particular
USA, has a huge capacity to create global problems, but is Asia which
has a huge capacity to fix them. To balance the power in the IMF and
other international institutions will be a second achievement. The
West cannot count on blank checks any longer to fix their problems. In
particular while it still shows doubts on sovereign wealth funds that
is exactly where the solution will come from.
3. And finally, the obvious one. The summit itself. This gathering
shows and prepares the internation public opinion for the truth. This
is no longer a "Western world plus Japan". It is a multipolar world,
despite what people likes or dislikes.
Peace and best wishes.
Xi
(1) http://www.petersoninstitute.org/realtime/?p=153
(2) http://www.thebigmoney.com/articles/judgments/2008/11/05/what-obama-needs-do
(3) http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
departments, international organizations, universities, etc. are
working hard (or should have been) to prepare the summit on November
15th.,
Which are the current positions? Basically three, or two dot five.
The first one, although it has no posibility at this point, is the
right wing wish, to do nothing too significant except to take funds
from developing countries to fund recovery in developed ones in the
hope that, somehow, it will produce developent in dveloping countries
later. Again the top-down approach.
The third one, although it has no posibility to win today, is to
approve the road map to fix the real problems. It means not just a
change in the financial order and its institutions, such as the IMF,
but also to change the monetary practices and in particular the
international currency. I must understand that public opinions in the
West, and in particular in USA, are not ready for such announcements,
specially when a new administration will come within some weeks.
Politics is above economics, I accept it. Then, we will have to see
more emergency summits along the next two years.
In the middle, the second one. As I wrote some weeks ago, that summit
will approve three strategies:
1. To set up a new financial toolkit that becomes mandatory for
financial institutions of any sort since rating agencies to commercial
banks. Enhancing and fixing current agreements such as Basel 2 and the
Financial Stability Forum (FSF). Obviously, international monitoring
institutions have to be created or empowered.
As the The Peterson Institute for International Economics states (1)
"The objective should be to turn the IMF into a body where national
authorities agree on the outlines of what each of them will legislate.
In particular, one envisages that an international agreement made in
the IMF will lay down minimum standards that all countries will
ensure. The actual tasks of regulation and supervision will remain
national responsibilities."
Now, the developed nations have to leave Wonderland and face the real
world. No country will fund them any longer unless those who really
own the economic means control that their funds are used properly.
As as example, it means that US economic policy will not longer be
allowed to use "shopping and tax cuts the official macroeconomic
policy of the United States." (2) as Jeffrey Sachs writes in an
article that I strongly recommend to my American friends.
Although as prof. Kenneth Rogoff wrote today (3) "Without its own
currency, the IMF is poorly positioned to intervene with the
overwhelming force needed for lender-of-last-resort operations. In
principle, the IMF could be allowed to print money (it already has its
own accounting unit, the so-called Special Drawing Rights). But this
is not realistic, given the lack of an adequate system for global
governance.".
Probably he has not received information on the proposal to
subordinate the Fed to a part of the IMF and the US dollar the
currency of the IMF. In any case,. this step will not be approved on
November. Therefore, we will have to let that the rules approved in
November fail and public opinion in the West will be ready for next
steps.
2. To create an international structure that reflects the real
situation of the economic and financial order. The West, in particular
USA, has a huge capacity to create global problems, but is Asia which
has a huge capacity to fix them. To balance the power in the IMF and
other international institutions will be a second achievement. The
West cannot count on blank checks any longer to fix their problems. In
particular while it still shows doubts on sovereign wealth funds that
is exactly where the solution will come from.
3. And finally, the obvious one. The summit itself. This gathering
shows and prepares the internation public opinion for the truth. This
is no longer a "Western world plus Japan". It is a multipolar world,
despite what people likes or dislikes.
Peace and best wishes.
Xi
(1) http://www.petersoninstitute.org/realtime/?p=153
(2) http://www.thebigmoney.com/articles/judgments/2008/11/05/what-obama-needs-do
(3) http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
xieu...@gmail.com
Nov 6, 2008, 10:48:43 AM11/6/08
to World-thread
Obviously what I wrote above is just my opinion and just at the date
when I wrote it. Talks and sharings are still on its way and nothing
has been formally agreed.
Peace and best wishes.
Xi
> (2)http://www.thebigmoney.com/articles/judgments/2008/11/05/what-obama-n...
>
> (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
when I wrote it. Talks and sharings are still on its way and nothing
has been formally agreed.
Peace and best wishes.
Xi
>
> (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
Justice
Nov 6, 2008, 11:21:01 AM11/6/08
to World-thread
I wish the truth could be known now. Because of the politics in my
country, waiting for the inevitable only means that the blame will
fall squarely on the man who inherits the problems, and not the man
responsible for the problems.
Pushing in favor of rules now is a good thing. It's something he can
take back home to the Congress, and tell them what's in the wind if we
do not do the right thing. We will be "forced" by outside realities
to bite the bullet.
But why not have all solutions go through the IMF. In other words,
the sovereign funds can loan money to the IMF to be used in accordance
with such and such rules. If the US has complied then they can borrow
the money. If the US has not complied, the funds will not be
available to them.
That's something that could be accomplished now. It doesn't require
subsuming the FED per se, it requires that all of America would be
under the new rules starting immediately.
It's not too soon for me -- better now to blame Bush than wait and
find the man most likely to help will be blamed and hurt??
> > (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html- Hide quoted text -
>
> - Show quoted text -
country, waiting for the inevitable only means that the blame will
fall squarely on the man who inherits the problems, and not the man
responsible for the problems.
Pushing in favor of rules now is a good thing. It's something he can
take back home to the Congress, and tell them what's in the wind if we
do not do the right thing. We will be "forced" by outside realities
to bite the bullet.
But why not have all solutions go through the IMF. In other words,
the sovereign funds can loan money to the IMF to be used in accordance
with such and such rules. If the US has complied then they can borrow
the money. If the US has not complied, the funds will not be
available to them.
That's something that could be accomplished now. It doesn't require
subsuming the FED per se, it requires that all of America would be
under the new rules starting immediately.
It's not too soon for me -- better now to blame Bush than wait and
find the man most likely to help will be blamed and hurt??
>
> - Show quoted text -
xieu...@gmail.com
Nov 6, 2008, 1:24:10 PM11/6/08
to World-thread
Your proposal is mostly inline to what will be approved. But,
Is American media what transfer information to American people. I have
no idea how they will trasfer it along the next two years or so, the
shorter necesary period to accomplish all those tasks. I do not know
if they will decide to blame at Bush, or at Obama, or at China, or at
Muslims, or at inmigration, or at a new scapegoat that they fabricate.
They had to make a decission. We either create a new currency for
international trade or we use the US dollar.
The first choice will take a lot of time and a lot of regulations as
that currency would have to be stable against major currencies. We
should create an international mechanism to counter speculators and
keep major national currencies stable against such international
currency. Even it should have to counter speculation from national
central banks that could suddenly print trillions of their domestic
currency, and then, the rest of the world should have to pay for its
wrongdoings. Also, it would require to change trillions of contracts,
agreements, etc. among corporations involved in foreign trade. And
also, it would produce the collapse of the US dollar.
The second choice allows to walk this path step by step. The price to
pay is that USA has no longer a central bank and a national currency.
But, in fact, the Fed does not belong to USA and the US dollar is the
currency of the Fed, not the currency of USA. I mean, USA already lost
its central bank and its national currency decades ago. Yes, this will
have a politic price in the public opinion arena, but not in real
economic arena, not in the global economy. The change is as easy as
some banks sell their shares to the IMF and the Fed gets "divorced" of
the US Congress requirements. Just formal steps that can be
accomplished in few days when everything will be ready.
You wrote <<But why not have all solutions go through the IMF. In
steps, countries will allow the IMF to print money and/or to lend
money to national central banks acconding to the global needs, and
national economic needs under international monitoring. Probably using
US dollars.
