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G20 ministers meet amid rifts

Posted by seumasach on March 14, 2009


“The summit is also expected to call for an increase in funding for the International Monetary Fund (IMF).

However, Brazil, China, India and Russia said they would not contribute extra money until their voting power at the IMF rises. The IMF voting structure gives greater voting power to the US and Europe in the agency’s decisions.”

The BRIC alliance has emerged as a counterpole to US/UK hegemony and is here frustrating Brown’s plan to use the IMF to gain control of the global economy

PressTV

14th March, 2009

Finance ministers and central bankers from the Group of 20 have met in London amid rifts on how to tackle the global financial crisis.

The US, supported by Britain, is calling for more government spending to spur growth. European governments, however, want rapid moves to change the rules governing financial markets in addition to massive public expenditure.



G20 finance ministers and central banks met on Friday in south London to resolve differences ahead of an April 2 summit of G20 leaders in London.

Japan backed the US call for more spending and China also said Beijing was ready to do more if needed to spur its growth.

However, rifts emerged within the group when France accused Washington of disregarding the urgent need for tougher market regulation.

“The United States is insisting on the need for a strong, rapid and coordinated stimulus. Why? Because they were the last ones to put in place their plan and they are facing a bigger crisis,” French Finance Minister Christine Lagarde said in an interview with the Les Echos newspaper.

“For most of the countries in continental Europe, the urgency is to develop the rules, highlight discipline and sanctions through a new architecture of the financial system,” she added.

British Finance Minister Alistair Darling played down the talk of rifts and said, “Generally, I think we are in agreement on the issues.”

“Obviously, if you have 20 people sitting round a table, there will be differences,” he said. “There is a lot of common ground. If you take fiscal stimulus, for example, the US has, we have, the French have, the Germans have.”

The G20 summit next month is likely to focus on ways to improve market regulation, tighten up on tax havens and deal with the toxic assets — mostly mortgage debt-related derivatives — that sparked the credit crisis.

Some progress has been made as Switzerland, Austria and Luxembourg said on Friday they would relax strict bank secrecy rules.

The summit is also expected to call for an increase in funding for the International Monetary Fund (IMF).

However, Brazil, China, India and Russia said they would not contribute extra money until their voting power at the IMF rises. The IMF voting structure gives greater voting power to the US and Europe in the agency’s decisions.

The G20 countries, which account for 85 percent of the world economy, consist of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU.

One Response to “G20 ministers meet amid rifts”

  1. utah1234 said

    While the G20 Group ministers are spending their time on measures to solve the Wall Street/Washington created worldwide meltdown, they should be paying more attention to the coming meltdown in US Treasury obligations and the US dollar.

    Washington’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.

    Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasury bonds, the dollar, gold and the stock market.

    The Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
    Thanks,
    Ron

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