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On 9 nov, 00:59, antidefm <[EMAIL PROTECTED]> wrote:
> Thanks to xieuling, economics at the international level is an very
> interesting topic.
>
> On Nov 8, 3:01 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> 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...
>
> > 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.''
>
> > On 6 nov, 19:24, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote:
>
> > > 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
> > > 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
> > > 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
> > > 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
>
> ...
>
> leer más »
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