jackovesk
17th April 2011, 15:38
A deal among G20 finance ministers to boost the International Monetary Fund's scrutiny of the seven biggest economies has failed to ease concerns about global economic recovery, which have pushed the gold price to a record of almost $US1500 an ounce.
As International Monetary Fund and G20 meetings ended in Washington yesterday, markets were rattled by reports that the fund believed Greece had no alternative to default and of inflationary surges in China and India.
Wayne Swan said after the meeting: "The global recovery is fragile and of course the risks are on the downside."
The Treasurer told Sky News's Australian Agenda that the G20 had discussed the effect on oil prices of instability in North Africa and the Middle East, the disasters in Japan and the sovereign debt crisis in Europe.
The main achievement of the G20 meeting was to commission detailed IMF reviews of the major economies for their contribution to global economic excesses. The fund will consider their policies on savings and investment as well as the management of currencies, on which China and the US remain at loggerheads.
Mr Swan said the aim of the new review was to identify financial vulnerability. "Our financial system is in good nick and our economy is much stronger than just about every other developed economy, so Australia will not be assessed in that . . . process."
The fund's assessment of the global economy is that, although growth levels remain reasonable, supported by the big Asian economies, the world has not emerged from the global financial crisis.
The Wall Street Journal reported yesterday that the fund had concluded Greece's E340 billion ($464bn) foreign debt was unsustainable and needed to be restructured. The biggest concern is that banks in Greece, as well as France and Germany, are major holders of Greek government debt and that any default could affect the world financial system.
IMF European director Antonio Borges said: "The European financial system is still very dependent on the banking sector, many banks are still weak. This is a problem, this is a concern. There is an element of denial in Europe which we object to."
In Asia, the bigger worry is that economies are being allowed to grow too rapidly. China's inflation has hit 5.4 per cent while India's wholesale prices rose 8.9 per cent in the past year.
IMF managing director Dominique Strauss-Kahn said while rising food and fuel prices were contributing, it was implausible that their economies could continue to grow at 8 or 9 per cent without an outbreak of inflation.
The gold price reached a record $US1489 an ounce on Friday night and has now risen by $US150 an ounce since January on the strength of concern about inflation and financial stability.
http://www.theaustralian.com.au/news/nation/imf-deal-fails-to-ease-fears-for-world-economy/story-e6frg6nf-1226040598023
PS - Reading "between the lines" its not going to be all plain-sailing for the NWO Globalists IMF to try and squeeze their 'One World Currency' through by Stealth!
China still is owed alot of $money and are'nt coming to the table as quick as the Globalists would have liked!
As International Monetary Fund and G20 meetings ended in Washington yesterday, markets were rattled by reports that the fund believed Greece had no alternative to default and of inflationary surges in China and India.
Wayne Swan said after the meeting: "The global recovery is fragile and of course the risks are on the downside."
The Treasurer told Sky News's Australian Agenda that the G20 had discussed the effect on oil prices of instability in North Africa and the Middle East, the disasters in Japan and the sovereign debt crisis in Europe.
The main achievement of the G20 meeting was to commission detailed IMF reviews of the major economies for their contribution to global economic excesses. The fund will consider their policies on savings and investment as well as the management of currencies, on which China and the US remain at loggerheads.
Mr Swan said the aim of the new review was to identify financial vulnerability. "Our financial system is in good nick and our economy is much stronger than just about every other developed economy, so Australia will not be assessed in that . . . process."
The fund's assessment of the global economy is that, although growth levels remain reasonable, supported by the big Asian economies, the world has not emerged from the global financial crisis.
The Wall Street Journal reported yesterday that the fund had concluded Greece's E340 billion ($464bn) foreign debt was unsustainable and needed to be restructured. The biggest concern is that banks in Greece, as well as France and Germany, are major holders of Greek government debt and that any default could affect the world financial system.
IMF European director Antonio Borges said: "The European financial system is still very dependent on the banking sector, many banks are still weak. This is a problem, this is a concern. There is an element of denial in Europe which we object to."
In Asia, the bigger worry is that economies are being allowed to grow too rapidly. China's inflation has hit 5.4 per cent while India's wholesale prices rose 8.9 per cent in the past year.
IMF managing director Dominique Strauss-Kahn said while rising food and fuel prices were contributing, it was implausible that their economies could continue to grow at 8 or 9 per cent without an outbreak of inflation.
The gold price reached a record $US1489 an ounce on Friday night and has now risen by $US150 an ounce since January on the strength of concern about inflation and financial stability.
http://www.theaustralian.com.au/news/nation/imf-deal-fails-to-ease-fears-for-world-economy/story-e6frg6nf-1226040598023
PS - Reading "between the lines" its not going to be all plain-sailing for the NWO Globalists IMF to try and squeeze their 'One World Currency' through by Stealth!
China still is owed alot of $money and are'nt coming to the table as quick as the Globalists would have liked!