<<We will be "forced" by outside realities to bite the bullet.>>
Right, that is the plan. Not just USA, all countries will be part of
the global community on condition that their policies comply with such
minimum healthy requirements that the IMF will define. as the Peterson
Institute for International Economics stated in the link that I posted
above. But, as prof. Rogoff wrote "Without its own currency, the IMF
global central bank that can inject funds into economies though local
central banks. To make the IMF allowed to print US dollars, the Fed,
the true owner of the US dollar, must be formally and legally subject
to IMF jusrisdiction, not to US Congress nor to its current owners
(the Western major banks) only. You are ready for such announcement,
but I am afraid that most Americans and Westerners are not, it will be
as shocking at least, as when Nixon announced that the US dollar will
not be backed by gold any longer.
The recent agreements of the Fed allowing other central banks to print
US dollars on swap premises, is a useful example on how this mechanism
will work in the future. It worked fine. However, it has to be
refined, national central banks have to commit to keep a certain
exchange rate and those agreements must be formally approved by the
international community through the IMF. And probably, we will find
that further refinement must be done as we discover "holes" in such
agreements along time.
Peace and best wishes.
Xi
> > > (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html-Hide quoted text -
Is American media what transfer information to American people. I have
no idea how they will trasfer it along the next two years or so, the
shorter necesary period to accomplish all those tasks. I do not know
if they will decide to blame at Bush, or at Obama, or at China, or at
Muslims, or at inmigration, or at a new scapegoat that they fabricate.
They had to make a decission. We either create a new currency for
international trade or we use the US dollar.
The first choice will take a lot of time and a lot of regulations as
that currency would have to be stable against major currencies. We
should create an international mechanism to counter speculators and
keep major national currencies stable against such international
currency. Even it should have to counter speculation from national
central banks that could suddenly print trillions of their domestic
currency, and then, the rest of the world should have to pay for its
wrongdoings. Also, it would require to change trillions of contracts,
agreements, etc. among corporations involved in foreign trade. And
also, it would produce the collapse of the US dollar.
The second choice allows to walk this path step by step. The price to
pay is that USA has no longer a central bank and a national currency.
But, in fact, the Fed does not belong to USA and the US dollar is the
currency of the Fed, not the currency of USA. I mean, USA already lost
its central bank and its national currency decades ago. Yes, this will
have a politic price in the public opinion arena, but not in real
economic arena, not in the global economy. The change is as easy as
some banks sell their shares to the IMF and the Fed gets "divorced" of
the US Congress requirements. Just formal steps that can be
accomplished in few days when everything will be ready.
You wrote <<But why not have all solutions go through the IMF. In
other words, the sovereign funds can loan money to the IMF to be used
in accordance with such and such rules. If the US has complied then
they can borrow the money. If the US has not complied, the funds will
not be available to them.>>. Roughly, that is the plan. In further
in accordance with such and such rules. If the US has complied then
they can borrow the money. If the US has not complied, the funds will
steps, countries will allow the IMF to print money and/or to lend
money to national central banks acconding to the global needs, and
national economic needs under international monitoring. Probably using
US dollars.
<<We will be "forced" by outside realities to bite the bullet.>>
the global community on condition that their policies comply with such
minimum healthy requirements that the IMF will define. as the Peterson
Institute for International Economics stated in the link that I posted
above. But, as prof. Rogoff wrote "Without its own currency, the IMF
is poorly positioned to intervene with the overwhelming force needed
for lender-of-last-resort operations", or, in other words, as the
global central bank that can inject funds into economies though local
central banks. To make the IMF allowed to print US dollars, the Fed,
the true owner of the US dollar, must be formally and legally subject
to IMF jusrisdiction, not to US Congress nor to its current owners
(the Western major banks) only. You are ready for such announcement,
but I am afraid that most Americans and Westerners are not, it will be
as shocking at least, as when Nixon announced that the US dollar will
not be backed by gold any longer.
The recent agreements of the Fed allowing other central banks to print
US dollars on swap premises, is a useful example on how this mechanism
will work in the future. It worked fine. However, it has to be
refined, national central banks have to commit to keep a certain
exchange rate and those agreements must be formally approved by the
international community through the IMF. And probably, we will find
that further refinement must be done as we discover "holes" in such
agreements along time.
Peace and best wishes.
Xi
xieu...@gmail.com
Nov 8, 2008, 6:01:53 PM11/8/08
to World-thread
G20 finance ministers, central bank governors meet in Sao Paulo
http://news.xinhuanet.com/english/2008-11/08/content_10328083.htm
SAO PAULO, Nov. 8 (Xinhua) -- Finance ministers and central bank
governors from the Group of 20 (G20) major industrial and emerging-
market countries begin their annual meeting here Saturday to seek ways
to weather the global financial crisis.
Participants at the two-day meeting are expected to discuss the
current global financial situation, said Marcos Galvao, international
affairs secretary of the Brazilian Finance Ministry.
Discussions on the cause of the crisis, the worst since the 1930s, and
its impact on commodity prices, inflation and exchange rates are also
on the agenda, he said.
Addressing the gathering, Brazilian President Luiz Inacio Lula da
Silva called for a "new world financial architecture" in the wake of
the current financial crisis.
The Brazilian government had earlier said it would propose greater
participation of developing countries in restructuring the global
financial system at the meeting.
Any progress made at the event will be presented to the first G20
leaders' summit scheduled for Nov. 15 in Washington D.C.
Founded in 1999 as an informal arena to facilitate dialogue
between major industrial and emerging-market countries, the G20
accounts for 85 percent of the world's economy and about two-thirds of
the world's population.
G-20 Discusses More Interest-Rate Cuts, Flaherty Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=a24GKseqaW7I&refer=home
Nov. 8 (Bloomberg) -- Finance officials from the Group of 20 nations
meeting in Sao Paulo today are discussing the possibility of further
cuts in interest rates in a bid to limit the damage from the global
credit crisis, Canadian Finance Minister Jim Flaherty said.
``The U.K. made a fairly dramatic rate drop this week and there's more
discussion here about that subject,'' Flaherty said in an interview.
``There's less room for the U.S. as you know than Canada.''
Canada's central bank joined the Fed, the European Central Bank and
the Bank of England in an unprecedented coordinated interest rate cut
on Oct. 8 after the collapse of Lehman Brothers Holdings Inc. sent
credit markets into seizure. All four banks have followed up with
further reductions since then, with the U.K. announcing Nov. 6 the
biggest rate cut since 1992.
Flaherty said coordinated fiscal stimulus, as is being proposed by
U.K. Prime Minister Gordon Brown and the International Monetary Fund,
may not win support because some countries can't afford to increase
spending.
Central banks in emerging economies may also join a renewed rate-
cutting effort as policy makers battle to contain the fall- out from a
crisis that's set to drag the world's leading industrial economies
into a recession together for the first since the Second World War.
China, India, Mexico
Mexican Deputy Finance Minister Alejandro Werner today said his
country's central bank, which hasn't lowered borrowing costs since the
credit crisis began 15 months ago, has scope to cut rates after food
and commodities prices fell.
``Interest rates like the one we have now are no longer necessary,''
Werner said in an interview.
China cut its key interest rate for the third time in two months on
Oct. 29 while the Reserve Bank of India on Nov. 1 lowered its main
interest rate for the second time in two weeks.
Flaherty said ``there are ongoing conversations about who plans to do
what when'' on interest rates. ``I expect that these discussions will
lead to some degree of coordinated action,'' he told reporters today
ahead of the G-20 talks.
Governments in emerging countries are also stepping up their
independent responses as the financial crisis spreads to their
economies.
Brazil, Russia, India and China, the so-called BRIC nations, plan
coordinated measures to increase trade and capital flows between their
economies, Russian Finance Minister Alexei Kudrin said in an interview
today. India, Russia and Brazil have already injected funds into
commercial banks and South Korea last week unveiled a ($10.8 billion)
fiscal stimulus plan.
`House of Cards'
``This is a global crisis and demands global solutions,'' Brazilian
President Luiz Inacio Lula da Silva said. ``The G-7 alone is not in
conditions to conduct the world economy. The participation of the
developing world is essential.''
Lula told delegates that the world's financial system ``collapsed like
a house of cards'' and called on rich nations to increase regulation.
The U.S. and the EU are tussling over proposals to tighten up
financial regulation. European leaders want to give the IMF
responsibility for financial stability around the world. The U.S.
opposes any international regulator with cross-border authority,
according to a senior U.S. official.
