September 2013: There are several issues of high importance and priorities which can be taken at G20 Global Summit. The Revival of Global Economy, ending of Stimulus, Money printing Program by Federal Reserve, Reducing the US debt limit which is being currently under ‘Emergency Measures’ by US Treasury to buy more time. Apart from US Debt Limit, Ending of Quantitative Easing, there are several issues which directly impact the Global Economy to a high extent. The G20 constitutes to two thirds of the Global Population and 90 percent of its output is divided over issues such as emerging market turmoil and the Federal Reserve’s decision to end its program of stimulus for the U.S. Economy. At St. Peters burg, the Group of 20 developed and developing economies will try to forge a united front on growth, trade, banking transparency and fighting tax evasion. banking Transparency has become inevitable which has to be prioritized as first rank to make the Global Economy move. banking has been very important for Global Economy and the ‘0Too Big to Fail’ banks should now be made responsible for all the losses towards the Global Economy and its revival.



However, Syria dispute is taking center stage over the Global Economy. Foreign ministers from key states in the G20 – which includes all five permanent Security Council members – will discuss Syria on the sidelines of the meeting although it is not formally on the summit agenda. The G20 achieved unprecedented cooperation between developed and emerging nations to stave off massive economic collapse during the 2009 financial crisis, but you cannot see the same cooperation now. The reason is quite simple. The developing nations have recently faced several worries on their local economies while US, UK and Japan continue to Print Money at more rapid pace than every one on earth combined can earn that much money.



There are likely to be some agreements – including on measures to fight tax evasion by multinational companies in the recent time the large companies have found out the tax havens and moved the payment collection and employee data base to such tax haven locations. In order to have the right income and profit policies to all the companies it is necessary for every company to have the company locations prior to 2000. This can form a benchmark as normally seen before the dot com bubble burst, most of these companies being talked about have head quarters in their geographical locations and later moved to the tax havens. An initiative will be presented to leaders on defining regulation of the $630 trillion global market for financial derivatives – such as futures, options and swaps – to prevent a possible markets blow-up.

Steps to give the so-called shadow banking sector as pointed in my earlier blog until 2015 to comply with new global rules will also be discussed. But consensus is proving hard to achieve among developed economies as the United States takes aggressive action to spur demand and Europe moves more slowly to let go of austerity. Meanwhile, emerging economies in the BRICS – Brazil, Russia, China and South Africa – are divided over the role of the U.S. dollar in the world economy. And there has been no sign of them rallying behind the fifth BRICS member, India, after it called last Friday for joint currency intervention.

The International Monetary Fund will call at the meeting for strengthened global action to revitalize growth and better manage risks, banks, transparency in economy. Advanced economies led by the United States will increasingly drive global growth while emerging countries are at high risk of Financial Crisis , due to tighter U.S. monetary policy. The greatest worry may well be a higher and more prolonged period of sluggish global growth.



There is a potential warning of the threat posed by rising debt and suggesting the main problems of the global financial crisis may not have been overcome yet. We have just looking at the start of the Global Financial Crisis of a massive dimension and magnitude not known to human beings so far. It will require cooperation from all the countries and every individual to fight out the Financial Crisis of the millennium. We aren’t in a recovery neither we have seen the peak of the Global Financial Crisis – what we have done is, we have just won a breathing space. We have been borrowing time and delaying the declaration of default just to keep of the unpleasant scenes.

Banks have been directly responsible for the downfall of the Global Economy, the pointers straightway point to the Banks who have in turn been bailed out by Government policies of Quantitative easing a sophisticated name for Money Printing. The loss of Banking and Finance jobs created a major dent in Global Economy and the Property, Real Estate and Housing plunged. More than 80% of the jobs which were easier to do after the 2000 – 2008 crisis are clearly at stake and almost gone. The question once again arises what next?

People want jobs

The answer to all the problems is simple. End the Stimulus, Bond Buying program, Quantitative easing, Money Printing and divert all the attention to create jobs and growth in the economy, create more businesses. There are hundreds and thousands of businesses starving for funds than the stock markets. Why doesn’t the Federal Reserve understand this basic need? Or more rather I will say they do have the answer but they decided to take a easy route than take firms actions on failing banks and Mortgage Houses.

Regards,

Shrikant G. Shete

Gold Coast , QLD – 4215

Australia