G-20 Pledges Strong, Coordinated (Sisyphean) Response To Global Challenges [UPDATED With Full Text]
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:
*G-20 WILL ACT TO MAINTAIN FINANCIAL STABILITY, GROWTH: BAROIN
*G-20 COMMITTED TO 'STRONG AND COORDINATED' RESPONSE
*G-20 SEEKS BALANCE BETWEEN GROWTH, BUDGET BALANCING: BAROIN
*G-20 SEES 'HEIGHTENED DOWNSIDE RISKS FROM SOVEREIGN STRESSES'
*G-20 SEES 'FINANCIAL SYSTEM FRAGILITY'
*G-20 SAYS EURO AREA WILL IMPLEMENT EFSF STEPS BY NEXT G-20
And some further thoughts / stating of the obvious:
*G-20 SAYS EXCESS CURRENCY VOLATILITY HURTS ECONOMIC STABILITY
*G-20 SAYS EMERGING MARKETS ACTING TO SUSTAIN GROWTH
*G-20: EMERGING MARKETS' CONTRIBUTIONS TO WORLD GROWTH TO RISE
And then some interesting diversions:
*BAROIN SAYS G-20 ADVANCING ON INCLUSION OF YUAN IN SDR
*AZUMI SAYS HE TOLD G-20 OF JAPAN'S COMMITMENT TO MEND FINANCES
but of course the Japanese couldn't let it go without one quick stab:
*AZUMI SAYS JAPAN MAY AID EFSF IF NEED FOR MORE CAPITAL ARISES
*AZUMI: AID CONDITIONED ON EUROPE SOLIDIFYING EFSF DETAILS
*AZUMI SAYS EUROPE HASN'T REQUESTED JAPAN AID EFSF FACILITY
*AZUMI SAYS JAPAN'S EFSF CONTRIBUTION WOULDN'T BE BLANK CHECK
*AZUMI SAYS EUROPE'S PROBLEMS FOR EUROPE TO SOLVE
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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Let them FAIL!
Let the rule of law be restored!
Punish the guilty.
Let the savers rebuild the world!
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!
"20 dwarves took turns doing headstands...20 dwarves...20 dwarves...20..."
- Bugs Seigel
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?
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?
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.
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:
http://pioneerliving.net/
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.
"*G-20 COMMITTED TO 'STRONG AND COORDINATED' RESPONSE"
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
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.
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.
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.
damn, E_K!
slewie just loves it when you talk that way!
FREE TIBET!!!
Slewie, don't get too excited. EscapeKey, if I'm not mistaken, is a guy -- despite the Avatar pic. So, relax, please!
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.
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.
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.
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
Ah yes I remember him......was Long on Liver...ha!
ha!
blah blah blah...all politcians are fucking muppets
To think that they killed perfectly good electrons to give us such an empty bag of wind.
Sir, you have besmirched the good name of Muppets!
Let's all print money together. WooHoooooo!!!! Greece will be saved, no worries for Italy. Let's party.
@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.
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.
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.
Gold is the ultimate hedge against SHTF.
All gold is the ultimate ZH phalanx symbol
we've got midas eating prunes with his sphincter pried open
Does that mean gold will run..Hmmm bullish
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.
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
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
http://globaleconomicanalysis.blogspot.com/2011/09/hello-global-recession.html
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.
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
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.
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.
"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?
Mutatto:
You said
Your first sentence is deflationary. Your second is inflationary. Dollar destruction is not deflation, but hyper inflation.
So, wtf?
Well, technically, it's either. But considering it's "destruction", does it really matter?
<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.
Regards
M
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.
"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.
Europe will be the last country standing.
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.
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.
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..
......and inability to fund massive military presence globally....
Oh give me a fucking break about that "reserve" status. Once the realization kicks in that you won't pay back your debts in an honest way, the "reserve" status won't be worth jack shit.
And the US needs a constant inflow of capital. You can print currency, but not capital.
c'mere!
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.
*******
I agree with that-it should be currency positive if debt is destroyed-
The problen though is that the defaults will only be transfered and that will hit balance sheets "somewhere" and it will be Banks/Pension/MMMF's etc
It is default risk that keeps gold powered up-because-we really do have TBTF entities and after blowing a few trillion already-i cannot see them admitting that it did absolutely no good-
I think this is what the G-20 are eluding to with their "all together now" statements-
There can be "no" hyper-inflation in a floating competing currency system "provided" the devaluations/printing is carried out in coordination-
Of course it devalues all currency in sync-especially against gold-
Today's market action was all about printing. The market has become addicted to free cash from Uncle Ben. They are going to hammer the equity markets till they get what they want. A crashing equity market makes it impossible to put lipstick on the pig that is consumer sentiment.
EU will eventually be forced to print as well. When Greece defaults, a chain of events will be triggered that will force it. The alternatives are even worse, from the ECB's perspective. That's why they've tried so hard to pretend Greece, et al are not bankrupt.
You are high, please pass some this way.
Europe may not "print" (yet), but they sure as hell have been gobbling up Ben's printed dollars that were secreted away under the guise of TARP or QE1, 2, or whatever they choose to call it.
The fed was completely monetizing ALL treasury debt from Dec last year through at least March, and thanks to the convoluted "third party' buyer system, they probably still are.
Their stated balance sheet has increased by leaps and bounds.
Congress continues to spend trillions above what you are told they do, this money comes from somewhere.
And yet oh-so-many "smart" people refuse to see reality.
Want to prove me wrong? Get Benny to let Ron Paul audit his books. Put up or shut up.