``We are pleased that European leaders, in a statement released
yesterday, recognized the importance of coordinating responses to the
financial crisis,'' President Bush's spokesman Dana Perino said in an
e-mailed note. ``The summit will be an important opportunity to
highlight this common ground and our shared commitment to enhanced
international cooperation and coordination, as well as to reaffirm a
commitment to free market principles.''
> ...
>
> leer más »
http://news.xinhuanet.com/english/2008-11/08/content_10328083.htm
SAO PAULO, Nov. 8 (Xinhua) -- Finance ministers and central bank
governors from the Group of 20 (G20) major industrial and emerging-
market countries begin their annual meeting here Saturday to seek ways
to weather the global financial crisis.
Participants at the two-day meeting are expected to discuss the
current global financial situation, said Marcos Galvao, international
affairs secretary of the Brazilian Finance Ministry.
Discussions on the cause of the crisis, the worst since the 1930s, and
its impact on commodity prices, inflation and exchange rates are also
on the agenda, he said.
Addressing the gathering, Brazilian President Luiz Inacio Lula da
Silva called for a "new world financial architecture" in the wake of
the current financial crisis.
The Brazilian government had earlier said it would propose greater
participation of developing countries in restructuring the global
financial system at the meeting.
Any progress made at the event will be presented to the first G20
leaders' summit scheduled for Nov. 15 in Washington D.C.
Founded in 1999 as an informal arena to facilitate dialogue
between major industrial and emerging-market countries, the G20
accounts for 85 percent of the world's economy and about two-thirds of
the world's population.
G-20 Discusses More Interest-Rate Cuts, Flaherty Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=a24GKseqaW7I&refer=home
Nov. 8 (Bloomberg) -- Finance officials from the Group of 20 nations
meeting in Sao Paulo today are discussing the possibility of further
cuts in interest rates in a bid to limit the damage from the global
credit crisis, Canadian Finance Minister Jim Flaherty said.
``The U.K. made a fairly dramatic rate drop this week and there's more
discussion here about that subject,'' Flaherty said in an interview.
``There's less room for the U.S. as you know than Canada.''
Canada's central bank joined the Fed, the European Central Bank and
the Bank of England in an unprecedented coordinated interest rate cut
on Oct. 8 after the collapse of Lehman Brothers Holdings Inc. sent
credit markets into seizure. All four banks have followed up with
further reductions since then, with the U.K. announcing Nov. 6 the
biggest rate cut since 1992.
Flaherty said coordinated fiscal stimulus, as is being proposed by
U.K. Prime Minister Gordon Brown and the International Monetary Fund,
may not win support because some countries can't afford to increase
spending.
Central banks in emerging economies may also join a renewed rate-
cutting effort as policy makers battle to contain the fall- out from a
crisis that's set to drag the world's leading industrial economies
into a recession together for the first since the Second World War.
China, India, Mexico
Mexican Deputy Finance Minister Alejandro Werner today said his
country's central bank, which hasn't lowered borrowing costs since the
credit crisis began 15 months ago, has scope to cut rates after food
and commodities prices fell.
``Interest rates like the one we have now are no longer necessary,''
Werner said in an interview.
China cut its key interest rate for the third time in two months on
Oct. 29 while the Reserve Bank of India on Nov. 1 lowered its main
interest rate for the second time in two weeks.
Flaherty said ``there are ongoing conversations about who plans to do
what when'' on interest rates. ``I expect that these discussions will
lead to some degree of coordinated action,'' he told reporters today
ahead of the G-20 talks.
Governments in emerging countries are also stepping up their
independent responses as the financial crisis spreads to their
economies.
Brazil, Russia, India and China, the so-called BRIC nations, plan
coordinated measures to increase trade and capital flows between their
economies, Russian Finance Minister Alexei Kudrin said in an interview
today. India, Russia and Brazil have already injected funds into
commercial banks and South Korea last week unveiled a ($10.8 billion)
fiscal stimulus plan.
`House of Cards'
``This is a global crisis and demands global solutions,'' Brazilian
President Luiz Inacio Lula da Silva said. ``The G-7 alone is not in
conditions to conduct the world economy. The participation of the
developing world is essential.''
Lula told delegates that the world's financial system ``collapsed like
a house of cards'' and called on rich nations to increase regulation.
The U.S. and the EU are tussling over proposals to tighten up
financial regulation. European leaders want to give the IMF
responsibility for financial stability around the world. The U.S.
opposes any international regulator with cross-border authority,
according to a senior U.S. official.
``We are pleased that European leaders, in a statement released
yesterday, recognized the importance of coordinating responses to the
financial crisis,'' President Bush's spokesman Dana Perino said in an
e-mailed note. ``The summit will be an important opportunity to
highlight this common ground and our shared commitment to enhanced
international cooperation and coordination, as well as to reaffirm a
commitment to free market principles.''
>
> leer más »
antidefm
Nov 8, 2008, 6:59:32 PM11/8/08
to World-thread
Thanks to xieuling, economics at the international level is an very
interesting topic.
On Nov 8, 3:01 pm, "xieu.l...@gmail.com" <xieu.l...@gmail.com> wrote:
> G20 finance ministers, central bank governors meet in Sao Paulohttp://news.xinhuanet.com/english/2008-11/08/content_10328083.htm
> ...
>
> read more »- Hide quoted text -
interesting topic.
On Nov 8, 3:01 pm, "xieu.l...@gmail.com" <xieu.l...@gmail.com> wrote:
> G20 finance ministers, central bank governors meet in Sao Paulohttp://news.xinhuanet.com/english/2008-11/08/content_10328083.htm
>
> SAO PAULO, Nov. 8 (Xinhua) -- Finance ministers and central bank
> governors from the Group of 20 (G20) major industrial and emerging-
> market countries begin their annual meeting here Saturday to seek ways
> to weather the global financial crisis.
>
> Participants at the two-day meeting are expected to discuss the
> current global financial situation, said Marcos Galvao, international
> affairs secretary of the Brazilian Finance Ministry.
>
> Discussions on the cause of the crisis, the worst since the 1930s, and
> its impact on commodity prices, inflation and exchange rates are also
> on the agenda, he said.
>
> Addressing the gathering, Brazilian President Luiz Inacio Lula da
> Silva called for a "new world financial architecture" in the wake of
> the current financial crisis.
>
> The Brazilian government had earlier said it would propose greater
> participation of developing countries in restructuring the global
> financial system at the meeting.
>
> Any progress made at the event will be presented to the first G20
> leaders' summit scheduled for Nov. 15 in Washington D.C.
>
> Founded in 1999 as an informal arena to facilitate dialogue
> between major industrial and emerging-market countries, the G20
> accounts for 85 percent of the world's economy and about two-thirds of
> the world's population.
>
> G-20 Discusses More Interest-Rate Cuts, Flaherty Sayshttp://www.bloomberg.com/apps/news?pid=20601087&sid=a24GKseqaW7I&refe...
> SAO PAULO, Nov. 8 (Xinhua) -- Finance ministers and central bank
> governors from the Group of 20 (G20) major industrial and emerging-
> market countries begin their annual meeting here Saturday to seek ways
> to weather the global financial crisis.
>
> Participants at the two-day meeting are expected to discuss the
> current global financial situation, said Marcos Galvao, international
> affairs secretary of the Brazilian Finance Ministry.
>
> Discussions on the cause of the crisis, the worst since the 1930s, and
> its impact on commodity prices, inflation and exchange rates are also
> on the agenda, he said.
>
> Addressing the gathering, Brazilian President Luiz Inacio Lula da
> Silva called for a "new world financial architecture" in the wake of
> the current financial crisis.
>
> The Brazilian government had earlier said it would propose greater
> participation of developing countries in restructuring the global
> financial system at the meeting.
>
> Any progress made at the event will be presented to the first G20
> leaders' summit scheduled for Nov. 15 in Washington D.C.
>
> Founded in 1999 as an informal arena to facilitate dialogue
> between major industrial and emerging-market countries, the G20
> accounts for 85 percent of the world's economy and about two-thirds of
> the world's population.
