Thursday, March 31, 2011 – by TheDailyBell.com
Chinese criticism of the Federal Reserve for flooding the world with money may get little traction among Group of 20 finance chiefs meeting in China as Europe’s debt crisis and Japan’s disaster take precedence. U.S. Treasury Secretary Timothy F. Geithner, French President Nicolas Sarkozy, Chinese Vice Premier Wang Qishan and European Central Bank President Jean-Claude Trichet will gather in Nanjing for a one-day seminar on the international monetary system tomorrow. A Chinese state economist called for an end to the dollar’s dominance in a paper posted on a website yesterday, blaming the U.S. for fueling inflation. – Bloomberg
Dominant Social Theme: Things are bad all over. With so much going on in the world, it’s time for everybody to pull together and come up with a global solution. The world is inter-dependent after all. It is because we say it is.
Free-Market Analysis: The outlines of the drive toward a global currency are becoming clearer in our view. We’re continually surprised by how fast events are moving and how orchestrated they seem if you follow them closely. We’ve already reported on the International Monetary Funds’ efforts at placing SDRs front-and-center as a workable global currency. Then recently we covered George Soros’ drive to set up a new Bretton Woods-style international conference to agitate for one-world money. And now the G20 is making positive noises, as we can see from this article excerpted above. You can see two previous articles on this topic here:
The Nanjing conference is just an appetizer, apparently, with additional monetary work to be done at yet another upcoming meeting. Here’s how Bloomberg puts it: “German Deputy Finance Minister Joerg Asmussen said the event isn’t intended to deliver short-term fixes and is part of preparing for a G-20 meeting in Cannes in November that should yield more substantive results.”
These folks sure get around. Several alternative news sites have suggested that the G20 is more or less a floating world government in everything-but-name. Maybe so. We figure the meetings are so common because none of the participants wish to put anything on paper or send each other emails. Any negotiations on such sensitive issues are discussed face-to-face in a clean room without listening devices or recordings. That seems to be the way it works. They get together a lot.
It’s a little funny watching this to remember the gravity of the G7. Those long ago conferences took place infrequently and always garnered headlines. It was somewhat astonishing to see world leaders in the same place at the same time. Each meeting was commemorated with a grainy black and white photo that appeared in the newspapers of all the world leaders posing stiffly together so you could compare heights and smiles.
But today – heck it’s old hat. World leaders – presidents, even – seem to get together more often than business-people planning the launch of a new product (and perhaps that’s what they’re doing). It’s not just the G20 either. European leaders are always meeting together in Brussels. There are telephones and computers but that doesn’t seem to matter. Only face-to-face meetings will do. The paranoia seems obvious.