G-20 Pledges Strong, Coordinated (Sisyphean) Response To Global Challenges [UPDATED With Full Text]

Tyler Durden's picture

Ironically, French minister Baroin says that the G-20 will release a statement in response to sovereign debt risk (after dinner of course). Having read the full text (below), there is, as we suspected, nothing of substance; rather a collection of the various actions that are pending in Europe (EFSF), US (Obama Jobs Bill), Japan (Fiscal measure), and EM (decoupling will save us all).


Via Bloomberg:








And some further thoughts / stating of the obvious:





And then some interesting diversions:




but of course the Japanese couldn't let it go without one quick stab:








Isn't it nice when we all get along? Well the response by the markets has been absolutely lackluster so far.


Full text of statement:

Wire: Bloomberg First Word (BFW) Date: Sep 22 2011  23:20:12
G-20 Pledges ‘All Necessary Actions’ to Safeguard Banks (Text)

Sept. 22 (Bloomberg) -- The following is a reformatted communique released today in Washington by Group of 20 finance ministers and central bank governors.


We, the Finance Ministers and Central Bank Governors of the G-20 are committed to a strong and coordinated international response to address the renewed challenges facing the global economy, notably heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment.


We are taking strong actions to maintain financial stability, restore confidence and support growth. In Europe, Euro area countries have taken major actions to ensure the sustainability of public finances, and are implementing the decisions taken by Euro area Leaders on 21 July 2011.


Specifically, the euro area will have implemented by the time of our next meeting the necessary actions to increase the flexibility of the EFSF and to maximize its impact in order to address contagion. The US has put forward a significant package to strengthen growth and employment through public investments, tax incentives, and targeted jobs measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term. Japan is implementing substantial fiscal measures for reconstruction from the earthquake while ensuring the commitment to medium-term fiscal consolidation.


Heightened downside risks have also made the economic environment for emerging markets and developing economies more challenging and they are adjusting their macro-economic policies accordingly to maintain stability and sustain growth. The contribution of the emerging market economies to global growth will increase as these economies as a whole move towards more domestic led growth, including through structural reforms and enhanced exchange rate flexibility to reflect economic fundamentals. We reiterate that excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.


We are committed to supporting growth, implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth. This will require a collective and bold action plan, with everyone doing their part. We are working together to put in place for the Cannes Summit such an action plan of coordinated policies with both short term decisions and a medium-long term perspective.


We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required. We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks and that they fully implement Basel III along the agreed timelines. Central Banks will continue to stand ready to provide liquidity to banks as required. Monetary policies will maintain price stability and continue to support economic recovery.


We will review progress made in implementing the commitments made today at our next meeting.

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metastar's picture

Let them FAIL!

Let the rule of law be restored!

Punish the guilty.

Let the savers rebuild the world!

TruthInSunshine's picture

Gotta' love the French talking of how coordinated action will save the world financial markets when France and the overwhelming majority of nations having representatives making similar claims are bankrupt.

The coordinated actions of the bankrupted will save the day...

Seize Mars's picture

Gotta' love the French talking of how coordinated action will save the world financial markets when France and the overwhelming majority of nations having representatives making similar claims are bankrupt.

The coordinated actions of the bankrupted will save the day...

Right on.

You see this is Keynes all over. "Aggregate Demand" is code for "spending without saving is good in general, even though it may be bad for an individual actor." This is the nature of a Keynesian robot. When a bunch of broke, lying sociopaths aggregate their resources, they will of course bail everyone out and save us from volatility. Back in their own lairs, of course they are insolvent!


CompassionateFascist's picture

"20 dwarves took turns doing headstands...20 dwarves...20 dwarves...20..."

                                                                                 - Bugs Seigel

nope-1004's picture

Ok, the Bloomberg release above:  Is it just me, or is that the same speach writer that Benocide uses?

Sure sounds like Federal Reserve talk.  Or are they all cut from the same sociopathic fecal matter?