>
>
> read more »- Hide quoted text -
xieu...@gmail.com
Nov 8, 2008, 9:36:35 PM11/8/08
to World-thread
Thank you very much !
:)
I miss your videos over here. For those of you who did not enjoy them,
do not miss them.
Peace and best wishes.
Xi
> ...
>
> leer más »
:)
I miss your videos over here. For those of you who did not enjoy them,
do not miss them.
Peace and best wishes.
Xi
>
> leer más »
xieu...@gmail.com
Nov 9, 2008, 4:46:08 PM11/9/08
to World-thread
G20 economic and financial meeting main conclusions and letter from
IMF Managing Director.
My comments: No difference to what was expected and stated in my first
message in this thread. Not stated in news yet: the European
Commision will call to a new summit, after the Nov 15th summit, to
track the results of the summit in Washington. IMF managing director
urges to enhance the role and the power of the IMF and "a network" of
international institutions for early alarm, monitoring, management and
isolation of future crisis. The emerging and developing group calls
for measures to sustain growth.
G-20 Ready to Urgently Boost Growth, Stimulus Needed
http://www.bloomberg.com/apps/news?pid=20601087&sid=afct4fkQ5lpM&refer=home
Letter from Mr. Dominique Strauss-Kahn
http://www.imf.org/external/np/sec/pr/2008/pr08278.htm
Peace and best wishes,
Xi
> ...
>
> leer más »
IMF Managing Director.
My comments: No difference to what was expected and stated in my first
message in this thread. Not stated in news yet: the European
Commision will call to a new summit, after the Nov 15th summit, to
track the results of the summit in Washington. IMF managing director
urges to enhance the role and the power of the IMF and "a network" of
international institutions for early alarm, monitoring, management and
isolation of future crisis. The emerging and developing group calls
for measures to sustain growth.
G-20 Ready to Urgently Boost Growth, Stimulus Needed
http://www.bloomberg.com/apps/news?pid=20601087&sid=afct4fkQ5lpM&refer=home
Letter from Mr. Dominique Strauss-Kahn
http://www.imf.org/external/np/sec/pr/2008/pr08278.htm
Peace and best wishes,
Xi
>
> leer más »
xieu...@gmail.com
Nov 9, 2008, 6:12:43 PM11/9/08
to World-thread
My comments: First I poest what in my opinion are the main points of
the communique (I just quote them without any comment from me) and
then, I post the full communique.
1 the global economy is facing its most serious financial crisis and
economic
slowdown in decades. Focus on ensuring financial stability, supporting
global growth and maintaining recent achievements in poverty reduction
2. the global crisis requires global solutions and a common set of
principles
3. the current financial crisis is largely a result of excessive risk
taking and faulty risk management practices in financial markets,
inconsistent macroeconomic policies, which gave rise to domestic and
external imbalances, as well as deficiencies in financial regulation
and supervision in some advanced countries.
4. The key challenge is to resolve the financial crisis in a durable
manner and
to mitigate the impact of the crisis on global economic activity
5 We should consider ways of enhancing the identification of
systemically important institutions and ensure proper oversight of
these institutions, including credit rating agencies. We should ensure
that all sectors of the financial industry ... We also agreed that
financial institutions should have common accounting standards.
6. urge all multilateral development banks to work to sustain the
momentum of infra-structure investment for development in low income
countries.
7. We underscored that the Bretton Woods Institutions must be
comprehensively reformed so that they can more adequately reflect
changing economic weights in the world economy and be more responsive
to future challenges. Emerging and developing economies should have
greater voice and representation in these institutions
8. we should review the adequacy of the resources of the IMF, the
World Bank Group and other multilateral development banks and stand
ready to increase them where necessary. In this context, we welcome
the use of the IMF´s emergency procedures ... and also the creation of
a new short-term liquidity facility, which allows quick disbursements
without traditional conditionality for countries with strong economic
policy track records.
9. In response to the challenges presented by the global financial
situation,and recognizing the global nature of financial markets, we
believe that the FSF must expand to a broader membership of emerging
economies.
Peace and best wishes.
Xi
FULL FINAL COMUNIQUE OF THE G20 MEETING
http://www.g20.utoronto.ca/2008-communique-081109.pdf
1. We, the Finance Ministers and Central Bank Governors of the G-20,
held
our tenth annual meeting in São Paulo, Brazil. We met at a time when
the
global economy is facing its most serious financial crisis and
economic
slowdown in decades. We discussed the causes of and policy responses
to
the global financial crisis, and shared perspectives on scenarios
going
forward, with a particular focus on ensuring financial stability,
supporting
global growth and maintaining recent achievements in poverty reduction
and social inclusion.
2. We welcomed that the Heads of G-20 countries will convene for a
Leaders´ Summit on Financial Markets and the World Economy to be held
on 15 November 2008 in Washington, noting that the global crisis
requires
global solutions and a common set of principles and that the
forthcoming
summit is an important step in enhancing international cooperation. We
stand ready to urgently take forward work and actions agreed by our
leaders to restore and maintain financial stability and support global
growth.
3. We noted that the current financial crisis is largely a result of
excessive
risk taking and faulty risk management practices in financial markets,
inconsistent macroeconomic policies, which gave rise to domestic and
external imbalances, as well as deficiencies in financial regulation
and
supervision in some advanced countries.
4. The key challenge is to resolve the financial crisis in a durable
manner and
to mitigate the impact of the crisis on global economic activity
through
comprehensive, coordinated and timely measures as appropriate.
Measures
must be designed not only to restore growth and financial stability,
but also
to minimize the negative social impact particularly in emerging and
low
income countries. The G-20, with its broad representation of major
systemically important economies, has a critical role to play in
ensuring
global financial and economic stability, and, with that purpose, is
committed to enhancing collaboration.
5. We welcomed the bold and decisive measures taken in a number of
countries to stabilize financial markets and restore the flow of
credit, to
support global economic growth. These measures have begun to stabilize
the banking system and other financial sectors. However, there remains
considerable volatility in global financial markets. We will continue
to
work together to take all necessary actions to reduce this volatility
and
restore normal functioning of money and credit markets in both
advanced
and emerging market countries.
6. We agreed that all countries must address the risks associated with
excessive leverage and improve their regulatory and supervisory
regimes
in order to deliver improved risk assessment and management by
financial
institutions, to enhance transparency and accountability in financial
markets, as well as to strengthen international cooperation to
identify and
respond preemptively to national and international systemic risks.
Furthermore, we recognized the need to improve the supervision and
governance of financial institutions, at both national and
international
levels. In this regard, we should consider ways of enhancing the
identification of systemically important institutions and ensure
proper
oversight of these institutions, including credit rating agencies. We
should
ensure that all sectors of the financial industry, as appropriate, are
regulated or subjected to oversight. We agreed that it is important to
address the issue of pro-cyclicality in financial market regulations
and
supervisory systems. We also agreed that financial institutions should
have
common accounting standards and clear internal incentives to promote
stability and that action needs to be taken, through voluntary effort
or
regulatory action, to avoid compensation schemes which reward
excessive
short-term returns or risk taking. Regulators and supervisors should
enhance their vigilance and cooperation with respect to cross-border
flows.
7. We expressed concern over the impact of the spreading international
financial crisis on the real economy through trade, credit and
currency
transmission channels. We considered in particular the severe
challenges it
poses to short-term growth. Advanced economies, where the crisis came
into being, are slowing markedly and some are already close to or in
recession. We are also seeing evidence of slower growth in emerging
markets, and while overall these countries should continue to play an
important role in supporting world growth, emerging economies are
facing
external financing pressures. We recognized that a pronounced lack of
confidence has led to severe credit constraints, which affects
consumption, investment and employment. We affirmed our determination
to take all
necessary steps to foster non-inflationary growth in a stable and
sustainable manner according to the needs and available instruments in
our
respective countries, including through monetary and fiscal policy. We
recognized the need to support the efforts of the emerging economies
and,
especially, to help them find additional resources for their
development.
We urged all countries to resist protectionist pressures, whether in
respect
of trade or investment, and reiterate our strong support for a prompt
and
ambitious conclusion of the Doha Development Round of trade
negotiations.
