Bad news trails leaders at hastily-convened G-20 summit
Saturday, 15 November 2008
From Fazle Rashid
NEW YORK, Nov 14: The heads of the government from G20 nations started to arrive in Washington for the economic summit beginning today with bad news trailing them. Germany slipped into recession with growth slumping by 0.5 per cent, the number of workers filing for unemployment benefits in the US rose to 516,000 and China saying its industrial growth has hit seven year low.
President Bush, in quelling the chorus of demand for greater control and regulation of the financial market, said: "It would be a terrible mistake to allow a few months of crisis to undermine faith in free market capitalism". He conceded that reforms are necessary but hastened to add that long term solution to the present crisis is sustained growth and surest path to that is free market and free people.
The outgoing US president injected a note of caution in welcoming the leaders stating that nothing astounding will follow the summit. It was too big a problem to resolve in one-go.
President Bush is expected to listen with uncomfortable ease to world leaders pouncing on him and blaming US for all the economic ills that have befallen the nations. He made a surprise visit to the Wall Street yesterday saying those who were calling for radical overhauling of the free market economy with greater control and regulation were gravely mistaken.
Britain, France, Germany and Italy are in favour of greater control to prevent another crisis hitting the globe. The summit, many say, is more symbolic than expected to yield any substance.
President Bush will be more of a host than a chairman. The analysts warned not to expect much from the summit as it was convened hastily. Being the head of the greatest economy of the world, President Bush cannot commit anything firmly as he leaves office on Jan 20.
The summit will clarify one thing " how completely the crisis is reshaping the economic map, rendering obsolete the old club of Western powers that fashioned the financial pillars of the post World War 11 era". the New York Times (NYT) wrote today.
China is likely to take the centre stage at the summit with a foreign exchange reserve close to $2.0 trillion. The Arab nation who will be represented by Saudi Arabia will be sought after because of their huge reserve of hard currency. Both China and Arab nations are expected to make commitments to fill the coffer of the IMF.
The outgoing US administration made it clear again that it would resist European attempt at creating a regulatory body with cross-border authority and bolstering the resources of IMF with money from China and Arab nations. The European Commission (EU) has begun a study on how to harmonise regulations in Europe The common people of America hardest hit by the crisis is asking of what good has been government's bailout programme.
Loans are scarce and getting scarcer. The prospect of a government rescue for the beleagured US auto industry dwindled as Democrats felt that opposition from the Republicans will be insurmountable. If the auto-industry is to wait for the next Congress to release fund it would be too late for GM, Ford and Chrysler to survive. To add salt to injury, European insurance companies have given a potentially devastating vote of no confidence by stating they would not provide insurance coverage to the suppliers.
NEW YORK, Nov 14: The heads of the government from G20 nations started to arrive in Washington for the economic summit beginning today with bad news trailing them. Germany slipped into recession with growth slumping by 0.5 per cent, the number of workers filing for unemployment benefits in the US rose to 516,000 and China saying its industrial growth has hit seven year low.
President Bush, in quelling the chorus of demand for greater control and regulation of the financial market, said: "It would be a terrible mistake to allow a few months of crisis to undermine faith in free market capitalism". He conceded that reforms are necessary but hastened to add that long term solution to the present crisis is sustained growth and surest path to that is free market and free people.
The outgoing US president injected a note of caution in welcoming the leaders stating that nothing astounding will follow the summit. It was too big a problem to resolve in one-go.
President Bush is expected to listen with uncomfortable ease to world leaders pouncing on him and blaming US for all the economic ills that have befallen the nations. He made a surprise visit to the Wall Street yesterday saying those who were calling for radical overhauling of the free market economy with greater control and regulation were gravely mistaken.
Britain, France, Germany and Italy are in favour of greater control to prevent another crisis hitting the globe. The summit, many say, is more symbolic than expected to yield any substance.
President Bush will be more of a host than a chairman. The analysts warned not to expect much from the summit as it was convened hastily. Being the head of the greatest economy of the world, President Bush cannot commit anything firmly as he leaves office on Jan 20.
The summit will clarify one thing " how completely the crisis is reshaping the economic map, rendering obsolete the old club of Western powers that fashioned the financial pillars of the post World War 11 era". the New York Times (NYT) wrote today.
China is likely to take the centre stage at the summit with a foreign exchange reserve close to $2.0 trillion. The Arab nation who will be represented by Saudi Arabia will be sought after because of their huge reserve of hard currency. Both China and Arab nations are expected to make commitments to fill the coffer of the IMF.
The outgoing US administration made it clear again that it would resist European attempt at creating a regulatory body with cross-border authority and bolstering the resources of IMF with money from China and Arab nations. The European Commission (EU) has begun a study on how to harmonise regulations in Europe The common people of America hardest hit by the crisis is asking of what good has been government's bailout programme.
Loans are scarce and getting scarcer. The prospect of a government rescue for the beleagured US auto industry dwindled as Democrats felt that opposition from the Republicans will be insurmountable. If the auto-industry is to wait for the next Congress to release fund it would be too late for GM, Ford and Chrysler to survive. To add salt to injury, European insurance companies have given a potentially devastating vote of no confidence by stating they would not provide insurance coverage to the suppliers.