Spirit Of Truth's picture

The talk is the same because it's all the same game, i.e., uphold collective confidence by telling ever grander lies to convince the world the fiction of banking system solvency is true.  The modern 'Wizards of Oz' believe extraordinarily dangerous monetarist delusions that through jawboning, printing money and like interventions they can manage the 'animal spirits' of markets.  This, of course, is a farce, and we are starting to see the consequences of the mass insanity driven by central banks.  Ultimately what's been inflated is not just the money supply and prices.  What's been inflated to untenable heights are irrational expectations and false hopes.  It's all about a false collective faith in Mammon IMHO....a faith doomed to a most tragic upset. My belief is that there is only one 'Central Planner' in whom we should place our trust and faith. That "In God We Trust" appears on our currency is darkly ironic to say the least. To what 'god' does this refer?

Jack Napier's picture

The god they refer to is the light bearer as Albert Pike would put it. The one looking down from atop the pyramid on the back of the US $1. So many names, yet all false in the same manner. He's also sitting atop the the top-left corner of the border around the top-right '1' on the front side of the dollar, Moloch, as the Bible mentions. This masquerading devourer giving power to the occultists who value money more than their own souls is not one to be trusted. His number can be found by adding up all the numbers in the numerological sun square, which shows who is in charge of this world of sun-worshipping luciferians, whether they know what they are or not. Be not of this world and you may find your name in the book of life by the blood of the lamb.

Green Leader's picture

There are far too many Mammon worshippers in Zero Hedge and all they are trying to do is figuring out how to save their wealth.

We should all be preparing for a lifestyle like in earlier times:






Winisk's picture

Good link.  Thanks.

I had a discussion with a teacher concerning how to best educate children for future employment.  They recognize they're not good at predicting future workforce requirements but then she immediately assured me that children need to be groomed for an increased reliance on technology.  I suggested that we are perhaps approaching peak technology for the average person and that there should be an emphasis on pioneering skills if they actually wanted to prepare for the future.  From her expression I swear she thought I was pulling her leg.   


Snidley Whipsnae's picture


Coordinated response? That is bankerspeak for more beat down of PMs... with coordinated printing to boot.

So intent are they on saving their fiat currencies, selling into PM markets the only real asset they have, that they will end this charade with nothing in their vaults.

Perhaps the new PMs owners would like to purchase some used bullion vaults? Should be bargain priced soon.

'Liquidate them all!' ... Mellon

EscapeKey's picture

The inflation is synchronous, so the majority of people are none the wiser.

And yes, for those investing in gold - as both Greenspan and Volcker have previously stated - central banks (should) stand ready to lease gold in the event it should rise. It'll be fun to see how they'll coordinate it all, now that India and China ramp up their physical purchases.

HoofHearted's picture

All of your gold are belong to us...and we still have trillions of your dollars and T-bills to spare. So, all of your national parks are belong to us. All your monuments...bitchez. We'd all better learn Chinese.

EscapeKey's picture

Yeah, let's just see how the Chinese situation evolves, as private debts start blowing up all over the place.

There's a metric fuckton of bad debt in China, in the event you don't know. China's like the Japanese miracle on fucking steroids.

slewie the pi-rat's picture

damn, E_K!

slewie just loves it when you talk that way!


saulysw's picture

Slewie, don't get too excited. EscapeKey, if I'm not mistaken, is a guy -- despite the Avatar pic. So, relax, please!

Edward Fiatski's picture

I see your price discovery proposal and raise you a thermonuclear world war for the purpose of "Let the savers rebuild the world!" Because nothing short of that will flush the system, which is imbedded in peoples' minds first and foremost.


prains's picture

I see your price discovery proposal and raise you a

no sir! I raise you one dipshiticus 1.45 masquerading as IQ145 he is the rebuilder of all the world if only the malcontents would listen. really, just buy into the bounce and all will 

be rediscovered.

Incubus's picture

Uhh, buddy: "they" are the savers.


Why do you think we're in a credit crunch, despite trillions being stuffed into the economy? 