8. One of the most deleterious aspects of the current crisis is the
freeze in the
private credit and equity markets and the tendency of capital to flow
back
to where the current crisis originated. We should explore ways to
restore
emerging and developing countries’ access to credit and resume private
capital flows which are critical for sustainable growth and
development,
including ongoing infrastructure investment.
9. We noted that fiscal policies have served as an important
instrument to
address the current financial crisis, including through government
support
to the financial sector and have performed an important stabilization
role
and in mitigating further negative effects on markets and on economic
activity. Some countries are also considering additional fiscal
measures to
stimulate the economy and we agreed that countries must use all their
policy flexibility consistent with their circumstances, to support
sustainable growth, while we recognize the importance of fiscal
sustainability for macroeconomic stability and growth. It is essential
that
the recent gains in reduction of poverty and social inequality are not
set
back by the financial crisis and global economic slowdown. Less
developed countries would probably need more flexible frameworks.
Furthermore, in cases where severe market disruptions have limited
access
to the necessary financing for counter-cyclical fiscal policies,
multilateral
development banks must ensure arrangements are in place to support, as
needed, those countries with a good track record and sound policies.
10. We recognized that many low income countries are particularly
vulnerable
to commodity price volatility and changes in investor sentiment due to
the
financial crisis. We agreed on the importance of maintaining official
flows,
including aid flows, to these countries in line with existing
commitments
and urge all multilateral development banks to work to sustain the
momentum of infra-structure investment for development in low income
countries.
11. We recognized the relevance of adopting sound monetary policies.
The
recent slowdown in world growth and consequent reduction of commodity
prices have decreased inflationary pressures especially in advanced
economies and permitted central banks to decide on monetary easing. In
those economies facing currency depreciation and still suffering from
second round effects, inflationary pressures may be more persistent.
In this
context, monetary authorities will need to continue to carefully
monitor
economic developments, including the consequences of financial
deleveraging, in order to take appropriate action if needed.
12. We underscored that the Bretton Woods Institutions must be
comprehensively reformed so that they can more adequately reflect
changing economic weights in the world economy and be more responsive
to future challenges. Emerging and developing economies should have
greater voice and representation in these institutions. We welcome the
progress made this year in reforming the IMF. We also noted the first
step
in the ongoing process of reform of the World Bank Group, which is to
be
followed by a wider share realignment. We emphasized our commitment
to further reform the Bretton Woods Institutions in order to increase
their
legitimacy and effectiveness. Such reforms should also take into
account
the interests of the poorest countries and reflect their distinct
mandates.
13. At this juncture, the IMF, the World Bank Group and other
international
financial institutions have an important role to play, consistent with
their
mandates, in helping to stabilize and strengthen the international
financial
system, advancing international cooperation for development and
assisting
countries affected by the crisis. To meet this task, we should review
the
adequacy of the resources of the IMF, the World Bank Group and other
multilateral development banks and stand ready to increase them where
necessary. In this context, we welcome the use of the IMF´s emergency
procedures to provide substantial assistance quickly to countries in
need,
and also the creation of a new short-term liquidity facility, which
allows
quick disbursements without traditional conditionality for countries
with
strong economic policy track records. We urge the IMF to continue to
review and adapt its lending instruments to adequately meets its
member
needs and revise its lending role in the light of ongoing financial
crisis.
14. We agreed that we must draw policy lessons from the current crisis
and
take all necessary steps to restore market confidence and stability
and to
minimize the risk of a future crisis. Given its near universal
membership
and core macro-financial expertise, the Fund should take a leading
role in
this task consistent with its mandate. We believe that the IMF must
enhance its early warning capabilities with due regard to systemically
important economies, in order to anticipate stresses and identify at
an early
stage vulnerabilities, systemic weaknesses and spillover risks across
financial markets that can endanger both the international financial
system
and the global economy. We also underline the importance of
strengthening the IMF surveillance and policy advice leading to
appropriate and timely macroeconomic policy responses from all
countries.
15. In response to the challenges presented by the global financial
situation,
and recognizing the global nature of financial markets, we believe
that the
FSF must expand to a broader membership of emerging economies.
16. We agreed that the G-20 plays a vital role in responding to
challenges
facing the world economy and must maximize its effectiveness.G-20
deliberations should focus primarily on concrete policy outcomes.
Consideration should be given to holding G-20 Ministers and Central
Bank
Governors’ meetings in the run-up to the meetings of the Bretton Woods
institutions with the flexibility to hold ad hoc Ministerial meetings
when
necessary.
17. We thanked our Brazilian hosts for chairing the G-20 this year,
and looked
forward to further effective collaboration in the G-20 next year under
the
United Kingdom’s chair. We welcome the Republic of Korea as a member
of the Troika in 2009 and chair of the G-20 in 2010.
On 9 nov, 22:46, "xieu.l...@gmail.com" <xieu.l...@gmail.com> wrote:
> G20 economic and financial meeting main conclusions and letter from
> IMF Managing Director.
>
> My comments: No difference to what was expected and stated in my first
> message in this thread. Not stated in news yet: the European
> Commision will call to a new summit, after the Nov 15th summit, to
> track the results of the summit in Washington. IMF managing director
> urges to enhance the role and the power of the IMF and "a network" of
> international institutions for early alarm, monitoring, management and
> isolation of future crisis. The emerging and developing group calls
> for measures to sustain growth.
>
> G-20 Ready to Urgently Boost Growth, Stimulus Neededhttp://www.bloomberg.com/apps/news?pid=20601087&sid=afct4fkQ5lpM&refe...
>
> Letter from Mr. Dominique Strauss-Kahnhttp://www.imf.org/external/np/sec/pr/2008/pr08278.htm
> ...
>
> leer más »
the communique (I just quote them without any comment from me) and
then, I post the full communique.
1 the global economy is facing its most serious financial crisis and
economic
slowdown in decades. Focus on ensuring financial stability, supporting
global growth and maintaining recent achievements in poverty reduction
2. the global crisis requires global solutions and a common set of
principles
3. the current financial crisis is largely a result of excessive risk
taking and faulty risk management practices in financial markets,
inconsistent macroeconomic policies, which gave rise to domestic and
external imbalances, as well as deficiencies in financial regulation
and supervision in some advanced countries.
4. The key challenge is to resolve the financial crisis in a durable
manner and
to mitigate the impact of the crisis on global economic activity
5 We should consider ways of enhancing the identification of
systemically important institutions and ensure proper oversight of
these institutions, including credit rating agencies. We should ensure
that all sectors of the financial industry ... We also agreed that
financial institutions should have common accounting standards.
6. urge all multilateral development banks to work to sustain the
momentum of infra-structure investment for development in low income
countries.
7. We underscored that the Bretton Woods Institutions must be
comprehensively reformed so that they can more adequately reflect
changing economic weights in the world economy and be more responsive
to future challenges. Emerging and developing economies should have
greater voice and representation in these institutions
8. we should review the adequacy of the resources of the IMF, the
World Bank Group and other multilateral development banks and stand
ready to increase them where necessary. In this context, we welcome
the use of the IMF´s emergency procedures ... and also the creation of
a new short-term liquidity facility, which allows quick disbursements
without traditional conditionality for countries with strong economic
policy track records.
9. In response to the challenges presented by the global financial
situation,and recognizing the global nature of financial markets, we
believe that the FSF must expand to a broader membership of emerging
economies.
Peace and best wishes.
Xi
http://www.g20.utoronto.ca/2008-communique-081109.pdf
1. We, the Finance Ministers and Central Bank Governors of the G-20,
held
our tenth annual meeting in São Paulo, Brazil. We met at a time when
the
global economy is facing its most serious financial crisis and
economic
slowdown in decades. We discussed the causes of and policy responses
to
the global financial crisis, and shared perspectives on scenarios
going
forward, with a particular focus on ensuring financial stability,
supporting
global growth and maintaining recent achievements in poverty reduction
and social inclusion.
