China and other nations are becoming very concerned about the financial strategies of the American central bank, The Federal Reserve Bank of the United States. The recently announced first phase $600 billion repurchase of the national debt by the Federal Reserve is a particular concern to the nations of the G-20. The November 2010 meeting of the G-20 is a likely battleground for a confrontation between the super economies that are in agreement with China's concerns.
Since 1999 an international organization of the finance ministers of the participating nations called G-20has met annually with an agenda centered on discussions to promote worldwide economic growth. There are sub-organization meetings throughout the year as described at their website (http://www.g20.org/about_what_is_g20.aspx). Developing economies are of particular concern to the G-20 group. The intent of the discussions is to promote stability among the competing economies and mentor developing economies toward success. The efforts of the organization has largely failed in its mission.
Clearly, an organization that talks annually with little to show for the time spent seems to have been something of a waist of time for leaders of the world. Instability is the condition best describing the economies of the world in 2010.
The evidence of instability is best represented by the Greek experience, a nation that allows its’ citizens to live from the national treasury. Such an economy positions its people to have little ambition other than public displays of disapproval that often become something akin to riots. The Greeks claim they are fighting for what is “owed to them.” This is an example of the condition of many nations in our day This is also an example of an economy that is not based on a broad entrepreneurial spirit. Rewarding hard work with economic success is not a focus of such economies.
The question that comes to mind is, “why has the G-20 been incapable of meeting the objective of helping to create worldwide economic stability?” There is little the nations can do without authority that might be given to the group should there be a world government.
From Houston to South Korea, the site of the next G-20 meeting of ministers there will be discussions that hopefully will result in real evidence of economic progress around the world.
A discussion of the possibilities for confrontations at the G-20 meeting scheduled for November is in the Financial Times of London. The article is found at:
http://www.ft.com/cms/s/0/03567a28-e8a3-11df-a383-00144feab49a.html#axzz14k3vlYof
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