Lol if you think the "savers" are virtuous and will right any sort of wrongs.  They'll rebuild it just the way they like it when everything gets tossed out.  And you fools will be parading around like you won anything.  You guys sure showed those windmills.

caerus's picture

the myth of sisyphus...

might i also suggest shelley's poem...

To suffer woes which Hope thinks infinite;
To forgive wrongs darker than death or night;
To defy Power, which seems omnipotent;
To love, and bear; to hope till Hope creates
From its own wreck the thing it contemplates;
Neither to change, nor falter, nor repent;
This, like thy glory, Titan, is to be
Good, great and joyous, beautiful and free;
This is alone Life, Joy, Empire, and Victory.

shelley - prometheus unbound

Dugald's picture

Ah yes I remember him......was Long on Liver...ha!

1835jackson's picture

blah blah blah...all politcians are fucking muppets


DeadFred's picture

To think that they killed perfectly good electrons to give us such an empty bag of wind.

Zgangsta's picture

Sir, you have besmirched the good name of Muppets!

Lone Deranger's picture

Let's all print money together.  WooHoooooo!!!!  Greece will be saved, no worries for Italy.  Let's party.

kito's picture

@lone---as a gold holder, im actually a bit concerned, as europe is not printing. theyve made it quite clear they wont go the way of the americans. europe is looking quite deflationary. there is a good chance that the stronger eu countries will protect their banks as the piigs default. thats quite a bit debt destruction without hyperinflation, which doesnt seem bullish gold to me.  

second, ben is NOT printing, and there is no political will in this country for fiscal stimulus.  i also dont see any political will for this country to bail out BAC or CITI. it just wont be allowed to happen. quite frankly this also doesnt bode well for gold holders. more debt destruction without the presses. a key question that nobody has asked is this--does ben want to destroy fiat and the economy by printing--or would he rather sacrifice the economy for the betterment/survival of the fiat dollar by refraining? im starting to think the latter may just be possible. 

Dingleberry's picture

Stick around kito. Ben will print. ECB will print (excuse me, issue bonds or something like it). And there will be secret swap lines (again) to europe as well. Banks will be forced into shotgun weddings with Fed backing, if necesary. Wait til Dow goes under 10k.  Then you will see a change of heart.  If Ben doesn't print, he will be admitting that the 3 trillion he brought on his books was a wasted experiment.  Ain't happening.  He has gone on record about his view of deflation. Print or die. Of course, death will also come if we print, just later on.

DeadFred's picture

Ben really, really wants to print, it's in his nature. I think he just had a mutiny in the FOMC. This minimal intervention had three dissenting votes. I think this is all that fourth dissenting vote would vote for. His policies aren't working and he's lost control of the Fed. He's not long in this job. It would have worked better for him to just postpone the decision. We've been on hold with all this negative news yet the market pulled off a series of mini rallies, why? Because in the back of everyone's mind was 'what will the all powerful Fed do to fix this'. The curtain is pulled back now so the holding pattern is over.

reader2010's picture

Gold is the ultimate hedge against SHTF. 

abalone's picture

All gold is the ultimate ZH phalanx symbol

Incubus's picture

we've got midas eating prunes with his sphincter pried open

abalone's picture

Does that mean gold will run..Hmmm bullish

CrashisOptimistic's picture

I'm not a gold hater or a gold lover.  

But you guys need to stop depending on it.  It's not going to save you.  Nothing is.  Thinking it will might destroy whatever tiny chance you have.

freeasabee1's picture

on the side of the old zerohedge blog site it says: " things you own end up owning you" just saying, and i do own PM

abalone's picture

Believe or not I depend on the USD just like the rest of the world's economy. There I said it we are all USD dependent & doesn't the world know this fact today

Snidley Whipsnae's picture


After the fiats fall gold will be there, along with silver and the other PMs and commodities... arable land, high grade jewels, some art, etc...They will all do relatively well.

Or, you can always bet on paper fiat. That will do well till it doesn't... Then go to zero. PMs don't go to zero, hence the qualifier 'relatively well'.

Ben has expanded the money supply no end but there is little velocity... Looks like a serious deflationary depression which may morph into hyper inflation if the Fed/central banks proceed apace...