2. We welcomed that the Heads of G-20 countries will convene for a
Leaders´ Summit on Financial Markets and the World Economy to be held
on 15 November 2008 in Washington, noting that the global crisis
requires
global solutions and a common set of principles and that the
forthcoming
summit is an important step in enhancing international cooperation. We
stand ready to urgently take forward work and actions agreed by our
leaders to restore and maintain financial stability and support global
growth.
3. We noted that the current financial crisis is largely a result of
excessive
risk taking and faulty risk management practices in financial markets,
inconsistent macroeconomic policies, which gave rise to domestic and
external imbalances, as well as deficiencies in financial regulation
and
supervision in some advanced countries.
4. The key challenge is to resolve the financial crisis in a durable
manner and
to mitigate the impact of the crisis on global economic activity
through
comprehensive, coordinated and timely measures as appropriate.
Measures
must be designed not only to restore growth and financial stability,
but also
to minimize the negative social impact particularly in emerging and
low
income countries. The G-20, with its broad representation of major
systemically important economies, has a critical role to play in
ensuring
global financial and economic stability, and, with that purpose, is
committed to enhancing collaboration.
5. We welcomed the bold and decisive measures taken in a number of
countries to stabilize financial markets and restore the flow of
credit, to
support global economic growth. These measures have begun to stabilize
the banking system and other financial sectors. However, there remains
considerable volatility in global financial markets. We will continue
to
work together to take all necessary actions to reduce this volatility
and
restore normal functioning of money and credit markets in both
advanced
and emerging market countries.
6. We agreed that all countries must address the risks associated with
excessive leverage and improve their regulatory and supervisory
regimes
in order to deliver improved risk assessment and management by
financial
institutions, to enhance transparency and accountability in financial
markets, as well as to strengthen international cooperation to
identify and
respond preemptively to national and international systemic risks.
Furthermore, we recognized the need to improve the supervision and
governance of financial institutions, at both national and
international
levels. In this regard, we should consider ways of enhancing the
identification of systemically important institutions and ensure
proper
oversight of these institutions, including credit rating agencies. We
should
ensure that all sectors of the financial industry, as appropriate, are
regulated or subjected to oversight. We agreed that it is important to
address the issue of pro-cyclicality in financial market regulations
and
supervisory systems. We also agreed that financial institutions should
have
common accounting standards and clear internal incentives to promote
stability and that action needs to be taken, through voluntary effort
or
regulatory action, to avoid compensation schemes which reward
excessive
short-term returns or risk taking. Regulators and supervisors should
enhance their vigilance and cooperation with respect to cross-border
flows.
7. We expressed concern over the impact of the spreading international
financial crisis on the real economy through trade, credit and
currency
transmission channels. We considered in particular the severe
challenges it
poses to short-term growth. Advanced economies, where the crisis came
into being, are slowing markedly and some are already close to or in
recession. We are also seeing evidence of slower growth in emerging
markets, and while overall these countries should continue to play an
important role in supporting world growth, emerging economies are
facing
external financing pressures. We recognized that a pronounced lack of
confidence has led to severe credit constraints, which affects
consumption, investment and employment. We affirmed our determination
to take all
necessary steps to foster non-inflationary growth in a stable and
sustainable manner according to the needs and available instruments in
our
respective countries, including through monetary and fiscal policy. We
recognized the need to support the efforts of the emerging economies
and,
especially, to help them find additional resources for their
development.
We urged all countries to resist protectionist pressures, whether in
respect
of trade or investment, and reiterate our strong support for a prompt
and
ambitious conclusion of the Doha Development Round of trade
negotiations.
8. One of the most deleterious aspects of the current crisis is the
freeze in the
private credit and equity markets and the tendency of capital to flow
back
to where the current crisis originated. We should explore ways to
restore
emerging and developing countries’ access to credit and resume private
capital flows which are critical for sustainable growth and
development,
including ongoing infrastructure investment.
9. We noted that fiscal policies have served as an important
instrument to
address the current financial crisis, including through government
support
to the financial sector and have performed an important stabilization
role
and in mitigating further negative effects on markets and on economic
activity. Some countries are also considering additional fiscal
measures to
stimulate the economy and we agreed that countries must use all their
policy flexibility consistent with their circumstances, to support
sustainable growth, while we recognize the importance of fiscal
sustainability for macroeconomic stability and growth. It is essential
that
the recent gains in reduction of poverty and social inequality are not
set
back by the financial crisis and global economic slowdown. Less
developed countries would probably need more flexible frameworks.
Furthermore, in cases where severe market disruptions have limited
access
to the necessary financing for counter-cyclical fiscal policies,
multilateral
development banks must ensure arrangements are in place to support, as
needed, those countries with a good track record and sound policies.
10. We recognized that many low income countries are particularly
vulnerable
to commodity price volatility and changes in investor sentiment due to
the
financial crisis. We agreed on the importance of maintaining official
flows,
including aid flows, to these countries in line with existing
commitments
and urge all multilateral development banks to work to sustain the
momentum of infra-structure investment for development in low income
countries.
11. We recognized the relevance of adopting sound monetary policies.
The
recent slowdown in world growth and consequent reduction of commodity
prices have decreased inflationary pressures especially in advanced
economies and permitted central banks to decide on monetary easing. In
those economies facing currency depreciation and still suffering from
second round effects, inflationary pressures may be more persistent.
In this
context, monetary authorities will need to continue to carefully
monitor
economic developments, including the consequences of financial
deleveraging, in order to take appropriate action if needed.
12. We underscored that the Bretton Woods Institutions must be
comprehensively reformed so that they can more adequately reflect
changing economic weights in the world economy and be more responsive
to future challenges. Emerging and developing economies should have
greater voice and representation in these institutions. We welcome the
progress made this year in reforming the IMF. We also noted the first
step
in the ongoing process of reform of the World Bank Group, which is to
be
followed by a wider share realignment. We emphasized our commitment
to further reform the Bretton Woods Institutions in order to increase
their
legitimacy and effectiveness. Such reforms should also take into
account
the interests of the poorest countries and reflect their distinct
mandates.
13. At this juncture, the IMF, the World Bank Group and other
international
financial institutions have an important role to play, consistent with
their
mandates, in helping to stabilize and strengthen the international
financial
system, advancing international cooperation for development and
assisting
countries affected by the crisis. To meet this task, we should review
the
adequacy of the resources of the IMF, the World Bank Group and other
multilateral development banks and stand ready to increase them where
necessary. In this context, we welcome the use of the IMF´s emergency
procedures to provide substantial assistance quickly to countries in
need,
and also the creation of a new short-term liquidity facility, which
allows
quick disbursements without traditional conditionality for countries
with
strong economic policy track records. We urge the IMF to continue to
review and adapt its lending instruments to adequately meets its
member
needs and revise its lending role in the light of ongoing financial
crisis.
14. We agreed that we must draw policy lessons from the current crisis
and
take all necessary steps to restore market confidence and stability
and to
minimize the risk of a future crisis. Given its near universal
membership
and core macro-financial expertise, the Fund should take a leading
role in
this task consistent with its mandate. We believe that the IMF must
enhance its early warning capabilities with due regard to systemically
important economies, in order to anticipate stresses and identify at
an early
stage vulnerabilities, systemic weaknesses and spillover risks across
financial markets that can endanger both the international financial
system
and the global economy. We also underline the importance of
strengthening the IMF surveillance and policy advice leading to
appropriate and timely macroeconomic policy responses from all
countries.
15. In response to the challenges presented by the global financial
situation,
and recognizing the global nature of financial markets, we believe
that the
FSF must expand to a broader membership of emerging economies.
16. We agreed that the G-20 plays a vital role in responding to
challenges
facing the world economy and must maximize its effectiveness.G-20
deliberations should focus primarily on concrete policy outcomes.
Consideration should be given to holding G-20 Ministers and Central
Bank
Governors’ meetings in the run-up to the meetings of the Bretton Woods
institutions with the flexibility to hold ad hoc Ministerial meetings
when
necessary.
17. We thanked our Brazilian hosts for chairing the G-20 this year,
and looked
forward to further effective collaboration in the G-20 next year under
the
United Kingdom’s chair. We welcome the Republic of Korea as a member
of the Troika in 2009 and chair of the G-20 in 2010.
