Under the G20 agreement, funding for the IMF will be increased by $500 billion to $750 billion. Japan agreed to provide $100 billion of the extra funding, the European Union $100 billion and China about $40 billion.
Interesting how China is participating, yet holding back, given that they could contributed a whole lot more. Strengthening the IMF, in this and other ways, is the lead-up toward a global central bank. China is playing its cards close to its chest, and it has lots of aces.
An unprecedented crackdown on pay and bonuses for bankers was agreed by world leaders.
Trivial slop to the masses. Obviously there are numerous ways around such restrictions. That’s what accountants are for.
At the behest of the world leaders, the IMF will increase the amount each country has in so-called Special Drawing Rights (SDR) by $250bn. … This is effectively global quantitative easing – comparable to the unprecedented measures the Bank of England carried out last month when it committed to pumping £75bn into the British economy. This is a form of printing money.
With the IMF providing credit out of thin air, it is already beginning to exercise the prerogatives of a global central bank.
Fiscal Stimulus – This was supposed to be the big centre-piece of the G20 summit – a global agreement on how much countries around the world would spend on measures to support their economies and fight unemployment. However, the French and German governments ruled out an explicit commitment. All leaders could agree to announce was how much had already been pledged – $5 trillion.
Obama’s stimulus package is woefully inadequate to enable any kind of recovery. For European leaders to reject that as ‘excessive’ indicates that the people of Europe are in for some serious austerity.
The G20 communique proclaimed: “The era of banking secrecy is over”. Gordon Brown said that it was “the beginning of the end” for widespread tax avoidance. However, it is yet to be seen what sanctions will be deployed against the tax havens despite lobbying from the French Government.
The strengthened international regulatory agencies will have increased access to banking information, but that has nothing to do with responsible public oversight. It’s just that much more insider information and control for the elites.
Protectionism – The G20 member countries committed to a 12-month freeze on introducing any new trade barriers. In other words, they will not increase tariffs or quotas on goods imported from overseas. If followed to the letter, this would be a significant move. It was an increase in protectionism during the 1930s that lengthened and deepened the Great Depression, and ultimately fed the forces that caused the Second World War. However, there is scepticism that this commitment will be met. A similar promise was made last November; since then the World Bank has found that 17 member countries raised trade barriers.
‘Protectionism’, ie a nation looking after its own interests, has them shaking in their boots.
The summit agreed to turn the existing Financial Stability Forum (an international group of regulators) into a more pro-active global banking watchdog. It will be renamed the Financial Stability Board and its membership will be broadened to developing nations including China, Brazil and India. Its job will be to monitor whether banks and financial houses are taking excessive risks, and to tell their national regulators to police them more stringently.
Thus the non Anglo-Saxon players are being coaxed into the game. I hope they understand that the house always wins.
Global leaders agreed to provide $250 billion in new trade credit guarantees. The guarantees – to be offered by the World Bank and other international institutions – should allow exporters to obtain credit once again.
Once again we see funds being channeled through the IMF & World Bank, which despite broader participation are still under the control of the Anglo-Saxon elite. The handwriting on the wall is clear, re/ the installation of a global central bank.