24
Sep
09

G20-20 vision ?

g20 prepThe Group of Twenty are meeting  in Pittsburgh to deal with the world financial crisis, and hopefully lead us all out of the recession.

Here’s how they’ve been getting on with the pledges they made at the last summit, in London 5 months ago.pittsburgh welcome 

President Obama calls this summit a “check-up”.

Here’s a country-by-country guide to the challenges each of the delegates are facing at home.

So what can we expect this time ?

Well, there’ll be protests definitely, but what else ?pittsburgh 

A plan to rebalance the global economy ?

Bankers – and the bonus culture – being brought to heel ?

More stimulus spending ? Do you trust them to help you ? Are you feeling the benefit ? Or do you fear another talking shop ?


31 Responses to “G20-20 vision ?”


  1. 1 Tom K in Mpls
    September 24, 2009 at 19:24

    Politicians say we need more government. Foundering businesses say we need bailouts. Most citizens say we need whatever gives them anything. IMO we need a minor tweak to a very small number of existing laws. For the US, classify derivatives as insurance under the current existing laws. Also, make it illegal for people, companies, and the government to give loans to people beyond a certain percentage based, net worth limit.

  2. 2 Roberto
    September 24, 2009 at 21:36

    RE “” Here’s how they’ve been getting on with the pledges “”
    —————————————————————————–

    ———— So the leaders who lead us into this global financial fraud, depression, and global warming are going to lead us out of these problems, eh?

    Sweet work if you can find it.

  3. 3 vijay pillai
    September 24, 2009 at 23:03

    I have been to the city in 1986, a great city and a great university more than 200 years old and i presented an engineering paper at a conference and good luck to them to come to an agreement to pull us all out of economic depression and put an end to bonus culture of finacial industry and inject more money into civil and building infrastructure..

  4. 4 Kindi Jallow
    September 25, 2009 at 02:27

    The G 20 are not doing anything to help Africa, we also have our own problems with the African Banks apart from the corruption and maladminstration they have are playing an active role in polarising the people by making the reach, reacher and the poor, poorer. The high interest rates creates a hinderance for improvement for both medium and large scale enterprices discouraging enterpreunership. What would you to allivate the situation?

  5. 5 T
    September 25, 2009 at 02:31

    At a past G8 meeting, they were given a secret economic briefing. They were told that the economic crash was coming. And then, they did nothing but say everything will be ok.

    Nobody will prosecute those responsible for this global meltdown. So, nothing will come out of this meeting.

  6. 6 Tan Boon Tee
    September 25, 2009 at 04:14

    A 20/20 perfect vision? Rather high hope.

    My contention is nothing much will be achieved. Most leaders are likely to pay lip services. At the end of the day, they have their own covert interests to look after.

    Not that I am being pessimistic, for that is reality.

  7. 7 Thomas
    September 25, 2009 at 10:46

    It is amazing that people have placed the trust they have in President Obama. President Obama’s administration has been ineffective in making progress toward changing the financial problems Americans are facing. The US has less power over the world economy and China is becoming stronger via the additional votes they will have in world economic issues.

    How bad does it have to get before someone stands up and says Obama is ineffective? Everyone seems so worried that any negative comment will be disregarded as racist, but it is time to call this problem what it is. Obama is not doing his job. He is the classic president hoping something will change so he can take credit and say “I only need a couple more years to completely implement my plan. Vote for me again.” I am a democrat and I would abstain before I voted for him in a second term.

    • 8 Tom K in Mpls
      September 25, 2009 at 16:30

      Any action in history, taken by a president, to change the economic state, has taken two to four years to show results. It is too soon to judge the actions Obama has taken. When the added debt load he has created hits, then will be the time to cry.

  8. 9 Taban Alfred David
    September 25, 2009 at 10:59

    Juba/ Sudan
    G8 or G20 nothing will really come out of them though they have to meet 100 years, they just looking after their interest and resources from the third world countries

  9. 10 vijay pillai
    September 25, 2009 at 11:02

    Pittsburgh is a great city with a great Pittsburgh university. I was there in 1986 and the world is more optimistic about the future with the era of new world order in the air,G20 has a greater responsibility deliver actionable message for growth and investment around the world and hope fro millions of jobless around the world not empty promisses and endless cups of coffee and tea drunk let alone bottled water..

  10. 11 Ryan M.
    September 25, 2009 at 11:16

    They cant fix the economy until they realise that free-market capitalism caused the problem. Most of the worlds money is in the hands of major corporations. The lack of sufficient regulation and consumer protections enabled major corporations to participate in risky or unethical business and lending practices. Even now, we see evidence of continuing corporate corruption, as banks and businesses are using millions in stimulus and rescue package funds to provide executive bonuses.

    Only when nations begin to actually protect the consumer, reign in corporate greed, nationalise banks and equalise taxes can we as a society move on to a stable, sustainable, prosperous future.

    • 12 Tom K in Mpls
      September 25, 2009 at 16:33

      Most banks didn’t require bailouts. Also, only a very few shortsighted corporations needed them. Under the concept of capitalism, they should have been left to fail as the economic disasters they were. To save them was pure socialism.