On 9 nov, 22:46, "xieu.l...@gmail.com" <xieu.l...@gmail.com> wrote:
> G20 economic and financial meeting main conclusions and letter from
> IMF Managing Director.
>
> My comments: No difference to what was expected and stated in my first
> message in this thread. Not stated in news yet: the European
> Commision will call to a new summit, after the Nov 15th summit, to
> track the results of the summit in Washington. IMF managing director
> urges to enhance the role and the power of the IMF and "a network" of
> international institutions for early alarm, monitoring, management and
> isolation of future crisis. The emerging and developing group calls
> for measures to sustain growth.
>
>
> Letter from Mr. Dominique Strauss-Kahnhttp://www.imf.org/external/np/sec/pr/2008/pr08278.htm
>
> leer más »
xieu...@gmail.com
Nov 13, 2008, 9:23:26 AM11/13/08
to World-thread
My comment: Two interesting pieces. Firstable an interview with IMF
Managing Director Dominique Strauss-Kahn where he describes his
thoughts about the coming summit in Washington. More or less, what he
describes is what will be approved and does not changes from what I
stated in the first message in this thread. Also, he unveils more
clearly than I did, the future role and the future share of power
inside the IMF.
The second piece from current US president represents the right-wing
pressure to keep the system as it is and do not approve anything at
the summit. As I told, right now, that postion has zero posibilities
to win.
Interview with IMF Managing Director Dominique Strauss-Kahn
http://www.imf.org/external/np/vc/2008/110808.htm
Bush Warns Against Dismantling Free Market System (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aANsWb6tD.II&refer=home
Peace and best wishes.
Xi
> FULL FINAL COMUNIQUE OF THE G20 MEETINGhttp://www.g20.utoronto.ca/2008-communique-081109.pdf
> and urge all multilateral development banks to work ...
>
> leer más »
Managing Director Dominique Strauss-Kahn where he describes his
thoughts about the coming summit in Washington. More or less, what he
describes is what will be approved and does not changes from what I
stated in the first message in this thread. Also, he unveils more
clearly than I did, the future role and the future share of power
inside the IMF.
The second piece from current US president represents the right-wing
pressure to keep the system as it is and do not approve anything at
the summit. As I told, right now, that postion has zero posibilities
to win.
Interview with IMF Managing Director Dominique Strauss-Kahn
http://www.imf.org/external/np/vc/2008/110808.htm
Bush Warns Against Dismantling Free Market System (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aANsWb6tD.II&refer=home
Peace and best wishes.
Xi
>
> leer más »
xieu...@gmail.com
Nov 16, 2008, 12:12:53 PM11/16/08
to World-thread
My comment: I will elaborate much deeper G20 conclusions, although it
was as expected. Only a formal arrangement for another summit in March
that was expect after the summit, not in the summit. The world opens a
door and starts to walk. Now, it is time to work and prepare next step
in March. It is a two years trip, we must be patient.
What has not been approved is as important as what has been approved.
No blank checks for the wealthy. Strategy based on growth. No
financial actions (interest rates cuts, global infusions of liquidity,
etc.), but strategy of financial regulation. No call for tax cuts. No
G7 meeting to drive the world.
What a difference with the past when these sort of meetings ended with
calls for tight budgetary cuts and financial monetaristic approaches.
Peace and best wishes.
Xi
G-20 Calls for Action on Growth, Overhaul of Financial Rules
http://www.bloomberg.com/apps/news?pid=20601087&sid=aI66qmU1GDXk&refer=home
Nov. 16 (Bloomberg) -- Leaders from the biggest developed and emerging
nations agreed to further steps to shore up a global economy sliding
into recession, and laid out regulatory proposals to prevent a
recurrence of the financial crisis.
The Group of 20 yesterday urged a ``broader policy response,'' citing
the potential for additional interest-rate cuts and fiscal stimulus,
in a statement after meeting in Washington. The group set a March
deadline for recommendations on strengthening accounting standards,
derivatives markets and oversight of hedge funds and debt-rating
companies.
The call for an overhaul of the world financial industry indicates
leaders want future expansions to be smoother than the boom and bust
of this decade. A lack of any specific pledges to stimulate growth may
disappoint some investors, analysts said.
``This isn't a strong action statement on addressing the matters at
hand,'' said Carl Weinberg, chief economist at High Frequency
Economics Ltd. in Valhalla, New York. Markets may be vulnerable after
the weekend meeting because there was no clear pledge for coordinated
tax and interest-rate cuts, he said.
Rather than take the same steps together, nations should act ``as
deemed appropriate to domestic conditions,'' the leaders said in their
statement.
The group pledged not to erect new trade barriers, guaranteed more
resources for the International Monetary Fund if needed and promised
to meet again before May.
`Clear Determination'
``There was a common understanding that all of us should promote a pro-
growth economic policy,'' U.S. President George W. Bush said. U.K.
Prime Minister Gordon Brown said ``there is a clear determination on
the part of world leaders in every continent to take necessary action
to move economies out of this difficult period.''
Tumbling stock markets and forecasts for a worldwide recession are
intensifying pressure on the G-20 leaders to act, 15 months after the
credit crunch began. The IMF predicts advanced economies will together
contract next year for the first time since World War II.
Writedowns and losses totaling $964.6 billion at financial
institutions have triggered a surge in the cost of credit, cutting off
access to capital for consumers and companies. The euro-area fell into
its first recession in 15 years in the third quarter and data suggests
the U.S., Japan and U.K. have as well.
China Shudders
Emerging markets are also feeling the pain, with Chinese industrial
production growing at the weakest in seven years last month. The MSCI
World Index of stocks is close to its lowest since 2003 and has fallen
45 percent this year.
The G-20 leaders, representing 90 percent of the world economy, blamed
the crisis on investors who ``sought higher yields without an adequate
appreciation of the risks.'' At the same time, the group faulted
regulators in developed nations for failing to ``adequately appreciate
and address the risks building up in financial markets.''
Reaching agreement on what to do was difficult, French President
Nicolas Sarkozy said after the meeting. ``I'm a friend of the U.S. but
it wasn't always easy,'' he said. ``There were misunderstandings to
overcome.''
Sarkozy, who pushed Bush into convening the summit, and other European
leaders want more government control -- reaching across international
borders -- over lending practices and investing. Bush, with only two
months left before he leaves office, opposes any movement toward a
global authority overseeing financial markets.
Accommodating Differences
The statement papered over differences by recognizing that regulation
is ``first and foremost'' a national responsibility, while at the same
time demanding ``intensified international cooperation'' to oversee
financial firms whose operations and problems cross national borders.
The leaders called for the creation of ``supervisory colleges'' for
bank regulators around the world to better to coordinate oversight and
share information about activities and risk-taking of international
banks.
Capital standards should be raised, they said, particularly for banks'
structured credit and securitization activities.
The leaders directed their finance ministers to work on
recommendations for enhancing disclosure by investors and
institutions, including hedge funds, of their financial conditions.
Debt-rating companies, which blessed many of the products that have
since gone into default, should be registered, and oversight of their
actions strengthened to ensure they provide unbiased information and
avoid conflicts of interest.
Accounting Standards
Accounting standards should be harmonized around the world, the group
said, and regulators should consider whether current rules properly
value securities, particularly complex, illiquid products, during
times of stress.
The leaders endorsed the use of clearinghouses for financial
derivatives to back trades and absorb losses in case of a dealer
failure. The first central clearinghouse for the $33 trillion credit-
default swap market should be in operation by year-end in the U.S.,
under an agreement signed last week by three U.S. financial
regulators.
Such products should be traded on exchanges or electronic trading
platforms, the leaders said, and more disclosure should be required
for other derivatives traded over the counter.
The leaders said executive compensation should be managed to ``avoid
excessive risk-taking,'' while stopping short of calling for any
caps.
Trade Talks
Warning against protectionism as a way to fight recession, the G-20
vowed not to raise any trade barriers for the next year. They also
said they will seek ways by the end of the year to conclude the Doha
round of trade talks that collapsed in July.
An accord ``would be a signal that would be of equal weight as an
economic stimulus program,'' German Chancellor Angela Merkel said.
