As expected, the G-20 communique was more insipid blathering about global growth, BIS capital regulation and the enactment of some new macroprudential regulations to ensure global financial tranquility. To reflect on the lack of consistency in this communique, let me quote from point 20: “We welcome the OECD report on addressing base erosion and profit shifting and acknowledge that an important part of fiscal sustainability is securing our revenue bases.” This is pure nonsense for it reflects the great divide that exists between the old line powers of the G-7 and the more broad-based and emerging economies found within the structure of the G-20.The old line (developed) economies want to preserve their tax bases so as to have enough revenue to maintain previous promises of retirement and pension programs for their aging populations.
Posts Tagged ‘OECD’
Notes From Underground: The G-20 Communique … YADA,YADA,YADA … What Currency Wars?
February 18, 2013Notes From Underground: Time to throw the French Finance Minister to the Dustbin of History
May 26, 2011My turn. Everybody has had a comment on the appointment of the next IMF Managing Director. First, allow me again to voice my disdain for the IMF as it is usually late to the rescue party and its money and advice have done great harm to many in the the “emerging economies.” Most IMF actions have been to bailout the profligate creditors who made ill-thought out loans with the knowledge that there would be an international lending institution to backstop most losses. The post war world is replete with mal advice and ill-conceived programs that brought great pain to many economies in the underdeveloped world. Saying that does not mean that the IMF will be disbanded so the world is forced to engage the devil it knows.
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