They wasted $1.2 billion for a 20-country bitch fest and came up with this:
The Euros will attempt to balance their budget rather than cut spending. David Cameron wants to boost the U.K.’s value-added tax from 17.5 percent to 20 percent. Obama wants to raise taxes and continue spending like a drunken sailor to finance his socialist empire, and argued that Europeans should do the same.
By the looks of things, the “austerity” plans of Merkel, Cameron, Sarkozy will remain unchanged:
Via the Christain Science Monitor:
EU officials led by German chancellor Angela Merkel are on a national “austerity” budget cutting offensive as the wisest policy for economic health, ahead of the Toronto summit of 20 large-economy nations.
Ms. Merkel Thursday said Germany will continue with $100 billion in cuts that will join similar giant ax strokes in the UK, Italy, France, Spain, and Greece. EU officials say budget austerity promotes the stability and market confidence that are prerequisites for their role in overall recovery.
Yet EU pro-austerity statements in the past 48 hours are also defensive – a reaction to public statements from US President Barack Obama and G20 chairman Lee Myung-bak, South Korea’s president, that the overall effect of national austerity in the EU will harm recovery. http://www.csmonitor.com/World/Europe/2010/0625/G20-summit-an-economic-clash-of-civilizations
Oh yeah, and this:
World leaders agreed on a regulatory blueprint for reining in the excesses that fed the worst financial crisis in six decades and pledged more than $1 trillion in emergency aid to cushion the economic fallout.
The Group of 20 policy makers, meeting in London, called for stricter limits on hedge funds, executive pay, credit-rating firms and risk-taking by banks. They tripled the firepower of the International Monetary Fund and offered cash to revive trade to help governments weather the turmoil resulting from the surge in unemployment. They avoided the divisive question of whether to deliver more fiscal stimulus to their own economies.
Now, who do you think will pay for that $1 trillion? And expanding the power of the IMF is part of that “global governance” Tim Geithner speaks of so fondly.
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
……The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a “super-sovereign reserve currency” under IMF management, turning the Fund into a sort of world central bank.
The idea is that the IMF should activate its dormant powers to issue Special Drawing Rights. These SDRs would expand their role over time, becoming a “widely-accepted means of payments”.
More here: http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html
Toronto could have been spared the expense and the destruction of businesses by anarchist thugs if they had simply agreed to disagree and stayed home.
G20 Final statement: