Somehow, this message follows "The three visions at the G20 Options" (1). Those are just my thoughts, in some extend based on what others think but not necessarily matching any particular thought, but mine.
Leaders have praised co-operation to face this crisis. I wish that the sense of competition, dominance, etc. among economies is past and every country accepts finally that this is a multilateral world, where you either co-operate or you sink. Unfortunately, I cannot be so optimistic, feelings do not change suddenly although economic need seems to be pushing humility in some countries. But I guess that it takes time. On down to earth measures, as prof. Stiglitz told after the summit, "the evil is in the details". Let us see how things evolve to believe if this particular meeting, besides great words and very professional PR, gave something useful. 1) IMF raises $250 bn from Europe, Japan and China to help economies. $750 bn but nobody knows which country or countries will put them into IMF coffers. However, everybody has China into mind. I think that it will depend on two coditions. First of all, whether IMF (or rather USA and Europe) accepts that China wants to control that its funds are to be used for development and well being, not for financial exhuberance. Secondly, it means that it is not a blank check. Yes or yes, it will depend on IMF to become a true multilateral institution, not a Euro- American institution. We can predict how those funds will be used (or rather misused) if they fall on uncontrolled "blue-eyed white" economists´s hands (quoting pres. Lula´s words). 2) To raise $250bn in special drawing rights (SDR) from the IMF might help everybody. It helps to move toward the global single super- sovereign currency. But only if they achieve what I stated above. If not, China will act as a sovereign IMF. That is not the solution that we all want, but that would be the only option if authorities do not restore balance into their economies and do not accept multilateralism. In fact, since months ago, that is how China is acting through swap mechanisms (yuan-local currency) with more and more countries around the world such as Argentina in Americas, Belarus in Eastern Europe, Angola in Africa or Malaysia in Asia, among many others and more to come. And it works good enough. If IMF does not achive, at least, similar results they should not expect more. 3) Fortunately, all countries agreed on regulation. Influenced by prof. Stiglitz, I think that the evil is details. Financial means are just means to serve economies, nothing more and nothing else. Financials must adapt to economies, not the opposite. To manipulate financials in order to disguise rates is useless. Cyber virtual wealth is rather virtual than wealth. What matters is that people have jobs, and therefore homes, food, clothes, etc. What accounts recorded in computers might say means nothing if it does not allow people to get those goods and services that they need. This is not just sweet heart, selflessness, etc. it is also strict and rigurous selfishness. Co- operation. Economy is down to earth or is nothing. Unfortunately, for all the above, we must wait and see. Peace and best wishes. Xi (1) http://groups.google.com/group/world-thread/browse_thread/thread/75a308e2c7ec34ca?hl=en# --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
