President Obama said “In life, there are no guarantees, and in economics, there are no guarantees,” “It was historic because of the size and the scope of the challenges that we face and because of the timeliness and magnitude of our response,” Well the president was right this time, there are no guarantees after Obama kept the regulatory steps the G-20 leaders committed to take from the media. This is the “turning point” you are hearing about. Obama pressed for European countries to invest more heavily in a stimulus program with direct infusions of capital while others, particularly French President Nicolas Sarkozy and German Chancellor Angela Merkel, demanded tougher regulation of international firms.
A $1 trillion will be injected into the economy through the IMF, International Monetary Fund and other lending institutions. The G-20 leaders agreed on more regulation for banks, new rules for executive bonus pay, interest rate cuts, corporate responsibility, and sanctions against tax havens that don’t comply with G-20 rules. The United States has about 40 percent of the assets of the GDP of the G-20 and get one vote. France and Germany were against further government stimulus, they pushed for an even stronger worldwide regulation of banks and hedge funds, something Sarkozy called “non-negotiable.” Sarkozy had threatened to walk out of the summit if the group did not agree to stricter fiscal regulations. Now the IMF gets a $1.1 trillion loan, they’re run by Europe. The World Bank is run by the United States. European socialists are going to be making the regulatory rules.
From the communique, Greta. “We agree to a framework of internationally agreed upon high standards. We will set up a financial stability board with a strengthened mandate to extend regulation and oversight to all systemically important financial institutions, instruments and markets” — including hedge funds, all — anything that they decide is important to the system — “to endorse and implement tough new principles on paying (ph) compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms.” Meaning that the FSB (Financial Stability Board) headed by an Italian banker will make the decisions on what standards our own SEC and Federal Reserve board should apply to executive compensation, free enterprise, market activities, and private decision making in the United States.
Leaders predicting the stimulus plan will save or create millions of jobs, raise output by 4 percent, and accelerate the transition to a green economy.” “Of course we spoke about additional steps to promote economic recovery and growth,” said Barack Obama. Now remember we are hearing this from Obama who is inexperienced in administration with no financial background. The president said ” I have no doubt, though, that the steps that have been taken are critical to preventing us sliding into a depression. … I think the steps in the communique were necessary. Whether they’re sufficient, we’ve got to wait and see.” Mr. Obama said the G-20 meeting approved critical, bold steps. He said there is no guarantee they will all work, but he stressed the healing process has begun. Czech Prime Minister Mirek Topolanek was right, Mr. Obama’s economic policies are the “road to hell.”
*Photo Kirsty Wigglesworth / Associated Press
