Exactly what has the G20 nations decided on at their recent meeting on 4th September 2015 in Ankara, Turkey? Looking at how the markets have slowly clawed back sometimes with huge gains within minutes it looks like government fiscal policy (intervention/manipulation) has been ramped up. In a press release from IMF’s Christine Lagarde published on the 5th September 2015 she states that “downside risks to the outlook (of global markets) has increased” and “policy priorities have taken on even more emergency”. The global economy is slowing down and does not look like picking up any time soon. So this means “continued accommodative monetary policy” is high on the agenda after this meeting, i.e.; pump more liquidity into the market. This hasn’t fixed anything since 2008. All it does is revalue assets higher that then have to be corrected resulting in mini market crashes so why will it work now. It just means a bigger crash to come. She also agrees with the G20’s disappointment that the IMF’s 2010 Quota has not yet been achieved. The quota states in a 16th December 2010 press release: “With the adoption of the Resolution, the 14th General Review of Quotas has been completed with an unprecedented doubling of quotas to approximately SDR 476.8 billion (about US$733.9 billion) and a major realignment of quota shares among members”. The special drawing rights (SDR) basket of currencies includes the US dollar, The Euro, The Japanese Yen, and The British Pound. These are the currencies that countries can borrow from the IMF. Countries also have to have these on reserve in their governing banks, i.e.; in Australia the Reserve bank holds these. These are used to trade with. I do not think that this 2010 quota will ever be achieved especially when the US dollar is set for, let’s say a change. Also as the current currency war heats up not many countries want to trade with or use the US dollar any more.
The IMF’s paper dated 1st September 2015 suggests spending more on public infrastructure. So as according to The Brics Post China has announced they will raise their government spending by 10%. Now watch for other G20 countries to raise their government spending also. What happens is that the governments will borrow from the IMF to then use it on public spending thinking this will fix the economy. The big corporations that get the contracts for the work get the benefits then the people have to pay for it through their taxes. Nothing has changed the poor still get poorer and the rich get richer. Makes one wonder who or what controls the countries of the world.