Archive for the ‘Group of Seven’ Category

Gordon Brown’s New Rules for Our Global Economy

October 17, 2008

By Gordon Brown
The Washington Post
Friday, October 17, 2008; Page A25

This is a defining moment for the world economy.

We are living through the first financial crisis of this new global age. And the decisions we make will affect us over not just the next few weeks but for years to come.

The global problems we face require global solutions. At the end of World War II, American and European visionaries built a new international economic order and formed the International Monetary Fund, the World Bank and a world trade body. They acted because they knew that peace and prosperity were indivisible. They knew that for prosperity to be sustained, it had to be shared. Such was the impact of what they did for their day and age that Secretary of State Dean Acheson spoke of being “present at the creation.”

British Prime Minister Gordon Brown listens to questions after ... 
British Prime Minister Gordon Brown listens to questions after an EU summit in Brussels, Thursday Oct. 16, 2008. European Union leaders have agreed to stick to ambitious plans to cut greenhouse gases by 20 percent by 2020, but divisions over how to share out the cuts have been widened by fears over the impact of the financial crisis.(AP Photo/Yves Logghe)

Today, the same sort of visionary internationalism is needed to resolve the crises and challenges of a different age. And the greatest of global challenges demands of us the boldest of global cooperation.

The old postwar international financial institutions are out of date. They have to be rebuilt for a wholly new era in which there is global, not national, competition and open, not closed, economies. International flows of capital are so big they can overwhelm individual governments. And trust, the most precious asset of all, has been eroded.

When President Bush met with the Group of Seven finance ministers last weekend, they agreed that we all had to deal with not only the issue of liquidity in the banking system but also the capitalization and funding of banks. It was clear that national action alone would not have been sufficient. We knew we had to send a clear and unambiguous message to the markets that governments across the world were prepared to act in a coordinated manner and do whatever was necessary to stabilize the system and address the fundamental problems.

Confidence about the future is vital to building confidence for today. We must deal with more than the symptoms of the current crisis. We have to tackle the root causes. So the next stage is to rebuild our fractured international financial system.

Read the rest:
http://www.washingtonpost.com/w
p-dyn/content/article/2008/10/16
/AR2008101603179.html?hpid=opinionsbox1

Global Economic Meltdown Gives Developing Nations Upper Hand: U.S. and NATO Eclipsed?

October 12, 2008

“In a very bizarre way, roles have been reversed in the global economy. The typical troublemakers of the global economy, the emerging markets, are actually now the world’s creditors…”

By David R. Sands
The Washington Times

As shell-shocked central bankers and finance ministers gather in Washington to confront the world’s financial meltdown this weekend, that grinding noise in the background is the sound of the global balance of power shifting.

In sharp contrast to past crises — from the Latin American debt problems of the 1980s to the Asian and Russian currency collapses of the 1990s — the emerging markets of the developing world boast the strong balance sheets and deep financial pockets while the United States and Western Europe lurch from crisis to crisis.

Read the rest:
http://www.washingtontimes.com/news/2008/oct/
12/financial-crisis-reshapes-world-order/

 

 

Bush says anxiety feeding market instability

October 10, 2008

By TERENCE HUNT, AP White House Correspondent
October 10, 2008

WASHINGTON – President Bush said Friday that the government’s financial rescue plan was aggressive enough and big enough to work, but would take time to fully kick in.

“We are a prosperous nation with immense resources and a wide range of tools at our disposal … We can solve this crisis and we will,” Bush said in brief remarks from the White House Rose Garden.
President George W. Bush speaks about the global financial and ... 

Bush spoke as leaders of the world‘s leading economies gathered in Washington amid frozen credit markets, panic selling in stock markets and a looming global recession.

The president noted that major Western economies were working together in an attempt to stabilize markets and end the spreading panic.

“Through these efforts, the world is sending an unmistakable signal. We’re in this together and we’ll come through this together,” Bush said.

Finance ministers and central bankers from the Group of Seven — the United States, Japan, Britain, Germany, France Italy and Canada — were here for a weekend meeting. Bush plans to meet with the leaders on Saturday.

Bush said he understood how Americans could be concerned about their economic future, “that anxiety can feed anxiety and that can make it hard to see all that’s being done to solve the problem.”

Cash-Flush China, Russia Arouse Unease As Investments Spread

October 20, 2007

Reinhardt Krause
Investor’s Business Daily

Globalization faces a big test: the rapid rise of state-run investment arms by China, Russia and other cash-rich nations.

These countries want to earn better returns on their massive currency reserves, but some in the West fear sovereign wealth funds may try to control strategic assets or invest for geopolitical reasons.

Cooler heads seemed likely to prevail at an Oct. 19-22 meeting of the Group of Seven nations — the U.S., Japan, U.K., Canada, France, Germany and Italy. G-7 finance chiefs planned to just ask China and other nations to give more data on state-run fund activities.

Read the rest:
http://news.yahoo.com/s/ibd/20071019/bs_ibd_ibd/20071019general