  11. 13 VictorK
    September 25, 2009 at 11:43

    *Nationally, socialism proved a failure. Globally, it won’t be any better.
    *Markets aren’t susceptible to ‘planning’ (as opposed to the kind of regulation that just ensures their smooth operation). They can only be distorted. Roosevelt prolonged the Great Depression with comparable policies of state intervention & central direction.
    *The assumption that banks are essential to economic success & so can’t be allowed to fail is fatuous. It exposes the timidity of supposedly leftist & radical politicians like Obama & Brown. Bailing out the banks has simply lined the pockets of bankers. Allowing banks to fail would provide the corrective to their manifest incompetence that the market demands. The only issue for govts should be how to deal with savings, loans & mortgages in the event of banks going under. Properly handled, these, rather than futile govt expenditure or printing money, could effect a genuinely reflationary stimulus to national economies.
    *The unholy alliance between the left and the banks has to end.

    • 14 Ryan M.
      September 25, 2009 at 17:12

      Victor K. :

      1. Socialism was muscled out by imperialist western expansion. Capitalism is fueled by greed.

      2. Roosevelt ended the depression within 5 years of becoming president. He put people to work on infrastructure projects, instead of providing golden parachutes to CEOs, a common practice of the right.

      3. When banks fail, guess what happens to your money? What entity insures you? THE FEDERAL GOVERNMENT. Lack of government oversight is why these big banks made such investments in people they knew couldnt afford to pay back.

      4. What do you propose as an alternative? Fascism? And your calling socialism a failure? Every economic collapse in the US was caused by market deregulation. FDR put people to work, and led the US out of the depression in 5 years. 30 years later, Im still waiting for Reaganomics to trickle down.

      • 15 Tom K in Mpls
        September 25, 2009 at 19:01

        Ryan, anything *can* be corrupted, including capitalism.

        1: Greed is corruption, capitalism is about mutual growth. When one grows and the other dies, that is piracy.

        2: Roosevelt failed on scale. He built more than we could support in the near future. About 30% of the projects failed due to lack of funding for maintenance. Building during a bad economy makes excellent capitalistic sense. But keep in mind the future expenses incurred.

        3: You completely misunderstand the FDIC. It only protects small savings. The very few big banks that had problems were poorly run and needed to fail. Investors that thought the found a ‘free lunch’ got what they deserved. Fools need to fail.

        4: For proof of the efficiency of socialism, ask China or the USSR. Also show me when deregulation caused an economic collapse. Minor legal tweaks after a problem has been identified has really paid off such as margin limits and anti-monopoly laws. As for Reaganomics, look at the prosperity from about 1992 to 1999. It takes years for presidential action to show results as you point out with Roosevelt.

  12. 16 Bruce
    September 25, 2009 at 11:56

    Why would anyone trust a nation who now feels it is a police state? Not so different than that of china! Do you really think the people of the United States runs the nation? Our Government is now the first and last word and the people of the United States =====>CAN ONLY FALLOW !!!! Obama has one agenda……..make history for himself. The same as Bush tryed to do. There will never be a change in the world as long as : POWER AND MONEY, RULES THE WORLD. One World power is here to stay !!!!

    • 17 Tom K in Mpls
      September 25, 2009 at 16:38

      Power and money has always run the world. Yet it still changes. Power and money always will until all people no longer desire power or money. When will you do you part and give all you have to the world?

  13. 18 Nigel
    September 25, 2009 at 13:00

    G8 is an old boy’s club that created the financial system that they are now expected to fix. Modify it they might, but bring about the sweeping changes necessary to completely de-fang the stock exchanges as a money printing non-value adding juggernaut will not happen. Greed will continue to rule. G8 to G20…..mere cosmetics!

  14. 19 chakrati ABDO
    September 25, 2009 at 13:17

    No body can deny the savageries and barbarism committed here and there leaving the world in complete chaos. Wrong are those who still hope that these leaders,representatives of multinational societies who met in Pettsburg,are going to afford a dignified peaceful life.

  15. September 25, 2009 at 13:45

    G20-20 Vision.

    Power and money have always ruled the world,from the mud hutted villiage to the sprawling metropolis and always will,human nature suggests nothing else;Bruce.
    Bankers bonuses are high on the summits list of targets to hit. However, most leading countries now have massive debits and they will have to be drastically reduced before sufficient progress can be made elsewhere. The voting system will change for the better,giving the less well off countries a stronger say. However, let us wait and see what the postmortem has to say?

  16. September 25, 2009 at 14:06

    Only the re-introduction of gold as money can save the world economy but no one at this summit will say that because gold can’t be printed so they don’t want to know about gold. Governments are now spending all our money and our childrens children’s money. The cupboard is bare for the next 60 years.

    The only thing left to do is for all these Socialist countries to become bankrupt and sell all their government assests for gold and the gold to be evenly distributed to each citizen in that country. In the US that could be as much as $60,000 of gold for each individual or $240,000 of gold for each family of four. Assuming buyers could be found.

  17. 22 scmehta
    September 25, 2009 at 14:11

    To have a “G 20-20 vision”, we’ve got have the corrected and focused “spectacles” so that our vision may not waver while looking into the global economic scenario. The most important and urgent corrective measures have to be taken to harness tightly the financial institutions (most importantly the banks), keep them on the right track/course and prevent them from getting ungirdled and going astray.

  18. 23 Henrico
    September 25, 2009 at 15:24

    Moving away from the Monetary system and more towards a resource based economy like “The Venus Project” should atleast be considered.

  19. September 25, 2009 at 15:25

    Everyone knows this G20 session will be a damp squib – the other correspondents here are right – the money masters run our democracies, how else would private businesses (banks) have the power to create as much credit as they like and lend it to each other (interbank loans). Loans? Lending? When I lend my wife £500 I go without it until it’s repaid (if I’m lucky). When banks lend no one forgoes the use of the money – that’s the key issue the G20 need to address – banks create money at 4 times the rate of annual GDP growth. If anyone can rationalise that I’d like to hear from them. Have a look at the website for some suggestions….
    Ron

  20. 25 Ogenrwoth David
    September 25, 2009 at 15:53

    The G20 members will never be of any help to poor countries like those in the 3rd world because they do not understand how developing economies like Uganda operate. It’s a shame that the world should trust these G20 leaders when it was their incompetent bankers’ and financial regulators’ unsustainable way of handling financial matters led to the recent economic downturn and the fact that these developed countries have for long exploited poor states like my native Uganda and others like it on the planet’s most poor continent – Africa. I think developing countries should form their own version of the G20 to decide their fate not the 1st world G20.

  21. September 25, 2009 at 16:59

    G20 can only help so much. In the end of the day, solutions would be local.

    But then have we learned anything? Did the G20 leaders learn to take good stimulus measures like Australia’s? Our country screwed up the cash for clunkers program when it worked for the rest of the world. Why could we not implement it like Germany could? Did they take action of “negative capitalism” measures like Credit Default Swap or short selling? NO!

    So I really think that the successes of the G20 is really limited.

  22. 27 VictorK
    September 25, 2009 at 17:54

    @Ryan M: the US recovered from recessions and depressions before the 1930s without govt intervention.
    *After the stock market crashed in 1929 unemployment rose to a high of 9%. By June 1930 it had fallen to just over 6%. It was only with the introduction of tariffs (i.e. market-distorting state intervention) that unemployment rose again, this time reaching double figures. The same mood of ‘we must do something’ that infects Obama and co. today led Hoover and Roosevelt then to embark on further state intervention in the American economy: result – unemployment continued to rise. The rate of unemployment as a result of the stock market crash was (with no govt intervention) was less than half of what later resulted from the interventionist, socialistic policies of Hoover and especially Roosevelt. Those are the facts.
    *It was government intervention that encouraged and even coerced (in the name of ‘equality’) banks to give mortgages to high risk groups that a free market would have ruled out for loans.

  23. 28 T
    September 25, 2009 at 20:56

    Nothing will be accomplished. And those who protest will be hauled away on trumped up “potential terrorist” charges. And the MSM will blissfully ignore it all.

  24. 29 David Goddard
    September 26, 2009 at 10:04

    None of the world’s central bankers saw the credit crunch coming, yet they are now charged with putting things right? In the 1930’s, government meddling turned a recession into the Great Depression. The same thing is happening now.

    I have lost all confidence in government and it’s institutions over the credit crunch and MP’s expenses scandle. I think government should get out of our pockets and out of our lives.

  25. September 26, 2009 at 12:13

    G20 or AIG20? That is the question.

  26. 31 P Mike
    September 26, 2009 at 14:56

    Ryan:

    Capitalism is fueled not by greed, but by (enlightened) self-interest. Sometimes the enlightenment is to preserve markets, sometimes driven by regulation, sometimes driven by public relations, sometimes for pure philanthropic principles.

    The current lingering finanical problem has its roots in government intervention, when the U.S. government encouraged and then required loans be given to people who did not have the resources to repay the loans. It was a nice socialist idea, shelter is a necessity, which morphs into a “right,” and denying someone the right to own a home is racist if they are not white, bigoted and mean spirirted if they are poor. There was actually a law suit over this in Southern U.S. with a decision that banks had to extend mortages to high risk areas because non-white areas in the south are predominantly poor, and therefore not giving mortgages to poor areas is racist.

    It’s not overly complicated, the U.S. government made it safe to make risky loans by providing insurance for the banks that make the loans, the market responded and found a previously untapped revenue source. Lots of money available, government backed, lots of money being made — why wouldn’t an investment company jump on? The fundamental problem was the failure to recognize that income needs to exceed expenses for real people — probably because that isn’t the rule for for the government. Maybe I should say the problem IS, since there is a currently a move in the U.S. gov to expand the program that encourages people who can’t afford mortgages it to get mortgages.

    U.S. government intervention in capitalism drove the market over the edge and took all of us with it. And the U.S. gov, leading the G20, refuses to learn.


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