In President Obama’s G-20 press conference the mood was somewhat upbeat as he boasted that the economic powerhouses had made progress on the issues of economic growth. The President also was confident that Europe can meet it challenges as leaving Cannes, he felt that a “solid foundation has been built.” It seems that Obama failed to capture the real mood of the FAILED G-20 meeting as the Financial Times had two very morose articles about the G-20 and a solution on the European debt crisis.
The articles were “HOPES FOR UNITY OVER CURRENCY BLOC DASHED” (Giles and Spiegel) and “FORUM’S HIGH AMBITIONS DELIVER MEAGRE RESULTS” (Giles and Beattie). When the house paper of the EUROCRATIC ELITE delivers such a somber recording of events the meeting had to be an abject failure. The heads of the world’s most “important” nations failed to come to any agreement on an IMF/G-20 package to enhance the financial power of the EFSF.
Obama was behind the concept of building a financial firewall to prevent the Greek situation from spreading to Italy and others. The financial media had been all aglow about the Chinese riding to the rescue of Europe but, again, the Chinese backed away until Europe and EFSF present a genuine plan of action. IT WAS SUGGESTED IN SOME CIRCLES THAT THE GERMANS PLEDGE THEIR GOLD TO THE EFSF IN ORDER TO ENHANCE ITS BORROWING POWER, which failed to gain any traction.
There was another suggestion that the world’s current account surplus nations stand behind the creation of a larger pool of SDR‘s but the U.S. was opposed as it would diminish its present financial authority within the IMF. This was supposed to be Sarkozy’s great moment on the world stage, BUT IT WAS A TOTAL BUST CULMINATING IN A MISERABLE YEAR FOR THE FRENCH PRESIDENT. The final humiliation was an offhand attempt at a joke by President Obama in which he quipped that it was a good thing that the new Sarkozy baby had her mother’s looks.
In a REUTERS interview, George Soros placed the present problems of Europe on Chancellor Merkel’s failed attempts to secure the financial support for the EFSF and using delay tactics to play to the German populace. MR. SOROS, YOU PLACE THE BLAME WRONGLY BUT BECAUSE YOU SEE THE WORLD THROUGH THE EYES OF AN AUTOCRAT–I WOULD EXPECT LITTLE ELSE. The failure of Europe is based on many reasons but the most recent problems can be blamed on SARKOZY. In his haste to make sure that AXEL WEBER was not to head the ECB, Mr. Sarkozy defeated Merkel but raised the IRE of the BAVARIAN BURGHERS. A German as the ECB president would have given Germany the assurance that the ECB and EFSF would not become a free-wheeling money machine.
Soros is upset with Merkel because she had to accept the authority of the German Constitutional Court and proceed slowly and in a very democratic way. The GCC has become the bastion of democracy within the EU and Soros doesn’t desire the democratic process when immediate, important decisions need to be made. Hey PALINDROME, look elsewhere to assert blame.
The G-20 Communique was a muddle of platitudes and so filled with wishes and good tidings that it could easily be confused with the original list of desires from the OCCUPY WALL STREET group. Even as Europe was its main focus, the leaders of the world had to pay homage to the idea of economic growth with a GREEN ORIENTATION. Then, of course, the usual platitudes about current account nations increasing domestic demand while the profligates pledged less spending and more saving to correct global imbalances. No G-20 statement would be complete without signaling out some nations for manipulating their currencies. We call that allowing currency flexibility.
The Europeans go begging to the Chinese for bailout funds and then have the audacity to criticize them in a world forum. The MADNESS of the world’s leaders is mind numbing. Also, it seems that the CANNES FIASCO laid to rest the DOHA ROUND of free trade. Yes Nicholas Sarkozy, it has been quite a year for your grandiose plans for the world’s economy.
*** Tonight there is word that the PAPANDREOU Government has fallen and Greece will be led by a coalition. The equities have gone bid as has the EURO, but it will take a while to sort through the meaning of this. My first opinion is that it means very little as this will not resolve anything, but many Europeans are happy that the Greek referendum has been slayed. If Greece had gone to popular approval of the EURO and austerity, many other nations would be insisting on their own referenda.
Many EUROCRATS are breathing a momentary sigh of relief. The problems in the EU will exist for a longer period as the light is now on Italy and the European leadership has great disdain for Berlusconi. But Spain lurks in the background as it is saddled with high unemployment and an austerity program: NEGATIVE FEEDBACK LOOPS FOR EVERYONE.