The governments will review the ``adequacy of resources'' at the IMF
and World Bank, and look for ways to increase them, along with
buttressing the role of smaller economies. Some emerging-market
nations with large reserves have been reluctant to raise contributions
to the IMF unless they are given more of a say in how the organization
is run.
Leaders will meet again before the end of April, most likely in
London, when a new American administration is in office. President-
elect Barack Obama didn't attend the meeting, sending former Secretary
of State Madeleine Albright and former Republican Representative Jim
Leach to meet delegations instead.
Work Together
Obama ``asked us to represent him in receiving the views of these
important partners,'' Albright and Leach said in a statement, adding
that they held meetings with more than a dozen delegations. ``We also
conveyed President-elect Obama's determination to continuing to work
together on these challenges after he takes office in January.''
Heads of emerging-market nations said the G-20 should now replace the
Group of Eight as the forum for addressing economic issues.
Brazilian President Luiz Inacio Lula da Silva said the G-8 has
``become a group of friends'' and there's ``no sense in making
political and economic decisions without the G-20 countries.''
The G-20 members are Argentina, Australia, Brazil, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico,
Russia, Saudi Arabia, South Africa, Turkey, the U.S., the U.K. and the
European Union.
The Netherlands and Spain were also represented, as were the IMF,
World Bank, Financial Stability Forum and United Nations.
> (2)http://www.thebigmoney.com/articles/judgments/2008/11/05/what-obama-n...
>
> (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
was as expected. Only a formal arrangement for another summit in March
that was expect after the summit, not in the summit. The world opens a
door and starts to walk. Now, it is time to work and prepare next step
in March. It is a two years trip, we must be patient.
What has not been approved is as important as what has been approved.
No blank checks for the wealthy. Strategy based on growth. No
financial actions (interest rates cuts, global infusions of liquidity,
etc.), but strategy of financial regulation. No call for tax cuts. No
G7 meeting to drive the world.
What a difference with the past when these sort of meetings ended with
calls for tight budgetary cuts and financial monetaristic approaches.
Peace and best wishes.
Xi
http://www.bloomberg.com/apps/news?pid=20601087&sid=aI66qmU1GDXk&refer=home
Nov. 16 (Bloomberg) -- Leaders from the biggest developed and emerging
nations agreed to further steps to shore up a global economy sliding
into recession, and laid out regulatory proposals to prevent a
recurrence of the financial crisis.
The Group of 20 yesterday urged a ``broader policy response,'' citing
the potential for additional interest-rate cuts and fiscal stimulus,
in a statement after meeting in Washington. The group set a March
deadline for recommendations on strengthening accounting standards,
derivatives markets and oversight of hedge funds and debt-rating
companies.
The call for an overhaul of the world financial industry indicates
leaders want future expansions to be smoother than the boom and bust
of this decade. A lack of any specific pledges to stimulate growth may
disappoint some investors, analysts said.
``This isn't a strong action statement on addressing the matters at
hand,'' said Carl Weinberg, chief economist at High Frequency
Economics Ltd. in Valhalla, New York. Markets may be vulnerable after
the weekend meeting because there was no clear pledge for coordinated
tax and interest-rate cuts, he said.
Rather than take the same steps together, nations should act ``as
deemed appropriate to domestic conditions,'' the leaders said in their
statement.
The group pledged not to erect new trade barriers, guaranteed more
resources for the International Monetary Fund if needed and promised
to meet again before May.
`Clear Determination'
``There was a common understanding that all of us should promote a pro-
growth economic policy,'' U.S. President George W. Bush said. U.K.
Prime Minister Gordon Brown said ``there is a clear determination on
the part of world leaders in every continent to take necessary action
to move economies out of this difficult period.''
Tumbling stock markets and forecasts for a worldwide recession are
intensifying pressure on the G-20 leaders to act, 15 months after the
credit crunch began. The IMF predicts advanced economies will together
contract next year for the first time since World War II.
Writedowns and losses totaling $964.6 billion at financial
institutions have triggered a surge in the cost of credit, cutting off
access to capital for consumers and companies. The euro-area fell into
its first recession in 15 years in the third quarter and data suggests
the U.S., Japan and U.K. have as well.
China Shudders
Emerging markets are also feeling the pain, with Chinese industrial
production growing at the weakest in seven years last month. The MSCI
World Index of stocks is close to its lowest since 2003 and has fallen
45 percent this year.
The G-20 leaders, representing 90 percent of the world economy, blamed
the crisis on investors who ``sought higher yields without an adequate
appreciation of the risks.'' At the same time, the group faulted
regulators in developed nations for failing to ``adequately appreciate
and address the risks building up in financial markets.''
Reaching agreement on what to do was difficult, French President
Nicolas Sarkozy said after the meeting. ``I'm a friend of the U.S. but
it wasn't always easy,'' he said. ``There were misunderstandings to
overcome.''
Sarkozy, who pushed Bush into convening the summit, and other European
leaders want more government control -- reaching across international
borders -- over lending practices and investing. Bush, with only two
months left before he leaves office, opposes any movement toward a
global authority overseeing financial markets.
Accommodating Differences
The statement papered over differences by recognizing that regulation
is ``first and foremost'' a national responsibility, while at the same
time demanding ``intensified international cooperation'' to oversee
financial firms whose operations and problems cross national borders.
The leaders called for the creation of ``supervisory colleges'' for
bank regulators around the world to better to coordinate oversight and
share information about activities and risk-taking of international
banks.
Capital standards should be raised, they said, particularly for banks'
structured credit and securitization activities.
The leaders directed their finance ministers to work on
recommendations for enhancing disclosure by investors and
institutions, including hedge funds, of their financial conditions.
Debt-rating companies, which blessed many of the products that have
since gone into default, should be registered, and oversight of their
actions strengthened to ensure they provide unbiased information and
avoid conflicts of interest.
Accounting Standards
Accounting standards should be harmonized around the world, the group
said, and regulators should consider whether current rules properly
value securities, particularly complex, illiquid products, during
times of stress.
The leaders endorsed the use of clearinghouses for financial
derivatives to back trades and absorb losses in case of a dealer
failure. The first central clearinghouse for the $33 trillion credit-
default swap market should be in operation by year-end in the U.S.,
under an agreement signed last week by three U.S. financial
regulators.
Such products should be traded on exchanges or electronic trading
platforms, the leaders said, and more disclosure should be required
for other derivatives traded over the counter.
The leaders said executive compensation should be managed to ``avoid
excessive risk-taking,'' while stopping short of calling for any
caps.
Trade Talks
Warning against protectionism as a way to fight recession, the G-20
vowed not to raise any trade barriers for the next year. They also
said they will seek ways by the end of the year to conclude the Doha
round of trade talks that collapsed in July.
An accord ``would be a signal that would be of equal weight as an
economic stimulus program,'' German Chancellor Angela Merkel said.
The governments will review the ``adequacy of resources'' at the IMF
and World Bank, and look for ways to increase them, along with
buttressing the role of smaller economies. Some emerging-market
nations with large reserves have been reluctant to raise contributions
to the IMF unless they are given more of a say in how the organization
is run.
Leaders will meet again before the end of April, most likely in
London, when a new American administration is in office. President-
elect Barack Obama didn't attend the meeting, sending former Secretary
of State Madeleine Albright and former Republican Representative Jim
Leach to meet delegations instead.
Work Together
Obama ``asked us to represent him in receiving the views of these
important partners,'' Albright and Leach said in a statement, adding
that they held meetings with more than a dozen delegations. ``We also
conveyed President-elect Obama's determination to continuing to work
together on these challenges after he takes office in January.''
Heads of emerging-market nations said the G-20 should now replace the
Group of Eight as the forum for addressing economic issues.
Brazilian President Luiz Inacio Lula da Silva said the G-8 has
``become a group of friends'' and there's ``no sense in making
political and economic decisions without the G-20 countries.''
The G-20 members are Argentina, Australia, Brazil, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico,
Russia, Saudi Arabia, South Africa, Turkey, the U.S., the U.K. and the
European Union.
The Netherlands and Spain were also represented, as were the IMF,
World Bank, Financial Stability Forum and United Nations.
>
> (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html
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