But you can give me a break, Ben not printing? Too funny, we left the choice of "to print or not to print" a half decade back.
Oh yeah, final thought, Europe will eventually be hit by hyperinflation, it is inevitable when the fallout from our coming collapse will show just how completely interconnected the contagion really is.
In the meantime, Ponzi on
i wonder how big the rock their rolling is? The myth of sisyphus was a great book by Albert Camus,
chapter 1: an absurd reasoning
chapter 2: the absurd man
chapter 3: absurd creation
that seems to fit the situation well
"The Plague" A Camus 1947
In reference to bankers of course.
what a great book...i would also add kafka's unfinished masterpiece "the castle"
"what a great book"
Camus left very little about human nature unrevealed... but revealed sublimely.
"the guest" is appropriate, i think, given our present situation
"No Exit" also seems apropos, but then that would be Sartre...
ah yes...the wall is one of my favorites....how absurd!
love kafka, nihilism seems to rule this present world...not that thats a bad thing....Nietzsche kind of forsaw that
nietzche was a bold thinker whose ideas were perverted by evil men...shame
i agree with you, i'm also a huge fan of nietzche...like i said, he foresaw the nihilism...its exciting times we live in
Nietzche couldn't teach ya 'bout the raising of the wrist.....
As history continues it's rhythmic seduction of the ignorant, here is a nice piece for those few who genuinely want to better understand the world - https://mises.org/daily/5607/Rockefeller-Morgan-and-War
"As history continues it's rhythmic seduction of the ignorant"
True, and beautifully phrased!
We're out of money so global press releases will have to do....
Asian markets have decidedly swung.
It's a little known fact that the entire global economy can be fixed by releasing an endless amount of misleading statements. </clavin>
We shall bring forth the Eurobond -- whether you like it or not! Monetize? YES WE CAN!
Time to start collecting Bright Orangy/Yellowish $500's out of every monopoly box to use in helping out those in need -- thats about the equivalence of their plan
Aren't such statements by the G-20 somewhat redundant? Afterall, what would you expect them to say, "Holy Shit. We are so screwed!"
In America, there's a failure to appreciate Europe's leading role in the world.
Barack Obama
"Pass that hot potato the other way", says Timmah.
So it shall be.
Printing more EU notes...bankers must get their bonuses this year...better then last year ...after all, the butler needs a raise.....the yacht needs refurbishing (2010 is so out of date!)...new mercedes for the kids....and so on.
Japan is going to mend it's finances everyone! Our 22 year long nightmare is over!
Wait, they're going to help bail out Europe too?
Get serious please, next thing you'll tell me scientists found a particle that travels faster than light. Oh... Well, that's bullish for HFT algos.
60ns over 500 miles? That was the retardedest thing I read today...
Talk is cheap. Euro babble is cheaper.
When all is said and done, more is usually said...
Where are the details? I guess all 20 nations have to agree on details. That shouldn't take long,
We have to pass the bill so that you can find out what is in it.
zorba, I have an inside man, here are the details:
Internal Memo, Not for Public Release
Please discuss and return your vote
1. We are screwed
2. Oh my freaking god! We are so fucked! Cash out your personal fortunes and buy gold!
3. Print, print, print away. Print until the presses burn and 90% of my net worth is in gold and pensioners are eating bugs out of each other's hair.
There you go, don't tell anyone.
That what's ineluctable is inevitable.....
First, Euro zone,
Then, the US,
Then, the G7 ( Euro zone plus the US/Canada, plus Japan).
Now, the G20 ( add BRICks?)
What's next?
Look, the ultimate issue is: Bad credit can't get credit from banksters, and good credit don't want credit from anyone, which, makes all banks in run-off mode at best, a bank run at worst.
Can G20 make banksters grant credit to borrowers who categorically can't and won't repay and Can G20 make good borrowers to apply credits they absolutely don't want?
I'd like to take a loan for $500 uh $50 million dollahs, but nobody will lend. Promised to pay off and all...
Tyler, i've been given you some love, clickin the shit out of the ads on the side.
Cheers
What if Bernanke's seemingly lackluster Op Twist is really a specific attempt to drive (private) funds toward European banks...and it's not really intended to be a US policy at all (other than a defensive move)?
There will be a public freakout if he tries to lend directly to Euro banks again like he did in '08 but maybe by driving long term UST rates even lower he can indirectly make (he hopes) Eurodollar market options more attractive for cash looking for a home.
That swap line is standing ready too...
Any Eurodollar desk jockeys out there that see/feel anything along these lines? I mean, isn't it weird that Europe is imploding, it's kind of a big deal and BB has been pretty mum about it in public?
Leaders from 20 bankrupt countries to discuss ways to avoid going further into bankruptcy. Double bankruptcy is not an option. Possible tools discussed included: 1) laying the points with the Patriots for the rest of the season, 2) pitching a new reality series "G-20, G-Money", 3) taxing prostitution (with an exemption for political and economic leaders of course), and 4) moving the decimal one space to the right on all the indexes. Birinyi, Biggs, and Doll all confirmed that this is very bullish for equities, particularly option 4.
Yada Yada
QE to INFINITY......Bitchez!!! What the fuck is so hard about understanding this economic fait accompli???? We crossed the Rubicon long ago. The die has been cast. No stopping it now, until the entire system fails. Get cranking Ben and ECB!!
Everyone sing together now:
"We are the World, we are the children"
When does the video come out of the G20 singing along? Maybe a Christmas Special in our future?