As a Joker in the deck...The possibility remains that some big holder of US Ts heads for the door.


kito's picture

Everybody is so sure ben will print, but he sees no benefit from it anymore. He may actually be envisioning the end here, and he knows that since either road leads to implosion, better to try to save the fiat. Deflationary collapse has a better chance of fiat survival than a hyperinflationary one

AustriAnnie's picture

Except it isn't up to Ben.  He is not calling the shots.  He's the whipping boy.  He takes orders, and follows them, then he becomes the scapegoat later when excuses are needed.

TPTB do not care about saving fiat.  They care about their political survival from one moment to the next.

Mutatto's picture

I'm with you Kito. Hyperinflation will destroy the CBs. They know this. That's not an option.

Printing as long as you can WAS an option, for awhile. It's not really an issue of printing the money so much as siphoning off the revenue to pay the debt. GDP is just not growing fast enough to cover the interest expense. And it never will be again, at these debt levels.

I think the rules of the game are about to change.

CB's will have to choose between sacrificing the current creditors or bailing them out, thus sacrificing themselves down the road.

Self preservation, it's not a hard choice to make. Especially with congressmen breathing down your neck.

Even if the global economy miraculously recovers, it could never support the current debt, because rates would move up too. The damage done to balance sheets in the last 3 years is irreversible.

Massive defaults causing massive dollar destruction is the only way out, imo.

That said, given the right amount of panic, I suspect Ben would try to print again, because, well that's the only thing he can do.

I am not really sure how we get from "printing" to "staring at computer screens w blank faces and open mouths"...

I suspect the market will take care of that.

Snidley Whipsnae's picture

"Printing as long as you can WAS an option, for awhile."

I don't think we know how much the Fed has printed.

Remember when they did away with M3?

nope-1004's picture


You said

I'm with you Kito. Hyperinflation will destroy the CBs. They know this. That's not an option.


Massive defaults causing massive dollar destruction is the only way out, imo.

Your first sentence is deflationary.  Your second is inflationary.  Dollar destruction is not deflation, but hyper inflation.

So, wtf?



EscapeKey's picture

Well, technically, it's either. But considering it's "destruction", does it really matter?

Mutatto's picture

<Dollar destruction is not deflation, but hyper inflation.>


Printing more money caused the value of it to be less, inflation.

Destroying the money will raise the value of the remaining dollars relative to everythng else, deflation.

When I said "Dollar destruction" I was referring to debts being written down/off, destroyed.

I consider credit to be money, at least, until it is no more.


Perhaps you are thinking of dollar destruction as the loss in value of the dollar, which is not how I am using the term.  I rarely see dollar destruction discussed in that way, but I know some people do think in those terms.









mcguire's picture

when your first name is helicopter, printing is the only option...

what is it to the fed to let equities get slammed for a couple of months?  it achieves a goal, gets the politicians in line... 

there will be pain until they scream "save us"..

but in the end, he will print.

AustriAnnie's picture

"in the end, he will print"

Or else he might suffer a "heart attack" all of a sudden and be replaced.  Certain banksters need their bailouts, and they will get them.  Politicians need the banksters to get bailed out so they can fund their campaigns.  

Cliff Claven Cheers's picture

Europe will be the last country standing.

CenTexNate's picture

I think you mean the first continent flattened by the coming wrecking ball called "The Nightmare on Keynes Street." Also, I hate to break it to you, but Europe is not a country.

EscapeKey's picture

I'm not so sure. Europe might be the first casualty, but if Europe goes, there is absolutely ZERO chance the US will still be standing for any amount of time, so who's counting.

Britain seems to be strangely disconnected from all of this. Our deficit is horrible, debt situation out of control, and the banks are on the hook for billions, if not trillions. But at least we can print as we see fit.

mcguire's picture

we can print as we see fit, but we have a special penance that no other country/union has, namely the inevitable loss of "world reserve currency" status.. 

AustriAnnie's picture

......and inability to fund massive military presence globally....